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FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
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S E N A T E  
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S. NO. 1629. 
Introduced by Senator Manuel “Lito” M. Lapid 
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. 
Republic Act No. 7323 advances such program by enabling companies or 
businesses to employ students during the summer andlor Christmas vacations and 
allowing them to pay only 60% of the salaries and wages and the 40% through 
education vouchers to be paid by the government. Such vouchers are then applicable in 
the payment of the student‘s tuition fees and books in any educational institution for 
secondary, tertiary, vocational technological education. 
This bill proposes to strengthen the program by allowing the employment of 
students not only during the summer or Christmas vacations but for the whole year. 
Also, this amendatory measure encourages employers engaged in small and medium - 
scale enterprises to adopt the program and employ working students. 
This bill likewise penalizes any person or entity who refuses or dishonors the 
educational voucher paid by the government to the student-employee with 
imprisonment of not less than 6 months to 1 year and a fine of not less than Ten 
Thousand (PhplO,OOO.OO) pesos. 
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. 
In view of the foregoing, early passage of this bill is earnestly requested. 
4- 
MANUEL YLITOm M. LAPID- 
Senator 
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FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
i t  
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
i 
Introduced by Senator Manuel “Lito” M. Lapid 
AN ACT 
AMENDING SECTIONS 1 AND 4 OF REPUBLIC ACT NO. 7323 AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. 
Section 1 of RA 7323 is hereby amended to read as follows: 
“Section I. Any provision of law to the contrary notwithstanding, 
any person or entity employing at least [fifty (SO)] TEN (IO) persons may 
[during the summer and/or Christmas vacation] FOR THE WHOLE YEAR 
employ poor but deserving students fifteen (15) years of age but not more 
than twenty - five (25) years old, paying them a salary not lower than the 
minimum wage 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 incomes, together with their income, if any, do 
not exceed [Thirty six thousand pesos (P36,OO) per annum] THE 
ANNUAL FAMILY INCOME OF SIX FOR THE PRECEDING YEAR AS 
MAY 
BE 
DETERMINED 
BY 
THE 
NATIONAL 
ECONOMIC 
DEVELOPMENT AUTHORITY (NEDA). Employment should be at the 
Labor Exchange Center of the Department of Labor and Employment 
(DOLE).” 
SEC. 2. 
Section 4 of the same Act is hereby amended to read as follows: 
“Section 4. Any person or entity who shall make any fraudulent or 
fictitious claim under this Act, regardless of whether payment has been 
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made, AND ANY PERSON OR ENTITY THAT REFUSES OR 
DISHONORS AN EDUCATIONAL 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), 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. 3. 
Implementing Rules and Regulatlons (IRR). - Within thirty (30) 
days from the date of effectivity of this Act, the Department of Labor and Employment 
(DOLE), the Department of Education (DepEd), the Commission on Higher Education 
(CHED), and the Department of Finance (DOF) shall issue and publish the 
corresponding rules and regulations to carry out the purposes of this Act. 
SEC. 4. 
Appropriations. - The amount necessary to carry out the purposes 
of this Amendatory Act shall be charged against the appropriations of the budget of the 
Department of Labor and Employment (DOLE). Thereafter, such sums as may be 
needed shall be included in the annual General Appropriations Act. 
SEC. 5. 
Separability Clause. - If any provision of this Act is declared 
unconstitutional or invalid, such sections or parts not affected thereby shall remain in full 
force and effect. 
SEC. 6. 
Repealing Clause. - All laws, executive orders, presidential 
decrees, presidential proclamations, issuances, rules and regulations or parts thereof 
inconsistent with the provisions of this Act are hereby repealed or modified accordingly. 
SEC. 7. 
Effectivity Clause. - This Act shall take effect (15) days after its 
complete publication in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
Approved, 
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