THIRTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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First Regular Session 
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J. 
f<'i 11 ; 3 4  :7 
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S. No. 
171 
Introduced by Senator S. R. Osmeiia 111 
EXPLANATORY NOTE 
Our Constitution mandates that appropriate steps be taken to make 
education accessible to all. Pursuant to this, the Special Program for Employment 
of Students (SPES) has been institutionalized under Republic Act NO. 7323, 
otherwise known as "An Act to Help Poor But Deserving Students Pursue Their 
Education By Encouraging Their Employment During Summer and/ or Christmas 
Vacations, Through Incentives Granted to Employers, Allowing Them to Pay Only 
Sixty Per Centum of Their Salaries or Wages and the Forty Per Centum Through 
Education Vouchers to be Paid by the Government, Prohibiting and Penalizing the 
Filing of Fraudulent or Fictitious Claims, and for Other Purposes." 
f since its enactment, the SPES Program has helped poor students to 
g r a d u p  and earn a college degree or a vocational diploma. Records show the 
increase of SPES placements every year, which clearly indicate that the program 
is indeed an effective tool for students in their pursuit of education. 
With a budget of PhP 60 million when it was first introduced in 1992, the 
program benefited 48,121 students nationwide. Because of its inspiring success 
and innovative approach - private employers sharing in the cost of financing 
education - the SPES has become a continuing program of the government for 
poor but deserving students. 
This bill seeks to strengthen the SPES Program through the following 
amendments: 
1. 
2. 
3. 
4. 
In view of the foregoing, approval of this bill, strengthening further and 
adjustment of income requirement for coverage under the law; 
penalize those who dishonor education vouchers; 
lessen the coverage of employment size of establishment; and 
make the program a year-round activity. 
broadening the coverage of the SPES Program, is earnestly requested. 
~ E R G I O  
OSMENA 111 
Senator 


SENATE 
S. No. 
Introduced by Senator S. R. Osmeiia 111 
AN ACT 
STRENGTHENING FURTHER AND BROADENING THE COVERAGE OF THE 
SPECIAL PROGRAM FOR EMPLOYMENT OF STUDENTS, AMENDING FOR 
THIS PURPOSE CERTAIN PROVISIONS OF REPUBLIC ACT NO. 7323, AND 
FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the 
Ph///pp/nes m Congress assembled, 
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SECTION 1. Section 1 of Republic Act No. 7323, otherwise known as 
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"Special Program for Employment of Students (SPES)," is hereby amended to 
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read as follows: 
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"SECTION 1. Any provision of the Act to the contrary 
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notwithstanding, any person or entity employing [at least fifty 
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(50%)] MORE THAN TEN (IO) persons may [, during the Summer 
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and/or Christmas vacations,] employ poor but deserving students, 
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fifteen (15) years of age but not more than twenty-five (25) years 
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old, paying them a salary wage not lower than the minimum wage 
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FOR PRIVATE EMPLOYERS AND THE APPLICABLE HIRING 
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RATE FOR THE NATIONAL AND LOCAL GOVERNMENT 
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AGENCIES: 
PROVIDED, 
HOWEVER, 
THAT 
THEIR 
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EMPLOYMENT SHALL NOT EXCEED THREE (3) MONTHS: 
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PROVIDED, FURTHER, THAT STUDENTS EMPLOYED IN 
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ACTIVITIES RELATED TO THEIR COURSE SHALL EARN 


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EQUIVALENT ACADEMIC CREDITS AS MAY BE DETERMINED 
BY APPROPRIATE GOVERNMENT AGENCIES [provided by law 
and other applicable labor rules and regulations]. 
"For purposes of this Act, poor but deserving students refer 
to those whose parents' combined income[s], together with their 
[income] OWN, if any, do not exceed [Thirty-six thousand pesos 
(P36,OOO.OO) per annum] THE ANNUAL NATIONAL POVERTY 
THRESHOLD LEVEL FOR A FAMILY OF SIX (6) FOR THE 
PRECEDING YEAR AS MAY BE DETERMINED BY THE 
NATIONAL STATISTICS COORDINATION BOARD (NSCB). 
Employment [should be at the Labor Exchange Center of the 
Department of Labor and Employment (DOLE)] FACILITATION 
SERVICES FOR APPLICANTS TO THE PROGRAM SHALL BE 
DONE BY THE PUBLIC EMPLOYMENT SERVICE OFFICE 
(PESO)." 
SEC. 2. Section 2 of the same Act is hereby amended to read as follows: 
"SEC. 2. Sixty percenturn (60%) of said salary or wage shall 
be paid by the employer in cash and forty percenfum (40%) by the 
government in the form of a voucher which shall be applicable in 
the payment for his tuition fees and books in any educational 
institution for secondary, tertiary, vocational or technological 
education, The amount of the educationAL voucher shall be paid 
by the government to the educational institution concerned within 
thirty (30) days from its presentation to the officer or agency 
designated by the Secretary of Finance. 
"The voucher shall not be transferable except when the 
payee 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 


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be none, the amount thereof shall be paid his heirs or to the payee 
himself, as the case may be.” 
SEC. 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, Culture and Sports, CHAIRPERSON OF 
THE COMMISSION ON HIGHER EDUCATION 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 
[Project Director of this] Program Chairman.” 
SEC. 4. Section 4 of the same Act is hereby amended to read as follows: 
“SEC. 4. Any person or entity who shall make any fraudulent 
or fictitious claim under this Act, regardless of whether payment has 
been made, AND ANY PERSON OR ENTITY WHO REFUSES OR 
DISHONORS AN EDUCATION VOUCHER, 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 (PlO,OOO.OO), 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.” 
SEC. 5. This Act shall take effect fifteen (15) days after its publication in the 
Official Gazette or in at least two (2) newspapers of national circulation. 
Approved,