Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Sixteenth Congress
Second Regular Session

HOUSE BILL NO. _ 5468

INTRODUCED BY: REP. KARLO ALEXEI B. NOGRALES, REP. EMMELINE Y
AGLIPAY VILLAR, REP. FLORENCIO T. FLORES, JR.
AND REP. DEOGRACIAS B. RAMOS, JR.

EXPLANATORY NOTE

The Special Program for Employment of Students (SPES) was instituted under Republic
Act No. 7323 in early 1992 to help poor but deserving students in pursuing their
education by encouraging their employment during summer and/or Christmas
vacations.

In 2009, Republic Act No. 7323 was amended by Republic Act No. 9547, expanding the
coverage of SPES to include poor but deserving students aged 15 to 25 years old to
help them pursue their education through employment during summer or Christmas
vacations, or anytime of the year for those enrolled in tertiary, vocational or technical
education for the period of twenty (20) to fifty-two (52) working days.

While it is recognized that SPES as an employment bridging program has changed the
lives of many Filipino youth, it cannot be denied that the implementation of the program
has encountered multitude of problems, both procedural and substantial. The current
program covers only currently enrolled students, depriving other disadvantaged youth to
pursue education. Difficulty is also encountered as to the mode of payment of wages to
the beneficiaries.

Thus, this bill proposes to strengthen the program by allowing the employment not only
of poor but deserving students but also out-of-school youth, dependents of displaced
workers or would-be displaced workers due to business closures or work stoppages
intending to enroll in any secondary, tertiary or technical-vocational institutions. The
Public Employment Service Offices (PESOs) shall provide employment facilitation
services to the applicants.


Also, this bill seeks to change the mode of payment of salaries and wages by the
government from vouchers to cash to be paid directly by the Department of Labor and
Employment (DOLE) to the student or through financial institutions or other payment
facilities, The government share (40%) shall be paid within thirty (30) working days upon
submission of the report on the payment of wages or salaries by the participating
establishment.

With the improvement and expansion of the Special Program for Employment of
Students, it is hoped that this will allow more Filipino youth to pursue their education
towards a better future through easy access to the program.

In view of the foregoing, early passage of this bill is necessarily indispensable.

Beuvteves Ks Killin

KARLQ/ALEXEI B. NOGRALES EMMELINE Y. AGLIPAY VILLAR
Representative Representative
1°" District, Davao City Party List - DIWA

FLORENCIO T.
( Representativ
District, Bukidnon



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Sixteenth Congress
Second Regular Session

5469

HOUSE BILL NO.

INTRODUCED BY: REP. KARLO ALEXEI! B. NOGRALES, REP. EMMELINE Y.
AGLIPAY VILLAR, REP. FLORENCIO T. FLORES, JR.
AND REP. DEOGRACIAS B. RAMOS, JR.

AN ACT AMENDING CERTAIN PROVISIONS OF R.A. 9547 OTHERWISE KNOWN
AS AN ACT STRENGTHENING AND EXPANDING THE COVERAGE OF THE
SPECIAL PROGRAM FOR EMPLOYMENT OF STUDENTS, AMENDING FOR THE
PURPOSE PROVISIONS OF R.A. 7323, OTHERWISE KNOWN AS THE SPECIAL
PROGRAM FOR EMPLOYMENT OF STUDENTS

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

Section 1. Section 1 of RA 9547 is hereby amended to read as follows:

"SEC. 1. Any provision of law to the contrary notwithstanding, any person or
entity employing at least ten (10) persons may employ poor but deserving
students, OUT-OF-SCHOOL YOUTH (OSY), OR, DEPENDENT/S OF A
DISPLACED OR WOULD-BE DISPLACED WORKER/S DUE TO BUSINESS
CLOSURES OR WORK STOPPAGES INTENDING TO ENROLL IN ANY
SECONDARY, TERTIARY OR TECHNICAL-VOCATIONAL INSTITUTIONS,
fifteen (15) years of age but not more than [twenty-five (25)] THIRTY (30) years
old, paying them a salary or wage not lower than the minimum wage for private
employers and the applicable hiring rate for the national and local government
agencies: Provided, that student enrolled in the secondary level shall only be
employed during summer and/or Christmas vacations, while those enrolled in the
tertiary, vocational or technical education may be employed at any time of the
year: Provided, further, That their period of employment shall be from twenty (20)
to fifty-two (52) working days only, except that during Christmas vacation,
employment shall be from ten (10) to fifteen (15) days which may be counted as


part of the students’ probationary period should they apply in the same company
or agency after graduation: Provided, finally, That students employed in activities
related to their course may earn equivalent academic credits as may be
determined by the appropriate government agencies.

For purposes of this Act, poor but deserving students AND OSY refer to those
whose parents’ combined income, together with their own, if any, does not
exceed the annual regional poverty threshold level for a family of six (6) for the
preceding year as may be determined by the National Economic and
Development Authority (NEDA)

EMPLOYMENT FACILITATION SERVICES FOR APPLICANTS TO THE
PROGRAM SHALL BE DONE BY THE PUBLIC EMPLOYMENT SERVICE
OFFICE (PESO).

Participating employers in coordination with the PESO, must inform their SPES
employees of their rights, benefits, and privileges under existing laws, company
policies, and employment contracts.

Section 2. Section 2 of the same Act is hereby amended to read as follows:

"SEC. 2. Sixty per centum (60%) of the said salary or wage shall be paid by the
employers in cash and forty per centum (40%) by the government [in the form of
a voucher] ALSO IN THE FORM OF CASH DIRECTLY TO THE STUDENT, OR
THROUGH FINANCIAL INSTITUTIONS OR OTHER PAYMENT FACILITIES,
SUBJECT TO THE EXISTING RULES ON PROCUREMENT, which shall be
applicable in the payment for the students’ tuition fees, [and] books, AND OTHER
EDUCATION-RELATED EXPENSES, INCLUDING THEIR DAILY ALLOWANCE
IN GOING TO SCHOOL [in any educational institution for secondary, tertiary,
vocational or technical education]: Provided, That local government units (LGUs)
may assume responsibility for paying in full his salary or wages. THE 40%
SHARE SHALL BE PAID WITHIN THIRTY (30) WORKING DAYS UPON
SUBMISSION OF THE PARTNER-EMPLOYER OR PARTICIPATING
ESTABLISHMENT OF THEIR REPORT ON PAYMENT OF SALARY OR
WAGES WHICH SHALL BE THE BASIS OF THE 40% SALARY OR WAGES TO
BE PAID BY THE GOVERNMENT THROUGH THE DEPARTMENT OF LABOR
AND EMPLOYMENT. [The amount of the education vouchers shall be paid by
the government to the educational institutions concerned within thirty (30) days
from its presentation to the officer or agency designated by the Secretary of
Finance.]

IN CASE OF SICKNESS, ABSENCE, OR DEATH OF THE SPES
BENEFICIARY, THE IMMEDIATE HEIRS MAY CLAIM HIS/HER SALARY,
PROVIDED, THAT PROOF TO THIS EFFECT HAS BEEN CLEARLY
ESTABLISHED.


LIKEWISE, THE SPES BENEFICIARY SHALL BE ENTITLED TO SOCIAL
PROTECTION BY VIRTUE OF AN INSURANCE COVERAGE WITH THE
GOVERNMENT SERVICE AND INSURANCE COMMISSION (GSIS) FOR A
PERIOD OF ONE YEAR.

["The vouchers shall not be transferable except when the payees thereof dies or
for a justifiable cause stops in his duties, in which case it can be transferred to
his brothers or sisters. If there be none, the amount thereof shall be paid his heirs
or to the payee himself, as the case may be."]

Section 3. Section 3 of the same Act is hereby amended to read as follows:

"SEC. 3. [The Secretary of Labor and Employment, the Secretary of Education,
the Chairman of the Commission on Higher Education, the Secretary of Budget
and Management, the Secretary of Social Welfare and Development and the
Secretary of Finance shall issue the corresponding rules and regulations to carry
out the purposes of this act

"The Secretary of Labor and Employment shall be the Program Chairman."]

THE DEPARTMENT OF LABOR AND EMPLOYMENT SHALL ISSUE THE
IMPLEMENTING RULES AND REGULATIONS TO CARRY OUT THE
PURPOSES OF THIS ACT. FURTHER, THE SECRETARY OF THE
DEPARTMENT OF LABOR AND EMPLOYMENT, MAY ISSUE ADDITIONAL
GUIDELINES WHICH MAY BE DEEMED APPROPRIATE AND AS NECESSITY
ARISES; PROVIDED THAT THE ISSUANCE BE IN THE FORM OF A
DEPARTMENT ORDER.

Section 4. Section 4 of the same Act is hereby deleted.

['SEC. 4. Any persons or entity who refuses to honor education vouchers or
makes any fraudulent or fictitious claim under this Act, regardless of whether
payment has been made, shall upon conviction be punished with imprisonment
of not less than six (6) months and not more than one (1) year and a fine of not
less than Ten thousand pesos (P10,000.00), without prejudice to their
prosecution and punishment for any other offense punishable under the Revised
Penal Code or any other penal statute.

“In case of partnerships or corporations, the managing partner, general manager,
or chief executive officer, as the case may be, shall be criminally liable."]


Section 5. Section 5 of the same Act is hereby amended to read as follows:

SEC. [5] 4. The Secretary of the Department of Labor and Employment shall
include in the Department's program the operationalization of the expanded
Special Program for Employment of Students, INCLUDING THE MAINTENANCE
OF AN ONLINE DATABASE REGISTRY FOR MONITORING OF SPES
BENEFICIARIES

"The amount necessary to carry out the purposes of this Act is hereby authorized
to be appropriated in the General Appropriations Act for 1992 and the
subsequent annual general appropriations acts: Provided that the appropriation,
for the purposes of this Act shall not be reduced by Congress below the amount
appropriated for the previous year and, after approval; shall be automatically and
regularly released: Provided, further, that the appropriation herein shall be
increased by at least 20 per centum (20%) annually.”

Section 6. Section 6 of the same Act is hereby amended to read as follows:
SEC. [6] 5. If any provision or part of this Act, or the application thereof to any
person or circumstance is held invalid or unconstitutional, the remainder of this
Act or the application of such provision or part thereof to other persons or
circumstances shall not be affected thereby.

Section 7. Section 7 of the same Act is hereby amended to read as follows
SEC. [7] 6. Alll laws, orders, issuances, rules and regulations or parts thereof
inconsistent with the provisions of this Act are hereby repealed, amended, or
modified accordingly.

Section 8. Section 8 of the same Act is hereby amended to read as follows:
SEC. [8] 7. This Act shall take effect fifteen (15) days after its complete

publication in the Official Gazette or in at least two (2) newspapers of general
and national circulation, whichever comes earlier.

Approved,