MAY 1, 2015

NR # 3818B

Labor committee approves bill expanding coverage of

Special Program for Employment of Students (SPES)
The House Committee on Labor and Employment has recently approved a proposal
to strengthen and expand the coverage of the Special Program for Employment of
Students (SPES) to include not only currently enrolled poor students but also other
disadvantaged youth, and to extend the maximum employment period from two months to
three months.
The committee chaired by Rep. Karlo Alexei B. Nograles (1st District, Davao City)
approved House Bill 5469 seeking to amend Republic Act 7323, otherwise known as the
SPES, which provides employment to poor bur deserving students.
The bill authored by Nograles seeks to expand the coverage of SPES to include outof-school youth and dependents of displaced workers or would-be displaced workers due
to business closures or work stoppages, intending to enroll in any secondary, tertiary, or
technical-vocational institutions.
Nograles 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 the
implementation of the program has encountered multitude of problems, both procedural
and substantial.
The current program covers only currently enrolled students, depriving other
disadvantaged youth to pursue education. Difficulty is also encountered as to the mode of
payment of wages to the beneficiaries, said Nograles.
With the improvement and expansion of SPES, Nograles hopes this will allow more
Filipino youth to pursue their education towards a better future through easy access to the
program.
During the hearing on the bill, the committee agreed, among others, to extend the
maximum period of employment of poor but deserving students, out-of-school youths
(OSYs) or dependents of workers displaced from work, from 52 working days or two
months to 78 working days or three months.
The panel also agreed to amend Section 5 (Paragraph 2) of RA 7323 to include the
provision allocating for administrative costs in the implementation of the program, which
shall not exceed five percent of the total budget.
Luis Manuel Corral, executive director of the Trade Union Congress of the
Philippines (TUCP), proposed to the committee to include a provision in the bill providing

for mentorship of students to prepare them to land a real job in the future.
Under the measure, any entity or person employing at least 10 persons may employ
poor but deserving students, OSYs, or dependent or dependents of a displaced or wouldbe displaced workers due to business closures or work stoppages, intending to enroll in
any secondary, tertiary or technical-vocational institutions, and aged 15 to 30 years old.
The measure also requires 60 percent of the salary or wage shall be paid by the
employers in cash and 40 percent by the government also in the form of cash directly to
the student, or through financial institutions or other payment facilities, subject to the
existing rules on procurement in the case of payment for the students tuition fees, books,
and other education-related expenses, including their daily allowance.
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 of the 40 percent salary or wages to be paid by the
government through the Department of Labor and Employment (DOLE).
In case of sickness, absence, or death of the SPES beneficiary, the immediate heirs
may claim the salary upon presentation of proof, the bill provides.
The SPES beneficiary shall be entitled to social protection by virtue of an insurance
coverage with the Government Service and Insurance Commission (GSIS) for a period of
one year.
Employment facilitation services for SPES applicants shall be done by the Public
Employment Service Office (PESO). The DOLE shall issue the implementing rules and
regulations to carry out the purposes of the proposed Act.
The bill is co-authored by Reps. Emmeline Aglipay Villar (Party List, DIWA),
Florencio Flores, Jr. (2nd District, Bukidnon) and Deogracias Ramos, Jr. (2nd District,
Sorsogon). (30) rbb