RA 10917

THE SPES AMENDMENT AND ITS IRR

 BACKGROUND

 Republic Act 7323 – Special Program for

Employment of Students – 1992
 Republic Act 9547 – An Act Strengthening
 
and Expanding the Coverage of the Special
Program for Employment of Students,
Amending for the Purpose Provisions of RA
7323.. – 2009
 Republic Act 10917 – An Act Amending
Certain Provisions of RA 9547, Otherwise
Known as An Act Strengthening and
Expanding the Coverage of the Special
Program for Employment of Students.. -
2016
 SALIENT FEATURES

SECTION 1
 
 Institutionalizing OSY and
Dependents of Displaced or
Would-be Displaced Workers as
Program Beneficiaries
 Age
 SPES work days
 SALIENT FEATURES
SECTION 2
 Mode and Medium of Payment
  DOLE’s Percentage Share in the
Salary of Beneficiaries
 Timeline/Process Cycle Time in
Effecting the Payment
 Claim of Salary in case of
Beneficiary’s Disability to Claim
 Insurance Coverage
 SALIENT FEATURES

SECTION 3
“  The Department of Labor and
Employment shall issue the implementing
rules and regulations to carry out the
purposes of this Act. Further, the
Secretary of the Department of Labor
and Employment, may issue additional
guidelines which may be deemed
appropriate.
 SALIENT FEATURES

SECTION 4
The Secretary of the Department of Labor
 
and Employment shall include in the
Department’s program the operationalization
of the expanded Special Program for
Employment of Students, including the
maintenance of an online database registry
for monitoring of SPES beneficiaries.
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 The SPES Technical Working Group
(SPES-TWG) was created to craft the
Implementing Rules and Regulations of RA
 
10917 by virtue of AO 441 S2016
 The TWG was composed of BLE as Chair,
Members: DLLO, Legal Service, IAS,
BWSC, FMS, DOLE-NCR, DOLE-RO 3 and
DOLE RO-4A, with island regions DOLE-
RO 9 and IV-B as “special participants”
 Invited concerned agencies, to wit: DBM;
COA, LandBank, Bureau of the Treasury
and; the GSIS
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 The initial draft was approved by the
TIPC Executive Committee (TEC) on 13
December 2016 and was submitted
 
directly to the Office of the Secretary
for signature
 The IRR is expected to be published
before the end of January 2017.
 
Implementing
Rules and
Regulations...
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RULE I
PRELIMINARY PROVISIONS
Section 3. Definition of Terms.
 
b. Applicable hiring rate - the current hiring
rate as authorized by the Department of Budget
and Management (DBM) for entry level position
in the government agency or LGU hiring the
SPES beneficiary whether assigned in their
office or detailed to another employer.
n. SPES babies - the SPES beneficiaries who
have been recipients of the program for more
than one year whether consecutive or not.
APPLICABLE HIRING RATE FOR LGUS:
LGU -
DOLE
*Salary Estimated Employer
CLASS
Grade 1, Daily
Step 1 Minimum
Cities and (Entry Wage (22
Municipalities 60% 40%
Provinces Level) days of work)

1st Class   9,478 430.81 258.48 172.32

2nd Class   9,004 409.27 245.56 163.70
3rd Class 1st Class 8,530 387.72 232.63 155.09
4th Class 2nd Class 8,056 366.18 219.70 146.47
5th Class 3rd Class 7,582 344.63 206.78 137.85
6th Class 4th Class 7,109 323.13 193.88 129.25
  5th Class 6,635 301.59 180.95 120.63
  6th Class 6,161 280.04 168.02 112.01
http://www.dbm.gov.ph/wp-content/uploads/Issuances/2016/Local%20Budget%20Circular/LBC%20108%20s%202016.pdf

... LOCAL BUDGET CIRCULAR

Important Notes
APPLICABLE HIRING RATE FOR LGUS:
LGU -
DOLE
CLASS *Salary Estimated Employer
Grade 1, Daily
Step 1 Minimum
Cities and
Municipalities (Entry Wage (22 60% 40%
Provinces
Level) days of work)

1st Class   9,981 453.68 272.21 181.47

2nd Class   9,482 431.00 258.60 172.40
3rd Class 1st Class 8,983 408.32 244.99 163.33
4th Class 2nd Class 8,484 385.64 231.38 154.25
5th Class 3rd Class 7,985 362.95 217.77 145.18
204.16 136.11
6th Class 4th Class 7,486 340.27 (170.14) (170.14)
190.55 127.04
  5th Class 6,987 317.59 (127.04) (190.55)
176.95 117.96
  6th Class 6,488 294.91 (73.73) (221.18)

http://www.dbm.gov.ph/wp-content/uploads/Issuances/2016/Local%20Budget%20Circular/LBC%20108%20s%202016.pdf

... LOCAL BUDGET CIRCULAR

(dtd 05 Jan 2017)
APPLICABLE HIRING RATE FOR LGUS:
LGU -
DOLE
CLASS *Salary Estimated Employer
Grade 1, Daily
Step 1 Minimum
Cities and
Municipalities (Entry Wage (22 60% 40%
Provinces
Level) days of work)

1st Class   10,510 477.73 286.64 191.09

2nd Class   9,985 453.86 272.32 181.54
3rd Class 1st Class 9,459 429.95 257.97 171.98
4th Class 2nd Class 8,934 406.09 243.65 162.44
5th Class 3rd Class 8,408 382.18 229.31 152.87
214.99 143.33
6th Class 4th Class 7,883 358.32 (179.16) (179.16)
200.65 133.76
  5th Class 7,357 334.41 (133.76) (200.65)
186.33 124.22
  6th Class 6,832 310.55 (77.64) (232.91)
 SALIENT FEATURES

RULE II
PARTICIPATION OF EMPLOYERS
 
Section 1. Pledge of Commitment:

The participating private employer shall not

engage SPES beneficiaries exceeding its
current total number of employees.
 SALIENT FEATURES
RULE II
PARTICIPATION OF EMPLOYERS

Section 2. Requirements for Submission.

1.  Resolution of the Sangguniang Bayan,
Panglungsod or Panlalawigan or
2. Annual Investment Plan (AIP) or its
equivalent, or
3. Any other document indicating the specific
budget allocation intended for SPES.
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Section 3. Options for LGUs as Participating
Employers.
 
a. LGUs may assume full responsibility of paying 100%
share  in the wage of beneficiaries and GPAI coverage of
beneficiaries provided that the LGUs shall seek approval
of the DOLE Regional Office in writing to ensure
compliance with this Rules.
 
b. Low-income LGUs may submit letter request for the
DOLE to shoulder a higher percentage share in the
salary/wage of SPES beneficiaries based on the following
schemes:
 
1. Up to 75% share for 6th Class Municipality
2. Up to 60% share for 5th Class Municipality
3. Up to 50% share for 4th Class Municipality or 6th
Class Province
 SALIENT FEATURES
RULE III
ELIGIBILITY AND REQUIREMENTS

Eligibility.
 
1. All SPES applicants must be 15-30 years of
age at the time of application..

 Photocopy of birth certificate or

 any government issued IDs or any official
document indicating the applicant’s date of
birth and/or age).

 
 
 SALIENT FEATURES
RULE III
ELIGIBILITY AND REQUIREMENTS

 2. Both the student and OSY’s parents’ combined net income after tax,
including his or her own, if any, does not exceed the annual regional
poverty threshold for a family of six (6) for the preceding year as
 
determined by PSA and/or NEDA. (SPES Advisory 1-2017 – Poverty
threshold)

For wage earner parents:

  Photocopy of Income Tax Return (ITR),
 Photocopy of Cert. of Tax Exemption issued by BIR, or
 Original copy of Certificate of Indigence or Low Income issued by the
respective barangay for those who reside outside the ten (10)
kilometer-radius from the nearest Revenue District Office (RDO) of
the Bureau of Internal Revenue (BIR).

For non-wage earner parents:

 Original copy of Certificate of Indigence Low Income issued by the
respective barangay or the Social Welfare and Development Office of
LGUs
 
 SALIENT FEATURES
 
3. Students must have obtained a passing General
Weighted Average/General Point Average/General
Average during the last school year or term attended
immediately preceding his/her application.
 
 For basic educ, photocopy of Form 138 (Student’s
Report Card) or Form 137 (Student’s Permanent
Record) of the last school year or term
 For higher education, photocopy of the report of
grades or complete set of academic class cards as
indicated in their registration form, along with the
original copy to be presented for validation purposes,
or
 A certification from the school of the applicant’s
passing general average or general weighted average.
 SALIENT FEATURES

d. OSY shall submit an original copy of certification as

OSY in letter head issued by the Barangay Chairman or
Punong Barangay, or duly authorized representative of
 
the Barangay, or a Certification issued by the Social
Welfare Development Office in the LGU.
 e. Dependent of displaced or would-be displaced
workers, shall submit any of the following:
 Notice of Termination issued by the employer;
 DOLE RO’s Establishment Termination Report (ETR);
 Certification from the barangay, municipal, city or
provincial social worker development officers of the
LGUs of their parent’s displacement.
 SALIENT FEATURES
RULE IV
FILING AND PROCESSING OF APPLICATION
Section 3. Matching, Referral, Placement…
d. All SPES beneficiaries shall sign an Employment
 
Contract in the presence of the PESO manager or
authorized representative, regardless whether the
employer signs prior or thereafter. 
e. For purposes of GPAI coverage, the PESO shall
submit the list of placed SPES beneficiaries in soft
and hard copies to the respective DOLE FO/PO, at
least ten (10) working days prior to employment.
f. The DOLE FO/PO shall validate the list submitted
by the PESO with the attachments and forward or
submit the same covering SPES beneficiaries with
complete requirements to the DOLE RO.
 
 SALIENT FEATURES
RULE V
TERMS AND CONDITIONS OF EMPLOYMENT
Section 1. Working Conditions.
 
a. Comply with the general labor standards, and
occupational safety and health standards.
b. Pay the SPES beneficiaries based on the
prevailing minimum wage in the private sector or
the applicable hiring rate in the government sector
where they are employed within fifteen (15)
working days after end of the employment
period.
 
 

 
 SALIENT FEATURES
 
Section 1..
 
c. Not engage the SPES beneficiaries below 18
years of age to any hazardous work or undertaking
 
as provided under existing child labor-related laws,
rules and regulations. Their hours of work shall
not be more than eight (8) hours a day nor more
than 40 hours a week and shall not be made to
work within the period of 10:00 p.m. to 6:00 a.m.
d. Shoulder the statutory premium pay in full
based on the prevailing minimum wage, in case
SPES beneficiaries work overtime and on holidays
and rest days.
 

 
 SALIENT FEATURES
 
Section 2. Group Personal Accident
Insurance (GPAI) coverage with the
Government Service Insurance System
(GSIS).
 
b. The DOLE RO/FO/PO shall submit to the
GSIS the list of SPES beneficiaries and complete
documents at least seven (7) days prior to the
actual date of the beneficiaries’ employment or
engagement.
c. The effectivity of the coverage shall commence
from the date of receipt by the GSIS of the list of
SPES beneficiaries and complete documents
prescribed and in accordance with the GSIS
policy and guidelines.

 
 SALIENT FEATURES
 
Section 2. GPAI..
d. The DOLE shall process and remit payment of
the corresponding insurance premium in the
amount of P50.00 or whatever amount as may
 
later on be prescribed by the GSIS for each
beneficiary upon receipt of the billing
statement/endorsement from the GSIS subject to
the Premium Payment Warranty of sixty (60) days
as provided under the existing Memorandum of
Agreement between the DOLE and GSIS.
 e. Insurance premium of the SPES beneficiaries
shall be charged against the SPES budget of the
DOLE RO, except those shouldered 100% by the
LGUs.
 SALIENT FEATURES
 
Section 3. Period of Employment.
a. Students enrolled in the basic education
  only be employed during summer
shall
vacation or mid-year break and/or Christmas
vacation.
 e. Insurance premium of the SPES
beneficiaries shall be charged against the
SPES budget of the DOLE RO, except those
shouldered 100% by the LGUs.
 SALIENT FEATURES
RULE VI
PROCESSING OF PAYMENT BY DOLE
Section 1. Submission of Payroll.
 
a. The participating employer shall submit to the
PESO a copy of the payroll or payment report duly
signed by SPES beneficiaries within five (5)
working days after payment.
b. The PESO shall, within three (3) working days
from receipt of the duly signed payroll or payment
report, validate the names of the beneficiaries and
signatures and submit the same together with the
complete SPES documents to the DOLE FO/PO.
 SALIENT FEATURES
c. DOLE FO/PO shall validate the number of days
and corresponding salary or wage earned and shall
forward to the DOLE RO, the list of beneficiaries
with  the complete SPES documents within ten
(10) working days upon receipt from PESO for the
processing of payment.
Section 2. Processing of Payment.
a. The DOLE RO shall, not later than twenty (20)
working days upon receipt of the employer’s
payroll or payment, process and release the
payment of DOLE’s share in the salaries/wages
of beneficiaries.
 SALIENT FEATURES

b. The DOLE ROs shall pay the salaries and

wages of SPES beneficiaries in the form of cash
through:
 
1. Financial or banking institutions’ facility
such as:
• Payroll
• Automated teller machine (ATM) cards
• Cash cards
• Check; and
• Any other acceptable means or facility
 SALIENT FEATURES
2. Other payment facilities or payment
intermediaries such as, but not limited to,
private payment or remittance center subject to
existing
  rules on procurement.
Transaction and service fees and charges
incurred in the processing of payment shall be
borne by the DOLE ROs through the SPES
budget.
The DOLE RO may open and maintain a
separate bank account dedicated to SPES to
effect payment of its beneficiaries.
 SALIENT FEATURES
RULE VII
MAINTENANCE OF SPES INFORMATION SYSTEM
Section 1. Repository of SPES Data.
Section
  2. Capacity Building of DOLE Regional
Implementers
RULE VIII
TRANSITORY PROVISIONS
 
Section 1. Payment of SPES beneficiaries.
Education vouchers issued prior to the effectivity of
this Rules shall be paid accordingly by the DOLE ROs
to the beneficiaries in cash through the mode and the
process cycle time provided in this Rules.
 
RULE IX
FINAL PROVISIONS
 

Thank you..
  
GION 8
Revenue District Office No. 85 - Catarman, Northern Samar
Revenue District Office No. 86 - Borongan, Eastern Samar
Revenue District Office No. 87 - Catbalogan, Western
Revenue District Office No. 88 - Tacloban City
Revenue District Office No. 89 - Ormoc City
Revenue District Office No. 90 - Maasin, Southern Leyte