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REPUBLIC ACT NO.

896 - AN ACT TO DECLARE THE POLICY ON ELEMENTARY
EDUCATION IN THE PHILIPPINES

Section 1. The state shall protect and promote the right of all the citizens to quality education at
all levels and shall take appropriate steps to make such education accessible to all.

Section 2. The state shall:

1.

Establish, maintain and support a complete, adequate and integrated system of education
relevant to the needs of the people and society;

2.

Establish and maintain s system of free public education in the elementary and high
school levels. Without limiting the natural rights of parents to rear their children,
elementary education is compulsory for all children of school age;

3.

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;

4.

Encourage non- formal, informal and indigenous learning system, as well as selflearning independent and out-of-school study programs particularly those that respond to
community needs; and

5.

Provide adult citizens, the disabled and out-of-school youth with training in civics,
vocational efficiency and skills.

Section 3.

1.

All educational institutions shall include the study of the Constitution as part of the
curricula.

2.

They shall inculcate patriotism and nationalism, foster love of humanity, respect for
human rights, appreciation of the role of national heroes in the historical development of
the country, teach the rights and duties of citizenship, strengthen ethical and spiritual
values, develop moral character and personal discipline, encourage critical and creative
thinking, broaden scientific and technological knowledge and promote efficiency.

3.

At the option expressed in writing by the parent or guardians, religion shall be allowed to
be taught to their children or wards in the public elementary and high schools within the
regular class hours by instructors designated or approved by the religious authorities of the
religion to which the children or wards belong, additional cost to the Government.

Section 4.

1.

The state recognizes the complementary roles of the public and private institutions in the
educational system and shall exercise reasonable supervision and regulation of all
educational institutions.

2.

Educational institutions, other than those established by religious groups and mission
boards, shall be allowed solely by citizens of the Philippines or corporations or associations
at least sixty per centum of the capital of which is owned by such citizens. The Congress
may, however, require increased Filipino equity participation in all educational institutions.
The control and administration of educational institutions shall vested in citizens of the
Philippines. No educational institution shall be established exclusively for aliens and no
group of aliens shall comprise more than one third of the enrollment in any school. The
provisions of this subsection shall not apply to schools established for foreign diplomatic
personnel and their dependents and, unless otherwise provided by law, for other foreign
temporary residents.

3.

All revenues and assets of non- stock, non- profit educational institutions used actually,
directly and exclusively for educational purposes shall be exempt from taxes and duties.
Upon the dissolution or cessation of the corporate existence of such institutions, their assets
shall be disposed of in the manner provided by law. Proprietary educational institutions,
including those cooperatively owned, may likewise be entitled to such exemptions subject
to the limitations provided by law including restrictions on dividends and provisions for
reinvestment.

4.

Subject to conditions prescribed by law, all grants endowments, donations or
contributions used actually, directly and exclusively for educational purposes shall be
exempt from tax.

Section 5.

1.

The State shall take into account regional and sectoral needs and conditions and shall
encourage local planning in the development of educational policies and programs.

2.

Academic freedom shall be enjoyed in all institutions of higher learning.

3.

Every citizen has a right to select a profession or course of study, subject to fair,
reasonable and equitable admission and academic requirements.

4.

The State shall enhance the right of teachers to professional advancement. Non- teaching
academic and non-academic personnel shall enjoy the protection of the State.

5.

The State shall assign the highest budgetary priority to education and ensure that teaching
will attract and retain its rightful share of the best available talents through adequate
remuneration and other means of job satisfaction and fulfillment.

PRESIDENTIAL DECREE No. 451 May 11, 1974
AUTHORIZING THE SECRETARY OF EDUCATION AND CULTURE TO REGULATE
THE IMPOSITION OF TUITION AND OTHER SCHOOL FEES, REPEALING
REPUBLIC ACT NO. 6139, AND FOR OTHER PURPOSES
1. WHEREAS, private schools, colleges and universities have been faced with increasingly
serious problems arising from decreasing incomes due to slump in enrolment and
increasing operational costs brought about by the rise in prices of instructional materials
and educational, as well as allied services;

2. WHEREAS, it is imperative that private educational institutions upgrade classroom
instruction by improving their facilities and hiring competent teachers in all levels of
education, provide salary and or wage increases and other benefits to their teaching,
administrative and other personnel to keep up with the increasing cost of living;
3. WHEREAS, the procedure prescribed under R.A. No. 6139 for the increase of tuition and
other school fees has been proved to be too cumbersome and time-consuming, and is not
conducive to the growth and improvement of private educational institutions and the
well-being of their employees, particularly those in the lower income groups and
4. WHEREAS, in order to alleviate the sad plight of private schools, their personnel and all
those directly and indirectly dependent on school incomes it advisable and necessary that
the cumbersome and time-consuming procedures fixed under Republic Act No. 6139 for
increasing tuition fees be simplified without opening the flood-gates to abuse of the right
to increase tuition and other school fees.
5. NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by
virtue of the powers vested in me by the Constitution do hereby decree and order the
following as part of the law of the land:
6. Section 1. Authority of Secretary of Education and Culture. Within the limits and under
the circumstances set forth in this Decree, the Secretary of Education and Culture shall
have the authority to regulate the imposition of tuition and other school fees or charges by
any and all private schools as defined under Act Numbered Two thousand seven hundred
and six, as amended. No changes in the rates of tuition or other school fees or charges

shall be effective without the prior approval of the Secretary of Education and Culture.
New school fees or charges to be imposed by new or existing schools, whether for new
courses or other matters, shall be at such reasonable rates as may be determined by the
Secretary of Education and culture based on the standard of such school.
7. Section 2. Application and Documents Required. Any private school which desires to
revise its rates of tuition or other school fees or charges or to impose other fees or charges
shall file application therefore with the Secretary of Education and Culture. The
application shall include:
(a) Statement of the itemized current rates of tuition and other charges and the
corresponding itemized proposed changes thereon, as well as the new fees or charges
proposed to be imposed, and of the proposed allocation of the incremental proceeds in
accordance with Section 3(a) hereof. Such statements shall, when accomplished be under
oath by the proper official (s) of the school concerned;
(b) Financial statement showing the financial status of the school duly certified by a
certified public accountant;
(c) A copy of the last tax return, where required, filed with the Bureau of Internal
Revenue.
8. Section 3. Limitations. The increase in tuition or other school fees or other charges as
well as the new fees or charges authorized under the next preceding section shall be
subject to the following conditions:

(a) That no increase in tuition or other school fees or charges shall be approved unless
sixty (60%) per centum of the proceeds is allocated for increase in salaries or wages of
the members of the faculty and all other employees of the school concerned, and the
balance for institutional development, student assistance and extension services, and
return to investments: Provided, That in no case shall the return to investments exceed
twelve (12%) per centum of the incremental proceeds; and
(b) That any such increase shall in no case exceed fifteen (15%) per centum of the rates
charged during the preceding school year.
9. Section 4. Rules and Regulations. The Secretary of Education and Culture is hereby
authorized, empowered and directed to issue the requisite rules and regulations for the
effective implementation of this Decree. He may, in addition to the requirements and
limitations provided for under Sections 2 and 3 hereof, impose other requirements and
limitations as he may deem proper and reasonable.
10. Section 5. Prohibitions. No school administration or office or division thereof shall hold
or sponsor any benefit performance, movies, concerts, dramatic presentation, games
and/or shows of whatever kind or nature whether for charity or otherwise. Any such act
on the part of the school administration or office or division thereof shall be considered a
circumvention of this law and shall be sufficient cause for the cancellation of the
approval of any previous increase in tuition or other school fees and shall subject the
school official concerned to such disciplinary action as the Secretary of Education and
Culture may deem proper including the revocation on any decree conferred by authority
of the Government.

11. Section 6. Review of Financial Statements. Financial statements submitted in accordance
with the provisions of Section 2 hereof may be reviewed by the Commission on Audit at
the instance of the Secretary of Education and Culture whenever he believes that the
same is necessary for verification purposes. For this purpose, the Commission on Audit is
authorized to examine the pertinent books and record of the school concerned.
12. Section 7. Additional Scholarships. As a further condition to any grant of increase in
tuition or other school fees, private schools with a total enrolment of at least one
thousand, are hereby required to provide free scholarships to poor but deserving students
at the ratio of one (1) free scholarship for every five hundred (500) pupils/students
enrolled: Provided, That this requirement shall be exclusive of the present practice of
private schools offering scholarship privileges to valedictorians and salutatorians and
other pupils/students who have achieved scholastic distinctions. Neither shall other forms
of scholarships such as those offered to athletes and working students be included in
arriving at the proper number of poor but deserving pupils/students to be given free
scholarships.
13. Section 8. Penal Clause. Any violation of the provisions of this Decree or of the rules or
regulations promulgated pursuant thereto or any final decision made by the Secretary of
Education and Culture shall be punishable by a fine of five thousand (P5,000.00) pesos or
imprisonment of two years or both at the discretion of the court which penalty shall be
imposed on the official(s) of the private school or on any person acting for and in behalf
of the school directly responsible for the violation. If the violator is a public official the

same penalty shall be imposed without prejudice to any administrative action which may
be taken against him.
14. Section 9. Repealing Clause. Republic Act No. 6139 is hereby repealed, and all laws,
decrees, executive orders, directives and rules and regulations inconsistent herewith are
likewise repealed, amended or modified accordingly.
15. Section 10. Effectivity. This Decree shall take effect immediately.
Done in the City of Manila, this 11th day of May, in the year of Our Lord, nineteen
hundred and seventy-four.