THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
1 
.:. , ,., 'I. 
, ' . f r  . 
S.B. NO. 
Introduced by Senator JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
In its effort to augment the existing policies and programs in making education 
accessible to all Filipinos, R.A. 7323, otherwise known as the " Special Program for the 
Employment of Students" was passed and implemented in 1993. This law, which is 
primarily aimed towards helping poor but deserving students to pursue their education 
through wages earned by working during summer and Christmas vacations, is being 
successfully implemented by the Department of Labor and Employment (DOLE), the 
department of Finance (DOF) and the Department of Education. 
From 1993 to 1997, the innovative educational financing program has benefited 
about 420,000 poor but deserving students. For the past four years, a total of 2.2 Billion 
pesos was awarded wherein 60% or 1.3 Billion came from employees while 40% or 890 
million was contributed directly from the national budget through DOLE. 
While the program has gained popular acceptance and approval by the public, 
the time has come to make necessary amendments that will make it more relevant and 
responsive under present and future conditions. 
Based on the analysis done by implementors of the program, the following areas 
need to be addressed: 
1. 
2. 
3. 
4. 
Employer Participation Coverage-. to encourage a wide participation of 
private employers in the program, the existing employee requirement of 50 
should be lowered to 20. This will definitely encourage the cottage, small 
and medium enterprises to participate. 
Maximum Family Income Requiremenf - the present P36, 000 annual 
family income requirement to qualify as "poor" has become irrelevant, 
considering that the poverty threshold for a family of six has increased 
since 1993. 
Exclusion of Nafional and Local Governrnenf Units - Since the intent of 
the law was for the private employees to share in financing the education 
of the poor but deserving students, it would be better to maximize their 
contribution by using government budget counterparts for wider private 
participants. 
Aufomafic Appropriation- the program, as its performance showed 
deserves automatic appropriations without reduction. This will provide 


further from the ill effect of partisan interests and ensure regular increases 
in its allocations. 
5. 
Additional Penalties- penalties should be specified for those who will be 
found liable in not honoring the program’s education vouchers. 
In view of the above- mentioned considerations, the passage of this bill is 
earnestly requested. 
J 
enator 


THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
) 
SENATE 
-~ 
Introduced by Senator JINGGOY EJERCITO ESTRADA 
AN ACT 
MAKING R.A. 7323 MORE EFFECTIVE AND RELEVANT TO PRESENT AND 
FUTURE CONDITIONS BY EXPANDING ITS COVERAGE IN TERMS OF EMPLOYER 
PARTICIPATION, ADJUSTING THE INCOME CLASSIFICATION REQUIREMENT 
BUDGETARY ALLOCATION AND PROVIDING PENALTIES FOR THOSE WHO 
DISHONOR THE EDUCATION VOUCHERS, AMENDING FOR THESE PURPOSES 
R.A. 7323 ENTITLED “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. 
THEREIN, PROVIDING AUTOMATIC AND NON- DIMINUTION CLAUSES ON ITS 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION I. 
Section I of R.A. 7323 otherwise known as “Special Program for 
the Employment of Students (SPES)” is hereby amended to read as follows: 
SECTION I. Any provision of law to the contrary not withstanding, any 
person or entity EXCEPT NATIONAL AND LOCAL GOVERNMENT UNITS 
employing at least [fifty (SO)] TWENTY (20) persons may during the summer 
and/or Christmas vacations employ poor but deserving students fifteen (1 5) 
years of age but not more than twenty- five (25) years old, paying them a salary 
or wage 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 incomes, if any, do not exceed 
[Thirty-six thousand pesos (P36, 000) per annum) THE ANNUAL APPLICABLE 
REGIONAL POVERTY THRESHOLD LINE FOR A FAMILY 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)”. 


SECTION 2. Section 2 of the same law is hereby amended to read as follows: 
“SEC 2. Sixty per centum (60%) of said salary or wage shall be paid by 
the employer in cash and forty per centum (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 education voucher shall be paid by 
the Government to the educational 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 theof dies or 
for a justifiable cause stops in his duties in which case it can be transferred to his 
brothers and sisters. If there be none, the amount thereof shall be paid his heirs 
or to the payee himself, as the case may be. 
ANY PERSON OR ENTITY WHO REFUSES OR DISHONORS AN 
EDUCATION VOUCHER, SHALL UPON CONVICTION BE PUNISHED UNDER 
SECTION 4 OF THIS ACT.” 
SECTION 3. Section 5 of the same law is hereby amended to read as follows: 
“SEC. 5. The amount necessary to carry out the purposes of this Act is 
hereby authorized to be appropriated in the General Appropriation 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 
AUTHOMATICALLY AND REGULARY RELEASED; PROVIDED FURTHER, 
THAT THE APPROPRIATION HEREIN SHALL BE INCREASED BY AT LEAST 
TWENTY (20%) PER CENTUM ANNUALLY. 
SECTION 4. All laws, rules and regulations, decrees, issuances or any parts 
thereof inconsistent with this Act, are hereby repealed, modified or amended 
accord i n g I y . 
SECTION 6. This Act shall take effect fifteen (15) days after its complete 
publication in the Official gazette or in at least two (2) national papers of general 
circulation, whichever comes earlier. 
Approved,