Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

‘Twentieth Congress
First Regular Session

2
HOUSE BILL NO. 443 2

Introduced by Representative Johanne Monich G. Bautista

EXPLANATORY NOTE

Our Constitution recognizes the Filipino family as the foundation of the nation. Hence,
the State is mandated to strengthen its solidarity and actively promote its total development. In
this connection, Article II, Section 12 of the Constitution mandates the State to support the
natural and primary right and duty of parents in the rearing of the youth for civic efficiency and
the development of moral character. The State, under Article XV, Sections 3(2) and (3) of the
Constitution, is also mandated to defend the right of children to assistance and to proper care,
and the right of the families to a family living wage and income.

The well-being of parents and their ability to care for and nurture their children is
important to a stable family. While our current labor laws provide for maternity, paternity, and
solo parents benefits, these are insufficient to address the comprehensive needs of the parents
in the modern workplace. In particular, these are insufficient to meet the challenges they face
in caring for their children, such as when their children are sick, or when their children have
special needs. The existing benefits are also insufficient to meet the costs of childcare in the
midst of rising costs of living, low wages, limited income earning opportunities, and rigid
working arrangements.

This bill secks to grant leaves, flexible work arrangements, subsidies, and tax reliefs to
assist parents in the burdens of childcare. It also grants incentives to businesses and
professionals engaged in childcare, and employers providing assistance for their employees’
childcare. This bill fulfills the State’s duty not only to support the right of parent-workers to
the rearing of their children, but also to their right to a family living wage and income.

In view of the foregoing, the immediate passage of this Bill is immediately sought.

JOHANNE QM scrisrs

Represdntative, TRABAHO Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Twentieth Congress
First Regular Session

HOUSE BILL No._ 4432

Introduced by Representative Johanne Monich G. Bautista

AN ACT STRENGTHENING THE RIGHTS AND BENEFITS
FOR PARENTAL CHILDCARE, AND PROVIDING FUNDS THEREFOR

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

SECTION 1. Short Title. — This Act shall be known as the “Parental Childcare Act
of 2025.”

SECTION 2. Declaration of Policy. — It is the declared policy of the State to support
the natural and primary right and duty of parents in the rearing of the youth for civic efficiency
and the development of moral character. Relatedly, it is the policy of the State to defend the
right of children to assistance and to proper care. Moreover, the State shall defend the right of
the family to a family living wage and income.

Towards these ends, the State shall institutionalize incentives and subsidies systems
that will assist parents and caregivers in the financial costs associated with childcare, as well
as measures and mechanisms to promote the accessibility of commodities essential to childcare
and child rearing for all parents and caregivers, regardless of social status and financial capacity,
and the development of businesses and professionals dedicated to childcare.

SECTION 3. Coverage. — This Act shall apply to all parents and caregivers,
regardless of status, who are legally required to provide and are actually providing care and
supervision, and are the primary source of the necessities, support, and authority of a child
below eighteen (18) years old, in a permanent capacity, with the end goal of rearing the child
until adulthood.

SECTION 4. Definition of Terms. — For purposes of this Act, the following terms
shall be defined as follows:


(a) Caregiver refers to a parent, legal guardian, or relative within fourth (4th) civil degree
of consanguinity or affinity of the parent or legal guardian who assumes parental care
and support of a child as a result of the death, abandonment, disappearance, or
absence of the Parents;

(b) Child or Dependent refers to a person under eighteen (18) years old, or who is
eighteen (18) years old and older but is unable to fully take care or protect himself or
herself from abuse, neglect, cruelty, exploitation, or discrimination because of a
physical or mental disability or condition, who lives with and is dependent upon a
parent or legal caregiver for support;

(c) Childcare Professional refers to healthcare professionals who provide childcare to
children in medical centers, schools, specialized institutions, or in a home-based
setting;

(a) Childcare refers to acts of providing for the basic needs, healthcare, mental and
physical safety, emotional support and formation of the personality of the child by a
parent or caregiver;

(©) Flexible Working Arrangements refers to work schedules granted to an employee or
worker who is a parent or caregiver to vary their physical presence in the workplace
without affecting the core work hours as reasonably defined by the employer; and

(f) Parent refers to the mother or father, by nature or by legal adoption, who provides
parental care and support to a child.

SECTION 5. Subsidies for Childcare. — Households with children shall be entitled
to monetary subsidies in accordance with the national policies and guidelines promulgated by
the Intergovernmental Coordinating Body, as defined in Section 13 of this Act: Provided, that
nothing in this Act shall be construed as to diminish existing benefits currently enjoyed by
parents or caregivers under other laws or regulations.

SECTION 6. Childcare-Related Services Tax Credit for Parents. — A parent with
two (2) or more children shall be entitled to an annual tax deduction of up to Fifty Thousand
Pesos (PhP50,000.00) for expenses incurred in services related to childcare.

SECTION 7. Childcare-Related Value-Added Tax Exemption. — Houscholds
earning less than Two Hundred Fifty Thousand Pesos (PhP250,000.00) annually shall be
entitled to Value-Added Tax (VAT) exemption on essential commodities related to childcare.
Such essential commodities shall include the following:

(a) Infant formula;

(b) Infant diapers;

(©) Food and micronutrient supplements;

(@ Duly prescribed medicines, vaccines, and other medical supplements;

(e) School books for children enrolled in nursery, kindergarten, and grade school; and

(f) Other items exclusively used for childcare and child rearing, as identified by
Intergovernmental Coordinating Body.


SECTION 8. Childcare-Related Tax Credit for Businesses and Professionals. —
Accredited businesses and professionals who are engaged in childcare shall be entitled to an
annual tax deduction of up to One Hundred Thousand Pesos (PhP100,000.00), in accordance
with the national policies and guidelines promulgated by the Intergovernmental Coordinating
Body, as defined under Section 12 of this Act.

SECTION 9. Tax Deduction for Employers. — Any employer in the private sector
providing childcare assistance to their employees, such as, but not limited to, on-site childcare
facilities, partnership with a licensed childcare provider, or direct financial assistance to
employees shall be entitled to fifty percent (50%) tax deduction on the total amount of the
employer’s verifiable expenses for such assistance.

SECTION 10. Flexible Working Arrangements. — Caregivers of children below
seven (7) years old, or children seven (7) years old and older but are unable to fully take care
or protect themselves because of a physical or mental disability or condition, shall have the
right to flexible working arrangements, which shall include, but not limited to, the use of
remote working arrangements, flexible working schedules, compressed workweeks, or a
reduction in working hours, in accordance with the following conditions:

(a) Employers may impose reasonable qualifications, such as period-of-work or length-
of-service, before employees may qualify for flexible working arrangements;

(6) Employers are required to consider and respond to requests by caregiver-employees
for flexible working arrangements within a reasonable period of time, taking into
account the needs of both the employer and the caregiver-employee;

(©) The employer may only deny such request for valid and justifiable ground and only
where such request shall adversely affect work productivity and cause substantial
damage to the business. In such case, the employer shall provide the requesting
caregiver-employee a written explanation setting forth the reason or reasons for
such denial; and

(4) An agreement regarding flexible working arrangements shall be in writing and
limited in duration based on the agreement of the employer and the caregiver-
‘employee: Provided, that the employer and employee may mutually agree in writing
to either extend or pre-terminate an agreement on said flexible working
arrangements.

SECTION 11. Childcare Leave. - A forfeitable and noncumulative childcare leave of
not more than seven (7) working days with pay every year shall be granted to any caregiver-
employee, regardless of employment status, who has rendered service of at least six (6) months:
Provided, That this benefit shall not be available to solo parent employees entitled to parental
leave under Section 7 of Republic Act No. 8972, as amended by Republic Act No. 11861.

SECTION 12. Non-Discrimination, - No employer shall discriminate against the
employment of caregivers in order to avoid the benefits provided for in this Act.

SECTION 13. Non-Diminution of Benefits. - Nothing in this Act shall be construed
as to diminish existing benefits currently enjoyed, whether or not these are granted under


collective bargaining agreements or present laws, if the same are more beneficial to the
caregiver.

SECTION 14. Intergovernmental Coordinating Body. — A coordinating body
comprised of a representative from the Department of Social Welfare and Development
(DSWD), the Department of Labor and Employment (DOLE), the Civil Service Commission
(CSC), and the Bureau of Internal Revenue (BIR) shall be established for the purposes of
implementing the provisions of this Act. The Intergovernmental Coordinating Body shall be
formed no later than sixty (60) days from the effectivity of this Act.

SECTION 15. Functions of the Intergovernmental Coordinating Body. — The
Intergovernmental Coordinating Body, for the purposes of the implementation of the
provisions of this Act, shall have the following powers and functions:

(a) Promulgate national policies and implement guidelines for the programs established
under this Act: Provided, that the policies and guidelines shall be consistent with
its mandate and the objectives of this Act;

(b) Propose amendments to law, rules, and regulations pursuant to its mandate and the
objectives of this Act;

(©) Conduct and facilitate consultation and dialogues within and among all concerned
stakeholders in the industry;

(@) Engage in studies and research on childcare and child rearing;

(e) Implement programs and activities that aim to develop the participation of
caregivers in the care and support of their children;

(£) Conduct information campaigns on the importance of childcare and the presence of
parental figures in the growth and development of children; and

(g) Perform such other functions as may be directed by the DSWD.

SECTION 16. Penalties for Violations. — (a) Any person who deliberately fails or
refuses to provide the rights and benefits provided under this Act to a qualified caregiver shall
be punished by a fine not exceeding One Hundred Thousand Pesos (PhP100,000.00), or
imprisonment of not less than one (1) year but not more than two (2) years, or both, at the
discretion of the court.

If the violation is committed by a corporation, trust or firm, partnership, association, or
any entity, the penalty of imprisonment shall be imposed on the entity’s responsible officers,
including, but not limited to, the president, vice president, chief executive officer, general
manager, managing director, or partner directly responsible therefor.

(b) Any person who misrepresents status or falsifies any document to avail of the
benefits, or cause another person to avail or be denied of the benefits provided under this Act,
or any person who abuses the privileges and benefits granted herein shall be punished with a
fine of not more than Fifty Thousand Pesos (PhP50,000.00) and imprisonment of not less than
six (6) months but not more than one (1) year, or both, at the discretion of the court.


SECTION 17. Construction in favor of labor. — All doubts in the interpretation and
implementation of the provisions of this Act shall be resolved in favor of labor.

SECTION 18. Implementing Rules and Regulations. — The Intergovernmental
Coordinating Body shall promulgate the necessary rules and regulations for the effective
implementation of this Act within one hundred twenty (120) days from its effectivity.

SECTION 19. Appropriations. — The amount necessary for the implementation of
this Act shall be included in the respective budgets of the DSWD, DOLE, CSC, and BIR in the
annual General Appropriations Act (GAA).

Government agencies and LGUs may also utilize a portion of their respective Gender
and Development (GAD) budget to implement this Act anchored on the guidelines issued by
the Department of Budget and Management and the Department of Economy, Planning, and
Development.

SECTION 20. Separability Clause. — If any provision or any part hereof is held
invalid or unconstitutional, the remainder of the law or the provisions not otherwise affected
shall remain valid and subsisting.

SECTION 21. Repealing Clause. — All laws, presidential decrees, executive orders,
or issuances or any part thereof which are inconsistent with the provision of this Act are hereby
repealed, amended, or modified accordingly.

SECTION 22. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or any newspaper of general circulation.

Approved,