TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
]
25 JIJL -2/ I
59
SENATE
S.B. No. 54
Introduced by SENATOR WIN GATCHALIAN
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 1987 Constitution provides that the State shall protect and 
promote the right of all citizens to quality education at all levels and shall take 
appropriate steps to make such education accessible to all.1 The State shall 
also establish and maintain a system of scholarship grants, student loan 
programs, subsidies, and other incentives which shall be available to 
deserving students in both public and private schools, especially to the 
underprivileged.2
Republic Act (RA) No. 8525 or the “Adopt-a-School Act of 1998” was 
enacted on February 14, 1998, which established the Adopt-a-School 
Program allowing private entities to support public elementary, secondary, or 
tertiary schools, particularly in the twenty (20) poorest provinces as identified 
by the government. Assistance may include teacher training, facility
1 1987 Philippine Constitution, Article XIV, Section 1.
2 Id., at Section 3.


construction or improvement, provision of learning materials, and 
modernization of instructional technologies. Expenses incurred by the 
adopting entity for the “Adopt-a-School Program” shall be allowed an 
additional deduction from the gross income equivalent to fifty percent (50%) 
of such expenses.
However, a perennial problem that has been identified across our 
education system is the lack of linkages between educational institutions and 
industries. One example of this is the persistent resistance of the private 
sector to hire Senior High School (SHS) graduates with adequate work skills 
and competencies despite the promises of the K to 12 basic education program 
with the enactment of RA No. 10533 or the “Enhanced Basic Education Act 
of 2013”.
A 2018 survey conducted by JobStreet on fresh graduates even found 
that only 24 percent of employers—nearly 1 out of 4—were ready to hire the 
first batch of K to 12 graduates. Furthermore, the same survey found that 35 
percent of employers were not ready to hire SHS graduates, while 41 percent 
(41%) were still undecided. Such tepid reception undergirds the results of a 
June 2023 Pulse Asia Survey, which showed that only 4 out of 10 respondents 
were satisfied with the SHS program. By March 2025, this figure had declined, 
with only 3 out of 10 respondents expressing satisfaction with the SHS 
program.
The proposed measure seeks to strengthen the existing “Adopt-a- 
School” Program as follows:
1. Inclusion of early childhood, alternative learning system (ALS), and 
technical-vocational and training (TVET) as beneficiaries of the 
program;
2. Encouraging private individuals and entities, whether local or foreign 
and of good standing, to assist public educational institutions, 
especially those in the 4th and 5th class provinces, cities, and


municipalities experiencing severe shortages, insufficient budget, or 
having numerous poor but high performing learners;
3. Provision of assistance including, but not limited to, training and 
development for educators and learners, scholarships, construction 
and repair of school facilities, provision of instructional materials and 
equipment, and modernization of educational technologies;
4. A Memorandum of Agreement shall formalize the adoption between the 
private individual or entity and the educational institution, valid for at 
least two years and subject to approval and periodic review by the 
concerned educational field office;
5. The bill mandates the creation of an Adopt-a-School One-Stop Shop by 
the Department of Education, Commission on Higher Education, and 
Technical Education and Skills Development Authority to serve as a 
central hub for queries and application processing, supported by an 
integrated online portal;
6. Adopting individuals or entities will receive incentives, including a fifty 
percent (50%) additional deduction on expenses incurred, a twenty 
percent (20%) additional deduction for hiring of SHS graduates, naming 
rights, and exemptions from import duties and taxes on donations, as 
may be applicable; and
7. Additional members for the Adopt-a-School Coordinating Council 
composed of key government agency heads to include the Department 
of Trade and Industry, Department of Labor and Employment, Bureau 
of Internal Revenue, and a private sector representative from a 
reputable business group that will oversee the implementation and 
coordination of the program.
It is my fervent hope that the private sector will be further enticed to 
forge linkages with our public educational institutions„-Given the serious 
crisis our education system is facing, I earnestly a^k Je. support of this 
Congress for the immediate passage of this ameng^^oxv-lm latiuirr
GATC


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
]
25 JiJL-2 P5-.59
SENATE
S.B. No. 54
U\f'
Introduced by SENATOR WIN GATCHALIAN
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 House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Section 1 of Republic Act (R.A.) No. 8525, otherwise known
2 
as the “Adopt-a-School Act of 1998”, is hereby amended to read as follows:
3 
“Section 1. Title. - This Act shall be known and cited as the
4 
“Adopt-a-School Act of [1998] 2025”.
5
6 
Sec. 2. Section 2 of R.A. No. 8525 is hereby amended to read as follows:
7 
“Sec. 2. Declaration of policy. - It is the policy of the State to
8 
provide quality and relevant education to the Filipino youth and to
9 
encourage private initiative to support public education. Towards
10 
this end, the State shall institute programs to [encourage]
11 
INCENTIVIZE THE private [companies and enterprises] SECTOR
12 
to [help] ASSIST in the DEVELOPMENT, upgrading, and
13 
modernization of THE COUNTRY’S public [schools] EDUCATION
14 
SYSTEM [in the country, particularly those in poverty stricken


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
provinces.] 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 R.A. 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 [school] EDUCATIONAL 
INSTITUTIONS, whether EARLY CHILDHOOD, [elementary, 
secondary,] BASIC EDUCATION, INCLUDING THE 
ALTERNATIVE LEARNING SYSTEM (ALS), TECHNICAL- 
VOCATIONAL AND TRAINING (TVET), or [tertiary] HIGHER 
EDUCATION, preferably located in [any of the twenty (20) poorest 
provinces identified by the Presidential Council for Countryside
Development—or—any—other—government—agency—tasked—with
identifying the poorest provinces] THE 4th AND 5th 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, 
CHILD DEVELOPMENT TEACHERS AND WORKERS, TVET 
TRAINERS, FACULTY AND LEARNERS; ASSESSMENTS IN 
PURSUIT OF RELEVANT WORK-RELATED CERTIFICATIONS 
AND CREDENTIALS; SCHOLARSHIPS FOR TEACHERS; REAL 
ESTATE PROPERTY [staff and faculty development for training 
and further education]; construction of SCHOOL facilities SUCH 
AS LIBRARIES AND LABORATORIES AND THOSE RELATED TO 
POWER, WATER, AND SANITATION; [upgrading] UPGRADE AND


1 
REPAIR of existing facilities, provision of books, publications,
2 
SCHOOL SUPPLIES, and other instructional materials SUCH AS
3 
ELECTRONIC BOOKS (E-BOOKS), COMPUTERS, FURNITURE,
4 
EDUCATIONAL FILMS AND AUDIO-VISUAL MATERIALS;
5 
TECHNICAL VOCATIONAL LIVELIHOOD (TVL) TOOLS AND
6 
EQUIPMENT; HEALTH AND NUTRITION PACKAGES; ASSISTIVE
7 
LEARNING DEVICES AND EQUIPMENT FOR LEARNERS WITH
8 
DISABILITIES; and modernization of instructional technologies.
9 
A Memorandum of Agreement (MOA) specifying the details of
10 
the adoption shall be entered into between the adopting
11 
INDIVIDUAL OR entity and the head of the [school]
12 
EDUCATIONAL INSTITUTION concerned: Provided, That such
13 
MOA shall be subject to review and approval of the [Superintendent
14 
of Schools of the province or district concerned] CONCERNED
15 
FIELD OFFICE OF THE EDUCATIONAL INSTITUTION: Provided,
16 
further, That the agreement shall last for at least two (2) years with
17 
the possibility of extension: Provided, finally, That such period may
18 
be shortened only in cases where the adopting INDIVIDUAL OR
19 
entity is dissolved before the end of such period unless otherwise
20 
earlier terminated in accordance with [the succeeding section]
21 
THIS ACT.”
22
23 
Sec. 4. Insert a new Section under R.A. No. 8525 to read as follows, and
24 
renumber the succeeding sections accordingly:
25 
“SEC. 4. CREATION AND ESTABLISHMENT OF AN ADOPT-
26 
A-SCHOOL ONE-STOP SHOP. - THE CENTRAL OFFICES OF
27 
THE DEPARTMENT OF EDUCATION (DEPED), COMMISSION ON
28 
HIGHER EDUCATION (CHED), AND TECHNICAL EDUCATION
29 
AND SKILLS DEVELOPMENT AUTHORITY (TESDA) AS WELL AS
30 
THEIR RESPECTIVE REGIONAL OFFICES SHALL BE
31 
MANDATED TO ESTABLISH AND MAINTAIN AN ADOPT-
32 
A-SCHOOL ONE-STOP SHOP WHICH SHALL SERVE AS A
33 
LOCATION TO ADDRESS QUERIES AND CONCERNS FROM


1 
PRIVATE INDIVIDUALS AND ENTITIES INTERESTED IN THE
2 
PROGRAM, AND TO RECEIVE AND PROCESS APPLICATIONS
3 
JOINTLY WITH BIR AND BUREAU OF CUSTOMS (BOC):
4 
PROVIDED, THAT DEPED, CHED, AND TESDA SHALL, IN
5 
CONSULTATION WITH THE DEPARTMENT OF INFORMATION
6 
AND COMMUNICATIONS TECHNOLOGY (DICT), ESTABLISH AN
7 
INTEGRATED ONLINE PORTAL TO RECEIVE AND PROCESS
8 
APPLICATIONS.”
9
10 
Sec. 5. Section 4 of R.A. No. 8525 is hereby amended to read as follows:
11 
“Section [4] 5. Periodic review. - A review of the adoption shall
12 
be undertaken by the [local school board of the province or- cky
13 
where the school] CONCERNED FIELD OFFICE WHERE THE
14 
PARTICIPATING SCHOOL is located. The standards and
15 
guidelines for the review shall be formulated by the ADOPT-A-
16 
SCHOOL Coordinating Council created under Sec. [7\ 8 hereof. The
17 
results of the review shall be taken into consideration in the
18 
assessment of the application for tax credits by the adopting
19 
INDIVIDUAL OR entity. The [school board] CONCERNED FIELD
20 
OFFICE may, after an appropriate review, recommend to the
21 
ADOPT-A-SCHOOL Coordinating Council the termination of the
22 
adoption. The adopting INDIVIDUAL OR entity may appeal the
23 
assessment to the ADOPT-A-SCHOOL Coordinating Council whose
24 
decision shall be final and unappealable.”
25
26 
Sec. 6. Sections 5 and 6 of R.A. No. 8525 are hereby repealed and
27 
replaced with a new Section to be read as follows:
28 
“SEC. 6. INCENTIVES FOR ADOPTING INDIVIDUALS OR
29 
ENTITIES. - PROVISIONS OF EXISTING LAWS TO THE
30 
CONTRARY NOTWITHSTANDING, ADOPTING INDIVIDUALS OR
31 
ENTITIES SHALL ENJOY THE FOLLOWING INCENTIVES:
32 
a) 
ADDITIONAL DEDUCTION FOR EXPENSES
33 
INCURRED FOR THE ADOPTION - SCHOLARSHIPS FOR


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
TEACHERS AND LABOR TRAINING 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: PROVIDED, THAT 
THE ADOPTING INDIVIDUALS OR ENTITIES SHALL SECURE 
PROPER CERTIFICATION FROM THE DEPED, CHED, OR 
TESDA: PROVIDED, FURTHER, THAT SUCH DEDUCTION SHALL 
NOT EXCEED TEN PERCENT (10%) OF DIRECT LABOR WAGE: 
PROVIDED, FINALLY, THAT ADOPTING INDIVIDUALS OR 
ENTITIES THAT IMPLEMENT A REGISTERED ENTERPRISE- 
BASED EDUCATION AND TRAINING (EBET) PROGRAM SHALL 
BE ALLOWED TO AVAIL THE DEDUCTIBLE TRAINING 
EXPENSE AS PROVIDED UNDER SECTION 20 OF REPUBLIC 
ACT NO. 12063 OR THE “ENTERPRISE-BASED EDUCATION 
AND TRAINING (EBET) FRAMEWORK ACT”.
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 HAVE ALREADY BEEN USED.
b) 
ADDITIONAL DEDUCTION FOR HIRING OF PUBLIC 
SENIOR HIGH SCHOOL (SHS) GRADUATES - ADOPTING 
INDIVIDUALS OR ENTITIES WHO HIRE 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.
c) 
ADDITIONAL INCENTIVES - IN ACCORDANCE WITH 
EXISTING LAWS AND SUBJECT TO THE GUIDELINES THAT 
SHALL BE PROVIDED IN THE IMPLEMENTING RULES AND 
REGULATIONS (IRR), THE ADOPTING INDIVIDUAL OR ENTITY


1 
SHALL BE ENTITLED TO HAVE ITS NAME EMBLAZONED
2 
BENEATH THE NAME OF THE SCHOOL AFTER THE WORDS
3 
INDICATING THAT THE SCHOOL IS UNDER THE ‘ADOPT-A-
4 
SCHOOL PROGRAM.”’
5
6 
Sec. 7. Insert a new Section under R.A. No. 8525 to read as follows, and
7 
renumber the succeeding sections accordingly:
8 
“SEC. 7. EXEMPTION FROM IMPORT DUTIES, TAXES AND
9 
OTHER FEES. - THE DONATED GOODS, REAL PROPERTY,
10 
AND SERVICES BY AN ADOPTING INDIVIDUAL OR ENTITY
11 
SHALL BE EXEMPT FROM CUSTOMS DUTIES, VALUE-ADDED
12 
TAX, EXCISE TAX, DONOR'S TAX, AND OTHER FEES:
13 
PROVIDED, THAT THE DONATIONS SHALL NOT BE RESOLD OR
14 
TRANSFERRED FOR MATERIAL CONSIDERATION.”
15
16 
Sec. 8. Section 7 or R.A. No. 8525 is hereby amended to read as follows:
17 
“Section [7] 8. ADOPT-A-SCHOOL Coordinating Council. - An
18 
ADOPT-A-SCHOOL Coordinating Council, hereinafter referred to s
19 
the Council, is hereby created to coordinate and monitor the
20 
implementation of this Act. The Council shall be composed of the
21 
Secretary of [the Department of Education, Culture and Sports
22 
(DECS)] DEPED, as chairperson; the Chairman of [the Commission
23 
on Higher Education (CHED)] CHED and the Director-General of
24 
[the—Technical—Education—and—Skills—Development—Authority
25 
(TESDA)] TESDA, as co-chairpersons; THE SECRETARY OF THE
26 
DEPARTMENT OF TRADE AND INDUSTRY (DTI); THE
27 
SECRETARY OF THE DEPARTMENT OF LABOR AND
28 
EMPLOYMENT (DOLE); THE COMMISSIONER OF THE BUREAU
29 
OF INTERNAL REVENUE (BIR) and [the chairperson of the
30 
Presidential Council for Countryside Development (PCCD), and] a
31 
representative, WHO SHALL HAVE A TERM OF THREE (3)
32 
YEARS AND MAY BE REAPPOINTED FOR ANOTHER THREE (3)
33 
YEARS, from a [national federation of chambers of commerce and


1 
industry] REPUTABLE BUSINESS GROUP to be appointed by the
2 
President of the Philippines, as members.”
3 
THE SECRETARIES OF DEPED, DTI, AND DOLE, THE
4 
CHAIRMAN OF CHED, THE DIRECTOR-GENERAL OF TESDA,
5 
AND THE COMMISSIONER OF BIR MAY DESIGNATE THEIR
6 
RESPECTIVE ALTERNATES WITH RANKS NOT LOWER THAN
7 
ASSISTANT SECRETARY OR ITS EQUIVALENT. ALL
8 
ALTERNATES SHALL BE AUTHORIZED TO DECIDE FOR OR ON
9 
BEHALF OF THEIR RESPECTIVE PRINCIPALS.
10 
The Council shall meet once every three (3) months. The
11 
chairpersons and members shall not receive compensation but
12 
shall be entitled to reimbursements for reasonable expenses related
13 
to the Council's activities.
14 
The DEPED [DECS], CHED, [and] TESDA, DTI, AND DOLE,
15 
through a mutual agreement, AND IN COORDINATION WITH
16 
DBM, shall each make provisions for the secretariat of the Council.
17 
THE COUNCIL SHALL COORDINATE WITH NATIONAL
18 
GOVERNMENT AGENCIES (NGAS) AND EXISTING COUNCILS
19 
RELEVANT TO THE IMPLEMENTATION OF THE PROVISIONS
20 
OF THIS ACT.”
21
22 
Sec. 9. Implementing Rules and Regulations (IRR). - Within sixty (60)
23 
days from the effectivity of this Act, the DepEd, CHED, TESDA, DTI, and
24 
DOLE, in consultation with the DOF, including the BIR and the BOC, as well
25 
as with the participation of the Early Childhood Care and Development
26 
Council Secretariat, shall formulate the IRR to implement this Act. The IRR
27 
issued pursuant to this section shall take effect thirty (30) days after its
28 
publication in a newspaper of general circulation.
29
30 
Sec. 10. Transitory Clause. - To prevent any delay in the delivery of
31 
goods, services, and real property, the provisions of R.A. No. 8525 or the
32 
“Adopt-a-School Act of 1998,” shall still apply to pending and ongoing
33 
transactions and/or donations by adopting individuals or entities.


1
2
3
4
5
6
7
8 
9
10
11
12
Sec. 11. Separability Clause. - If any portion or provision of this Act is 
declared unconstitutional, the remainder of this Act or any provision not 
affected thereby shall remain in full force and effect.
Sec. 12. Repealing Clause. - All other laws, acts, presidential decrees, 
executive orders, presidential proclamations, administrative orders, 
issuances, rules and regulations, or parts thereof inconsistent with or 
contrary to the provisions of this Act are hereby repealed or amended 
accordingly.
Sec. 13. Effectiuity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,