Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS
First Regular Session

House Bill No. 73

Introduced by REP. AUGUSTO BOBOY SYJUCO, Ph. D.

EXPLANATORY NOTE

Republic Act No. 7277 otherwise known as the “Magna Carta for Disabled
Persons” provides for the rehabilitation, self-development and self-reliance of disabled
persons and for their integration into the mainstream of society among others. To
harness their productivity, the law encourages private employers to hire disabled
persons through an apprenticeship program and provides incentives to employers
whenever they satisfactorily comply with the directory. .

However, since the law's enactment in 1992 and despite efforts maximizing the
implementation of the law, most private employers remain impervious to it and are
adamant, if not deliberately refuse to extend the needed assistance to people with
disabilities.

It should be noted that the Magna Carta's provisions are only persuasive and
non-mandatory. In this context, it now becomes apparent that more positive and
compulsive measures are needed to ensure a more effective implementation of, and
compliance with the mandate of the law.

This bill aims to require private employers to hire disabled persons who have
qualified in accordance with the provision of R.A. No. 7277 and other applicable labor
laws, and for such employed persons to constitute a minimum percentage of their total
work forces. For compulsion, the proposed measure specifically mandates the
imposition of the penalties provided in the law for failure to comply with the requirement.
These twin amendments are envisioned to facilitate the accomplishment of the Magna
Carta’s objective of providing sufficient employment opportunities to qualified disabled
persons. On the other hand, to further encourage private employers to comply with the
requirements of law, the bill provides for additional incentives to employers in the form
of more tax deductibles. In doing so, the proposed measure hopes to highlight the
principles of fairness and positivism over punitive policies in the legislative search for
more implementable and achievable legislations. ss

With the foregoing considerations, the early passage of this bill is earnestly
sought

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AUGUSTO BOBOY SYJUCO, Ph. D.
2" District, Province of Iloilo


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS

First Regular Session

House Bill No 73

Introduced by REP. AUGUSTO BOBOY SYJUCO, Ph. D.

AN ACT REQUIRING EMPLOYERS IN THE PRIVATE SECTOR TO HAVE IN THEIR
EMPLOY DISABLED PERSONS, AND PROVIDING ADDITIONAL INCENTIVE
THEREFOR, AMENDING FOR THE PURPOSE REPUBLIC ACT NUMBERED
SEVENTY-TWO SEVENTY-SEVEN OTHERWISE KNOWN AS THE MAGNA CARTA
FOR DISBALED PERSONS

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

SECTION 1. Title — This Act shall be known as the “Private Employment Quota Law’.

SEC, 2, — Republic Act Numbered Seventy-Two Seventy-Seven (RA7277) otherwise
known as the “Magna Carta for Disabled Persons” is hereby amended by inserting a
new Section 7 — A which shall read as follows:

SECTION 7 — A. PRIVATE EMPLOYMENT QUOTA. - EVERY EMPLOYER IN
THE PRIVATE SECTOR SHALL ENSURE AT LEAST THREE PERCENT (3%) OF HIS
REGULAR OR PERMANENT WORKFORCE, INCLUSIVE OF MANAGERIAL AND
SUPERVISORIAL PERSONNEL, SHALL BE COMPOSED OF DISABLED PERSONS
WHO SHALL HAVE QUALIFIED IN ACCORDANCE WITH THE PRECEDING
SECTION. EMPLOYERS SHALL COMPLY WITH THE PROVISION OF THIS
SECTION WITHIN ONE (4) YEAR FROM THE DATE OF EFFECTIVITY OF THIS ACT.
FAILURE TO COMPLY WITH THIS SECTION SHALL BE PENALIZED IN
ACCORDANCE WITH SECTION 46, PARAGRAPH (A) OF THIS ACT.

SEC. 3. ~ Section 8, paragraph (b) of the same Republic Act is also hereby amended to
read as follows:

Section 8. INCENTIVES FOR EMPLOYERS aa

a) xxx
b) Private entities that employ disabled persons, who meet the required skills
or qualifications, either as regular employee, apprentice or learner, shall
be entitled to (an) THE FOLLOWING deduction (,) from their gross
income:
1. TWENTY-FIVE (25%) OF THE TOTAL AMOUNT PAID AS SALARIES
AND WAGES TO THE DISABLED PERSONS, OR
2. THIRTY PERCENT (30%) OF THE TOTAL AMOUNT PAID AS
SALARIES AND WAGES TO DISABLED PERSONS IF THE


PROVISION OF SECTION 7 - A OF THIS ACT HAS BEEN
COMPLIED WITH.

Provided however, that such entities present proof as certified by the Department
of Labor and Employment (DOLE) that disabled persons are under employ: Provided
further, that the disabled employee is accredited with the Department of Labor and
Employment (DOLE) and Department of Health (DOH) as to his disability, skills and
qualification

SEC. 4. Implementing Rules and Regulations. — The Secretary of the Department of
Labor and Employment (DOLE) within ninety (90) days from the effectivity of this Act
shall formulate and promulgate rules and regulations to implement the provisions of this
Act.

SEC. 5. Repealing Clause. — All laws, executive orders, presidential decrees, and
other executive issuances, inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.

SEC. 6. Effectivity. — This Act shall take effect fifteen (15) days from the date of its
publication in the Official Gazette or from the date of its publication in at least two (2)
national newspapers of general circulation.

Approved.