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FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
SENATE 
S.B. No. 3135 
Introduced by Senator EDGARDO J. ANGARA 
EXPLANATORY NOTE 
The State recognizes the role of the youth in nation building. The State 
will, thus, endeavor to provide new graduates of higher learning with opportunities 
for growth and development by creating policies that protect their welfare, increase 
their chances of immediate employment, and readily provide employment benefits 
equal to those of regular employees. 
As a bill of rights for new graduates, this bill aims to provide each new 
graduate with such opportunities. 
By providing various incentives to new 
graduates, the students are encouraged to stay in school, finish their respective 
courses of learning, whether it be a technical-vocational course, or a bachelor's 
degree, and look forward to a fruitful and meaningful life after school. 
The bill also aims to assist each new graduate with employment and 
business opporttmities. Through the passing of a law which requires technical and 
financial assistance in start-up businesses, as well as mandate job placement for 
new graduates, these new graduates are assured that their hard work in school will 
payoff with generous rewards. 
Finally, the bill aims to recognize new graduates by awarding them with 
incentives, discounts and benefits for graduating from institutions of higher 
learning. 
In view of the foregoing, the passage of this bill is earnestly sought. 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 3135 
Introduced by SENATOR EDGARDO J. ANGARA 
AN ACT 
PROVIDING INCENTIVES FOR NEW GRADUATES OF COLLEGES, 
UNIVERSITIES AND ACCREDITED INSTITUTIONS OFFERING 
TECHNICAL-VOCATIONAL COURSES, OTHERWISE KNOWN AS 
THE "BILL OF RIGHTS FOR NEW GRADUATES" 
(j- .-
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
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SECTION 1. Short Title. This Act shall be known as the "Bill of 
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Rights for New Graduates. " 
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SEC. 2. Coverage. This Bill of Rights shall apply to new graduates from 
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all colleges and universities, and from accredited institutions offering technical-
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vocational courses. A new graduate is a Filipino who just finished a bachelor's 
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degree from any college or university, or completed a technical-vocational course 
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from any accredited institution in the Philippines. He shall be considered as such 
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for a period of one (1) year from the date of graduation or completion, as 
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evidenced by the date indicated on his diploma or certificate. 
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SEC. 3. Declaration of Policy. The State recognizes the role of the youth 
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in nation-building. As such, it shall promote and protect their rights, interests and 
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well-being. The State will, thus, endeavor to provide new graduates of higher 
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learning with opportunities for growth and development by creating policies that 
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protect their welfare. 
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SEC. 4. 
New Graduate's Incentive Card. 
Upon showing proof of 
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graduation, the Public Employment Service Office (PESO) of the Department of 
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Labor and Employment shall issue to the new graduate a "New Graduate's 
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Incentive Card," which shall be used to avail of all the privileges enumerated in 
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the succeeding provisions of this Act. 
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SEC. 5. Basic Rights of New Graduates. In consonance with the above-
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stated policy, the State shall provide the necessary requirements, conditions and 
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opportunities to ensure proper adherence to the following basic rights of a new 
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graduate: 
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5.1. Right to a good start. 
a) The State shall provide each new graduate with health, housing 
and social security benefits upon graduation. Thus, a new graduate shall 
be allowed to enroll himself as a sponsored member of the Philippine 
Health Insurance Corporation, Pag-ibig and Social Security System. As 
such, he d shall be exempted from paying monthly contributions that fall 
within one (1) year of the graduate's date of graduation. 
1) Every new graduate who is a sponsored member of the 
Social Security System under this law may, within one year 
from the date of his graduation, avail of a salary loan 
equivalent to one (1) month's salary upon presentation of 
proof of employment. 
2) Every new graduate who is a sponsored member of the 
Philippine Health Insurance Corporation under this law 
may, within one year from the date of his graduation, avail 
of the same benefits of an individually paying member to 
cover the graduate'S health and medical needs. 
3) Every new graduate who is a a sponsored member of the 
Pag-Ibig Fund under this law may, within one year from 
the date of his graduation, avail of a home loan upon (1) 
complete advanced payment of two years' voluntary 
contribution, and (2) presentation of proof of employment. 
The contribution payments for the first year shall be 
advanced by the governrnent. 
b) A new graduate who is securing government-issued documents 
usually required in the course of his employment application shall likewise 
be exempted from payment of fees and charges in connection with such 
documents, provided it is secured within one (1) year from his date of 
graduation. This includes, but is not limited to: (a) one copy of his birth 
certificate from the National Statistics Office, (b) tax identification 
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number (TIN) from the Bureau of Internal Revenue (BIR), (c) clearance 
from the National Bureau of Investigation (NBI), (d) passport from the 
Department of Foreign Affairs (DFA), and (e) barangay clearance or 
certificate of residency from the local government units. 
This exemption from payment of fees and charges shall likewise 
apply to a new graduate who will venture into business or self-
employment, in relation to securing business or self-employment permits 
from the Department of Trade and Industry (DTI), the Securities and 
Exchange Commission (SEC), the BIR, and the City or Municipal Hall. 
c) The State shall establish new programs that provide funding 
and technical support to business ventures of a new graduate, while 
strenghtening existing programs. 
Awarding of such assistance to a new 
graduate shall be based on the innovative features of a product or service, 
and its business viability and economic contribution to the country: 
1) Each new graduate who ventures into a technology-
based enterprise shall be able to avail of the programs under the 
Department of Science and Technology's Technology Application 
and Promotion Institute, including financial and technical 
assistance in the areas of setting up and operation of pilot ventures 
for micro, small and medium enterprises (MSMEs), upon 
submission of a feasibility study. Any loan granted under this 
program shall not be charged any interest. 
2) Each new graduate who ventures into the production, 
processing or manufacturing of products or commodities shall be 
able to avail of the benefits under Republic Act 9178, or the 
Barangay Micro Business Enterprises (BMBEs) Act of 2002, 
including exemption from income tax and coverage of the 
minimum wage law. 
3) Each new Agriculture-related graduate who ventures into an 
agribusiness enterprise shall be granted a loan not exceeding one hundred 
thousand pesos (PIOO,OOO.OO) upon submission of a feasibility study. 
Provided that such funding is secured by a chattel mortgage of assets 
acquired from the loan and that the said graduate does not possess a 
negative credit information. He will be given priority in the granting of 
loans by the Land Bank of the Philippines, Development Bank of the 


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Philippines, other government banks, rural and cooperative banks. To 
promote agricultural development in the country and encourage youth 
involvement in advancing agriculture-based enterprises, income derived 
from such ventures shall be exempt from income tax payment. 
d.) 
The State shall likewise provide each new graduate the 
opportunity to participate in low-cost housing programs. 
Upon 
presentation of proof of employment, each new graduate shall be eligible 
to apply under the different programs of the National Housing Authority 
(NHA), particularly Core Housing and Medium Rise Housing Programs. 
5.2 Right to a choice of opportunities. 
a) To assist a new graduate in selecting and securing employment, all 
government agencies that are mandated to generate employment 
and protect workers' rights, such as DOLE, POEA, PESO and 
other attached agencies, shall provide listings of job openings 
within the country and abroad, on their websites and offices. To 
effectively implement this, the said agencies shall closely 
coordinate with private and public higher education institutions 
(HEIs) to provide updated and relevant information on job 
opportunities. The HEIs shall post in conspicuous places inside 
their school campuses a listing of such job opportunites. 
The 
DOLE, POEA, PESO and other attached agencies shall also 
facilitate the scheduling of job interviews with prospective 
employers. 
b) To expand the employment opportunities of new graduates, those 
belonging to the top 10% of their school/college shall (I) be 
exempted from taking the Civil Service Eligibility Exam, should 
they opt to join the government sector, or (2) be qualified to 
undergo internship or on-the-job training in private institutions that 
have registered with the PESO, should they choose to be employed 
in the private sector. 
c) Any allowance or wage received by new graduates from employers 
who allow on-the-job-training or internship shall be an allowable 
deduction from the employer's gross income. 
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5.3 Right to a fair assessment. 
a) It shall be unlawful for any employer to discriminate against a new 
graduate in the hiring process, as well as in the terms and 
conditions of his employment, solely on the account of his lack of 
work experience and perceived inability to perform tasks 
satisfactorily. Hiring should be focused on his capability, 
creativity, and potential contribution to the company and industry 
based on his academic and extra-curricular records, as well as his 
performance in a company's qualifYing examinations and 
interviews. Employers shall take into consideration the unique 
perspective and fresh ideas that a new graduate will bring into the 
company. 
b) A new graduate shall have equal chance to promotion, as with 
other employees of a company or institution, giving emphasis on 
skills, merit and potential, and not merely on length of tenure. 
c) A new graduate shall have the right to be informed of his career 
path within the company he is employed in. Thus, the employer 
must inform the new graduate upon hiring of its company policies 
and plans for potential advancement and promotion of the new 
graduate. 
5.4 Right to a truly supportive wage. 
a) The State shall ensure that a new graduate shall be properly 
compensated based on his skills, workload and output. Payment of 
a lesser compensation to a new graduate as against a more senior 
employee, for work that is of equal value and with the same output, 
shall be a violation of this Act. This is without prejudice to 
company benefits relating to length of tenure of existing 
employees, such as, but not limited to, longevity pay. 
b) A new graduate earmng purely compensation income shall be 
given additional PIO,OOO.OO personal exemption on his income tax, 
over and above the amount provided under RA 8424 or the 
National Internal Revenue Code of 1997, as amended. 


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c) Employers of a new graduate employed in a public or private 
institution who opt to establish and contribute to a personal equity 
and retirement account must match the graduate's contribution. 
Such contribution shall form part of the graduate's employment 
benefits 
5.5 Right to a secure tenure. 
a) In consonance with the provision of the Labor Code, newly-hired 
employees have a right to a permanent position after six (6) 
months of satisfactory performance. Extension of probationary 
status of a new graduate shall be deemed as a violation of this 
provision. Moreover, employers are mandated to inform a new 
graduate hired of this right upon start of his employment. Thus, an 
employee who continues to be employed by his employer after a 
period of six (6) months shall automatically become a permanent 
employee. 
b) The DOLE and Civil Service Commission shall make a random 
audit of employees' tenure in both private and public institutions, 
respectively. 
Any employee who has been employed by his 
employer after a period of six (6) months shall be entitled to 
become a permanent employee. 
5.6 Right to further training. 
a) It shall be the State's policy to encourage a new graduate'S further 
training in the field of study he has specialized in. In the event that 
a new graduate employed in a private or public institution is 
offered further training, by way of continuing education, seminar 
or conference or on-the-job training , which would necessitate 
taking a leave of absence, he shall be allowed to attend such 
without loss of seniority rights. 
b) A new graduate shall be given equal opportunity and access to 
fUlther training within the institution. A new graduate's status in 
any public or private institution (whether temporary, contractual, 


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casual or probationary) shall not be a bar to his participation in any 
offered course or training within the institution. An employer is 
prohibited from limiting participation of courses or training to 
regular or tenured employees. 
c) A new graduate from disciplines crucial to national development, 
such as agriculture, science and technology, education, including 
promotion of culture and the arts, shall be given priority in further 
training, provided, that said graduates commit to stay and serve the 
country for a minimum of 5 years. Such training will be facilitated. 
by DOLE, TESDA, and NCCA. 
d) To assist a new graduate, employed or unemployed, gain the 
necessary skills and training to be more competitive with 
experienced employees, DOLE and PESO are mandated to 
strengthen their programs on employment and occupational 
counselling, career guidance and training .. 
5.7 Right to fair credit. 
a) It shall be the State's policy to ensure that every new graduate is 
given the opportunity to build his credit. A new graduate who 
does not possess negative credit information shall be eligible to 
apply for a short-term, multi-purpose or car loan from any 
financial institution despite the lack of a long credit history. 
1) A new graduate who is applying for a credit line 
or a loan in any financial institution may use two (2) 
current consecutive pay slips as proof of income, which 
shall be prima facie evidence that the new graduate has the 
capacity to repay or make good on the financial obligation 
he is applying for. 
b) The new graduate shall also be allowed to defer payment of any 
outstanding student loan obligation without interest within six (6) 
months of his graduation date in order to allow him time to seek 
employment. Thereafter, the new graduate may apply with the 
financial institution for an extension of deferment of his student 
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loan obligation for another six (6) months on account of hardship. 
During the extension, the graduate must be allowed to pay only the 
interest on his outstanding loan obligation. 
1) The graduate may apply for forbearance on his student 
loan obligation at any time until full payment of the loan, 
provided that he informs the financial institution within 30 
days from the first month he intends to ask for forbearance. 
The forbearance may be for a period of up to one year. The 
graduate must continue to pay interest on the loan during 
the period of forbearance. 
c) The State shall encourage commerical and government banks to 
appropriate a portion of their loans, with lower interest rates, to 
new graduates who need capital to start-up a business, without 
prejudice to non-new graduates' loan applications. To encourage 
participation, the "lost amount" arising from the granting of lower 
interest rates on loans given to new graduates shall be considered 
as an allowable deduction from the participating banks' gross 
income in the computation of its income tax. 
5.8 Right to recognition. A new graduate, as with other employees, shall 
be recognized as an important part of the Philippine workforce. Th 
ey should be valued and given proper recognition for their vital 
contribution to the country's economy. The DOLE shall initiate a New 
Graduates' Rewards Program to provide discounts and incentives to new 
graduates. 
a) A new graduate shall be able to continue to avail of the student 
discount on transportation fees within one (1) year from his 
graduation date. 
b) A new graduate who will be travelling outside of the country 
within one (l) year from his date of graduation shall also be 
exempt from payment of travel tax and airport terminal fee. 


c) A new graduate who will be travelling within the country within 
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one (1) year from his date of graduation shall likewise be exempt 
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from payment of airport terminal fees. 
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SEC. 6. One Stop Shop - The Public Employment Service Office (PESO) 
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in different cities and municipalities shall serve as a One Stop Shop for a 
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new graduate to secure any or all documents necessary for employment 
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application. The PESO shall provide the step by step procedure in 
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applying for the different documents needed. 
It shall likewise be 
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responsible for his registration and/or enrolment in the govermnent 
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agencies mentioned in Section 5.1.b. 
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Upon application for a New Graduate's Incentive Card, PESO 
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shall encourage the new graduate to: 
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(a) Submit a curriculum vitae in order for the PESO to include his 
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name in a database and enable them to link him with the appropriate 
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companies or employers, as well as facilitate easier tracking of the number 
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of new graduates in every industry. 
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(b) Attend an orientation seminar/workshop on basic labor laws 
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and rights, and other useful information on public and private 
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employment. 
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SEC. 7. 
Implementation. The DOLE, Civil Sevice Commission and 
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concerned attached agencies shall be responsible for the administration and 
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monitoring of the implementation of the provisions of this act, and shall 
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promulgate the necessary implementing tules and regulations within thirty (30) 
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days from its effectivity. 
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SEC. 8. Appropriations. To carry out the provisions of this Act, such sum 
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as may be necessary is hereby authorized to be appropriated from the National 
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TreasUlY. Thereafter, the sum necessary for the continuous operation of this Act 
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shall be included in the annual appropriation of DOLE. 
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SEC. 9. Separability Clause. If any provision, or part hereof, is held 
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invalid or unconstitutional, the remainder ofthe law or the provision shall remain 
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valid and SUbsisting. 
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SEC. 10. Repealing Clause. Any law, presidential decree or issuance, 
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executive order, letter of instruction, administrative order, tule or regulation 
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contrary to or inconsistent with, the provision of this Act is hereby repealed, 
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modified or amended accordingly. 
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SEC. 11. Effectivity Clause. This Act shall take effect fifteen (15) days 
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after its publication in at least two (2) newspaper of general circulation. 
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Approved, 
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