" 
SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S. B. No. -----S 0 
Introduced by Senator Maria Lourdes Naucy S. Binay 
EXPLANATORY NOTE 
The State recognizes the Filipino family as the foundation of the nation. Accordingly, it shall 
strengthen its solidarity and actively promote its total development. t Further, the State shall 
defend the right of children to assistance, including proper care and nutrition, and special 
protection from all forms of neglect, abuse, cruelty, exploitation, and other conditions 
prejudicial to their developmenr. 
Early childhood is the most formative and crucial stage in a person's development. 
Exploration and discovery, through activity and perseverance, are venues for development 
which must be nurtured not only through homes, but also through the community, 
recognizing both as impOltant continuing contexts within which a person's development 
occurs and progresses. 
The objectives of the proposed Employers Child Care Centers Act of 20 13 is to promote the 
rights of children to survival, development and special protection; to support parents in their 
roles as primary providers and caregivers and as their children's first teachers; and to ensure 
that parents are provided with the adequate facilities and opportunities to properly rear their 
children and support their basic needs. 
The participation and collective efforts of the private and public sectors are vital to the 
realization of these objectives. Thus, private and public establishments are directed to provide 
child care facilities for the children of their respective employees. Further, the penal clause 
imposes significant fines which may be used to support barangays with inadequate funds to 
establish and operate their own day care centers. 
In view of the foregoing, the timely passage ofthis bill is earnestly recommended. 
MA~~YS.BINAY 
Senator 
, The 1987 Constitution of the Republic of the Philippines, Art. XV, Sec. 1. 
2 Thc 1987 Constitution ofthe Republic of the Philippines, Art. XV, Sec. 3, par. (2). 


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SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S. B. No. -.B I) 
Introduced by Senator Maria Lourdes Nancy S. Binay 
AN ACT DIRECTlNG EST ABLISMENTS TO SUPPORT THE INSTITUTION OF CHILD 
CARE F ACILITlES AND GRANTING INCENTIVES THEREFOR 
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 "Employers Child Care Centers 
Act 0[2013." 
SECTION 2. Declaration of Policy. - Early childhood is the most formative and crucial 
stage in a person's development. Exploration and discovery, through activity and 
perseverance, are venues for the development which must be nurtured not only through 
homes, but also through the community, recognizing both as important continuing contexts 
within which a person's development occurs and progresses. Toward this end, it is hereby 
declared the policy of the State to promote the rights of children to survival, development and 
special protection with lull recognition of the nature of childhood and its special needs; and 
to support parents in their roles as primary providers and caregivers and as their children's 
first teachers. The State also recognizes the natural and primary right and duty of parents in 
the rearing of their children. It shall also be the policy of the State to ensure that parents are 
provided with the adequate facilities and opportunities to properly rear their children and 
support their basic needs. This shall be anchored on complementary strategies for Early 
Childhood Care and Development that include service delivery for children from conception 
to age six (6). 
SECTION 3. Definition afTerms. - As used in this Act, the following terms are defined as 
follows: 
a. 
Accreditation - A document issued by the Department of Social Welfare and 
Development to a legal entity permitting said entity to operate a day or night 
care facility at a specific location, in accordance with applicable Department 
regulations; 
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b. 
Covered Institution - Any private or public establishment, including, but not 
limited to, businesses or other private institutions, non-governmental 
organizations, 
government 
owned 
and 
controlled 
corporations, 
and 
governmental institutions, offices, or agencies who employ at least one (1) 
person to perform acts necessary and desirable tor the business or functions of 
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the aforementioned. Provided, that charitable institutions whicb are engaged in 
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caring for children sball not be considered a covered institution; 
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c. 
Child - Any person below six (6) years of age; 
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d. 
Day care or night care center - Any employer-funded child care facility which 
receives for care the children of its employees during the entire or part of a work 
day; A workplace facility providing a full range of health, nutrition, early 
education, psycho-social and other services to children below six (6) years of 
age during the entire or part o[the work day; 
e. 
Department - The Department of Social Welfare and Development; 
f. 
Employee - Any person who performs acts necessary and desirable for the 
business or functions of any of the covered institutions. Provided, that 
Kasambahays, as defined under Republic Act No. 10361, shall not be 
considered an employee for the purposes ofthis Act. 
g. 
Qualified and competent childcare personnel -
Any person who has the 
necessary educational qualifications and professional licenses to engage in the 
practice of child care services; and 
h. 
Work day - Composed of normal work hours as defined under existing law, 
excluding hours spent working overtime. 
SECTION 4. Scope. - The provisions of this Act shall apply to any private or public 
establishment, including, but not limited to, businesses or other private institutions, non-
governmental organizations, 
government owned and controlled corporations, 
and 
governmental institutions, offices, or agencies who employ at least one (1) person to perform 
acts necessary and desirable for the business or functions of the aforementioned. Provided, 
that charitable institutions which are engaged in caring for children shall not be covered by 
the provisions ofthis Act. 
SECTION 5. Framework. - The total development of children during the official working 
hours of their parents shall be providcd for children up to six (6) years of age. To this end, 
covered institutions shall establish day or night care centers inside or within the immediate 
vicinity of their place of business or not further than 400 meters therefrom; Provided, that 
covered institutions which employ at least two hundred (200) employees shall provide a day 
or night care facility within their place of business; Provided, further, that covered 
institutions which employ less than two hundred (200) employees shall pool their resources, 
in accordance with the system to be established by the Department, as provided in Section 10 
of this Act; Provided, finally, that government-owned and controlled corporation and 
governmental institutions shall provide a day or night care facility within their offices, 
regardless of the number of employees they employ. Covered institutions which have 
branches in different cities, provinces or regions shall establish several day or night care 
centers, in accordance with the provisions of this Act and its implementing rules and 
regulations. 
SECTION 6. Programs and Services. - The day or night care centers established pursuant to 
this Act shall offer substituted care services principally to children of employees of covered 
institutions free of charge during working hours. Provided, that should the day or night care 
facilities provided by covered institutions not be availed of by their respective employees due 
to the lack of qualified children, as defined under this Act, the same shall be open to the 


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public, subject to reasonable rules and guidelines as may be provided under the implementing 
rules and regulations of this Act. Services extended by the day or night care centers shall 
include, but are not limited to, the following: 
a. 
Creation and fostering of a support system and assistance between and among 
employees for the total development and protection of children; 
b. 
Growth and nutritional monitoring of the children, with supplementary 
nutritional feeding and supervision of nutritional intake at home. 
SECTION 7. Operations and Management. 
a. 
A day or night care center must be located in an area which is sate and well-
ventilated. It must likewise have adequate toilet and washroom facilities within 
its premises. 
b. 
Standards for health and nutrition in the day or night care center as provided for 
in DSWD Administrative Order No. 29, series of 2004, or such other standard 
as may be subsequently found proper by the Department, in coordination with 
the appropriate government agencies, shall be strictly implemented. 
c. 
None of the costs involved with the establishment, operation and maintenance 
of the day or night care center shall be passed on whether directly or indirectly 
to the employees of covered institutions. 
SECTION 8. Personnel. - Day or night care centers established pursuant to this Act shall be 
staffed with qualified and competent childcare personnel, Provided that the personnel to child 
ratio shall not go below 1 :30. 
SECTION 9. Compensation of Personnel. - Any personnel whose services are engaged for 
the purpose of caring for the children in the day or night care centers shall be adequately 
compensated by the covered institutions. The compensation of a qualified and competent 
childcare personnel shall be considered adequate if it is at least one hundred and fifty percent 
(150%) ofthe compensation of an entry level position at the covered institution. For purposes 
of complying with mandatory contributions under the pertinent labor laws, the personnel 
engaged under this provision shall be considered as an independent contractor. 
SECTION 10. Network of BusinesseslDay Care Centers. - The Department shall establish a 
system that would allow covered institutions which employ less than two hundred (200) 
employees to enable such covered institutions to pool their resources with the objective of 
establishing a common day or night care facility. Provided, that the Department shall limit 
the number of covered institutions who may pool their resources up to only such number as to 
meet the two hundred (200) employees per day or night care facility. 
SECTION 11. Cooperative or Parent Committee. - The employees whose children avail of 
the services of the day or night care center may form a Committee for the purpose of 
supporting and planning programs and activities of the said day or night care center. 
Provided, that the employees who are members of the Committee may augment the personnel 
of the day or night care center by volunteering to provide care for children. Provided, further, 
that only two (2) volunteers may serve with the day or night care center personnel in any 
given day. Provided, further, that the time spent by employees in assisting the day or night 
care center personnel shall be considered compensable work but shall not entitle the 
volunteer to any other compensation apart from what they ordinarily receive. Provided, 


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further, that no person may volunteer more than once within twenty (20) working days. 
Provided, finally, that if a day or night care center is established using the pooled resources of 
several covered institutions, all of which employ less than two hundred (200) employees, but 
the aggregate of which does not exceed two hundred (200) employees, each covered 
institution may only allow their employees to volunteer in proportion to the total number of 
employees under the several covered institutions. 
SECTION 12. Integration ()f Barangay Day Care Centers. -
The Department, in 
coord ination with the Department of the Interior and Local Government shall integrate pre-
existing barangay day care centers with day or night care centers to be established by covered 
institutions in their respective areas. 
SECTION 13. Accreditation. - The covered institutions shall comply with the standards 
prescribed by the Department and shall secure the necessary accreditation for the respective 
day or night care center from the Department to ensure compliance with this Act. 
SECTION 14. Tax Incentives. - The amount spent by covered institutions under this Act 
shall be allowed as tax deductions from the covered institution's gross income for purposes of 
determining the taxable income, in accordance with the following limitations: 
a. 
The amount spent by the covered institution for constructing the day or night care 
center may be claimed as a tax deduction up to one hundred percent (100%) of the 
actual cost but which shall not exceed One Million Five Hundred Thousand Pesos 
(P I ,500,000.00). This incentive may be availed of only once by any covered 
institution. [n the event that a day or night care center is established by several covered 
institutions who pooled their resources, they may claim the incentive up to only the 
actual amount that each ofthem contributed. 
b. 
Up to one hundred percent (J 00%) of the actual operating expenses of the day or night 
care center may be claimed as a tax deduction, but which shall not exceed One Million 
Pesos (Pl,OOO,OOO.OO) for every taxable year. 
SECTION 15. Penalties. - The failure of any covered institution to comply with the 
provisions of this Act and its Implementing Rules and Regulations within one (1) year from 
the effectivity hereof shall subject the covered institution to the following penalties: 
a. 
First (1 st) Violation - A fine of One Million Five Hundred Thousand Pesos 
(PI ,500,000.00) with a warning to comply with the provisions ofthis Act within 
one (I) year from the discovery of the covered institution's failure to comply; 
b. 
Second (2Ild) Violation - A fine of Two Million Pesos (P2,000,000.OO) with a 
second warning to comply with the provisions of this Act within one (1) year 
[rom the discovery of the covered institution's failure to comply with the first 
warning; and 
c. 
Third (3 rd) Violation - A fine of Two Million Five Hundred Thousand Pesos 
(P2,500,000.00) with a final warning to comply with the provisions of this Act 
within one (J) year from the discovery of the covered institution's failure to 
comply with the second warning and possible revocation of business permit to 
operate within the concerned local government unit. 
The fines imposed under this provision shall be paid to the Department, which shall utilize 
the same to establish barangay day care centers in barangays which lack adequate funds to 
establish a sufficient number ofbarangay day care centers within their barangay. 


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SECTION 16. Implementing Rules and Regulations. - The Department, in coordination with 
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the Department of Health, Department of Interior and Local Government, Department of 
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Finance, Bureau of Internal Revenue and the Department of Labor and Employment, shall 
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issue the necessary implementing rules and regulations within ninety (90) days from the 
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approval of this Act. 
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SECTION 17. Repealing Clause. - All laws, decrees, orders, rules and regulations, or 
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. portions thereof, inconsistent with this Act are hereby repealed or modified accordingly. 
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SECTION 18. Separability Clause. - Should any part or provision of this Act be declared 
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unconstitutional or invalid, other parts or provisions hereof not otherwise affected thereby 
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shall remain in full force and effect. 
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SECTION 19. Effectivi(r. - This Act shall take effect fifteen (15) days after its publication 
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in at least two (2) newspapers of general circulation. 
Approved,