HOUSE OF REPRESENTAT
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
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SEVENTEENTH CONGRESS |
First Regular Session

i RI RATION UNIT
H.B. No. 5'70 | BULLS AND INDEX SERVICE

Introduced by HONORABLE BELLAFLOR J. ANGARA-CASTILLO

EXPLANATORY NOTE

The Special Program for Employment of Students (SPES) was instituted under Republic
Act No. 7323 in early 1992 to help poor but deserving students in pursuing their education by
encouraging their employment during summer and/or Christmas vacations.

In 2009, Republic Act No. 7323 was amended by Republic Act No. 9547, expanding the
coverage of SPES to include poor but deserving students aged 15 to 25 years old to help
them pursue their education through employment during summer or Christmas vacations, or
anytime of the year for those enrolled in tertiary, vocational or technical education for the
period of twenty (20) to fifty-two (52) working days.

While it is recognized that SPES as an employment bridging program has changed the lives
of many Filipino youth, it cannot be denied that the implementation of the program has
encountered multitude of problems, both procedural and substantial. The current program
covers only currently enrolled students, depriving other disadvantaged youth to pursue
education. Difficulty is also encountered as to the mode of payment of wages to the
beneficiaries.

Thus, this bill proposes to strengthen the program by allowing the employment not only of
poor but deserving students but also out-of-school youth, dependents of displaced workers
or would-be displaced workers due to business closures or work stoppages intending to
enroll in any secondary, tertiary or technical-vocational institutions. The Public Employment
Service Offices (PESOs) shall provide employment facilitation services to the applicants.

Also, this bill seeks to change the mode of payment of salaries and wages by the
government from vouchers to cash to be paid directly by the Department of Labor and
Employment (DOLE) to the student or through financial institutions or other payment
facilities. The government share (40%) shall be paid within thirty (30) working days upon
submission of the report on the payment of wages or salaries by the participating
establishment.

With the improvement and expansion of the Special Program for Employment of Students,
it is hoped that this will allow more Filipino youth to pursue their education towards a better
future through easy access to the program.

In view of the foregoing, the passage of this bill is earnestly sought.

aeltor’s Meticrsmso

Representative
Lone District, Province of Aurora


SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

H.B. No. 570

Introduced by HONORABLE BELLAFLOR J. ANGARA-CASTILLO.

AN ACT AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NUMBER 7323, AS
AMENDED BY REPUBLIC ACT NUMBER 9547, OTHERWISE KNOWN AS THE
SPECIAL PROGRAM FOR EMPLOYMENT OF STUDENTS (SPES), STRENGTHENING
AND EXPANDING ITS COVERAGE, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 1 of Republic Act Number 7323, as amended, is hereby amended to
read as follows:

"Section 1. Any provision of law to the contrary notwithstanding, any person or entity
employing at least ten (10) persons may employ poor but deserving students, out-of-
school youths, or, dependent/s of a displaced or would-be displaced worker/s due
to business closures or work stoppages intending to enroll in any secondary, tertiary
or technical-vocational institutions, fifteen (15) years of age but not more than thirty
(30) years old, paying them a salary or wage not lower than the minimum wage for
private employers and the applicable hiring rate for the national and local
government agencies: Provided, That students enrolled in the secondary level shall
only be employed during summer and/or Christmas vacations, while those enrolled
in the tertiary, vocational or technical education may be employed at any time of the
year: Provided, further, That their period of employment shall be from twenty (20) to
fifty-two (52) working days only, except that during Christmas vacation, employment
shall be from ten (10) to fifteen (15) days which may be counted as part of the
students’ probationary period should they apply in the same company or agency
after graduation: Provided, finally, That students employed in activities related to
their course may earn equivalent academic credits as may be determined by the
appropriate government agencies.

For purposes of this Act, poor but deserving students and out-of-school youths refer
to those whose parents’ combined income, together with their own, if any, does not
exceed the annual regional poverty threshold level for a family of six (6) for the
preceding year as may be determined by the National Economic and Development
Authority (NEDA)

Employment facilitation services for applicants to the program shall be done by the
Public Employment Service Office (PESO).

Participating employers in coordination with the PESO, must inform their SPES
employees of their rights, benefits, and privileges under existing laws, company
policies, and employment contracts.”

SEC. 2. Section 2 of the same Act is hereby amended to read as follows:

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"Section 2. Sixty per centum (60%) of the said salary or wage shall be paid by the
employers in cash and forty per centum (40%) by the government also in the form of
cash directly to the student, or through financial institutions or other payment
facilities, subject to the existing rules on procurement, which shall be applicable in
the payment for the students’ tuition fees, books, and other education-related
expenses, including their daily allowance in going to school: Provided, That local
government units (LGUs) may assume responsibility for paying in full his salary or
wages. The 40% share shall be paid within thirty (30) working days upon submission
of the partner-employer or participating establishment of their report on payment of
salary or wages which shall be the basis of the 40% salary or wages to be paid by
the government through the department of labor and employment.

In case of sickness, absence, or death of the SPES beneficiary, the immediate heirs
may claim his/her salary: Provided, That proof to this effect has been clearly
established by the SPES beneficiary.

The SPES beneficiary shall be entitled to social protection by virtue of an insurance
coverage with the Government Service and Insurance Commission (GSIS) for a
period of one (1) year.”

SEC. 3. Section 3 of the same Act is hereby amended to read as follows:

"Section 3. The Department of Labor and Employment shall issue the implementing
rules and regulations to carry out the purposes of this Act. Further, the Secretary of
the Department of Labor and Employment may issue additional guidelines which
may be deemed appropriate and as necessity arises: Provided, That the issuance is
in the form of a department order.”

SEC. 4. Section 4 of the same Act is hereby deleted.

SEC. 5. Section 5 of the same Act is hereby renumbered to Section 4, and amended to read
as follows:

“Section 4. The Secretary of the Department of Labor and Employment shall
include in the Department's program the operationalization of the expanded Special
Program for Employment of Students, including the maintenance of an online
database registry for monitoring of SPES beneficiaries

The amount necessary to carry out the purposes of this Act is hereby authorized to
be appropriated in the General Appropriations Act for 1992 and the subsequent
annual general appropriations acts: Provided, That the appropriation, for the
purposes of this Act shall not be reduced by Congress below the amount
appropriated for the previous year and, after approval; shall be automatically and
regularly released: Provided, further, That the appropriation herein shall be
increased by at least 20 per centum (20%) annually.”

SEC. 6. Section 6 of the same Act is hereby renumbered to Section 5.
SEC. 7. Repealing Clause. — All laws or parts thereof, decrees, orders, rules and
regulations deemed inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.

SEC. 8. Separability Clause. — If any provision of this Act is declared unconstitutional or
invalid, the other provisions not affected thereby shall remain in full force and effect.

SEC. 9. Effectivity Clause. — This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,

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