MAY 25, 2016

NR # 4211

House approves on 3rd reading bill further strengthening the Special

Program for the Employment of Students (SPES)
The House of Representatives unanimously approved on third reading and final
reading Monday House Bill 6414 which seeks to further strengthen and expand the
coverage of the Special Program for the Employment of Students (SPES) under the
Department of Labor and Employment (DOLE).
The bill further strengthens the youth employment program of the government by
amending certain provisions of Republic Act 9547 otherwise known as An Act
Strengthening And Expanding the Coverage of the Special Program For Employment of
Students, Amending for the Purpose Provisions of R.A. No. 7323, Otherwise Known As
The Special Program For Employment Of Students or SPES.
The measure substituted House Bill 5469 principally authored by Rep. Karlo Alexei
B. Nograles (1st District, Davao City) and HB 5977 by Rep. Linabelle Ruth R. Villarica
(4th District, Bulacan).
Nograles, chairman of the Committee on Labor and Employment, said while it is
recognized that SPES, as an employment bridging program, has changed the lives of many
Filipino youth, it cannot be denied that its implementation has encountered multitude of
problems, both procedural and substantial.
The current program covers only presently enrolled students, depriving
other disadvantaged youth to pursue education. Difficulty is also encountered as to the
mode of payment of wages to the beneficiaries. With the improvement and expansion of
the SPES, it is hoped that it will allow more Filipino youth to pursue their education
towards a better future through easy access to the program, said Nograles.
Villarica, chairperson of the Committee on Women and Gender Equality, said while
the chronic problem of unemployment cannot be solved overnight, it can be mitigated and
greatly decimated through innovative, stimulating and productive strategies to improve the
lives of many Filipinos.
As a strategy in addressing unemployment, the SPES law should be amended
further by expanding its coverage and that the salaries should be paid in cash, said
Villarica.
Villarica said the bill for one, seeks to amend Section 1 of RA 9547 so that any
person or entity employing at least 10 persons may employ poor but deserving students,
out-of-school youth, dependents of displaced workers or would-be displaced workers due
to business closures or work stoppages, intending to enroll in any secondary, tertiary,

technical-vocational institutions, 15 years of age but not more than 30 years, paying them
a salary or wage not lower than the minimum wage for private employers and the
applicable hiring rate for the national and the local government agencies.
Moreover, the period of employment shall be from 20 to 78 working days only,
except that during Christmas vacation, the employment shall be from 10 to 15 days that
maybe counted as part of the students probationary period should they apply in the same
company or agency after graduation.
Students employed in activities related to their course may earn equivalent
academic and practicum or on-the-job training credits as may be determined by the
appropriate government agencies.
The bill refers to poor but deserving students out-of-school youth, dependents of
displaced workers or would-be displaced workers due to business closures or work
stoppages intending to enroll in any secondary, tertiary, technical-vocational institutions as
those whose parents combined income, together with their own, if any, does not exceed
the annual regional poverty threshold level for a family of six for the preceding year as
may be determined by the National Economic and Development Authority
(NEDA).
Employment facilitation services for applicants to the program shall be done by the
Public Employment Service Office (PESO). The bill also seeks to amend Section 2 of RA
9547 so that 60 percent of the salary or wage shall be paid by the employer in cash and 40
percent by the government also in cash directly to the student or through financial
institutions or other payment facilities, subject to the existing rules on procurement which
shall be applicable in the payment for the students tuition fees, books, and other
education-related expenses including their daily allowance in going to school.
The 40 percent share shall be paid within 30 working days upon submission of the
partner-employer or participating establishment of their report on payment of salary or
wages which shall be the basis for the 40 per centum salaries or wages to be paid by the
government through the DOLE.
In case of sickness, absence or death of the SPES beneficiary, the immediate heirs
may claim the salary provided that proof to this effect has been clearly established.
The SPES beneficiary shall be entitled to social protection by virtue of an insurance
coverage with the Government Service Insurance System (GSIS) for a period of one year.
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