Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
ESTABLISHING A LABOR EMPOWERMENT ASSISTANCE PROGRAM, 
AMENDING PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE 
KNOWN AS THE LABOR CODE OF THE PHILIPPINES, APPROPRIATING 
FUNDS THEREFOR AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
Former President Rodrigo Duterte signed Executive Order 5 which adopts 
the 25-year long term vision entitled AmBisyon Natin 2040 as a guide for 
development planning. The AmBisyon Natin 2040, initiated by the National 
Economic and Development Authority, represents the aspirations of the 
Filipino people and describes the kind of life that people want to live, as well as 
how the country will look like by 2040. 
According to the studies supporting the AmBisyon Natin 2040, 79% of 
Filipinos aspire for a simple and comfortable life which includes having 
opportunities for good quality employment without leaving the country. 
However, 48.5% of Filipinos are not fully confident that they can reach their 
goals. 
One of the challenges hindering the country from achieving the vision is 
unemployment. As of July 2016, the Philippine Statistics Authority recorded 
the Philippine unemployment rate at 5.6%. While there are thousands of jobs 
available for the Filipinos, many of them do not possess the required 
qualifications for these opportunities. 
July 1, 2022
3:39 pm
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This bill seeks to address the mismatch between business demands and 
the talent pool by establishing a Labor Employment Assistance Program 
(LEAP). The LEAP will serve as a bridging program for workers in between job 
periods. It is also directed to provide financial assistance to workers in between 
job periods at an amount which is no less than the appropriate minimum 
wage. 
Through this initiative, we are bridging the gap between the skills set of 
the Filipino workers and the jobs available in the country. 
In view of the foregoing, the immediate passage of this bill is earnestly 
sought. 
REP. PM VARGAS   
Fifth District, Quezon City 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
ESTABLISHING A LABOR EMPOWERMENT ASSISTANCE PROGRAM, 
AMENDING PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE 
KNOWN AS THE LABOR CODE OF THE PHILIPPINES, APPROPRIATING 
FUNDS THEREFOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Labor 
Empowerment Assistance Program (LEAP) Act.” 
SECTION 2. Amendment. – A new Article 107-A of the Labor Code of the 
Philippines, as amended, is hereby provided to read as follows: 
“ARTICLE 107-A. LABOR EMPOWERMENT ASSISTANCE PROGRAM. – 
WITH 
CONTRIBUTORY 
FUNDING 
FROM 
THE 
REGISTRATION 
OF 
CONTRACTORS OR SUBCONTRACTORS, TEN PERCENT (10%) OF THE 
GROSS CONTRACT COST LEVY FROM THE PRINCIPAL EMPLOYER FOR 
EVERY 
OUTSOURCING 
CONTRACT 
ENTERED 
INTO 
AND 
BUDGET 
ALLOCATION FROM THE GENERAL APPROPRIATIONS ACT (GAA), A LABOR 
EMPOWERMENT ASSISTANCE PROGRAM (LEAP) SHALL BE CREATED. THE 
LEAP SHALL: 
(A) SERVE AS A THREE-MONTH BRIDGING PROGRAM FOR WORKERS
IN BETWEEN JOB PERIODS AND IS LINKED TO TESDA SKILLS
TRAINING OR UPGRADING DURING THE UNEMPLOYMENT PERIOD;
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(B) THE AMOUNT OF FINANCIAL SUPPORT SHALL NOT BE LOWER 
THAN THE APPROPRIATE MINIMUM WAGE IN THE FORM OF A 
MONTHLY CASH CARD OR STORED VALUE CARD FOR BASIC 
NECESSITIES 
LIKE 
RICE, 
INFANT 
FORMULA, 
MEDICINES, 
ELECTRICITY AND WATER UTILITIES; AND 
 
(C) LABOR 
ORGANIZATIONS 
IN 
THE 
NATIONAL 
TRIPARTITE 
INDUSTRIAL PEACE COUNCIL (NTIPC) SHALL CO-ADMINISTER THE 
DISTRIBUTION OF THE CARDS AND MONITORING OF COMPLIANCE 
BY THEIR BENEFICIARY-MEMBERS WITH THE REQUIRED TESDA 
SKILLS TRAINING OR UPGRADING.” 
SECTION 3. Implementing Rules and Regulations. – The Secretary of Labor 
and Employment shall promulgate the necessary implementing rules and 
regulations within thirty (30) days from the effectivity of this Act. 
SECTION 4. Repealing Clause. – All laws, decrees, rules, and regulations or 
parts thereof, which are contrary to or inconsistent with this Act are hereby 
repealed or modified accordingly. 
SECTION 5. Separability Clause. – If any provision of this law or the 
application thereof to any person or circumstance, is held invalid, the 
remainder of this law, or the application of such provision or part to other 
persons of circumstances, shall not be affected thereby. 
SECTION 6. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
Approved,