Module 3: Business Case for Inclusion

Legal Incentives

The Magna Carta for Persons with Disabilities has provisions that aim to incentivize the participation of employers in creating more inclusive workplaces.

Twenty-five percent (25%) of the total amount paid as salaries and wages to persons with disabilities can be deducted from the gross income of the private entities that employ them. To avail of the deductions, the private entities should present:

Department of Health Accreditation as to the skills and qualifications of the disabled persons

Department of Labor and Employment (DOLE) Accreditation as to the skills and qualifications of the disabled persons

Certification of Employment of the accredited disabled workers from the concerned DOLE Regional Director

Private entities that improve or modify their physical facilities in order to provide reasonable accommodation for disabled persons shall also be entitled to an additional deduction from their net taxable income, equivalent to fifty percent (50%) of the direct costs of the improvements or modifications. This additional deduction, however, does not apply to improvements or modifications of facilities required under the Accessibility Law (Batas Pambansa Bilang 344). (Republic Act No. 7277, 1991).