Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 462 _

Introduced by Representative Crispin Diego “Ping” D. Remulla

AN ACT
FURTHER STRENGTHENING THE INCENTIVES FOR PRIVATE SECTOR.
PARTICIPATION IN PUBLIC EDUCATIONAL INSTITUTIONS BY AMENDING
CERTAIN PROVISIONS IN REPUBLIC ACT NO. 8525 OTHERWISE KNOWN AS
THE "ADOPT-A-SCHOOL ACT OF 1998"

EXPLANATORY NOTE

The Philippine education system continues to struggle with aligning student outcomes
to the needs of the job market. According to the Philippine Business for Education (PBEd),
many K-12 graduates face difficulties in advancing their careers due to a mismatch between
their education and industry demands. PBEd Vice Chairman Aurelio Montinola III emphasized
that even college graduates often face limited career growth and struggle to meet the

expectations of modern workplaces.

A report from the Philippine Daily Inquirer also highlighted how financial constraints
force some high school graduates to delay college and take on low-skilled jobs. Meanwhile,
college graduates may end up underemployed in jobs that do not match their training. Data
from the Philippine Statistics Authority as of July 2024 show that around 2.3 million Filipinos
aged 15 and above are unemployed, and 5.8 million are underemployed.

This proposed measure seeks to close the gap between education and employment by
promoting partnerships between schools and private companies. It expands Republic Act 8525
to include training, development, and better incentives for private sector participation.


In view of the foregoing, the approval of this measure is earnestly sought.

CRISP!

DIEGO “PING” D. REMULLA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No._ 462

Introduced by Representative Crispin Diego “Ping” D. Remulla

AN ACT
FURTHER STRENGTHENING THE INCENTIVES FOR PRIVATE SECTOR
PARTICIPATION IN PUBLIC EDUCATIONAL INSTITUTIONS BY AMENDING
CERTAIN PROVISIONS IN REPUBLIC ACT NO. 8525 OTHERWISE KNOWN AS.
THE "ADOPT-A-SCHOOL ACT OF 1998"

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:
SECTION 1. Section 1 of Rep”. Section 1 of Republic Act No. 8525, otherwise known
as the "Adopt-a-School Act of 1998", is hereby amended to read as follows:
"Section 1. Title. -This Act shall be known and cited as the [“Adepta—Seheo!
‘Act of 1998"}"ADOPT-A-SCHOOL ACT OF 2025".
SEC. 2. Section 2 of Republic Act No. 8525 is hereby amended to read as follows:
“Section. 2. Declaration of policy. — It is the policy of the State to provide

quality and relevant education to the Filipino youth and to encourage private initiative
to support public education. Towards this end, the State shall institute programs to
[encourage] INCENTIVIZE THE private [ecompanies-and-enterprises] SECTOR to
[help] ASSIST in the DEVELOPMENT, upgrading, and modemization of THE
COUNTRY 'S public [sehee!s] EDUCATION SYSTEM [in-the country, particularly

these-in_poverty-strieken—provinees.| AND ESTABLISH PROPER LINKAGES
BETWEEN EDUCATIONAL INSTITUTIONS AND THEIR RESPECTIVE

INDUSTRIES PARTICULARLY IN THE TRAINING AND EMPLOYMENT
OF SENIOR HIGH SCHOOL (SHS) GRADUATES.”
SEC. 3. Section 3 of Republic Act No. 8525 is hereby amended to read as follows:


"Sec. 3. Adopt-a-School Program. — There is hereby established the "Adopt-a-
School Program" which will allow private INDIVIDUALS OR entities, WHETHER
LOCAL OR FOREIGN, OF GOOD STANDING to assist [a] public [sehoo!]
EDUCATIONAL INSTITUTIONS, whether EARLY CHILDHOOD, elementary,
secondary, TECHNICAL-VOCATIONAL, ALTERNATIVE LEARNING
SYSTEM (ALS), or [tertiary] HIGHER EDUCATION, preferably located in [any-of

provinees] THE 4TH AND 5™ CLASS PROVINCES, CITIES, AND
MUNICIPALITIES AS DETERMINED BY THE DEPARTMENT OF FINANCE
(DOF) AND OTHER LOCAL GOVERNMENT UNITS (LGUs)
EXPERIENCING SEVERE SHORTAGES, INSUFFICIENT BUDGET OR
HAVING NUMEROUS POOR BUT HIGH PERFORMING LEARNERS in, but
not limited to, the following areas: TRAINING, DEVELOPMENT AND FURTHER
EDUCATION FOR SCHOOL HEADS, TEACHERS INCLUDING DAYCARE.
WORKERS AND TEACHERS, TVET TRAINERS, FACULTY AND
LEARNERS; ASSESSMENTS IN PURSUIT OF RELEVANT WORK-
RELATED CERTIFICATIONS AND CREDENTIALS; SCHOLARSHIPS FOR
TEACHERS; REAL ESTATE PROPERTY [staff-and—faculty-developmentfor

training—and_further_edueatien]; construction of SCHOOL facilities SUCH AS
LIBRARIES AND LABORATORIES AND THOSE RELATED TO POWER,

WATER, AND SANITATION; [upgrading] UPGRADE AND REPAIR of existing
facilities, provision of books, publications, SCHOOL SUPPLIES, and other
instructional materials SUCH AS ELECTRONIC BOOKS (E-BOOKS),
COMPUTERS, FURNITURE, EDUCATIONAL FILMS AND AUDIO-VISUAL
MATERIALS; TECHNICAL VOCATIONAL LIVELIHOOD (TVL) TOOLS
AND EQUIPMENT; HEALTH AND NUTRITION PACKAGES; ASSISTIVE
LEARNING DEVICES AND EQUIPMENT FOR LEARNERS WITH SPECIAL
NEEDS; and modernization of instructional technologies.

A Memorandum of Agreement (MOA) specifying the details of the adoption
shall be entered into between the adopting INDIVIDUAL OR entity and the head of
the [sehee!] EDUCATIONAL INSTITUTION concerned: Provided, That such MOA
shall be subject to review and approval of the [Superintendent-of-Sehools-of the
provinee—ordistriet—eoneemed] CONCERNED FIELD OFFICE OF THE


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EDUCATIONAL INSTITUTION: Provided, further, That the agreement shall last
for at least two (2) years with the possibility of extension: Provided, finally, That such
period may be shortened only in cases where the adopting INDIVIDUAL OR entity is
dissolved before the end of such period unless otherwise earlier terminated in

accordance with [the sueceeding seetion] THIS ACT.”

SEC. 4, Insert a new Section under Republic Act No. 8525 to read as follows, and

renumber the succeeding sections accordingly:

"SEC. 4. CREATION AND ESTABLISHMENT OF AN ADOPT-A-
SCHOOL ONE-STOP SHOP. — THE CENTRAL OFFICES OF THE
DEPARTMENT OF EDUCATION (DEPED), COMMISSION ON HIGHER
EDUCATION (CHED), AND TECHNICAL EDUCATION AND SKILLS
DEVELOPMENT AUTHORITY (TESDA) AS WELL AS ITS RESPECTIVE
REGIONAL OFFICES SHALL BE MANDATED TO ESTABLISH AND
MAINTAIN AN ADOPT-A-SCHOOL ONE-STOP SHOP WHICH SHALL
SERVE AS A LOCATION TO ADDRESS QUERIES AND CONCERNS FROM
PRIVATE INDIVIDUALS AND ENTITIES INTERESTED IN THE
PROGRAM, AND TO RECEIVE AND PROCESS APPLICATIONS JOINTLY
WITH BIR AND BOC: PROVIDED, THAT DEPED, CHED AND TESDA
SHALL, IN CONSULTATION WITH THE DEPARTMENT OF
INFORMATION AND COMMUNICATIONS TECHNOLOGY (DICT),
ESTABLISH AN INTEGRATED ONLINE PORTAL TO RECEIVE AND
PROCESS APPLICATIONS."

SEC. 5. Section 4 of Republic Act No. 8525 is hereby amended to read as follows:

"Section [4] 5. Periodic review. — A review of the adoption shall be
undertaken by the [local scheol-board-of-the-provinee-or-eity_where-the-sehool]
CONCERNED FIELD OFFICE WHERE THE PARTICIPATING SCHOOL is
located. The standards and guidelines for the review shall be formulated by the
ADOPT-A-SCHOOL Coordinating Council created under Sec. [7] 8 hercof. The
results of the review shall be taken into consideration in the assessment of the
application for tax credits by the adopting INDIVIDUAL OR entity. The [scheot
board] CONCERNED FIELD OFFICE may, after an appropriate review, recommend
to the ADOPT-A-SCHOOL Coordinating Council the termination of the adoption.
‘The adopting INDIVIDUAL OR entity may appeal the assessment to the ADOPT-A-
SCHOOL Coordinating Council whose decision shall be final and unappealable."



SEC. 6. Section 5 and 6 of Republic Act No. 8525 is hereby repealed and replaced with
a new Section to be read as follows:
"SEC. 6. INCENTIVES FOR ADOPTING INDIVIDUALS OR
INTITIES. - PROVISIONS OF EXISTING LAWS TO THE CONTRARY
NOTWITHSTANDING, ADOPTING INDIVIDUALS OR ENTITIES SHALL
ENJOY THE FOLLOWING INCENTIVES:
a) ADDITIONAL DEDUCTION FOR EXPENSES INCURRED FOR THE

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ADOPTION -— EXPENSES INCURRED BY THE ADOPTING
INDIVIDUALS OR ENTITIES FOR THE "ADOPT-A-SCHOOL
PROGRAM" SHALL BE ALLOWED AN ADDITIONAL DEDUCTION
FROM THE GROSS INCOME EQUIVALENT TO FIFTY PERCENT (50%)
OF SUCH EXPENSES.

THIS SHALL INCLUDE SCHOLARSHIPS FOR TEACHERS AND
LABOR TRAINING EXPENSES INCURRED FOR SKILLS
DEVELOPMENT OF ENTERPRISE-BASED TRAINEES ENROLLED IN
PUBLIC SENIOR HIGH SCHOOLS, PUBLIC HIGHER EDUCATION
INSTITUTIONS, OR PUBLIC TECHNICAL AND VOCATIONAL
INSTITUTIONS AND DULY COVERED BY AN APPRENTICESHIP
AGREEMENT UNDER PRESIDENTIAL DECREE NO. 442, SERIES OF
1974, OR THE 'LABOR CODE OF THE PHILIPPINES’, AS AMENDED:
PROVIDED, FURTHER, THAT FOR THE ADDITIONAL DEDUCTION
FOR ENTERPRISE-BASED TRAINING OF STUDENTS FROM PUBLIC
EDUCATIONAL INSTITUTIONS, THE ENTERPRISE SHALL SECURE
PROPER CERTIFICATION FROM THE DEPED, TESDA, OR CHED:
PROVIDED, FINALLY, THAT SUCH DEDUCTION SHALL NOT EXCEED
TEN PERCENT (10%) OF DIRECT LABOR WAGE. VALUATION OF
ASSISTANCE OTHER THAN MONEY SHALL BE BASED ON THE
ACQUISITION COST OF THE GOODS, SERVICES AND REAL
PROPERTY. SUCH VALUATION SHALL TAKE INTO CONSIDERATION
THE DEPRECIATED VALUE OF THE GOODS AND REAL PROPERTY
IN CASE SAID GOODS AND REAL PROPERTY HAS ALREADY BEEN
USED.


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b) ADDITIONAL DEDUCTION FOR HIRING OF PUBLIC SENIOR HIGH
SCHOOL (SHS) GRADUATES ~ ADOPTING INDIVIDUALS OR ENTITIES
WHO HIRE SENIOR HIGH SCHOOL (SHS) GRADUATES FROM THEIR
PARTNER PUBLIC SCHOOL SHALL ENJOY AN ADDITIONAL
DEDUCTION EQUIVALENT TO 20% OF THE SALARIES, WAGES, AND
BENEFITS PAID TO THE EMPLOYED SHS GRADUATE.

ADDITIONAL INCENTIVES ~ IN ACCORDANCE WITH EXISTING LAWS
AND SUBJECT TO THE GUIDELINES THAT SHALL BE PROVIDED IN
THE IRR, THE ADOPTING INDIVIDUAL OR ENTITY SHALL BE
ENTITLED TO HAVE ITS NAME EMBLAZONED BENEATH THE NAME
OF THE SCHOOL AFTER WORDS INDICATING THAT THE SCHOOL
IS UNDER THE "ADOPT-A-SCHOOL PROGRAM."

°)

SEC. 7. Insert a new Section under Republic Act No. 8525 to be read as follows, and

renumber the succeeding sections accordingly:

‘SEC. 7. EXEMPTION FROM IMPORT DUTIES, TAXES AND OTHER
FEES. - THE DONATED GOODS, REAL PROPERTY, AND SERVICES BY
AN ADOPTING INDIVIDUAL OR ENTITY SHALL BE EXEMPT FROM
CUSTOMS DUTIES, VALUE-ADDED TAX, EXCISE TAX, DONOR'S TAX,
AND OTHER FEES: PROVIDED, THAT THE DONATIONS SHALL NOT BE
RESOLD OR TRANSFERRED FOR MATERIAL CONSIDERATION."
SEC. 8. Section 7 of Republic Act No. 8525 is hereby amended to read as follows:
"Section [7] 8. ADOPT-A-SCHOOL Coordinating Council. - A ADOPT-A-
SCHOOL Coordinating Council, hereinafter referred to as the Council, is hereby
created to coordinate and monitor the implementation of this Act. The Council shall be
composed of the Secretary of [the-Department-of Fdueation,Culture-and-Sports
(PECS)] DEPED, as chairperson; the Chairman of [the-Commission-on—Higher
Education (CHED)] CHED and the Director-General of [the-Feehnieal Education-and
SkitlsDevelopment—AuthorityCFESDA)] TESDA, as co-chairpersons; THE
SECRETARY OF THE DEPARTMENT OF TRADE AND INDUSTRY (DTD;
THE SECRETARY OF THE DEPARTMENT OF LABOR AND
EMPLOYMENT (DOLE); THE COMMISSIONER OF THE BUREAU OF
INTERNAL REVENUE (BIR) and [the-ehairpersen-of the Presidential Couneilfor

Countryside Development 2CCD)--and] a representative, WHO SHALL HAVE A
TERM OF THREE (3) YEARS AND MAY BE REAPPOINTED FOR


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ANOTHER THREE (3) YEARS, from a {nationalfederation—of-chambers—of
commeree-and industry] REPUTABLE BUSINESS GROUP to be appointed by the
President of the Philippines, as members.

‘THE SECRETARIES OF DEPED, DTI AND DOLE, THE CHAIRMAN
OF CHED, THE DIRECTOR-GENERAL OF TESDA, AND THE
COMMISSIONER OF BIR MAY DESIGNATE THEIR RESPECTIVE
ALTERNATES WITH RANKS NOT LOWER THAN ASSISTANT
SECRETARY OR ITS EQUIVALENT. ALL ALTERNATES SHALL BE
AUTHORIZED TO DECIDE FOR OR ON BEHALF OF THEIR RESPECTIVE
PRINCIPALS.

The Council shall meet once every three (3) months. The chairpersons and

members shall not receive compensation but shall be entitled to reimbursements for

reasonable expenses related to the Council's activities.

The DEPED [BECS], CHED, [end] TESDA, DTI, DOLE through a mutual
agreement, AND IN COORDINATION WITH DBM, shall each make provisions for
the secretariat of the Council.

THE COUNCIL SHALL COORDINATE WITH NATIONAL
GOVERNMENT AGENCIES (NGAS) AND EXISTING COUNCILS.
RELEVANT TO THE IMPLEMENTATION OF THE PROVISIONS OF THIS
ACT.”

SEC. 9. Implementing Rules and Regulations. — Within sixty (60) days from the
effectivity of this Act, the DepEd, CHED, TESDA, DTI and DOLE, in consultation with the
DOF, including the BIR, and the Bureau of Customs (BOC), as well as with the participation
of the ECCD Council Secretariat, shall formulate the implementing rules and regulations to

implement this Act.

SEC.10. Transitory Clause. — To prevent any delay in the delivery of goods, services,
and real property, the provisions or Republic Act No. 8525 also known as the "Adopt-a-School
‘Act of 1998" shall still apply to pending and on-going transactions and/or donations by
adopting individuals or entities.

SEC.I1. Separability Clause. — If any portion or provision of this Act is declared
unconstitutional, the remainder of this Act or any affected thereby shall remain in force and
effect.

SEC.12. Repealing Clause. — All other laws, acts, presidential decrees, executive

orders, presidential proclamations, issuances, rules and regulations or parts thereof which are


a wne

contrary to or inconsistent with any of the provisions of this Act are hereby repealed, amended,
or modified accordingly.

SEC.13. Effectivity Clause. ~ This Act shall take effect fifteen (15) days from its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,