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FOURTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
) 
9 jm 30 ;q? .,- 
OF THE PHILIPPINES 
) 
n - h 
S E N A T E  
Senate Bill No. 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
In its effort to augment the existing policies and programs in making 
education accessible to all Filipinos, R.A. 7323, otherwise known as the “Special 
Program for the Employment of Students” was passed and implemented in 1993. 
This law, which is primarily aimed towards helping poor but deserving students to 
pursue their education through wages earned by working during summer and 
Christmas vacations, is being successfully implemented by the Department of 
Labor and Employment (DOLE), the Department of Finance (DOF) and the 
Department of Education (DEPED). 
From 1993 to 1997, the innovative educational financing program has 
benefited about 420,000 poor but deserving students. For the past four (4) years, 
a total of 2.2Billion pesos were awarded wherein 60% or P1.3Billion came from 
employees while 40% or P890Million was contributed directly from the national 
budget through DOLE. 
While the program has gained popular acceptance and approval by the 
public, the time has come to make the necessary amendments that will make it 
more relevant and responsive under present and future conditions. 
Based on the analysis done by implementation of the program, the 
1. 
Employer Participation Coverage - to encourage a wide 
participation of private employers in the program, the existing 
employee requirement of 50 should be lowered to 20. This will 
definitely encourage the cottage, small and medium enterprises 
to participate; 
Maximum Family Income Requirement - the present P36,OOO 
annual family income requirement to qualify as “poor” has 
become irrelevant, considering that the poverty threshold for a 
family of six has increased since 1993; 
Exclusion of National and Local Government Units - Since 
the intent of the law was for the private employees to share in the 
financing the education of the poor but deserving students, it 
would be better to maximize their contribution by using 
government budget counterparts for wider private participants. 
Automatic Appropriation - the program, as its performance 
showed deserves automatic appropriations without reduction. 
This will provide further from the ill effect of partisan interests and 
ensure regular increases in its allocation. 
following areas need to be addressed: 
2. 
3. 
4. 


5. 
Additional Penalties - penalties should be specified for those 
who will be found liable in not honoring the program’s education 
vouchers. 
In view of the above-mentioned considerations, the passage of this bill is 
earnestly requested. 


FOURTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
) 
7 JuN 30 132 :c.s 
OF THE PHILIPPINES 
1 
) 
n 
S E N A T E  
Senate Bill No. 
6 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
MAKING R.A. 7323 MORE EFFECTIVE AND RELEVANT TO PRESENT AND 
FUTURE CONDITIONS BY EXPANDING ITS COVERAGE IN TERMS OF 
EMPLOYER PARTICIPATION, ADJUSTING THE INCOME CLASSIFICATION 
CLAUSES ON ITS BUDGETARY ALLOCATION AND PROVIDING 
PENALTIES FOR THOSE WHO DISHONOR THE EDUCATION VOUCHERS, 
AMENDING FOR THESE PURPOSES R.A.7323 ENTITLED, “AN ACT TO 
HELP POOR BUT DESERVING STUDENTS PURSUE THEIR EDUCATION BY 
ENCOURAGING THEIR EMPLOYMENT DURING SUMMER ANDIOR 
CHRISTMAS VACATIONS, THROUGH INCENTIVES GRANTED TO 
EMPLOYERS, ALLOWING THEM TO PAY ONLY SIXTY PER CENTUM OF 
THEIR SALARIES OR WAGES AND THE FORTY PER CENTUM THROUGH 
EDUCATION VOUCHERS TO BE PAID BY THE GOVERNMENT 
PROHlBlTlNG AND PENALIZING THE FILING OF FRAUDULENT OR 
FICTITIOUS CLAIMS, AND FOR OTHER PURPOSES 
REQUIREMENT THEREIN, PROVIDING AUTOMATIC AND NON-DIMINUTION 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 1 of R.A. 7323, otherwise known as the “Special 
Program for the Employment of Students (SPES)” is hereby amended to read as 
follows: 
SECTION 1. Any provision of law to the contrary not withstanding, 
any person or entity EXCEPT NATIONAL AND LOCAL GOVERNMENT 
UNITS employing at least [fifty (SO)] TWENTY (20) persons may during 
the summer and /or Christmas vacations employ poor but deserving 
students fifteen (1 5) years of age but not more than twenty-five (25) years 
old, paying them a salary or wage not lower than the minimum wage 
provided by law and other applicable labor rules and regulations. 
For purposes of this Act, poor but deserving students refer to those 
whose parents’ combined incomes, together with their incomes, if any, do 
not exceed [Thirty-six thousand (P36,OOO.OO) per annum]. THE ANNUAL 
APPLICABLE REGIONAL POVERTY THRESHOLD LINE FOR THE A 
FAMILY OF SIX FOR THE PRECEDING YEAR AS MAY BE 
DETERMINED BY THE NATIONAL ECONOMIC DEVELOPMENT 


AUTHORITY (NEDA). Employment should be at the Labor Exchange 
Center of the Department of Labor and Employment (DOLE).” 
SEC 2. Sixty per centum (60%) of said salary or wage shall be paid 
by the employer in cash and forty per centum (40%) by the Government in 
the form of a voucher which shall be applicable in the payment for his 
tuition fees and books in any educational institution fir secondary, tertiary, 
vocational or technological education. The amount of the education 
voucher shall be paid by the Government to the educational concerned 
within thirty (30) days from its presentation to the officer or agency 
designated by the Secretary of Finance. 
The voucher shall not be transferable except when the payee 
thereof dies or for a justifiable cause stops in his duties in which case it 
can be transferred to his brothers and sisters. If there is none, the amount 
thereof shall be paid his heirs or to the payee himself, as the case maybe. 
ANY PERSON OR ENTITY WHO REFUSES OR DISHONORS AN 
EDUCATION VOUCHER, SHALL UPON CONVICTION BE PUNISHED 
UNDER SECTION 4 OF THIS ACT.” 
SEC 3. Section 5 of the same law is hereby amended to read as follows: 
“SEC 5. 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 Act; 
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 TWENTY (20%) PER 
CENTUM ANNUALLY.” 
SEC 4. All laws, rules and regulations, decrees, issuances or any parts 
thereof inconsistent with this Act, are hereby repealed, modified, or amended 
accordingly. 
SEC 5. This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or in at least two (2) national papers of general 
circulation, whichever comes earlier. 
Approved,