Senior Citizen ID: 20% Discount and VAT Exemption
LGU · benefits
Quick answer
Any resident citizen aged at least 60 gets a 20% discount and VAT exemption on medicines, medical services, transport, restaurants, hotels and funerals. The OSCA ID of your city or municipality is honoured nationwide. Water and electricity get a separate 5% discount.
Last verified
Where these figures come from
About these figures: the numbers below come from LGU's official published sources: Official Gazette | Republic Act No. 9994, Expanded Senior Citizens Act of 2010 (https://www.officialgazette.gov.ph/2010/02/15/republic-act-no-9994/, retrieved 2026-09-01); Official Gazette | Republic Act No. 10645, mandatory PhilHealth coverage for senior citizens (https://www.officialgazette.gov.ph/2014/11/05/republic-act-no-10645/, retrieved 2026-09-01). Agencies change fees and rates without notice, so confirm with LGU before you rely on them. Last verified: 2026-09-01.
Who qualifies
A senior citizen is any resident citizen of the Philippines at least 60 years old. That is the whole test in Section 2 of the Act as amended, and it carries two conditions people miss.
| Condition | Requirement |
|---|---|
| Age | At least 60 years |
| Residence | Resident of the Philippines |
| Citizenship | Citizen of the Republic |
A foreign retiree living in the Philippines does not qualify under this law, however long they have been here. A Filipino citizen abroad does not either, because the definition requires residence.
The 20%, and the VAT exemption on top of it
Section 4(a) grants a 20% discount and exemption from the value-added tax, if applicable, across nine categories. Two distinct benefits, both due.
| # | Covered |
|---|---|
| 1 | Medicines, including influenza and pneumococcal vaccines, and essential medical supplies, accessories and equipment determined by the DOH |
| 2 | Professional fees of attending physicians in all private hospitals, medical facilities and outpatient clinics |
| 3 | Professional fees of licensed professionals providing home health care services |
| 4 | Medical and dental services, diagnostic and laboratory fees in private facilities |
| 5 | Land transport: buses, jeepneys, taxis, AUVs, shuttle services, LRT, MRT and PNR |
| 6 | Domestic air and sea fares, based on actual fare and advanced booking |
| 7 | Hotels and similar lodging, restaurants and recreation centers |
| 8 | Admission fees at theaters, cinema houses, concert halls, circuses, leisure and amusement |
| 9 | Funeral and burial services for the death of a senior citizen |
Why the VAT exemption matters separately. A ₱1,120.00 VAT-inclusive restaurant bill is ₱1,000.00 of value plus ₱120.00 of VAT. Strip the VAT and apply 20% and the senior pays ₱800.00, not ₱896.00. The saving is ₱320.00, which is 28.6% of the posted price, not 20%.
| Step | Figure |
|---|---|
| Posted price, VAT inclusive | ₱1,120.00 |
| VAT removed | ₱1,000.00 |
| Less 20% | ₱800.00 |
| Total saving against the posted price | ₱320.00 |
Establishments frequently apply 20% to the posted price and stop. That is the single most common shortfall on a senior citizen bill.
Utilities are 5%, not 20%
Section 4(c) is a different benefit with a much smaller number and three conditions that all have to hold.
| Requirement | |
|---|---|
| Discount | A minimum of 5% |
| Covers | Monthly water and electricity from public utilities |
| Meter | Registered in the senior citizen’s own name |
| Electricity ceiling | Monthly consumption not over 100 kilowatt hours |
| Water ceiling | Monthly consumption not over 30 cubic meters |
| Per household | Granted once per household regardless of how many senior citizens live there |
The meter condition disqualifies most seniors living with adult children, because the account is usually in the child’s name. Nothing in the Act works around that.
The other benefits
| Benefit | Detail |
|---|---|
| Income tax | Exemption for senior citizens who are minimum wage earners under RA 9504 |
| Training fees | Exemption from fees for socioeconomic programs |
| Government facilities | Free medical and dental services, diagnostic and laboratory fees including x-rays, CT scans and blood tests |
| Vaccination | DOH administers free influenza and pneumococcal vaccination for indigent senior citizens |
| Express lanes | Required in all commercial and government establishments, priority in their absence |
| Death benefit | A minimum of ₱2,000.00 to the nearest surviving relative, adjustable for inflation under DSWD guidelines |
| PhilHealth | Mandatory coverage of all senior citizens under RA 10645 of 2014 |
PhilHealth is the one most people do not know about. RA 10645 was approved on 5 November 2014 and made coverage mandatory for every senior citizen, with the enrolment of those not already covered funded out of the National Health Insurance Fund from RA 10351 proceeds. There is nothing to apply for.
Proving you are entitled
Three proofs are accepted, and the first is not compulsory:
- An OSCA identification card from the Office for Senior Citizens Affairs of the place where you reside. The Act states this card must be honoured nationwide, so a Cebu OSCA ID works in Manila.
- Your passport.
- Other documents establishing that you are a citizen and at least 60 years of age.
That third route matters when an establishment refuses anything but an OSCA card. The statute does not give them that option.
Already on sale? Take the higher one
The Act is explicit: on goods and services already carrying a promotional discount, the senior citizen may take the promotional discount or the statutory discount, whichever is higher. Not both. A 30% clearance price beats the 20%, and a 10% promo does not.
What it costs the establishment
Establishments may claim the discounts under subsections (a) and (c) as a tax deduction based on the cost of goods sold or services rendered, deductible from gross income in the same taxable year the discount is granted.
There is also an incentive to hire seniors: a private entity employing a senior citizen gets an additional deduction of 15% of the salaries and wages paid, if the employment runs at least 6 months and the senior’s annual income does not exceed the latest poverty threshold.
Penalties for refusing
| Violation | Imprisonment | Fine |
|---|---|---|
| First | Not less than 2 years, not more than 6 years | ₱50,000.00 to ₱100,000.00 |
| Subsequent | Not less than 2 years, not more than 6 years | ₱100,000.00 to ₱200,000.00 |
| Abusing the privilege | Not less than 6 months | ₱50,000.00 to ₱100,000.00 |
Where the offender is a corporation or partnership, the officials directly involved are liable. An alien offender is deported immediately after service of sentence. The authorities may also cancel or revoke the business permit, permit to operate or franchise.
Note the third row. Abusing the privilege is itself an offence, which covers lending your ID to someone under 60.
Related pages
The same 20% and VAT exemption structure applies to persons with disability under a separate statute, set out in our PWD ID guide. For what these cards do and do not prove as identification, see valid IDs in the Philippines. The other document your city hall issues on a yearly basis is the cedula.
Where this goes wrong
Taking 20% off the posted price. The VAT comes off first. On a VAT-inclusive price the correct saving is larger than 20%.
Expecting 20% on the electricity bill. Utilities are a separate 5% benefit with a meter-name condition and consumption ceilings of 100 kilowatt hours and 30 cubic meters.
Being told only an OSCA ID counts. A passport works, and so do other documents establishing citizenship and age.
Being told an out-of-town OSCA ID is not valid. The Act says an OSCA card is honoured nationwide.
Stacking the discount on a sale price. You take the higher of the two, not both.
Frequently asked questions
- At what age do I become a senior citizen?
- 60. Section 2 of the Act as amended defines a senior citizen or elderly as any resident citizen of the Philippines at least sixty (60) years old. Two conditions sit inside that: residence and citizenship. A foreign national living in the Philippines does not qualify under this law.
- How much is the senior citizen discount?
- 20%, plus exemption from VAT where VAT applies. The two are separate and both are due. On a VAT-inclusive price the combined effect is larger than 20% alone, because the 12% VAT comes out before the 20% is applied.
- What does the 20% cover?
- Nine categories under Section 4(a): medicines and essential medical supplies, professional fees of attending physicians in private facilities, professional fees for home health care, medical and dental services with diagnostic and laboratory fees in private facilities, land transport fares, domestic air and sea fares, hotels and restaurants and recreation centers, admission fees for theaters and cinemas and concerts, and funeral and burial services.
- Is my electricity bill discounted?
- By 5%, not 20%, and only on conditions. Section 4(c) grants a minimum of 5% on monthly water and electricity, provided the meter is registered in the senior citizen's own name, and provided monthly consumption does not exceed 100 kilowatt hours of electricity and 30 cubic meters of water. The privilege is per household regardless of how many senior citizens live there.
- Do I need the OSCA ID specifically?
- No. Section 4 accepts any of three proofs: an identification card issued by the Office for Senior Citizens Affairs of the place where you reside, your passport, or other documents establishing that you are a citizen and at least 60 years of age. An OSCA ID issued by one city must be honoured nationwide.
- What if the item is already on sale?
- You take whichever is higher. The Act provides that on goods and services already on promotional discount, the senior citizen can avail of the promotional discount or the statutory discount, whichever is higher. It is not both stacked together.
- Am I covered by PhilHealth automatically?
- Yes. RA 10645, approved 5 November 2014, amended the Act to provide that all senior citizens shall be covered by the national health insurance program of PhilHealth, with enrolment funded from the National Health Insurance Fund out of proceeds of RA 10351.
- What happens to an establishment that refuses?
- For a first violation, imprisonment of not less than 2 years but not more than 6 years and a fine of not less than ₱50,000.00 but not exceeding ₱100,000.00. For a subsequent violation the fine runs from ₱100,000.00 to ₱200,000.00. The authorities may also cancel the business permit or franchise.