How To Compute Senior Citizen’s Discounts and Other Important Facts

8 Aug 19 (1)

Often I would hear a senior citizen customer asking a cashier or store manager to explain how his or her discount privilege was applied to the purchase.  Most of the time, they feel that that the discount given to them is insignificant – kinda like an “expectation versus reality” scenario we often see in our Facebook feed.

So to help everyone understand how senior citizen discounts are applied, I am sharing the following computation that I found in Moneymax.ph.  Read on.

Product price: Php 500

VAT Rate: 12%

Formula: Selling Price / VAT Rate = VAT Exempt Sales

Solution: PHP 500 / 1.12 = PHP 446.43

Since senior citizens are entitled to a 20% discount upon purchase of goods and services, you need to deduct the percentage by multiplying the VAT exempt sales by 20%.

Formula: VAT Exempt Sales x 20% = Senior Citizen Discount

Solution: PHP 446.43 x 0.20 = PHP 89.29

To identify the billable amount, subtract the VAT exempt sales by senior citizen discount.

Formula: VAT Exempt Sales – Senior Citizen Discount = Billable Amount

Solution: PHP 446.43 – PHP 89.29 = PHP 357.14

  

Facts about SC privileges we need to know

 1. PhilHealth benefits for senior citizens are mandatory.

 This is a government-mandated privilege and must be honored by all accredited healthcare facilities in the Philippines.  This is provided in addition to the senior citizen discount and VAT exemption, such that:

  • When a senior citizen is confined in a private hospital, the 20% discount and VAT exemption are deducted first from the medical bill before deducting the PhilHealth benefit.
  • No Balance Billing policy applies in public hospitals where senior citizen patients no longer pay for their hospital bill.

The senior citizen can avail of treatments even without a Member Data Record (MDR), they need only to show their senior citizen ID or any government ID.  For hassle-free benefits claim though, it is better to register as a senior citizen PhilHealth member.

  1. The Senior Citizen Law applies everywhere in the Philippines.

 When a senior citizen is denied the mandatory 20% discount anywhere in the Philippines, you can demand it from the store owner or the manager.  Further, you can file a complaint at the city or municipal hall where the business establishment is located, or at the Office of Senior Citizen Affairs (OSCA) of the same.

  1. Senior Citizens can get a Senior Citizen discount using any valid ID.

 If the senior is unable to present his or her senior citizen ID issued by the OSCA, he or she can simply present any government-issued ID such as:

  • Passport
  • SSS or UMID card
  • GSIS ID
  • Driver’s License
  • PRC ID
  • Voter’s ID
  • Postal ID

That is why it is best that the senior citizen family member has at least one or more other ID in his possession all the time.  It is illegal for businesses to honor only the senior citizen ID and refuse to give discounts when senior customers present other valid IDs.

  1. A senior citizen can authorize a representative to claim the 20% discount on his or her behalf.

 If the senior citizen is unable to walk or leave the house, is bedridden or confined in a hospital, he or she can claim their discounts on food and medicine purchases by assigning an authorized representative.  Below is the list of required documents and IDs needed in order to claim the said discount through a representative:

  • Senior citizen ID or any government ID
  • OSCA Purchase Booklet
  • The representative’s government ID
  • Signed authorization letter from the senior citizen
  1. Double discounts are not allowed.

 What does this mean?

Seniors cannot avail of promotional discounts in hotels, restaurants, and other establishments on top of the 20% discount.  The SC law states that when seniors purchase something on a promo, they can get only either of the two discounts, whichever is higher.

  1. Senior citizens are entitled to 5% utility discounts.

 If the utility bill accounts are under the senior citizen’s name, a 5% discount can be applied to their power and water bills.  The following conditions apply though:

  • Household consumes not more than 100 kWh of electricity in a month.
  • Household consumes not more than 30 cubic meters of water in a month.
  1. Senior citizens get a 5% discount on some grocery supplies.

 This is applicable when seniors buy groceries worth up to PHP 1,300 per week of at least four kinds of basic necessities and prime commodities:

  • Rice, bread, and corn
  • Chicken, beef, and pork (fresh, canned, and processed)
  • Fresh eggs
  • Coffee, creamer, and sugar
  • Fresh fruits and vegetables
  • Garlic and onions
  • Cooking oil and salt
  • Noodles, canned sardines, and canned tuna
  • Fresh milk and other dairy products
  • Detergents
  • Electrical supplies, light bulbs, and batteries
  • Geriatric diapers

Just make sure that they are able to present their OSCA purchase booklet when they shop at supermarkets and drug stores.  This is not applicable at sari-sari stores, cooperative stores, wet markets, and talipapa.

  1. 20% discount when booking Grab rides.

 Ride-hailing services such as Grab are mandated to grant 20% discount to senior customers.  The Grab account should be listed under a senior’s name though in order for the discount to automatically apply.

  1. Domestic flights booked online come with senior citizen discount.

 Major local airlines offer 20% SC discount and VAT exemption for online flight bookings of senior citizens.  Included in the airline list are AirAsia, Cebu Pacific, and Philippine Airlines.

The SC discount applies only to regular fares for domestic flights.  This is not applicable for promo fares, baggage allowance, and other fees.  International flights are not covered as well.

  1. Vehicle coding exemption and free parking in certain cities.

 Makati and Manila cities exempt seniors from the number coding scheme – whether the senior drives the vehicle or is a passenger.  Registered senior citizens enjoy free parking in Cebu City, Manila, Muntinlupa City, and Quezon City.

  1. Access to priority lanes and queues.

 Seniors no longer need to line up in banks, train stations, fast food restaurants, supermarkets, and drug stores.

Source: www.moneymax.ph

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Published by MasterCitizen

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9 thoughts on “How To Compute Senior Citizen’s Discounts and Other Important Facts

    1. 1.Determine the VAT amount:

      Formula:
      Amount of VAT = (Selling Price x 12%) / 1.12
      Amount of VAT = (Php 100 x 12%) / 1.12
      Amount of VAT = (12) / 1.12
      Amount of VAT = Php 10.71

      2. Deduct the VAT amount from the selling price to get the Sales Net of VAT:

      Formula:
      Sales Net of VAT = Selling Price – Amopunt of VAT
      Sales Net of VAT = Php 100 – Php 10.71
      Sales Net of VAT = Php 89.29

      3. Determine the discount to be applied:

      Formula:
      Amount of Discount = Sales Net of VAT x 20%
      Amount of Discount = Php 89.29 x 20%
      Amount of Discount = Php 17.86

      4. Determine the amount to be paid by the Senior Citizen

      Formula:

      Amount to be paid by the SC = Sales Net of VAT – Amount of Discount
      Amount to be paid by the SC = Php 89.29 – Php 17.86
      Amount to be paid by the SC = Php 71.43

    1. Hi Germas,

      Here is the answer to your question:

      Sari-sari stores, as well as talipapa, wet markets and cooperative stores are exempted from granting the 5% discount to senior citizens. Sari-sari stores refer to “mom and pop” type of establishments that are engaged exclusively in retail business, specifically selling an assortment of commodities in “tingi” or in small quantity solely to end-users.

      Groceries operating inside the wet markets are covered by the Guidelines to grant the special discount on select goods.

      For the complete information on SC discounts, you may refer to this page: https://www.region2.dti.gov.ph/index.php/progs-sevces/consumer-welfare/5-senior-citizens-discount

      MC

  1. Hi maam…we just bought 2 chicken from tatoy’s manokan, iloilo ang our senior discount is 28 pesos only…The cashier shown us her computation 2 chicken cost is P760.00 then they divide it by 4…190\1.12×20%=???? Is this right computation?

    1. Hi Ma Christy,

      They probably thought that the senior could not finish one whole chicken anyway so they divided it by 4 and applied the discount only on one part. Some restaurants do that.

      But yes, that is the right computation.

      MC

  2. What if the store will not give the exact discount for senior citizen? What is the liability of the store?

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