Labor and Agrarian Laws and Social Legislation

CHAPTER 2 Deliverance from Vilification 32
LABOR AND AGRARIAN TITLE FIVE Final Provisions

RA No 10771 | Philippine Green Jobs Act of 2016
32
34
LAWS AND Labor Laws Related to Conditions of Employment 36
SOCIAL LEGISLATION RA No 8187 | Paternity Leave Act of 1996

PD No 851 | 13th-Month Pay Act
36
36
RA No 9710 | Magna Carta of Women 38
Special Laws and CHAPTER II DEFINITION OF TERMS 39
CHAPTER III DUTIES RELATED TO THE HUMAN
Implementing Rules RIGHTS OF WOMEN 40
CHAPTER IV RIGHTS AND EMPOWERMENT 40
And Regulations CHAPTER V RIGHTS AND EMPOWERMENT OF
MARGINALIZED SECTORS 43
CHAPTER VI INSTITUTIONAL MECHANISMS 45
TABLE OF CONTENTS RA No 8972 | Solo Parents’ Welfare Act of 2000 47
RA No 7877 | Anti-Sexual Harassment Act of 1995 48
Labor Laws Related to Pre-employment 3 RA No 7160 | Special Protection of Children Against
RA No 8042 | Migrant Workers and Overseas Filipinos Abuse, Exploitation and Discrimination Act 49
Act of 1995 3 ARTICLE I Title, Policy, Principles and Definitions
I. Deployment 4 of Terms 49
II. Illegal Recruitment 4 ARTICLE II Program on Child Abuse, Exploitation
and Discrimination 50
III. Services 6
ARTICLE III Child Prostitution and Other Sexual
IV. Government Agencies 8 Abuse 50
V. The Legal Assistant for Migrant Workers Affairs ARTICLE IV Child Trafficking 50
9
ARTICLE V Obscene Publications and Indecent
VI. Country-Team Approach 10 Shows 51
VIII. Professional and Other Highly-Skilled ARTICLE VI Other Acts of Abuse 51
Filipinos Abroad 10
ARTICLE VII Sanctions for Establishments or
IX. Miscellaneous Provisions 10 Enterprises 51
RA No 8759 | Public Employment Service Office Act ARTICLE VIII Working Children 51
of 1999 14
ARTICLE IX Children of Indigenous Cultural
RA No 10869 | JobStart Philippines Act 15 Communities 53
RA No 10911 | Anti-Age Discrimination in ARTICLE X Children in Situations of Armed
Employment Act 18 Conflict 53
Labor Laws Related to Human Resources Development ARTICLE XI Remedial Procedures 54
20 ARTICLE XII Common Penal Provisions 55
RA No 7796 | TESDA Act of 1994 20 ARTICLE XIII Final Provisions 55
RA No 7277 | Magna Carta for Persons with Disability RA No 10706 | Seafarers Protection Act 55
26
TITLE ONE General Provisions 26 Labor Laws Related to Health, Safety and Social
Welfare Benefits 56
CHAPTER 1 Basic Principle 26
RA No 8282 | Social Security Act of 1997 56
TITLE TWO Rights and Privileges of Disabled
Persons 27 RA No 8291 | GSIS Act of 1997 66
CHAPTER 1 Employment 27 A. DEFINITIONS 66
CHAPTER 2 Education 28 B. MEMBERSHIP IN THE GSIS 67
CHAPTER 3 Health 28 C. SOURCES OF FUNDS 67
CHAPTER 4 Auxiliary Social Services 29 D. BENEFITS 68
CHAPTER 5 Telecommunications 29 SEPARATION BENEFITS 68
CHAPTER 6 Accessibility 29 RETIREMENT BENEFITS 68
CHAPTER 7 Political and Civil Rights 29 PERMANENT DISABILITY BENEFITS 69
CHAPTER 8 Other Privileges and Incentives TEMPORARY DISABILITY BENEFITS 69
29 SURVIVORSHIP BENEFITS 69
TITLE THREE Prohibition on Discrimination FUNERAL BENEFITS 70
Against Disabled Persons 30 LIFE INSURANCE BENEFITS 70
CHAPTER 1 Discrimination on Employment E. ADJUDICATION OF CLAIMS AND DISPUTES 70
30
F. FUNDS OF THE GSIS 71
CHAPTER 2 Discrimination on Transportation
G. ADMINISTRATION 72
31
H. GENERAL PROVISION 74
CHAPTER 3 Discrimination on the Use of
Public Accommodations and Services 31 I. PENAL PROVISIONS 74
TITLE FOUR Prohibitions on Verbal, Non-verbal RA No 7875 | National Health Insurance Act of 2013 75
Ridicule and Vilification Against Persons with ARTICLE I Guiding Principles 75
Disability 32 ARTICLE II Definitions of Terms 76
CHAPTER 1 Deliverance from Public Ridicule
32

© Compiled by Rehne Gibb N. Larena | JD-2 | University of San Carlos

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

ARTICLE III The National Health Insurance RA No 6977 | Magna Carta for Micro, Small and
Program 78 Medium Enterprises (MSMEs) 134
ARTICLE IV The Philippine Health Insurance CHAPTER I 134
Corporation 79 CHAPTER II 136
ARTICLE V Local Health Insurance Office 81 CHAPTER III 138
ARTICLE VI The National Health Insurance Fund CHAPTER IV 140
82
RA No 7305 | The Magna Carta of Public Health
ARTICLE VII Financing 84 Workers 140
ARTICLE VIII Health Care Providers 84 RA No 7607 | The Magna Carta of Small Farmers 143
ARTICLE IX Grievance and Appeal 86 CHAPTER I General Provisions 143
ARTICLE X Penalties 86 CHAPTER II Farmer's Organization 145
ARTICLE XI Appropriations 87 CHAPTER III Empowerment of the Small Farmers
ARTICLE XII Transitory Provisions 87 145
ARTICLE XIII Miscellaneous Provisions 88 CHAPTER IV Infrastructure and Farm Inputs 145
RA No 9679 | Home Development Mutual Fund Law CHAPTER V Farm Machinery and Equipment 146
of 2009 88 CHAPTER VI Water Management and Irrigation
Facilities 147
Labor Laws Related to Labor Relations 92
CHAPTER VII Agricultural Credit 147
Agrarian Law 93 CHAPTER VIII Wage, Incentives and Price
RA No 6657 | Comprehensive Agrarian Reform Law of Support 148
1988 93 CHAPTER IX Research and Extension Services 148
CHAPTER I Preliminary Chapter 93 CHAPTER X Final Provisions 149
CHAPTER II Coverage 94 RA No 8425 | Social Reform and Poverty Alleviation
CHAPTER III Improvement of Tenurial and Labor Act 149
Relations 97 TITLE I NATIONAL ANTI-POVERTY COMMISSION
CHAPTER IV Registration 97 151
CHAPTER V Land Acquisition 98 TITLE II MICROFINANCE SERVICES FOR THE
POOR 153
CHAPTER VI Compensation 98
TITLE III APPROPRIATIONS FOR THE NATIONAL
CHAPTER VII Land Redistribution 99 ANTI-POVERTY COMMISSION (NAPC) AND THE
CHAPTER VIII Corporate Farms 100 PEOPLE'S DEVELOPMENT TRUST FUND (PDTF)
CHAPTER IX Support Services 101 154
CHAPTER X Special Areas of Concern 103 RA No 9257 | Expanded Senior Citizens Act of 2003
154
CHAPTER XI Program Implementation 103
RA No 9433 | The Magna Carta for Public Social
CHAPTER XII Administrative Adjudication 104 Workers 158
CHAPTER XIII Judicial Review 105 RA No 9904 | Magna Carta for Homeowners and
CHAPTER XIV Financing 105 Homeowners’ Associations 161
CHAPTER XV General Provisions 106 CHAPTER I TITLE AND DECLARATION OF POLICY
Provisions under RA No 9700, August 7, 2009 108 161
RA No 3844 | Code of Agrarian Reforms 108 CHAPTER II HOMEOWNERS 162
CHAPTER I AGRICULTURAL LEASEHOLD SYSTEM CHAPTER III HOMEOWNERS’ ASSOCIATION 162
109 CHAPTER IV DUTIES AND RESPONSIBILITIES OF
CHAPTER II BILL OF RIGHTS FOR AGRICULTURAL THE HLURB 164
LABOR 114 CHAPTER V FINAL PROVISIONS 165
CHAPTER III DEPARTMENT OF AGRARIAN RA No 10361 | Domestic Workers Act 165
REFORM 114 ARTICLE I GENERAL PROVISIONS 165
ARTICLE I Organization and Functions of the ARTICLE II RIGHTS AND PRIVILEGES 166
Department of Agrarian Reform 114
ARTICLE III PRE-EMPLOYMENT 166
ARTICLE II Expropriation of Private
Agricultural Lands 118 ARTICLE IV EMPLOYMENT – TERMS AND
CONDITIONS 167
ARTICLE III Distribution of Agricultural Lands
of the Public Domain 119 ARTICLE V POST EMPLOYMENT 168
CHAPTER IV LAND BANK 120 ARTICLE VI PRIVATE EMPLOYMENT AGENCIES
168
CHAPTER V AGRICULTURAL CREDIT
ADMINISTRATION 125 ARTICLE VII SETTLEMENT OF DISPUTES 169
CHAPTER VI AGRICULTURAL PRODUCTIVITY ARTICLE VIII SPECIAL PROVISIONS 169
COMMISSION 127 ARTICLE IX PENAL AND MISCELLANEOUS
CHAPTER VII DEPARTMENT OF AGRARIAN PROVISIONS 169
REFORM ADMINISTRATION 127 ARTICLE X FINAL PROVISIONS 169
CHAPTER VIII LAND CAPABILITY SURVEY AND
CLASSIFICATION 128
CHAPTER IX COURTS OF AGRARIAN RELATIONS
129
CHAPTER X OFFICE OF AGRARIAN COUNSEL 132
CHAPTER XI GENERAL PROVISIONS 132
Social Legislation 134
© Compiled By RGL 2 of 169


states, the State shall, at all times, uphold the dignity of its
citizens whether in country or overseas, in general, and
Labor Laws and Social Filipino migrant workers, in particular, continuously
monitor international conventions, adopt/be signatory to
Legislation and ratify those that guarantee protection to our migrant
workers, and endeavor to enter into bilateral agreements
with countries hosting overseas Filipino workers. (As
I. Labor Laws Related to amended by RA No 10022, [March 8, 2010])
(b) The State shall afford full protection to labor, local
Pre-employment and overseas, organized and unorganized, and promote
full employment and equality of employment
opportunities for all. Towards this end, the State shall
DO No 141-14 Revised Rules and Regulations provide adequate and timely social, economic and legal
Governing Recruitment and Placement for Local services to Filipino migrant workers.
Employment
(c) While recognizing the significant contribution of
DO No 146-15 Revised Rules for the Issuance of Filipino migrant workers to the national economy
Employment Permits to Foreign Nationals through their foreign exchange remittances, the State
does not promote overseas employment as a means to
sustain economic growth and achieve national
DO No 186-17 Revised Rules for the Issuance of
development. The existence of the overseas employment
Employment Permits to Foreign Nationals
program rests solely on the assurance that the dignity
and fundamental human rights and freedoms of the
POEA Rules and Regulations Governing the Filipino citizen shall not, at any time, be compromised or
Recruitment and Employment of Land-Based violated. The State, therefore, shall continuously create
Overseas Workers local employment opportunities and promote the
equitable distribution of wealth and the benefits of
2016 Revised POEA Rules and Regulations development.
Governing the Recruitment and Employment of
Land-Based Overseas Workers (d) The State affirms the fundamental equality before
the law of women and men and the significant role of
2016 Revised POEA Rules and Regulations Governing women in nation-building. Recognizing the contribution
the Recruitment and Employment of Seafarers of overseas migrant women workers and their particular
vulnerabilities, the State shall apply gender sensitive
criteria in the formulation and implementation of policies
and programs affecting migrant workers and the
composition of bodies tasked for the welfare of migrant
RA No 8042 | Migrant Workers and workers.
Overseas Filipinos Act of 1995 (e) Free access to the courts and quasi-judicial bodies
As amended by RA Nos 9422, and 10022 and adequate legal assistance shall not be denied to any
person by reason of poverty. In this regard, it is imperative

that an effective mechanism be instituted to ensure that
June 7, 1995 the rights and interest of distressed overseas Filipinos, in
AN ACT TO INSTITUTE THE POLICIES OF general, and Filipino migrant workers, in particular,
whether regular/documented or
OVERSEAS EMPLOYMENT AND irregular/undocumented, are adequately protected and
ESTABLISH A HIGHER STANDARD OF safeguarded. (As amended by RA No 10022, [March 8,
PROTECTION AND PROMOTION OF THE 2010])
WELFARE OF MIGRANT WORKERS, THEIR (f) The right of Filipino migrant workers and all
overseas Filipinos to participate in the democratic
FAMILIES AND OVERSEAS FILIPINOS IN decision-making processes of the State and to be
DISTRESS, AND FOR OTHER PURPOSES represented in institutions relevant to overseas
employment is recognized and guaranteed.
Omnibus Rules and Regulations Implementing the (g) The State recognizes that the most effective tool
Migrant Workers and Overseas Filipino Act of 1995, for empowerment is the possession of skills by migrant
IRR-RA 8042, [February 29, 1996] workers. The government shall provide them free and
accessible skills development and enhancement
Insurance Guidelines on Rule XVI of the Omnibus Rules programs. Pursuant to this and as soon as practicable, the
and Regulations Implementing Republic Act 8042 government shall deploy and/or allow the deployment
(The Migrant Workers and Overseas Filipinos Act of only of skilled Filipino workers. (As amended by RA No
1995), as Amended by Republic Act 10022 Relative to 10022, [March 8, 2010])
Compulsory Insurance Coverage for Agency-Hired
Overseas Filipino Workers, [September 8, 2010] (h) The State recognizes non-governmental
organizations, trade unions, workers associations,
Omnibus Rules and Regulations Implementing the stakeholders and other similar entities duly recognized as
Migrant Workers and Overseas Filipinos Act of 1995, legitimate, are partners of the State in the protection of
as Amended by Republic Act No. 10022, [July 8, Filipino migrant workers and in the promotion of their
2010]) welfare. The State shall cooperate with them in a spirit of
trust and mutual respect. The significant contribution of
recruitment and manning agencies shall form part of this
SECTION 1. Short Title. — This Act shall be known partnership. (As amended by RA No 10022, [March 8,
and cited as the "Migrant Workers and Overseas Filipinos 2010])
Act of 1995." (i) Government fees and other administrative costs of
SECTION 2. Declaration of Policies. — recruitment, introduction, placement and assistance to
migrant workers shall be rendered free without prejudice
(a) In the pursuit of an independent foreign policy to the provision of Section 36 hereof.
and while considering national sovereignty, territorial
integrity, national interest and the right to Nonetheless, the deployment of Filipino overseas
self-determination paramount in its relations with other workers, whether land-based or sea-based, by local
service contractors and manning agencies employing



them shall be encouraged. Appropriate incentives may as embodied in the employment contracts prescribed by
be extended to them. the POEA and in accordance with
SECTION 3. Definitions. — For purposes of this Act: internationally-accepted standards. (As amended by RA
No 10022, [March 8, 2010])
(a)"Overseas Filipino worker" refers to a person who is
to be engaged, is engaged or has been engaged in a SECTION 5. Termination or Ban on Deployment. —
remunerated activity in a state of which he or she is not a Notwithstanding the provisions of Section 4 hereof, in
citizen or on board a vessel navigating the foreign seas pursuit of the national interest or when public welfare so
other than a government ship used for military or requires, the POEA Governing Board, after consultation
non-commercial purposes or on an installation located with the Department of Foreign Affairs, may, at any time,
offshore or on the high seas; to be used interchangeably terminate or impose a ban on the deployment of migrant
with migrant worker. (As amended by RA No 10022, workers. (As amended by RA No 10022, [March 8, 2010])
[March 8, 2010])
II. Illegal Recruitment
(b)"Gender-sensitivity" shall mean cognizance of the
inequalities and inequities prevalent in society between SECTION 6. Definition. — For purposes of this Act,
women and men and a commitment to address issues illegal recruitment shall mean any act of canvassing,
with concern for the respective interests of the sexes. enlisting, contracting, transporting, utilizing, hiring, or
procuring workers and includes referring, contract
(c)"Overseas Filipinos" refers to dependents of services, promising or advertising for employment
migrant workers and other Filipino nationals abroad who abroad, whether for profit or not, when undertaken by a
are in distress as mentioned in Sections 24 and 26 of this non-licensee or non-holder of authority contemplated
Act. under Article 13(f) of Presidential Decree No. 442, as
amended, otherwise known as the Labor Code of the
I. Deployment Philippines: Provided, That any such non-licensee or
SECTION 4. Deployment of Migrant Workers. — The non-holder who, in any manner, offers or promises for a
State shall allow the deployment of overseas Filipino fee employment abroad to two or more persons shall be
workers only in countries where the rights of Filipino deemed so engaged. It shall likewise include the
migrant workers are protected. The government following acts, whether committed by any person,
recognizes any of the following as a guarantee on the whether a non-licensee, non-holder, licensee or holder of
part of the receiving country for the protection of the authority:
rights of overseas Filipino workers: (a) To charge or accept directly or indirectly any
(a) It has existing labor and social laws protecting the amount greater than that specified in the schedule of
rights of workers, including migrant workers; allowable fees prescribed by the Secretary of Labor and
Employment, or to make a worker pay or acknowledge
(b) It is a signatory to and/or a ratifier of multilateral any amount greater than that actually received by him as
conventions, declarations or resolutions relating to the a loan or advance;
protection of workers, including migrant workers; and
(b) To furnish or publish any false notice or
(c) It has concluded a bilateral agreement or information or document in relation to recruitment or
arrangement with the government on the protection of employment;
the rights of overseas Filipino Workers:
(c) To give any false notice, testimony, information or
Provided, That the receiving country is taking positive, document or commit any act of misrepresentation for the
concrete measures to protect the rights of migrant purpose of securing a license or authority under the
workers in furtherance of any of the guarantees under Labor Code, or for the purpose of documenting hired
subparagraphs (a), (b) and (c) hereof. workers with the POEA, which include the act of
In the absence of a clear showing that any of the reprocessing workers through a job order that pertains to
aforementioned guarantees exists in the country of nonexistent work, work different from the actual overseas
destination of the migrant workers, no permit for work, or work with a different employer whether
deployment shall be issued by the Philippine Overseas registered or not with the POEA;
Employment Administration (POEA). (d) To induce or attempt to induce a worker already
The members of the POEA Governing Board who employed to quit his employment in order to offer him
actually voted in favor of an order allowing the another unless the transfer is designed to liberate a
deployment of migrant workers without any of the worker from oppressive terms and conditions of
aforementioned guarantees shall suffer the penalties of employment;
removal or dismissal from service with disqualification to (e) To influence or attempt to influence any person or
hold any appointive public office for five (5) years. Further, entity not to employ any worker who has not applied for
the government official or employee responsible for the employment through his agency or who has formed,
issuance of the permit or for allowing the deployment of joined or supported, or has contacted or is supported by
migrant workers in violation of this section and in direct any union or workers' organization;
contravention of an order by the POEA Governing Board
prohibiting deployment shall be meted the same (f) To engage in the recruitment or placement of
penalties in this section. workers in jobs harmful to public health or morality or to
the dignity of the Republic of the Philippines;
For this purpose, the Department of Foreign Affairs,
through its foreign posts, shall issue a certification to the (g) To obstruct or attempt to obstruct inspection by
POEA, specifying therein the pertinent provisions of the the Secretary of Labor and Employment or by his duly
receiving country's labor/social law, or the authorized representative;
convention/declaration/resolution, or the bilateral (h) To fail to submit reports on the status of
agreement/arrangement which protect the rights of employment, placement vacancies, remittance of foreign
migrant workers. exchange earnings, separation from jobs, departures and
The State shall also allow the deployment of overseas such other matters or information as may be required by
Filipino workers to vessels navigating the foreign seas or the Secretary of Labor and Employment;
to installations located offshore or on high seas whose (i) To substitute or alter to the prejudice of the worker,
owners/employers are compliant with international laws employment contracts approved and verified by the
and standards that protect the rights of migrant workers. Department of Labor and Employment from the time of
The State shall likewise allow the deployment of actual signing thereof by the parties up to and including
overseas Filipino workers to companies and contractors the period of the expiration of the same without the
with international operations: Provided, That they are approval of the Department of Labor and Employment;
compliant with standards, conditions and requirements,



(j) For an officer or agent of a recruitment or responsible for the commission of the offense and the
placement agency to become an officer or member of responsible employees/agents thereof shall be liable.
the Board of any corporation engaged in travel agency or In the filing of cases for illegal recruitment or any of
to be engaged directly or indirectly in the management the prohibited acts under this section, the Secretary of
of a travel agency; Labor and Employment, the POEA Administrator or their
(k) To withhold or deny travel documents from duly authorized representatives, or any aggrieved person
applicant workers before departure for monetary or may initiate the corresponding criminal action with the
financial considerations, or for any other reasons, other appropriate office. For this purpose, the affidavits and
than those authorized under the Labor Code and its testimonies of operatives or personnel from the
implementing rules and regulations; Department of Labor and Employment, POEA and other
(l) Failure to actually deploy a contracted worker law enforcement agencies who witnessed the acts
without valid reason as determined by the Department of constituting the offense shall be sufficient to prosecute
Labor and Employment; the accused.
(m) Failure to reimburse expenses incurred by the In the prosecution of offenses punishable under this
worker in connection with his documentation and section, the public prosecutors of the Department of
processing for purposes of deployment, in cases where Justice shall collaborate with the anti-illegal recruitment
the deployment does not actually take place without the branch of the POEA and, in certain cases, allow the POEA
worker's fault. Illegal recruitment when committed by a lawyers to take the lead in the prosecution. The POEA
syndicate or in large scale shall be considered an offense lawyers who act as prosecutors in such cases shall be
involving economic sabotage; and entitled to receive additional allowances as may be
determined by the POEA Administrator.
(n) To allow a non-Filipino citizen to head or manage
a licensed recruitment/manning agency. The filing of an offense punishable under this Act
shall be without prejudice to the filing of cases
Illegal recruitment is deemed committed by a punishable under other existing laws, rules or regulations.
syndicate if carried out by a group of three (3) or more (As amended by RA No 10022, [March 8, 2010])
persons conspiring or confederating with one another. It
is deemed committed in large scale if committed against SECTION 7. Penalties. —
three (3) or more persons individually or as a group. (a) Any person found guilty of illegal recruitment shall
In addition to the acts enumerated above, it shall also suffer the penalty of imprisonment of not less than twelve
be unlawful for any person or entity to commit the (12) years and one (1) day but not more than twenty (20)
following prohibited acts: years and a fine of not less than One million pesos
(P1,000,000.00) nor more than Two million pesos
(1) Grant a loan to an overseas Filipino worker with (P2,000,000.00).
interest exceeding eight percent (8%) per annum, which
will be used for payment of legal and allowable (b) The penalty of life imprisonment and a fine of not
placement fees and make the migrant worker issue, less than Two million pesos (P2,000,000.00) nor more
either personally or through a guarantor or than Five million pesos (P5,000,000.00) shall be imposed
accommodation party, postdated checks in relation to if illegal recruitment constitutes economic sabotage as
the said loan; defined therein.
(2) Impose a compulsory and exclusive arrangement Provided, however, That the maximum penalty shall
whereby an overseas Filipino worker is required to avail of be imposed if the person illegally recruited is less than
a loan only from specifically designated institutions, eighteen (18) years of age or committed by a non-licensee
entities or persons; or non-holder of authority.
(3) Refuse to condone or renegotiate a loan incurred (c) Any person found guilty of any of the prohibited
by an overseas Filipino worker after the latter's acts shall suffer the penalty of imprisonment of not less
employment contract has been prematurely terminated than six (6) years and one (1) day but not more than
through no fault of his or her own; twelve (12) years and a fine of not less than Five hundred
thousand pesos (P500,000.00) nor more than One million
(4) Impose a compulsory and exclusive arrangement pesos (P1,000,000.00).
whereby an overseas Filipino worker is required to
undergo health examinations only from specifically If the offender is an alien, he or she shall, in addition
designated medical clinics, institutions, entities or to the penalties herein prescribed, be deported without
persons, except in the case of a seafarer whose medical further proceedings.
examination cost is shouldered by the In every case, conviction shall cause and carry the
principal/shipowner; automatic revocation of the license or registration of the
(5) Impose a compulsory and exclusive arrangement recruitment/manning agency, lending institution,
whereby an overseas Filipino worker is required to training school or medical clinic. (As amended by RA No
undergo training, seminar, instruction or schooling of any 10022, [March 8, 2010])
kind only from specifically designated institutions, SECTION 8. Prohibition on Officials and Employees.
entities or persons, except for recommendatory trainings — It shall be unlawful for any official or employee of the
mandated by principals/shipowners where the latter Department of Labor and Employment, the Philippine
shoulder the cost of such trainings; Overseas Employment Administration (POEA), or the
(6) For a suspended recruitment/manning agency to Overseas Workers Welfare Administration (OWWA), or the
engage in any kind of recruitment activity including the Department of Foreign Affairs, or other government
processing of pending workers' applications; and agencies involved in the implementation of this Act, or
their relatives within the fourth civil degree of
(7) For a recruitment/manning agency or a foreign consanguinity or affinity, to engage, directly or indirectly,
principal/employer to pass on to the overseas Filipino in the business of recruiting migrant workers as defined
worker or deduct from his or her salary the payment of in this Act. The penalties provided in the immediate
the cost of insurance fees, premium or other insurance preceding paragraph shall be imposed upon them.
related charges, as provided under the compulsory
worker's insurance coverage. SECTION 9. Venue. — A criminal action arising from
illegal recruitment as defined herein shall be filed with
The persons criminally liable for the above offenses the Regional Trial Court of the province or city where the
are the principals, accomplices and accessories. In case of offense was committed or where the offended party
juridical persons, the officers having ownership, control, actually resides at the time of the commission of the
management or direction of their business who are offense: Provided, That the court where the criminal
action is first filed shall acquire jurisdiction to the


exclusion of other courts: Provided, however, That the within a period of thirty (30) calendar days from the date
aforestated provisions shall also apply to those criminal of their filing. Where the preliminary investigation is
actions that have already been filed in court at the time conducted by a prosecution officer and a prima facie
of the effectivity of this Act. case is established, the corresponding information shall
SECTION 10. Monetary Claims. — Notwithstanding be filed in court within twenty-four (24) hours from the
any provision of law to the contrary, the Labor Arbiters of termination of the investigation. If the preliminary
the National Labor Relations Commission (NLRC) shall investigation is conducted by a judge and a prima facie
have the original and exclusive jurisdiction to hear and case is found to exist, the corresponding information shall
decide, within ninety (90) calendar days after the filing of be filed by the proper prosecution officer within
the complaint, the claims arising out of an forty-eight (48) hours from the date of receipt of the
employer-employee relationship or by virtue of any law or records of the case.
contract involving Filipino workers for overseas SECTION 12. Prescriptive Periods. — Illegal
deployment including claims for actual, moral, exemplary recruitment cases under this Act shall prescribe in five (5)
and other forms of damages. Consistent with this years: Provided, however, That illegal recruitment cases
mandate, the NLRC shall endeavor to update and keep involving economic sabotage as defined herein shall
abreast with the developments in the global services prescribe in twenty (20) years.
industry. SECTION 13. Free Legal Assistance; Preferential
The liability of the principal/employer and the Entitlement Under the Witness Protection Program. —
recruitment/placement agency for any and all claims A mechanism for free legal assistance for victims of illegal
under this section shall be joint and several. This provision recruitment shall be established in the anti-illegal
shall be incorporated in the contract for overseas recruitment branch of the POEA including its regional
employment and shall be a condition precedent for its offices. Such mechanism shall include coordination and
approval. The performance bond to be filed by the cooperation with the Department of Justice, the
recruitment/placement agency, as provided by law, shall Integrated Bar of the Philippines, and other
be answerable for all money claims or damages that may non-governmental organizations and volunteer groups.
be awarded to the workers. If the recruitment/placement (As amended by RA No 10022, [March 8, 2010])
agency is a juridical being, the corporate officers and
directors and partners as the case may be, shall III. Services
themselves be jointly and solidarily liable with the
SECTION 14. Travel Advisory/Information
corporation or partnership for the aforesaid claims and
Dissemination. — To give utmost priority to the
damages.
establishment of programs and services to prevent illegal
Such liabilities shall continue during the entire period recruitment, fraud and exploitation or abuse of Filipino
or duration of the employment contract and shall not be migrant workers, all embassies and consular offices,
affected by any substitution, amendment or modification through the Philippine Overseas Employment
made locally or in a foreign country of the said contract. Administration (POEA), shall issue travel advisories or
Any compromise/amicable settlement or voluntary disseminate information on labor and employment
agreement on money claims inclusive of damages under conditions, migration realities and other facts; and
this section shall be paid within thirty (30) days from the adherence of particular countries to international
approval of the settlement by the appropriate authority. standards on human and workers' rights which will
adequately prepare individuals into making informed and
In case of termination of overseas employment intelligent decisions about overseas employment. Such
without just, valid or authorized cause as defined by law advisory or information shall be published in a newspaper
or contract, or any unauthorized deductions from the of general circulation at least three (3) times in every
migrant worker's salary, the worker shall be entitled to quarter.
the full reimbursement of his placement fee and the
deductions made with interest at twelve percent (12%) SECTION 15. Repatriation of Workers; Emergency
per annum, plus his salaries for the unexpired portion of Repatriation Fund. — The repatriation of the worker and
his employment contract or for three (3) months for every the transport of his personal belongings shall be the
year of the unexpired term, whichever is less. primary responsibility of the agency which recruited or
deployed the worker overseas. All costs attendant to
In case of a final and executory judgment against a repatriation shall be borne by or charged to the agency
foreign employer/principal, it shall be automatically concerned and/or its principal. Likewise, the repatriation
disqualified, without further proceedings, from of remains and transport of the personal belongings of a
participating in the Philippine Overseas Employment deceased worker and all costs attendant thereto shall be
Program and from recruiting and hiring Filipino workers borne by the principal and/or the local agency. However,
until and unless it fully satisfies the judgment award. in cases where the termination of employment is due
Noncompliance with the mandatory periods for solely to the fault of the worker, the principal/employer or
resolutions of cases provided under this section shall agency shall not in any manner be responsible for the
subject the responsible officials to any or all of the repatriation of the former and/or his belongings.
following penalties: The Overseas Workers Welfare Administration
(a) The salary of any such official who fails to render (OWWA), in coordination with appropriate international
his decision or resolution within the prescribed period agencies, shall undertake the repatriation of workers in
shall be, or caused to be, withheld until the said official cases of war, epidemic, disaster or calamities, natural or
complies therewith; man-made, and other similar events without prejudice to
reimbursement by the responsible principal or agency.
(b) Suspension for not more than ninety (90) days; or However, in cases where the principal or recruitment
(c) Dismissal from the service with disqualification to agency cannot be identified, all costs attendant to
hold any appointive public office for five (5) years. repatriation shall be borne by the OWWA.
Provided, however, That the penalties herein provided For this purpose, there is hereby created and
shall be without prejudice to any liability which any such established an emergency repatriation fund under the
official may have incurred under other existing laws or administration, control and supervision of the OWWA,
rules and regulations as a consequence of violating the initially to consist of One hundred million pesos
provisions of this paragraph. (As amended by RA No (P100,000,000.00), which shall be taken from the existing
10022, [March 8, 2010]) fund controlled and administered by the OWWA.
Thereafter, such fund shall be provided for in the General
SECTION 11. Mandatory Periods for Resolution of
Appropriations Act from year to year: Provided, That the
Illegal Recruitment Cases. — The preliminary
amount appropriated shall in no case be less than One
investigations of cases under this Act shall be terminated


hundred million pesos (P100,000,000.00), inclusive of (f) Maintain an internet-based communication
outstanding balances. system for on-line registration and interaction with
SECTION 16. Mandatory Repatriation of Underage clients, and maintain and upgrade computer-based
Migrant Workers. — Upon discovery or being informed of service capabilities of the NRCO;
the presence of migrant workers whose actual ages fall (g) Develop capacity-building programs for returning
below the minimum age requirement for overseas overseas Filipino workers and their families,
deployment, the responsible officers in the foreign implementers, service providers, and stakeholders; and
service shall without delay repatriate said workers and (h) Conduct research for policy recommendations
advise the Department of Foreign Affairs through the and program development. (As amended by RA No
fastest means of communication available of such 10022, [March 8, 2010])
discovery and other relevant information. The license of a
recruitment/manning agency which recruited or SECTION 19. Establishment of a Migrant Workers
deployed an underage migrant worker shall be and Other Overseas Filipinos Resource Center. —
automatically revoked and shall be imposed a fine of not Within the premises and under the administrative
less than Five hundred thousand pesos (Php500,000.00) jurisdiction of the Philippine Embassy in countries where
but not more than One million pesos (Php1,000,000.00). there are large concentrations of Filipino migrant
All fees pertinent to the processing of papers or workers, there shall be established a Migrant Workers and
documents in the recruitment or deployment shall be Other Overseas Filipinos Resource Center with the
refunded in full by the responsible recruitment/manning following services:
agency, without need of notice, to the underage migrant (a)Counselling and legal services;
worker or to his parents or guardian. The refund shall be
independent of and in addition to the indemnification for (b)Welfare assistance including the procurement of
the damages sustained by the underage migrant worker. medical and hospitalization services;
The refund shall be paid within thirty (30) days from the (c)Information, advisory and programs to promote
date of the mandatory repatriation as provided for in this social integration such as post-arrival orientation,
Act. (As amended by RA No 10022, [March 8, 2010]) settlement and community networking services and
SECTION 17. Establishment of National activities for social interaction;
Reintegration Center for Overseas Filipino Workers. — (d)Institute a scheme of registration of
A national reintegration center for overseas Filipino undocumented workers to bring them within the
workers (NRCO) is hereby created in the Department of purview of this Act. For this purpose, the Center is
Labor and Employment for returning Filipino migrant enjoined to compel existing undocumented workers to
workers which shall provide a mechanism for their register with it within six (6) months from the effectivity
reintegration into the Philippine society, serve as a of this Act, under pain of having his/her passport
promotion house for their local employment, and tap cancelled;
their skills and potentials for national development.
(e)Human resource development, such as training
The Department of Labor and Employment, the and skills upgrading;
Overseas Workers Welfare Administration (OWWA), and
the Philippine Overseas Employment Administration (f)Gender sensitive programs and activities to assist
(POEA) shall, within ninety (90) days from the effectivity particular needs of women migrant workers;
of this Act, formulate a program that would motivate (g)Orientation program for returning workers and
migrant workers to plan for productive options such as other migrants; and
entry into highly technical jobs or undertakings, (h)Monitoring of daily situations, circumstances and
livelihood and entrepreneurial development, better wage activities affecting migrant workers and other overseas
employment, and investment of savings. Filipinos.
For this purpose, the Technical Education and Skills The establishment and operations of the Center shall
Development Authority (TESDA), the Technology be a joint undertaking of the various government
Livelihood Resource Center (TLRC), and other agencies. The Center shall be open for twenty-four (24)
government agencies involved in training and livelihood hours daily including Saturdays, Sundays and holidays,
development shall give priority to returnees who had and shall be staffed by Foreign Service personnel, service
been employed as domestic helpers and entertainers. (As attaches or officers who represent other Philippine
amended by RA No 10022, [March 8, 2010]) government agencies abroad and, if available, individual
SECTION 18. Functions of the National volunteers and bona fide non-government organizations
Reintegration Center for Overseas Filipino Workers. — from the host countries. In countries categorized as
The Center shall provide the following services: highly problematic by the Department of Foreign Affairs
(a) Develop and support programs and projects for and the Department of Labor and Employment and
livelihood, entrepreneurship, savings, investments and where there is a concentration of Filipino migrant
financial literacy for returning Filipino migrant workers workers, the government must provide a Shari'a or
and their families in coordination with relevant human rights lawyer, a psychologist and a social worker
stakeholders, service providers and international for the Center. In addition to these personnel, the
organizations; government must also hire within the receiving country,
in such number as may be needed by the post, public
(b) Coordinate with appropriate stakeholders, service relation officers or case officers who are conversant, orally
providers and relevant international organizations for the and in writing, with the local language, laws, customs and
promotion, development and the full utilization of practices. The Labor Attache shall coordinate the
overseas Filipino worker returnees and their potentials; operation of the Center and shall keep the Chief of
(c) Institute, in cooperation with other government Mission informed and updated on all matters affecting it.
agencies concerned, a computer-based information (As amended by RA No 10022, [March 8, 2010])
system on returning Filipino migrant workers which shall The Center shall have a counterpart 24-hour
be accessible to all local recruitment agencies and information and assistance center at the Department of
employers, both public and private; Foreign Affairs to ensure a continuous network and
(d) Provide a periodic study and assessment of job coordinative mechanism at the home office.
opportunities for returning Filipino migrant workers; SECTION 20. Establishment of a Shared
(e) Develop and implement other appropriate Government Information System for Migration. — An
programs to promote the welfare of returning Filipino interagency committee composed of the Department of
migrant workers; Foreign Affairs and its attached agency, the Commission
on Filipinos Overseas, the Department of Labor and
Employment and its attached concerned agencies, the



Department of Tourism, the Department of Justice, the Systems. — The Department of Foreign Affairs is
Bureau of Immigration, the National Bureau of mandated to undertake the necessary initiative such as
Investigation, the Department of the Interior and Local promotions, acceptance or adherence of countries
Government, the National Telecommunications receiving Filipino workers to multilateral convention,
Commission, the Commission on Information and declaration or resolutions pertaining to the protection of
Communications Technology, the National Computer migrant workers' rights. The Department of Foreign
Center, the National Statistical and Coordination Board, Affairs is also mandated to make an assessment of rights
the National Statistics Office and other government and avenues of redress under international and regional
agencies concerned with overseas employment shall be human rights systems that are available to Filipino
established to implement a shared government migrant workers who are victims of abuse and violation
information system for migration. The interagency and, as far as practicable and through the Legal Assistant
committee shall initially make available to itself the for Migrant Workers Affairs created under this Act, pursue
information contained in existing databases/files. The the same on behalf of the victim if it is legally impossible
second phase shall involve linkaging of computer to file individual complaints. If a complaints machinery is
facilities in order to allow free-flow data exchanges and available under international or regional systems, the
sharing among concerned agencies. Department of Foreign Affairs shall fully apprise the
The inter-agency committee shall be co-chaired by Filipino migrant workers of the existence and
the Department of Foreign Affairs and the Department of effectiveness of such legal options.
Labor and Employment. The National Computer Center
shall provide the necessary technical assistance and shall IV. Government Agencies
set the appropriate information and communications SECTION 23. Role of Government Agencies. — The
technology standards to facilitate the sharing of following government agencies shall perform the
information among the member agencies. following to promote the welfare and protect the rights of
The inter-agency committee shall meet regularly to migrant workers and, as far as applicable, all overseas
ensure the immediate and full implementation of this Filipinos:
section and shall explore the possibility of setting up a (a) Department of Foreign Affairs — The Department,
central storage facility for the data on migration. The through its home office or foreign posts, shall take priority
progress of the implementation of this section shall be action or make representation with the foreign authority
included in the report to Congress of the Department of concerned to protect the rights of migrant workers and
Foreign Affairs and the Department of Labor and other overseas Filipinos and extend immediate assistance
Employment under Section 33. including the repatriation of distressed or beleaguered
The inter-agency committee shall convene to identify migrant workers and other overseas Filipinos;
existing databases which shall be declassified and shared (b) Department of Labor and Employment — The
among member agencies. These shared data bases shall Department of Labor and Employment shall see to it that
initially include, but not be limited to, the following labor and social welfare laws in the foreign countries are
information: fairly applied to migrant workers and whenever
(a) Masterlists of Filipino migrant workers/overseas applicable, to other overseas Filipinos including the grant
Filipinos classified according to occupation/job category, of legal assistance and the referral to proper medical
civil status, by country/state of destination including visa centers or hospitals:
classification; (b.1) Philippine Overseas Employment Administration
(b) Inventory of pending legal cases involving Filipino — The Administration shall regulate private sector
migrant workers and other Filipino nationals, including participation in the recruitment and overseas placement
those serving prison terms; of workers by setting up a licensing and registration
system. It shall also formulate and implement, in
(c) Masterlist of departing/arriving Filipinos; coordination with appropriate entities concerned, when
(d) Statistical profile on Filipino migrant necessary, a system for promoting and monitoring the
workers/overseas Filipinos/tourists; overseas employment of Filipino workers taking into
consideration their welfare and the domestic manpower
(e) Blacklisted foreigners/undesirable aliens; requirements. It shall be responsible for the regulation
(f) Basic data on legal systems, immigration policies, and management of overseas employment from the
marriage laws and civil and criminal codes in receiving pre-employment stage, securing the best possible
countries particularly those with large numbers of employment terms and conditions for overseas Filipino
Filipinos; workers, and taking into consideration the needs of
vulnerable sectors and the peculiarities of sea-based and
(g) List of labor and other human rights instruments
land-based workers. In appropriate cases, the
where receiving countries are signatories;
Administration shall allow the lifting of suspension of
(h) A tracking system of past and present gender erring recruitment/manning agencies upon the payment
disaggregated cases involving male and female migrant of fine of Fifty thousand pesos (P50,000.00) for every
workers, including minors; and month of suspension.
(i) Listing of overseas posts which may render In addition to its powers and functions, the
assistance to overseas Filipinos, in general, and migrant Administration shall inform migrant workers not only of
workers, in particular. (As amended by RA No 10022, their rights as workers but also of their rights as human
[March 8, 2010]) beings, instruct and guide the workers how to assert their
SECTION 21. Migrant Workers Loan Guarantee rights and provide the available mechanism to redress
Fund. — In order to further prevent unscrupulous illegal violation of their rights. It shall also be responsible for the
recruiters from taking advantage of workers seeking implementation, in partnership with other
employment abroad, the OWWA, in coordination with law-enforcement agencies, of an intensified program
government financial institutions, shall institute against illegal recruitment activities. For this purpose, the
financing schemes that will expand the grant of POEA shall provide comprehensive Pre-Employment
pre-departure loan and family assistance loan. For this Orientation Seminars (PEOS) that will discuss topics such
purpose, a Migrant Workers Loan Guarantee Fund is as prevention of illegal recruitment and
hereby created and the revolving amount of One gender-sensitivity.
hundred million pesos (P100,000,000.00) from the The Administration shall not engage in the
OWWA is set aside as a guarantee fund in favor of recruitment and placement of overseas workers except
participating government financial institutions. on a government-to-government arrangement only.
SECTION 22. Rights and Enforcement Mechanism In the recruitment and placement of workers to
Under International and Regional Human Rights service the requirements for trained and competent



Filipino workers of foreign governments and their conform with the requirements of receiving countries or
instrumentalities, and such other employers as public of foreign employers/principals.
interests may require, the Administration shall deploy Any foreign employer who does not honor the results
only to countries where the Philippines has concluded of valid health examinations conducted by a
bilateral labor agreements or arrangements: Provided, DOH-accredited or DOH-operated clinic shall be
That such countries shall guarantee to protect the rights temporarily disqualified from participating in the
of Filipino migrant workers; and: Provided, further,That overseas employment program, pursuant to POEA rules
such countries shall observe and/or comply with the and regulations.
international laws and standards for migrant workers. (As
amended by RA No 9422, [April 10, 2007], and RA No. In case an overseas Filipino worker is found to be not
10022, [March 8, 2010]) medically fit upon his/her immediate arrival in the
country of destination, the medical clinic that conducted
(b.2) Overseas Workers Welfare Administration — The the health examination/s of such overseas Filipino worker
Welfare officer or in his absence, the coordinating officer shall pay for his or her repatriation back to the Philippines
shall provide the Filipino migrant worker and his family all and the cost of deployment of such worker.
the assistance they may need in the enforcement of
contractual obligations by agencies or entities and/or by Any DOH-accredited clinic which violates any
their principals. In the performance of this function, he provision of this section shall, in addition to any other
shall make representation and may call on the agencies liability it may have incurred, suffer the penalty of
or entities concerned to conferences or conciliation revocation of its DOH accreditation.
meetings for the purpose of settling the complaints or Any government official or employee who violates
problems brought to his attention. The OWWA shall any provision of this subsection shall be removed or
likewise formulate and implement welfare programs for dismissed from service with disqualification to hold any
overseas Filipino workers and their families while they are appointive public office for five (5) years. Such penalty is
abroad and upon their return. It shall also ensure the without prejudice to any other liability which he or she
awareness by the overseas Filipino workers and their may have incurred under existing laws, rules or
families of these programs and other related regulations.
governmental programs.
(d) Local Government Units. — In the fight against
In the repatriation of workers to be undertaken by illegal recruitment, the local government units (LGUs), in
OWWA, the latter shall be authorized to pay partnership with the POEA, other concerned government
repatriation-related expenses, such as fines or penalties, agencies, and non-government organizations advocating
subject to such guidelines as the OWWA Board of the rights and welfare of overseas Filipino workers, shall
Trustees may prescribe. (As amended by RA No 10022, take a proactive stance by being primarily responsible for
[March 8, 2010]) the dissemination of information to their constituents on
(c) Department of Health. — The Department of all aspects of overseas employment. To carry out this task,
Health (DOH) shall regulate the activities and operations the following shall be undertaken by the LGUs:
of all clinics which conduct medical, physical, optical, (d.1) Provide a venue for the POEA, other concerned
dental, psychological and other similar examinations, government agencies and non-government
hereinafter referred to as health examinations, on Filipino organizations to conduct PEOS to their constituents on a
migrant workers as requirement for their overseas regular basis;
employment. Pursuant to this, the DOH shall ensure that:
(d.2) Establish overseas Filipino worker help desk or
(c.1) The fees for the health examinations are kiosk in their localities with the objective of providing
regulated, regularly monitored and duly published to current information to their constituents on all the
ensure that the said fees are reasonable and not processes and aspects of overseas employment. Such
exorbitant; desk or kiosk shall, as far as practicable, be fully
(c.2) The Filipino migrant worker shall only be computerized and shall be linked to the database of all
required to undergo health examinations when there is concerned government agencies, particularly the POEA
reasonable certainty that he or she will be hired and for its updated lists of overseas job orders and licensed
deployed to the jobsite and only those health recruitment agencies in good standing. (As amended by
examinations which are absolutely necessary for the type RA No 10022, [March 8, 2010])
of job applied for or those specifically required by the
foreign employer shall be conducted; V. The Legal Assistant for Migrant Workers
(c.3) No group or groups of medical clinics shall have A airs
a monopoly of exclusively conducting health SECTION 24. Legal Assistant for Migrant Workers
examinations on migrant workers for certain receiving Affairs. — There is hereby created the position of Legal
countries; Assistant for Migrant Workers Affairs under the
(c.4) Every Filipino migrant worker shall have the Department of Foreign Affairs who shall be primarily
freedom to choose any of the DOH-accredited or responsible for the provision and overall coordination of
DOH-operated clinics that will conduct his/her health all legal assistance services to be provided to Filipino
examinations and that his or her rights as a patient are migrant workers as well as overseas Filipinos in distress.
respected. The decking practice, which requires an He shall have the rank, salary and privileges equal to that
overseas Filipino worker to go first to an office for of an undersecretary of said Department.
registration and then farmed out to a medical clinic The said Legal Assistant for Migrant Workers Affairs,
located elsewhere, shall not be allowed; shall be appointed by the President and must be of
(c.5) Within a period of three (3) years from the proven competence in the field of law with at least ten
effectivity of this Act, all DOH regional and/or provincial (10) years of experience as a legal practitioner and must
hospitals shall establish and operate clinics that can serve not have been a candidate to an elective office in the last
the health examination requirements of Filipino migrant local or national elections.
workers to provide them easy access to such clinics all Among the functions and responsibilities of the
over the country and lessen their transportation and aforesaid Legal Assistant are:
lodging expenses; and
(a)To issue the guidelines, procedures and criteria for
(c.6) All DOH-accredited medical clinics, including the the provision of legal assistance services to Filipino
DOH-operated clinics, conducting health examinations migrant workers;
for Filipino migrant workers shall observe the same
(b)To establish close linkages with the Department of
standard operating procedures and shall comply with
Labor and Employment, the POEA, the OWWA and other
internationally-accepted standards in their operations to
government agencies concerned, as well as with


non-governmental organizations assisting migrant

workers, to ensure effective coordination and cooperation VI. Country-Team Approach
in the provision of legal assistance to migrant workers; SECTION 27. Priority Concerns of Philippine Foreign
(c)To tap the assistance of reputable law firms, the Service Posts. — The country-team approach, as
Integrated Bar of the Philippines, other bar associations, enunciated under Executive Order No. 74, series of 1993,
and other government legal experts on overseas Filipino shall be the mode under which Philippine embassies or
worker laws to complement the government's efforts to their personnel will operate in the protection of the
provide legal assistance to our migrant workers; (As Filipino migrant workers as well as in the promotion of
amended by RA No 10022, [March 8, 2010]) their welfare. The protection of the Filipino migrant
workers and the promotion of their welfare, in particular,
(d)To administer the legal assistance fund for migrant and the protection of the dignity and fundamental rights
workers established under Section 25 hereof and to and freedoms of the Filipino citizen abroad, in general,
authorize disbursements therefrom in accordance with shall be the highest priority concerns of the Secretary of
the purposes for which the fund was set up; and Foreign Affairs and the Philippine Foreign Service Posts.
(e)To keep and maintain the information system as SECTION 28. Country-Team Approach. — Under the
provided in Section 20. country-team approach, all officers, representatives and
The Legal Assistant for Migrant Workers Affairs shall personnel of the Philippine government posted abroad
have authority to hire private lawyers, domestic or foreign, regardless of their mother agencies shall, on a per
in order to assist him in the effective discharge of the country basis, act as one country-team with a mission
above functions. under the leadership of the ambassador. In this regard,
the ambassador may recommend to the Secretary of the
SECTION 25. Legal Assistance Fund. — There is Department of Foreign Affairs the recall of officers,
hereby established a legal assistance fund for migrant representatives and personnel of the Philippine
workers, hereinafter referred to as the Legal Assistance government posted abroad for acts inimical to the
Fund, in the amount of One hundred million pesos national interest such as, but not limited to, failure to
(P100,000,000.00) to be constituted from the following provide the necessary services to protect the rights of
sources: overseas Filipinos.
Fifty million pesos (P50,000,000.00) from the Upon receipt of the recommendation of the
Contingency Fund of the President; ambassador, the Secretary of the Department of Foreign
Thirty million pesos (P30,000,000.00) from the Affairs shall, in the case of officers, representatives and
Presidential Social Fund; personnel of other departments, endorse such
recommendation to the department secretary concerned
Twenty million pesos (P20,000,000.00) from the
for appropriate action. Pending investigation by an
Welfare Fund for Overseas Workers established under
appropriate body in the Philippines, the person
Letter of Instruction No. 537, as amended by Presidential
recommended for recall may be placed under preventive
Decree Nos. 1694 and 1809; and
suspension by the ambassador.
An amount appropriated in the annual General
In host countries where there are Philippine
Appropriations Act (GAA) which shall not be less than
consulates, such consulates shall also constitute part of
Thirty million pesos (P30,000,000.00) per year:
the country-team under the leadership of the
Provided,That the balance of the Legal Assistance Fund
ambassador.
(LAF) including the amount appropriated for the year
shall not be less than One hundred million pesos In the implementation of the country-team approach,
(P100,000,000.00): Provided, further, That the Fund shall visiting Philippine delegations shall be provided full
be treated as a special fund in the National Treasury and support and information.
its balance, including the amount appropriated in the VII. Deregulation and Phase-Out
GAA, which shall form part of the Fund, shall not revert to
the General Fund. Repealed by Republic Act No. 9422, [April 10, 2007]
Any balances of existing funds which have been set SECTION 29.Comprehensive Deregulation Plan on
aside by the government specifically as legal assistance Recruitment Activities.
or defense fund to help migrant workers shall, upon SECTION 30.Gradual Phase-out of Regulatory
effectivity of this Act, be turned over to, and form part of, Functions.
the Fund created under this Act. (As amended by RA No
10022, [March 8, 2010]) VIII. Professional and Other Highly-Skilled
SECTION 26. Uses of the Legal Assistance Fund. — Filipinos Abroad
The Legal Assistance Fund created under the preceding SECTION 31. Incentives to Professionals and Other
section shall be used exclusively to provide legal services Highly-Skilled Filipinos Abroad. — Pursuant to the
to migrant workers and overseas Filipinos in distress in objective of encouraging professionals and other
accordance with the guidelines, criteria and procedures highly-skilled Filipinos abroad especially in the field of
promulgated in accordance with Section 24(a) hereof. The science and technology to participate in, and contribute
expenditures to be charged against the Fund shall to national development, the government shall provide
include the fees for the foreign lawyers to be hired by the proper and adequate incentives and programs so as to
Legal Assistant for Migrant Workers Affairs to represent secure their services in priority development areas of the
migrant workers facing charges or in filing cases against public and private sectors.
erring or abusive employers abroad, bail bonds to secure
the temporary release of workers under detention, court
IX. Miscellaneous Provisions
fees and charges and other litigation expenses: Provided,
That at the end of every year, the Department of Foreign SECTION 32. POEA, OWWA and other Boards;
Affairs shall include in its report to Congress, as provided Additional Memberships. — Notwithstanding any
for under Section 33 of this Act, the status of the Legal provision of law to the contrary, the respective Boards of
Assistance Fund, including the expenditures from the the POEA and the OWWA shall, in addition to their
said fund duly audited by the Commission on Audit present composition, have three (3) members each who
(COA): Provided, further, That the hiring of foreign legal shall come from the women, sea-based and land-based
counsels, when circumstances warrant urgent action, sectors respectively, to be selected and nominated openly
shall be exempt from the coverage of Republic Act No. by the general membership of the sector being
9184 or the Government Procurement Act. (As amended represented.
by RA No 10022, [March 8, 2010])


The selection and nomination of the additional (f)Status of negotiations on bilateral labor
members from the women, sea-based and land-based agreements between the Philippines and the host
sectors shall be governed by the following guidelines: country.
(a) The POEA and the OWWA shall launch a massive Any officer of the government who fails to submit the
information campaign on the selection of nominees and report as stated in this section shall be subject to an
provide for a system of consultative sessions for the administrative penalty of dismissal from the service with
certified leaders or representatives of the concerned disqualification to hold any appointive public office for
sectors, at least three (3) times, within ninety (90) days five (5) years. (As amended by RA No 10022, [March 8,
before the boards shall be convened, for purposes of 2010])
selection. The process shall be open, democratic and SECTION 34. Representation in Congress. —
transparent; Pursuant to Section 5(2), Article VI of the Constitution and
(b) Only non-government organizations that protect in line with the objective of empowering overseas
and promote the rights and welfare of overseas Filipino Filipinos to participate in the policy-making process to
workers, duly registered with the appropriate Philippine address Filipino migrant concerns, two (2) sectoral
government agency and in good standing as such, and in representatives for migrant workers in the House of
existence for at least three (3) years prior to the Representatives shall be appointed by the President from
nomination shall be qualified to nominate a the ranks of migrant workers: Provided, That at least one
representative for each sector to the Board; (1) of the two (2) sectoral representatives shall come from
(c) The nominee must be at least twenty-five (25) the women migrant workers sector: Provided, further,
years of age, able to read and write, and a migrant worker That all nominees must have at least two (2) years
at the time of his or her nomination or was a migrant experience as a migrant worker.
worker with at least three (3) years experience as such; SECTION 35. Exemption from Travel Tax,
and Documentary Stamp Tax and Airport Fee. — All laws to
(d) A final list of all the nominees selected by the the contrary notwithstanding, the migrant worker shall
OWWA/POEA governing boards, which shall consist of be exempt from the payment of travel tax and airport-fee
three (3) names for each sector to be represented, shall be upon proper showing of proof of entitlement by the
submitted to the President and published in a newspaper POEA.
of general circulation; The remittances of all overseas Filipino workers, upon
Within thirty (30) days from the submission of the list, showing of the same proof of entitlement by the overseas
the President shall select and appoint from the list the Filipino worker's beneficiary or recipient, shall be exempt
representatives to the POEA/OWWA governing boards. from the payment of documentary stamp tax. (As
amended by RA No 10022, [March 8, 2010])
The additional members shall have a term of three (3)
years and shall be eligible for reappointment for another SECTION 36. Non-increase of Fees; Abolition of
three (3) years. In case of vacancy, the President shall, in Repatriation Bond. — Upon approval of this Act, all fees
accordance with the provisions of this Act, appoint a being charged by any government office on migrant
replacement who shall serve the unexpired term of his or workers shall remain at their present levels and the
her predecessor. repatriation bond shall be abolished.
Any executive issuances or orders issued that SECTION 37. The Congressional Migrant Workers
contravene the provisions of this section shall have no Scholarship Fund. — There is hereby created a
force and effect. Congressional Migrant Workers Scholarship Fund which
shall benefit deserving migrant workers and/or their
All other government agencies and immediate descendants below twenty-one (21) years of
government-owned or -controlled corporations which age who intend to pursue courses or training primarily in
require at least one (1) representative from the overseas the field of science and technology. The initial seed fund
workers sector to their respective boards shall follow all of Two hundred million pesos (P200,000,000.00) shall be
the applicable provisions of this section. (As amended by constituted from the following sources:
RA No 10022, [March 8, 2010])
(a)Fifty million pesos (P50,000,000.00) from the
SECTION 33. Report to Congress. — In order to unexpended Countrywide Development Fund for 1995 in
inform the Philippine Congress on the implementation of equal sharing by all Members of Congress; and
the policy enunciated in Section 4 hereof, the
Department of Foreign Affairs and the Department of (b)The remaining One hundred fifty million pesos
Labor and Employment shall submit separately to the (P150,000,000.00) shall be funded from the proceeds of
said body a semi-annual report of Philippine foreign posts Lotto draws.
located in countries hosting Filipino migrant workers. The The Congressional Migrant Workers Scholarship Fund
mid-year report covering the period January to June shall as herein created shall be administered by the DOLE in
be submitted not later than October 31 of the same year coordination with the Department of Science and
while the year-end report covering the period July to Technology (DOST). To carry out the objectives of this
December shall be submitted not later than May 31 of the section, the DOLE and the DOST shall formulate the
following year. The report shall include, but shall not be necessary rules and regulations.
limited to, the following information: (As amended by RA SECTION 37-A. Compulsory Insurance Coverage for
No 10022, [March 8, 2010]) Agency-Hired Workers. — In addition to the
(a)Masterlist of Filipino migrant workers, and performance bond to be filed by the
inventory of pending legal cases involving them and recruitment/manning agency under Section 10, each
other Filipino nationals including those serving prison migrant worker deployed by a recruitment/manning
terms; agency shall be covered by a compulsory insurance policy
(b)Working conditions of Filipino migrant workers; which shall be secured at no cost to the said worker. Such
insurance policy shall be effective for the duration of the
(c)Problems encountered by the migrant workers, migrant worker's employment contract and shall cover, at
specifically violations of their rights; the minimum:
(d)Initiatives/actions taken by the Philippine foreign (a) Accidental death, with at least Fifteen thousand
posts to address the problems of Filipino migrant United States dollars (US$15,000.00) survivor's benefit
workers; payable to the migrant worker's beneficiaries;
(e)Changes in the laws and policies of host countries; (b) Natural death, with at least Ten thousand United
and States dollars (US$10,000.00) survivor's benefit payable to
the migrant worker's beneficiaries;


(c) Permanent total disablement, with at least Seven in the overseas employment program shall be
thousand five hundred United States dollars disqualified from providing this workers' insurance
(US$7,500.00) disability benefit payable to the migrant coverage.
worker. The following disabilities shall be deemed The recruitment/manning agency shall have the right
permanent: total, complete loss of sight of both eyes; loss to choose from any of the qualified insurance providers
of two (2) limbs at or above the ankles or wrists; the company that will insure the migrant worker it will
permanent complete paralysis of two (2) limbs; brain deploy. After procuring such insurance policy, the
injury resulting to incurable imbecility or insanity; recruitment/manning agency shall provide an
(d) Repatriation cost of the worker when his/her authenticated copy thereof to the migrant worker. It shall
employment is terminated without any valid cause, then submit the certificate of insurance coverage of the
including the transport of his or her personal belongings. migrant worker to POEA as a requirement for the
In case of death, the insurance provider shall arrange and issuance of an Overseas Employment Certificate (OEC) to
pay for the repatriation or return of the worker's remains. the migrant worker. In the case of seafarers who are
The insurance provider shall also render any assistance insured under policies issued by foreign insurance
necessary in the transport including, but not limited to, companies, the POEA shall accept certificates or other
locating a local and licensed funeral home, mortuary or proofs of cover from recruitment/manning agencies:
direct disposition facility to prepare the body for Provided, That the minimum coverage under
transport, completing all documentation, obtaining legal sub-paragraphs (a) to (i) are included therein.
clearances, procuring consular services, providing death Any person having a claim upon the policy issued
certificates, purchasing the minimally necessary casket or pursuant to subparagraphs (a), (b), (c), (d) and (e) of this
air transport container, as well as transporting the section shall present to the insurance company
remains including retrieval from site of death and delivery concerned a written notice of claim together with
to the receiving funeral home; pertinent supporting documents. The insurance
(e) Subsistence allowance benefit, with at least One company shall forthwith ascertain the truth and extent of
hundred United States dollars (US$100.00) per month for the claim and make payment within ten (10) days from
a maximum of six (6) months for a migrant worker who is the filing of the notice of claim.
involved in a case or litigation for the protection of his/her Any claim arising from accidental death, natural
rights in the receiving country; death or disablement under this section shall be paid by
(f) Money claims arising from employer's liability the insurance company without any contest and without
which may be awarded or given to the worker in a the necessity of proving fault or negligence of any kind on
judgement or settlement of his or her case in the NLRC. the part of the insured migrant worker: Provided, That the
The insurance coverage for money claims shall be following documents, duly authenticated by the
equivalent to at least three (3) months for every year of Philippine foreign posts, shall be sufficient evidence to
the migrant worker's employment contract; substantiate the claim:
In addition to the above coverage, the insurance (1) Death Certificate — In case of natural or accidental
policy shall also include: death;
(g) Compassionate visit. When a migrant worker is (2) Police or Accident Report — In case of accidental
hospitalized and has been confined for at least seven (7) death; and
consecutive days, he shall be entitled to a compassionate (3) Medical Certificate — In case of permanent
visit by one (1) family member or a requested individual. disablement;
The insurance company shall pay for the transportation
cost of the family member or requested individual to the For repatriation under subparagraph (d) hereof, a
major airport closest to the place of hospitalization of the certification which states the reason/s for the termination
worker. It is, however, the responsibility of the family of the migrant worker's employment and the need for his
member or requested individual to meet all visa and or her repatriation shall be issued by the Philippine
travel document requirements; foreign post or the Philippine Overseas Labor Office
(POLO) located in the receiving country.
(h) Medical evacuation. When an adequate medical
facility is not available proximate to the migrant worker, For subsistence allowance benefit under
as determined by the insurance company's physician subparagraph (e), the concerned labor attache or, in his
and/or a consulting physician, evacuation under absence, the embassy or consular official shall issue a
appropriate medical supervision by the mode of transport certification which states the name of the case, the
necessary shall be undertaken by the insurance provider; names of the parties and the nature of the cause of
and action of the migrant worker.
(i) Medical repatriation. When medically necessary as For the payment of money claims under
determined by the attending physician, repatriation subparagraph (f), the following rules shall govern:
under medical supervision to the migrant worker's (1) After a decision has become final and executory or
residence shall be undertaken by the insurance provider a settlement/compromise agreement has been reached
at such time that the migrant worker is medically cleared between the parties at the NLRC, an order shall be
for travel by commercial carrier. If the period to receive released mandating the respondent
medical clearance to travel exceeds fourteen (14) days recruitment/manning agency to pay the amount
from the date of discharge from the hospital, an adjudged or agreed upon within thirty (30) days;
alternative appropriate mode of transportation, such as
air ambulance, may be arranged. Medical and (2) The recruitment/manning agency shall then
non-medical escorts may be provided when necessary. immediately file a notice of claim with its insurance
provider for the amount of liability insured, attaching
Only reputable private insurance companies duly therewith a copy of the decision or compromise
registered with the Insurance Commission (IC), which are agreement;
in existence and operational for at least five (5) years, with
a net worth of at least Five hundred million pesos (3) Within ten (10) days from the filing of notice of
(P500,000,000.00) to be determined by the IC, and with a claim, the insurance company shall make payment to the
current year certificate of authority shall be qualified to recruitment/manning agency the amount adjudged or
provide for the worker's insurance coverage. Insurance agreed upon, or the amount of liability insured, whichever
companies who have directors, partners, officers, is lower. After receiving the insurance payment, the
employees or agents with relatives, within the fourth civil recruitment/manning agency shall immediately pay the
degree of consanguinity or affinity, who work or have migrant worker's claim in full, taking into account that in
interest in any of the licensed recruitment/manning case the amount of insurance coverage is insufficient to
agencies or in any of the government agencies involved


satisfy the amount adjudged or agreed upon, it is liable to necessary and warranted for the purpose of modifying,
pay the balance thereof; amending and/or repealing these subject provisions. (As
(4) In case the insurance company fails to make amended by RA No 10022, [March 8, 2010])
payment within ten (10) days from the filing of the claim, SECTION 37-B. Congressional Oversight
the recruitment/manning agency shall pay the amount Committee. — There is hereby created a Joint
adjudged or agreed upon within the remaining days of Congressional Oversight Committee composed of five (5)
the thirty (30)-day period, as provided in the first Senators and five (5) Representatives to be appointed by
subparagraph hereof; the Senate President and the Speaker of the House of
(5) If the worker's claim was not settled within the Representatives, respectively. The Oversight Committee
aforesaid thirty (30)-day period, the recruitment/manning shall be co-chaired by the chairpersons of the Senate
agency's performance bond or escrow deposit shall be Committee on Labor and Employment and the House of
forthwith garnished to satisfy the migrant worker's claim; Representatives Committee on Overseas Workers Affairs.
The Oversight Committee shall have the following duties
(6) The provision of compulsory worker's insurance and functions:
under this section shall not affect the joint and solidary
liability of the foreign employer and the (a) To set the guidelines and overall framework to
recruitment/manning agency under Section 10; monitor and ensure the proper implementation of
Republic Act No. 8042, as amended, as well as all
(7) Lawyers for the insurance companies, unless the programs, projects and activities related to overseas
latter is impleaded, shall be prohibited to appear before employment;
the NLRC in money claims cases under this section.
(b) To ensure transparency and require the
Any question or dispute in the enforcement of any submission of reports from concerned government
insurance policy issued under this section shall be agencies on the conduct of programs, projects and
brought before the IC for mediation or adjudication. policies relating to the implementation of Republic Act
In case it is shown by substantial evidence before the No. 8042, as amended;
POEA that the migrant worker who was deployed by a (c) To approve the budget for the programs of the
licensed recruitment/manning agency has paid for the Oversight Committee and all disbursements therefrom,
premium or the cost of the insurance coverage or that including compensation of all personnel;
the said insurance coverage was used as basis by the
recruitment/manning agency to claim any additional fee (d) To submit periodic reports to the President of the
from the migrant worker, the said licensed Philippines and Congress on the implementation of the
recruitment/manning agency shall lose its license and all provisions of Republic Act No. 8042, as amended;
its directors, partners, proprietors, officers and employees (e) To determine weaknesses in the law and
shall be perpetually disqualified from engaging in the recommend the necessary remedial legislation or
business of recruitment of overseas workers. Such penalty executive measures; and
is without prejudice to any other liability which such (f) To perform such other duties, functions and
persons may have incurred under existing laws, rules or responsibilities as may be necessary to attain its
regulations. objectives.
For migrant workers recruited by the POEA on a The Oversight Committee shall adopt its internal
government-to-government arrangement, the POEA rules of procedure, conduct hearings and receive
shall establish a foreign employers guarantee fund which testimonies, reports, and technical advice, invite or
shall be answerable to the workers' monetary claims summon by subpoena ad testificandum any public
arising from breach of contractual obligations. For official or private citizen to testify before it, or require any
migrant workers classified as rehires, name hires or direct person by subpoena duces tecum documents or other
hires, they may opt to be covered by this insurance materials as it may require consistent with the provisions
coverage by requesting their foreign employers to pay for of Republic Act No. 8042, as amended.
the cost of the insurance coverage or they may pay for
the premium themselves. To protect the rights of these The Oversight Committee shall organize its staff and
workers, the Department of Labor and Employment and technical panel, and appoint such personnel, whether on
the POEA shall provide them adequate legal assistance, secondment from the Senate and the House of
including conciliation and mediation services, whether at Representatives or on temporary, contractual, or on
home or abroad. consultancy, and determine their compensation subject
to applicable civil service laws, rules and regulations with
At the end of every year, the Department of Labor a view to ensuring a competent and efficient secretariat.
and Employment and the IC shall jointly make an
assessment of the performance of all insurance providers, The members of the Oversight Committee shall not
based upon the report of the NLRC and the POEA on receive additional compensation, allowances or
their respective interactions and experiences with the emoluments for services rendered thereto except
insurance companies, and they shall have the authority to traveling, extraordinary and other necessary expenses to
ban or blacklist such insurance companies which are attain its goals and objectives.
known to be evasive or not responsive to the legitimate The Oversight Committee shall exist for a period of
claims of migrant workers. The Department of Labor and ten (10) years from the effectivity of this Act and may be
Employment shall include such assessment in its extended by a joint concurrent resolution. (As amended
year-end report to Congress. by RA No 10022, [March 8, 2010])
For purposes of this section, the Department of Labor SECTION 38. Appropriation and Other Sources of
and Employment, IC, NLRC and the POEA, in consultation Funding. — The amount necessary to carry out the
with the recruitment/manning agencies and legitimate provisions of this Act shall be provided for in the General
non-government organizations advocating the rights and Appropriations Act of the year following its enactment
welfare of overseas Filipino workers, shall formulate the into law and thereafter.
necessary implementing rules and regulations.
SECTION 39. Migrant Workers Day. — The day of
The foregoing provisions on compulsory insurance signing by the President of this Act shall be designated as
coverage shall be subject to automatic review through the Migrant Workers Day and shall henceforth be
the Congressional Oversight Committee immediately commemorated as such annually.
after three (3) years from the effectivity of this Act in order
to determine its efficacy in favor of the covered overseas SECTION 40. Implementing Rules and Regulations.
Filipino workers and the compliance by — The departments and agencies charged with carrying
recruitment/manning agencies and insurance out the provisions of this Act shall, within ninety (90) days
companies, without prejudice to an earlier review if


after the effectivity of this Act, formulate the necessary activities with the appropriate LGU PESO. (as amended
rules and regulations for its effective implementation. by RA No 10691)
SECTION 41. Repealing Clause. — All laws, decrees, Section 4. Objectives of the PESO. - In general, the
executive orders, rules and regulations, or parts thereof PESO shall ensure the prompt, timely and efficient
inconsistent with the provisions of this Act are hereby delivery of employment service and provision of
repealed or modified accordingly. information on the other DOLE programs.
SECTION 42. Separability Clause. — If, for any Specifically, the PESO shall:
reason, any section or provision of this Act is held (a) Provide a venue where people could explore
unconstitutional or invalid, the other sections or simultaneously various employment options and actually
provisions hereof shall not be affected thereby. seek assistance they prefer;
SECTION 43. Effectivity Clause. — This Act shall take (b) Serve as referral and information center for the
effect after fifteen (15) days from its publication in the various services and programs of DOLE and other
Official Gazette or in at least two (2) national newspapers government agencies present in the area;
of general circulation whichever comes earlier.
(c) Provide clients with adequate information on
Approved: June 7, 1995 employment and labor market situation in the area; and
Published in Malaya and the Philippine Times (d) Network with other PESOs within the region on
Journal on June 30, 1995. Published in the Official employment for job exchange purposes.
Gazette, Vol. 91 No. 32 page 4994 on August 7, 1995.
Section 5. Functions of the PESO. - The PESO shall
(Migrant Workers and Overseas Filipinos Act of 1995, have the following functions:
Republic Act No. 8042 , [June 7, 1995])
(a) Encourage employers to submit to the PESO on a
regular basis a list of job vacancies in their respective
RA No 8759 | Public Employment Service establishments in order to facilitate the exchange of labor
market information between job seekers and employers
Office Act of 1999 by providing employment information services to job
As amended by RA No 10691, October 26, 2015 seekers, both for local and overseas employment, and
recruitment assistance to employers;

(b) Develop and administer testing and evaluation
Rules and Regulations Implementing the Public instruments for effective job selection, training and
Employment Service Office Act of 1999 as amended by counselling;
RA No 10691 (c) Provide persons with entrepreneurship qualities,
access to the various livelihood and self-employment
February 14, 2000 programs offered by both government and
nongovernment organizations at the provincial, city,
AN ACT INSTITUTIONALIZING A NATIONAL municipal and barangay levels by undertaking referrals
FACILITATION SERVICE NETWORK THROUGH THE for such program;
ESTABLISHMENT OF A PUBLIC EMPLOYMENT SERVICE
OFFICE IN EVERY PROVINCE, KEY CITY AND OTHER (d) Undertake employability enhancement trainings
STRATEGIC AREAS THROUGHOUT THE COUNTRY or seminars for job seekers, as well as those who would
like to change career or enhance their employability;
Be it enacted by the Senate and House of
Representatives of the Philippines of Representatives of (e) Provide employment or occupational counselling,
the Philippines in Congress assembled: career guidance, mass motivation and values
development activities;
Section 1. Title. — This Act shall be known as the
"Public Employment Service Office Act of 1999." (f) Conduct pre-employment counselling and
orientation to prospective local and, most especially,
Section 2. Declaration of Policy. - It is a declared overseas workers;
policy of the State to promote full employment and
equality of employment opportunities for all, and for this (g) Provide reintegration assistance services to
purpose, to strengthen and expand the existing returning Filipino migrant workers;
employment facilitation service machinery of the (h) Prepare and submit to the local sanggunian an
government particularly at the local levels. annual employment plan and budget including other
Section 3. Establishment of the Public Employment regular funding sources and budgetary support of the
Service Office. - To carry out the above declared policy, PESO; and
there shall be established in all provinces, cities, and (i) Perform such functions as to fully carry out the
municipalities a Public Employment Service Office, objectives of this Act.
hereinafter referred to as ‘PESO’, which shall be operated
and maintained by local government units (LGUs). The (as amended by RA No 10691)
PESOs shall be linked to the regional offices of the Section 6. Other Services of the PESO. - In addition to
Department of Labor and Employment (DOLE) for the functions enumerated in the preceding section, every
coordination and technical supervision, and to the DOLE PESO shall undertake holistic strategies, programs and
central office, to constitute the national public activities to transform the PESO into a modern public
employment service network. employment service intermediary that provides
The PESO shall be under the office of the governor, multidimensional employment facilitation services. (as
city or municipal mayor. The PESO shall be initially amended by RA No 10691)
organized by and composed of a PESO manager and may Section 7. Role of DOLE and the LGUs - The LGUs, in
be assisted by a labor and employment officer (LEO) as coordination with the DOLE, shall establish the PESO.
may be determined by the LGU. “It shall be the responsibility of the DOLE to:
Upon the request of accredited non-government (a) Provide technical supervision, coordination and
organizations (NGOs) or educational institutions (Els), the capacity-building to the PESO;
DOLE may enter into a memorandum of agreement for
the NGO and EI to establish, operate and maintain a (b) Establish and maintain a computerized human
PESO and a job placement office, respectively. resource and job registries to facilitate the provision and
packaging of employment assistance to PESO clients and
To harmonize the provision of employment services the setting-up of intra- and interregional job clearance
in a given territorial jurisdiction, the PESO at the NGOs systems as part of the overall employment network;
and the job placement office in Els shall coordinate their



(c) Provide technical assistance and allied support which are inconsistent herewith are hereby deemed
services to the PESO including, but not limited to, the repealed or modified accordingly.
training of PESO personnel in the various aspects of Section 11. Separability Clause. - If for any reason, any
employment facilitation functions; section or provision of this Act or any part thereof, or the
(d) Set standards for the establishment and operation application of such section, provision or portion is
of the PESO office, and qualification standards for the declared invalid or unconstitutional, the remainder
PESO personnel; thereof shall not be affected by such declaration.
(e) Extend other packages of employment services to Section 12. Effectivity. -This Act shall take effect
the LGU, NGO or EI concerned, including the conduct of fifteen (15) days after its publication in the Official Gazette
job lairs, career development seminars, and other or in at least two (2) newspapers of general circulation.
activities; and Approved: February 14, 2000
(f) Monitor, assess, and evaluate the performance of
the PESOs, including the job placement offices in Els.
For their part, persons who are seeking employment, RA No 10869 | JobStart Philippines Act
particularly the unemployed, shall register at the PESO
for employment facilitation assistance. The
establishments, on the other hand, shall submit their job
vacancies as well as applicants hired to the PESO to Rules and Regulations Implementing the JobStart
ensure the availability of accurate information on supply Philippines Act
and demand for skills in the labor market.
The LGU shall establish a monitoring system wherein June 29, 2016

establishments operating in the locality shall report the AN ACT INSTITUTIONALIZING THE NATIONWIDE
following relevant labor market information to the IMPLEMENTATION OF THE JOBSTART PHILIPPINES
concerned office of the LGU: PROGRAM AND PROVIDING FUNDS THEREFOR
(1) Present number and nature of jobs; and SECTION 1. Short Title. — This Act shall be known as
(2) Projection of jobs that the establishment will the "JobStart Philippines Act".
provide or offer in the next five (5) years. SECTION 2. Declaration of Policy. — It is the policy of
The information shall be submitted to the PESO for the State to promote full employment, equality of
job matching and to Els for career guidance of the employment opportunities for all, and afford full
students. protection to labor. The Philippines subscribes to the
International Labor Organization's (ILO) Decent Work
It shall be the responsibility of the concerned LGU to: Agenda. As a signatory to ILO Convention 88, the State
(i) Operate and maintain the PESO; shall promote the establishment of Public Employment
(ii) Ensure compliance with the operational standards Service Office (PESO) as the primary institution at the
set by the DOLE; local level that will be responsible for implementing a
variety of active labor market programs including job
(iii) Extend such assistance and services as may be search assistance, training, and placement for the
necessary in the promotion of employment within the unemployed, particularly the young jobseekers.
area of jurisdiction; and
SECTION 3. Statement of Objectives. — The JobStart
(iv) Submit to the DOLE periodic: performance and Philippines Program aims to shorten the youth's school to
accomplishment reports. work transition by enhancing the knowledge and skills
(as amended by RA No 10691) acquired in formal education or technical training by job
seekers in order for them to become more responsive to
Section 8. Administration of the PESO Program. - the demands of the labor market. With the participation
The DOLE shall be primarily responsible for the of the private sector and other stakeholders, the program
administration of the PESO Program through its Bureau will also help develop the life skills of the youth, including
of Local Employment, as well as its regional offices those relevant to the values of professionalism and work
throughout the country. The Secretary of Labor and appreciation, and provide trainees with a conducive and
Employment, in coordination with the Department of the safe work environment or venue where they can apply
Interior and Local Government and in consultation with relevant theories and code of ethics. Another objective of
the presidents of the various local government leagues, the program is to further improve the delivery of
namely the League of Provinces, the League of Cities, the employment facilitation services of the PESOs.
League of Municipalities and the League of Barangays,
shall accordingly promulgate, within ninety (90) days SECTION 4. Definition of Terms. — For purposes of
from the effectivity of this Act, the necessary rules and this Act, the following terms are hereby defined as
regulations for the effective implementation of the follows:
Program. (a) Employer refers to an establishment or an
Section 9. Funding. - The funding for the operation enterprise which may be a company, sole proprietorship,
and maintenance of the PESO shall be provided by the partnership, corporation, or any other legal entity
LGU from its internal revenue allotment and other registered under relevant laws that may provide a venue
internally generated income of the LGU concerned. for training and placement of JobStart trainees;
Likewise, the operation and maintenance of the NGO (b) Internship stipend refers to the amount which the
PESOs and job placement offices of Els shall be charged JobStart trainee receives from the participating employer
against their internally generated income. for the duration of the internship period;
Funds for the provision of technical assistance, (c) JobStart refers to the Department of Labor and
training and supervision of the PESO shall be included in Employment's (DOLE) program designed to enhance the
the budget of the DOLE in the annual General employability of at-risk youth to improve their integration
Appropriations Act. into productive employment through the provision of full
The amount necessary to implement the provisions cycle employment facilitation services including job
of this Act shall be included by the Department of search assistance, free technical and life skills trainings,
Budget and Management in the annual General placement in internships, and job referral from the
Appropriations Act. (as amended by RA No 10691) PESOs;
Section 10. Repealing Clause. - All laws, decrees,
executive orders, rules and regulations or any part thereof


(d) JobStart graduate refers to a JobStart trainee who shall assess and determine whether the JobStart trainee
has completed all the program services and undergone is ready to be referred for decent employment or would
all stages of the JobStart program; require further training.
(e) JobStart internship refers to the practical learning SECTION 8. Role of the JobStart Unit. — The DOLE
of a JobStart trainee in a regular work environment with a shall establish a JobStart unit at the BLE and in every
participating employer for a period of up to three (3) DOLE regional office. The JobStart unit shall provide the
months, as determined by the latter; employer the training costs, administrative costs, or other
(f) JobStart life skills training refers to a ten (10)-day fees, if any, as specified under a memorandum of
training designed to holistically develop the behavior, agreement between the DOLE and the employer. It shall
attitude, and values of JobStart trainees, which as a result also approve training plans in coordination with the
will enable them to plan better their career path and deal appropriate PESOs and with technical advice from the
effectively with the demands and challenges of everyday TESDA.
life and work; SECTION 9. The Role of the DOLE. — The DOLE shall
(g) JobStart technical training refers to the be the executing agency of the JobStart Philippines
technology-based theoretical instruction for a period of Program. The BLE shall serve as the program manager
up to three (3) months in a lecture area, and hands-on that shall provide the necessary technical and
exercises in a laboratory or a workshop within the administrative assistance to concerned regional and field
premises of a technical training provider, either in a offices, and PESOs. The DOLE regional and field offices
technical vocational institute (TVI) registered with the shall supervise and monitor the implementation of the
Technical Education and Skills Development Authority JobStart activities in their respective jurisdiction. The
(TESDA), in-house in a participating employer, or within DOLE shall conduct capacity-building activities to train
the available facilities of local government units (LGUs); the PESOs in adopting the new model on employment
facilitation services, particularly on career coaching and
(h) JobStart trainee refers to an eligible JobStart life skills.
registrant selected to participate in the program;
SECTION 10. Payment of Allowances and Stipends.
(i) JobStart unit refers to the office established and — The trainees shall receive a daily training allowance
managed by the Bureau of Local Employment (BLE) and from the JobStart unit beginning from the life skills
regional offices of the DOLE, and the participating PESOs training stage to the technical training stage. The amount
to implement and oversee the JobStart program; of the training allowance shall be determined by the
(j) Technical training certificate refers to a DOLE.
certification that shall be jointly issued by the DOLE, the Upon entry into the internship stage, the
TESDA, and the participating employer after program participating employer shall provide the JobStart trainees
completion and assessment of the JobStart trainee's with a daily stipend of not less than seventy-five percent
competencies to attest the skills acquired by the JobStart (75%) of the prevailing minimum wage in the city or
trainee. The certificate shall contain a list of the units of municipality where the establishment is located. The
competency and qualification acquired; amount of the stipend shall be based on the trainee's
(k) Training allowance refers to the amount which actual attendance. Absences, tardiness or undertime
the JobStart trainee receives from the JobStart unit for incurred shall be deducted therefrom in accordance with
the duration of the life skills and technical training; and the training plan.
(l) Training plan refers to a written plan that specifies Training allowances and stipends shall be paid at
the set of skills and competencies to be acquired by the least once every two (2) weeks or twice a month at
JobStart trainee from technical training to internship intervals not exceeding sixteen (16) days.
period. The training plan will describe the training SECTION 11. JobStart Training Period. — The JobStart
curriculum or modules to be used, the training schedule, training period shall be divided into three (3) phases,
venue, facilities, cost, as well as the training's monitoring namely:
and evaluation framework. The training plan shall be
prepared by the employer and approved by the JobStart (a) JobStart Life Skills Training:
unit with technical advice from the TESDA. (1) The life skills training shall be conducted by the
SECTION 5. Qualifications of a JobStart Trainee. — PESOs with technical assistance from the DOLE for a
To qualify as a JobStart trainee, a person shall: period of ten (10) days, with at least one life skill being
taught in each day of the program.
(a) Be a Filipino citizen;
(2) The JobStart life skills training modules shall be
(b) Be eighteen (18) to twenty-four (24) years of age at developed by the DOLE in consultation with the DepEd,
the time of the registration period. Those who are CHED, TESDA and other stakeholders.
seventeen (17) years old may also register provided that
they will be eighteen (18) years old at the time of the (3) The JobStart trainee shall receive a daily allowance
technical training; for the duration of the life skills training to be provided by
the PESOs with funding support from the DOLE.
(c) Have at least reached high school level;
(b) JobStart Technical Training:
(d) Not be employed, studying, or undergoing
training at the time of the registration; and (1) The JobStart technical training shall be for a period
of up to three (3) months. Upon the recommendation of
(e) Have no work experience or have less than one (1) the participating employer and as approved by the PESO,
year of accumulated work experience. a JobStart trainee can skip or be exempted from
SECTION 6. Program Components. — The JobStart undergoing the technical training and transition directly
Program shall include full employment facilitation to internship stage. The technical training period may
services such as registration, client assessment, life skills also be less than three (3) months depending on the skills
training with one-on-one career coaching, technical and competencies that the JobStart trainee must achieve
training, job matching, and referrals to employers either and as determined by the participating employer.
for further technical training, internship, or for decent (2) The JobStart trainee shall receive a training
employment. allowance from the JobStart unit for the duration of the
SECTION 7. Status of JobStart Trainees. — The technical training.
JobStart registrant shall be considered as a trainee and (3) The JobStart technical training shall allow the
not as an employee of the participating employer for the trainee to acquire a qualification or a set of competencies
duration of the training program. JobStart graduates aligned with the appropriate TESDA training regulations,
shall be given preference in the hiring of workers by the as applicable, and be qualified to get a National
participating employers. After life skills training, the PESO Certificate (NC) or Certificate of Competency (COC). The



TESDA shall set the mechanisms and guidelines for the (g) Adhere to the existing rules and regulations of the
evaluation of competencies not covered by existing establishment; and
training regulations. (h) Report to the PESO for an exit interview after the
(c) JobStart Internship: completion of the internship period.
(1) The JobStart internship period shall not be more SECTION 14. Participation of Employers. — An
than three (3) months or six hundred (600) hours. The employer shall be allowed to take in JobStart trainees
total daily training hours shall be eight (8) hours exclusive only up to a maximum of twenty percent (20%) of its total
of not less than sixty (60) minutes time off for the regular workforce. The employer shall not take in the same
meals. trainee to be part of the former's engagement in a similar
(2) The internship period may be beyond eight (8) training program such as the Dual Training Program and
hours a day: Provided, That said overtime shall not exceed the National Apprenticeship Program.
two (2) hours a day. The JobStart trainee shall be paid for The participating employers must have the following:
the overtime stay an additional stipend equivalent to the (a) Legitimate business operating within the LGU's
daily internship stipend plus at least twenty-five percent area;
(25%) thereof.
(b) COC on General Labor Standards and
(3) In case of night shift training, the JobStart trainee Occupational Safety and Health (OSH) Standards;
shall be entitled to a night shift differential pay of not less
than ten percent (10%) of the internship stipend for each (c) Capacity to provide, in case of an in-house
hour of training between ten o'clock in the evening and arrangement, or facilitate, in case of a third-party training
six o'clock in the morning. provider, a technical vocational education and training
(TVET) to JobStart trainees, and to arrange for the
(4) A JobStart trainee may be trained during regular disbursement of the internship stipend;
holidays: Provided, That the trainee is willing to and will
be compensated twice the daily internship stipend on a (d) Capacity to provide for up to three (3) months
regular holiday. internship or work experience to JobStart trainees, with a
commitment to pay at least seventy-five percent (75%) of
(5) The time spent on overtime stay shall be duly the daily minimum wage for the relevant city or
credited to the trainee's number of training hours. municipality;
(6) A JobStart trainee shall no longer be required to (e) Capacity to develop a training plan to be learned
undergo a probationary period at the end of the and applied by the trainee in the establishment;
internship phase should the trainee be hired in the same
establishment upon completion of the program: (f) Capacity to mentor and monitor a JobStart
Provided, That said trainee also completed his or her trainee's performance; and
technical training within the training plan prepared by (g) Interest and willingness to absorb or offer possible
the same participating employer. regular employment to JobStart graduates.
SECTION 12. Entitlement to Other Benefits and SECTION 15. Duties and Responsibilities of
Incentives. — Notwithstanding the LGU or participating Employers. — The participating employer shall perform
employer's preference to provide additional or other the following:
health services or insurance support, the JobStart
trainees shall be covered with a basic accident insurance (a) Design and implement the training plan in
for the duration of the program to be paid by the DOLE. partnership with a TVET institution, as applicable;
The participating employer shall be reimbursed by the (b) Enter into either a training or work contract with
DOLE and disbursed through the PESO with the cost of the JobStart trainee;
the JobStart trainee's pre-training and employment
medical examinations. On the other hand, the LGU shall (c) Provide to the JobStart trainee practical training or
exempt the JobStart trainees from securing a work work experience for a maximum period of three (3)
permit. months or six hundred (600) hours;
SECTION 13. Duties and Responsibilities of the (d) Pay the JobStart trainee a daily stipend of not less
JobStart Trainee. — The JobStart trainee shall exert every than seventy-five percent (75%) of the daily minimum
effort to acquire the abilities, values, and knowledge wage of the city or municipality where the establishment
necessary to achieve the purpose of the training. Towards is located;
this end, the trainee shall: (e) Encourage the JobStart trainee to develop
(a) Submit to the PESO the following documents: personality and professionalism and to the extent
possible, protect the JobStart trainee from physical or
(1) NSO birth certificate or any government issued moral danger;
identification card with the applicant's birth date;
(f) Submit monitoring and evaluation reports or other
(2) High school and college diploma, if applicable; information on the trainee's performance as may be
(3) Transcript of records of highest educational level required by the DOLE or the PESO;
attained; and (g) Submit invoices to the PESO for reimbursement or
(4) Training certificates or a national certification liquidation of expenses, as the case may be, of training
issued by the TESDA, if applicable. costs, internship stipend and other administrative costs;
and
(b) Enter into either a training or service contract with
the participating employer; (h) Notify the PESO and the JobStart unit of a
trainee's breach of contract or misconduct in the training
(c) Report for training or work in the establishment premises prior to its decision to suspend or terminate the
based on the schedule indicated in the training or work training.
contract;
SECTION 16. Termination of Training Contract. —
(d) Perform tasks and activities indicated in the Any of the following shall be a valid cause to terminate
training plan; the training contract:
(e) Use tools, instruments, machines and other (a) By the employer:
equipment with due care;
(1) Habitual absenteeism of the trainee;
(f) Not reveal any business or trade secrets that have
come to the trainee's knowledge in the course of the (2) Willful disobedience by the trainee of the
training; establishment's rules, or insubordination of a lawful order
of a superior;


(3) Theft or malicious destruction of the trainees, employers, and PESO transactions. The PESO
establishment's property or equipment by the trainee; staff shall be trained in the use of the SRS and job
(4) Engaging in violence or other forms of matching.
misconduct in the training or establishment's premises The DOLE regional and field offices and the BLE shall
by the trainee; and establish the necessary information technology
(5) Inefficiency or poor training performance for a infrastructure and system to improve the collection,
prolonged period despite warnings duly given to the processing, analysis, report development, and
trainee. dissemination of PESO statistics and other labor market
information. Towards this end, labor market analysts shall
(b) By the JobStart trainee: be hired by the DOLE and the BLE to provide technical
(1) Substandard or harmful working conditions within assistance in maintaining the LMIS at all levels.
the establishment's premises; SECTION 21. Oversight Committee. — An Oversight
(2) Cruel and inhumane treatment; and Committee shall oversee the implementation of the
JobStart Program. The Committee shall be chaired by the
(3) Prolonged or continuing illness. DOLE. The Committee shall be composed of
Either party may furnish the other party a notice of representatives from the Department of the Interior and
intent to terminate the training contract for cause as Local Government (DILG), Department of Social Welfare
defined in this section. and Development (DSWD), National Youth Commission
(NYC), TESDA, and representatives from the youth,
In case the training contract has been terminated, employer, and labor sectors. An annual progress report
replacement of a JobStart trainee in an establishment shall be transmitted to both Houses of Congress through
shall be allowed subject to the cause of termination. In the Secretary of Labor and Employment.
case the termination is caused by the employer, the
JobStart trainee may still be referred to other SECTION 22. Appropriations. — To carry out the
participating employers. In case the termination is provisions of this Act, such amount as may be necessary
caused by the trainee's non-adherence to program is hereby authorized to be appropriated from the
guidelines, a new trainee may still be provided to the National Treasury. Thereafter, such sums as may be
employer provided that there are other trainees available necessary for the continued implementation of this Act
for deployment. shall be included in the General Appropriations Act as a
separate item under the DOLE's budget.
SECTION 17. Grievance Committee. — The Grievance
Committee shall have the initial responsibility of settling SECTION 23. Penalty Clause. — Any violation of the
differences in case of any violation of the training provisions of this Act or its implementing rules and
agreement or upon the filing of a complaint by an regulations shall be subject to the general penalty
aggrieved party. The Grievance Committee shall be provided for in the Labor Code, as amended.
composed of the officials and representatives of the Employers found offering unregistered JobStart
concerned DOLE regional and field offices, and PESOs programs shall be subjected to program closure
which have jurisdiction over concerned establishments. proceedings without prejudice to the filing of
The Committee shall investigate and render a decision administrative, criminal or civil liabilities.
pursuant to pertinent rules and regulations. In case of
failure by the Grievance Committee to settle the issue or The DOLE Secretary may file the necessary civil
render a decision, or in case the complaint is against and/or criminal cases as may be deemed reasonable and
members of the Grievance Committee, the case shall be appropriate pursuant to this Act for any of the following
referred to the DOLE-BLE for appropriate action. causes:
SECTION 18. Payment of Administrative Fee. — (a) Fraud or deceit committed in connection with the
Participating employers shall receive an amount per employer's participation in the JobStart program; and
month per JobStart trainee to cover administration cost (b) Failure to comply with the conditions or
in managing the trainee, such amount to be determined obligations prescribed under this Act or its implementing
by the DOLE. rules and regulations.
SECTION 19. Partnership with Local Government. — SECTION 24. Implementing Rules and Regulations.
The LGUs, through the PESOs, shall serve as the conduit — Within ninety (90) days from the effectivity of this Act,
of the DOLE in implementing the program at the local the Secretary of Labor and Employment, in coordination
level. The PESOs are expected to: with concerned agencies, shall formulate the necessary
(a) Hire adequate staff to ensure the smooth rules and regulations to implement the provisions of this
implementation of the program; Act.
(b) Organize the registration process for the program SECTION 25. Separability Clause. — If any provision
intake of registrants; of this Act is held invalid or unconstitutional, the same
shall not affect the validity and effectivity of the other
(c) Process and evaluate information of registrants provisions hereof.
and select eligible program beneficiaries;
SECTION 26. Repealing Clause. — All laws, decrees,
(d) Conduct job matching and referral; executive orders, and rules and regulations contrary to or
(e) Collect and review relevant financial and inconsistent with the provisions of this Act are hereby
administrative documents and reports as necessary for repealed or modified accordingly.
the processing of the training grants to the JobStart SECTION 27. Effectivity. — This Act shall take effect
trainees, as well as the administrative fee provided to the fifteen (15) days from the date of its publication in the
employer; Official Gazette or in at least two (2) newspapers of
(f) Maintain a complete profile and record of general circulation.
transactions of program participants and employers; and Approved: June 29, 2016.
(g) Submit a monthly program monitoring report to (JobStart Philippines Act, Republic Act No. 10869,
the DOLE, copy furnished the concerned DOLE regional [June 29, 2016])
and field offices, and the office of the local chief
executive.
SECTION 20. Enhancement of Labor Market RA No 10911 | Anti-Age Discrimination
Information System (LMIS). — To develop local LMIS,
participating PESOs shall make use of the DOLE's Skills in Employment Act
Registry System (SRS) to manage the records of JobStart



(3) Decline any employment application because of

Rules and Regulations Implementing the Anti-Age the individual's age;
Discrimination in Employment Act
(4) Discriminate against an individual in terms of
compensation, terms and conditions or privileges of
July 21, 2016 * employment on account of such individual's age;
REPUBLIC ACT NO. 10911 (5) Deny any employee's or worker's promotion or
opportunity for training because of age;
AN ACT PROHIBITING DISCRIMINATION AGAINST
ANY INDIVIDUAL IN EMPLOYMENT ON ACCOUNT OF (6) Forcibly lay off an employee or worker because of
AGE AND PROVIDING PENALTIES THEREFOR old age; or
SECTION 1. Short Title. — This Act shall be known as (7) Impose early retirement on the basis of such
the "Anti-Age Discrimination in Employment Act". employee's or worker's age.
SECTION 2. Declaration of Policies. — The State shall (b) It shall be unlawful for a labor contractor or
promote equal opportunities in employment for subcontractor, if any, to refuse to refer for employment or
everyone. To this end, it shall be the policy of the State to: otherwise discriminate against any individual because of
such person's age.
(a) Promote employment of individuals on the basis
of their abilities, knowledge, skills and qualifications (c) It shall be unlawful for a labor organization to:
rather than their age. (1) Deny membership to any individual because of
(b) Prohibit arbitrary age limitations in employment. such individual's age;
(c) Promote the right of all employees and workers, (2) Exclude from its membership any individual
regardless of age, to be treated equally in terms of because of such individual's age; or
compensation, benefits, promotion, training and other (3) Cause or attempt to cause an employer to
employment opportunities. discriminate against an individual in violation of this Act.
SECTION 3. Definition of Terms. — As used in this (d) It shall be unlawful for a publisher to print or
Act: publish any notice of advertisement relating to
(a) Employee refers to a person who performs employment suggesting preferences, limitations,
professional, managerial or administrative work and is specifications, and discrimination based on age.
paid salaries by the employer as compensation for SECTION 6. Exceptions. — It shall not be unlawful for
services rendered; an employer to set age limitations in employment if:
(b) Employer refers to any person, natural or juridical, (a) Age is a bona fide occupational qualification
employing the services of an employee or worker and reasonably necessary in the normal operation of a
shall include the government and all its branches, particular business or where the differentiation is based
subdivisions and instrumentalities, all on reasonable factors other than age;
government-owned and -controlled corporations, and
government financial institutions, as well as nonprofit (b) The intent is to observe the terms of a bona fide
private institutions or organizations; seniority system that is not intended to evade the
purpose of this Act;
(c) Job applicant refers to a person who applies for
employment; (c) The intent is to observe the terms of a bona fide
employee retirement or a voluntary early retirement plan
(d) Labor contractor refers to any person or an agent consistent with the purpose of this Act:Provided, That
of that person who regularly undertakes, with or without such retirement or voluntary retirement plan is in
compensation, the procurement of employees or workers accordance with the Labor Code,as amended, and other
for an employer, or the procurement for employees' or related laws; or
workers' opportunities to work for an employer;
(d) The action is duly certified by the Secretary of
(e) Labor organization refers to any union or Labor and Employment in accordance with the purpose
association of employees or workers which exists in whole of this Act.
or in part for the purpose of collective bargaining or for
dealing with employers concerning terms and conditions SECTION 7. Penalty. — Any violation of this Act shall
of employment; be punished with a fine of not less than fifty thousand
pesos (P50,000.00) but not more than five hundred
(f) Publisher refers to any person or juridical entity thousand pesos (P500,000.00), or imprisonment of not
engaged in the printing of information on paper and its less than three (3) months but not more than two (2)
distribution, buying or securing of airtime or space on years, or both, at the discretion of the court. If the offense
television, radio or the internet, and other similar media; is committed by a corporation, trust, firm, partnership or
and association or other entity, the penalty shall be imposed
(g) Worker refers to a person who performs manual upon the guilty officer or officers of such corporation,
labor involving skilled or unskilled work, and is paid trust, firm, partnership or association or entity.
wages by the employer as compensation for services SECTION 8. Education and Research Programs. —
rendered. The Department of Labor and Employment (DOLE) shall:
SECTION 4. Coverage. — The provisions of this Act (a) Conduct studies and researches on minimizing
shall apply to all employers, labor contractors or impediments to the employment of older persons, and
subcontractors, if any, and labor organizations. furnish such information to employers, labor groups, and
SECTION 5. Prohibition of Discrimination in the general public; and
Employment on Account of Age. — (a) It shall be (b) Promote programs, in coordination with public
unlawful for an employer to: and private agencies, that will further enhance the
(1) Print or publish, or cause to be printed or knowledge and skills of every individual regardless of age.
published, in any form of media, including the internet, SECTION 9. Implementing Rules and Regulations. —
any notice of advertisement relating to employment The DOLE shall have the authority to investigate and
suggesting preferences, limitations, specifications, and require the keeping of records necessary for the
discrimination based on age; administration of this Act. Within ninety (90) days from
(2) Require the declaration of age or birth date during the effectivity of this Act, the Secretary of Labor and
the application process; Employment shall formulate the necessary rules and
regulations to implement the provisions of this Act.


SECTION 10. Separability Clause. — Should any SECTION 4. Definition of Terms. — As used in this
provision of this Act be declared unconstitutional, the Act:
remainder thereof not otherwise affected shall remain in a) "Skill" shall mean the acquired and practiced
full force and effect. ability to carry out a task or job;
SECTION 11. Repealing Clause. — All existing laws, b) "Skills Development" shall mean the process
presidential decrees, executive orders, proclamations or through which learners and workers are
administrative regulations that are inconsistent with the systematically provided with learning
provisions of this Act are hereby repealed, amended or opportunities to acquire or upgrade, or both,
modified accordingly. their ability, knowledge and behavior pattern
SECTION 12. Effectivity. — This Act shall take effect required as qualifications for a job or range of
fifteen (15) days after its publication in the Official Gazette jobs in a given occupational area;
or in a newspaper of general circulation. c) "Technical Education" shall refer to the
education process designed at
Approved: post-secondary and lower tertiary levels,
* Lapsed into Law on July 21, 2016 without the officially recognized as non-degree programs
signature of the President in accordance with Article VI, aimed at preparing technicians,
Section 27 (1) of the Constitution. para-professionals and other categories of
middle-level workers by providing them with
(Anti-Age Discrimination in Employment Act, Republic a broad range of general education,
Act No. 10911, [July 21, 2016]) theoretical, scientific and technological
studies, and related job skills training;
d) "Trade" shall mean any group of interrelated
II. Labor Laws Related to jobs or any occupation which is traditionally
or officially recognized as craft or artisan in
Human Resources nature requiring specific qualifications that
can be acquired through work experience
Development and/or training;
e) "Middle-Level Manpower" refers to those :
i) who have acquired practical skills and
RA No 7796 | TESDA Act of 1994 knowledge through formal or
non-formal education and training

equivalent to at least a secondary
education but preferably a
Rules and Regulations Implementing the TESDA Act
post-secondary education with a
corresponding degree or diploma; or
ii) skilled workers who have become
August 25, 1994
highly competent in their trade or
AN ACT CREATING THE TECHNICAL EDUCATION AND craft as attested by industry;
SKILLS DEVELOPMENT AUTHORITY, PROVIDING FOR f) "Private Enterprises" refers to an economic
ITS POWERS, STRUCTURE AND FOR OTHER system under which property of all kinds can
PURPOSES be privately owned and in which individuals,
SECTION 1. Title. — This Act shall be known as the alone or in association with another, can
"Technical Educational and Skills Development Act of embark on a business activity. This includes
1994" or the "TESDA Act of 1994." industrial, agricultural, or agro-industrial
establishments engaged in the production,
SECTION 2. Declaration of Policy. — It is hereby manufacturing, processing, repacking or
declared the policy of the State to provide relevant, assembly of goods including service-oriented
accessible, high quality and efficient technical education enterprises;
and skills development in support of the development of g) "Trainers" shall mean persons who direct the
high quality Filipino middle-level manpower responsive practice of skills towards immediate
to and in accordance with Philippine development goals improvement in some task;
and priorities. h) "Trainors/trainers" shall mean persons who
The State shall encourage active participation of provide training to trainers aimed at
various concerned sectors, particularly private enterprises, developing the latter's capacities for
being direct participants in and immediate beneficiaries imparting attitudes, knowledge, skills and
of a trained and skilled workforce, in providing technical behavior patterns required for specific jobs,
education and skills development opportunities. tasks, occupations or group of related
occupations;
SECTION 3. Statement of Goals and Objectives. — It i) "Trainees" shall mean persons who are
is the goal and objective of this Act to: participants in a vocational, administrative or
a) Promote and strengthen the quality of technical training program for the purpose of
technical education and skills development acquiring and developing job-related skills;
programs to attain international j) "Apprenticeship" training within employment
competitiveness. with compulsory related theoretical
b) Focus technical education and skills instructions involving a contract between an
development on meeting the changing apprentice and an employer on an approved
demands for quality middle-level manpower; apprenticeable occupation;
c) Encourage critical and creative thinking by k) "Apprentice" is a person undergoing training
disseminating the scientific and technical for an approved apprenticeable occupation
knowledge base of middle-level manpower during an established period assured by an
development programs; apprenticeship agreement;
d) Recognize and encourage the l) "Apprenticeship Agreement" is a contract
complementary roles of public and private wherein a prospective employer binds
institutions in technical education and skills himself to train the apprentice who in turn
development and training systems; and accepts the terms of training for a recognized
e) Inculcate desirable values through the apprenticeable occupation emphasizing the
development of moral character with rights, duties and responsibilities of each
emphasis on work ethic, self-discipline, party;
self-reliance and nationalism.


m) "Apprenticeable Occupation" is an appointed thereafter to fill vacancies caused by expiration

occupation officially endorsed by a tripartite of terms shall hold office for three (3) years.
body and approved for apprenticeship by the The President of the Philippines may, however, revise
Authority; the membership of the TESDA Board, whenever the
n) "Learners" refer to persons hired as trainees in President deems it necessary for the effective
semi-skilled and other industrial occupations performance of the Board's functions through an
which are non-apprenticeable. Learnership administrative order.
programs must be approved by the Authority.
o) "User-Led" or "Market-Driven Strategy" refers The TESDA Board shall meet at least twice a year, or
to a strategy which promotes strengthened as frequently as may be deemed necessary by its
linkages between educational/training Chairperson. In the absence of the Chairperson, a
institutions and industry to ensure that Co-Chairperson shall preside. In case any member of the
appropriate skills and knowledge are Board representing the Government cannot attend the
provided by the educational system; meeting, he or she shall be regularly represented by an
p) "Dual System/Training" refers to a delivery undersecretary or deputy-director general, as the case
system of quality technical and vocational may be, to be designated by such member for the
education which requires training to be purpose.
carried out alternately in two venues: In The benefits, privileges and emoluments of the Board
school and in the production plant. In-school shall be consistent with existing laws and rules.
training provides the trainee the theoretical
foundation, basic training, guidance and SECTION 8. Powers and Functions of the Board. —
human formation, while in-plant training The Authority shall primarily be responsible for
develops his skills and proficiency in actual formulating, continuing, coordinated and fully integrated
work conditions as it continues to inculcate technical education and skills development policies, plans
personal discipline and work values; and programs taking into consideration the following:
q) "Levy Grant System" refers to a legal a) the State policy declared herein of giving new
contribution from participating employers direction and thrusts to efforts in developing the
who would be beneficiaries of the program quality of Filipino human resource through
(often as a percentage of the payroll) which is technical education and skills development;
subsequently turned over or rebated to
enterprises offering employee training b) the implementation of the above-mentioned
programs. policy requires the coordination and cooperation
of policies, plans, and programs of different
SECTION 5. Technical Education and Skills concerned sectors of Philippine society;
Development Authority; Creation. — To implement the
policy declared in this Act, there is hereby created a c) equal participation of representatives of industry
Technical Education and Skills Development Authority groups, trade associations, employers, workers
(TESDA), hereinafter referred to as the Authority, which and government shall be made the rule in order
shall replace and absorb the National Manpower and to ensure that urgent needs and
Youth Council (NMYC), the Bureau of Technical and recommendations are readily addressed; and
Vocational Education (BTVE) and the personnel and d) improved linkages between industry, labor and
functions pertaining to technical-vocational education in government shall be given priority in the
the regional offices of the Department of Education, formulation of any national-level plan.
Culture and Sports (DECS) and the apprenticeship The Board shall have the following powers:
program of the Bureau of Local Employment of the
Department of Labor and Employment. 1) promulgate, after due consultation with industry
groups, trade associations, employers, workers,
SECTION 6. Composition of the Authority. — The policies, plans, programs and guidelines as may
Authority shall be composed of the TESDA Board and be necessary for the effective implementation of
TESDA Secretariat. this Act;
SECTION 7. Composition of the TESDA Board. — 2) organize and constitute various standing
The TESDA Board shall be composed of the following: committees, subsidiary groups, or technical
The Secretary of Labor and Chairperson working groups for efficient integration,
Employment coordination and monitoring technical education
and skills development programs at the national,
Secretary of Education, Culture Co-Chairperson regional, and local levels;
and Sports 3) enter into, make, execute, perform and carry-out
domestic and foreign contracts subject to
Secretary of Trade and Industry Co-Chairperson existing laws, rules and regulations;
Secretary of Agriculture Member 4) restructure the entire sub-sector consisting of all
institutions and programs involved in the
Secretary of Interior and Local Member promotion and development of middle-level
Government manpower through upgrading, merger and/or
phase-out following a user-led strategy;
Director-General of the TESDA Member
Secretariat 5) approve trade skills standards and trade tests as
established and conducted by private industries;
In addition, the President of the Philippines shall
appoint the following members from the private sector: 6) establish and administer a system of accreditation
two (2) representatives, from the employer/industry of both public and private institutions;
organization, one of whom shall be a woman; three (3) 7) establish, develop and support institutions'
representatives, from the labor sector, one of whom shall trainors' training and/or programs;
be a woman; and two (2) representatives of the national
associations of private technical-vocational education and 8) lend support and encourage increasing utilization
training institutions, one of whom shall be a woman. As of the dual training system as provided for by
soon as all the members of the private sector are Republic Act No. 7686;
appointed, they shall so organize themselves that the 9) exact reasonable fees and charges for such tests
term of office of one-third (1/3) of their number shall and trainings conducted and retain such
expire every year. The member from the private sector


earnings for its own use, subject to guidelines shall likewise be a member of the TESDA Board. The
promulgated by the Authority; Director-General shall be appointed by the President of
10) allocate resources, based on the Secretariat's the Philippines and shall enjoy the benefits, privileges
recommendations, for the programs and projects and emoluments equivalent to the rank of
it shall undertake pursuant to approved National Undersecretary.
Technical Education and Skills Development Plan; As Chief Executive Officer of the TESDA Secretariat,
11) determine and approve systematic funding the Director-General shall exercise general supervision
schemes such as the Levy and Grant scheme for and control over its technical and administrative
technical education and skills development personnel.
purposes; SECTION 12. Deputy Director-General. — The
12) create, when deemed necessary, an Advisory Director-General shall be assisted by two (2) Deputy
Committee which shall provide expert and Directors-General to be appointed by the President of the
technical advice to the Board to be chosen from Philippines on recommendation of the TESDA Board. One
the academe and the private sector: Provided, to be responsible for Vocational and Technical Education
That in case the Advisory Committee is created, and Training and one to be responsible for Policies and
the Board is hereby authorized to set aside a Planning.
portion of its appropriation for its operation; and The Deputy Directors-General shall enjoy the
13) perform such other duties and functions benefits, privileges and emoluments equivalent to the
necessary to carry out the provisions of this Act rank of Assistant Secretary.
consistent with the purposes of the creation of SECTION 13. Chief of Services for Administration. —
TESDA. The Director-General shall also be assisted by a Chief of
SECTION 9. Power to Review and Recommend Services for Administration who shall be a Career Civil
Action. — The Authority shall review and recommend Service Official to be appointed by the TESDA Board.
action to concerned authorities on proposed technical SECTION 14. Structural Organization and
assistance programs and grants-in-aid for technical Personnel. — The TESDA Secretariat, in addition to the
education or skills development, or both, including those offices of the Director-General, Deputy Director-General
which may be entered into between the Government of and Chief of Services for Administration shall be
the Philippines and other nations, including international composed of the following offices to be headed by an
and foreign organizations, both here and abroad. Executive Director to be appointed by the
SECTION 10. The TESDA Secretariat. — There is Director-General and shall have the rank and
hereby created a Technical Education and Skills emoluments of Director IV.
Development Authority Secretariat which shall have the a) Planning Office (PO) — The Planning Office shall
following functions and responsibilities: be under the Office of the Deputy Director-General and
a) to establish and maintain a planning process and shall have the following functions:
formulate a national technical education and 1) to design and establish planning processes and
skills development plan in which the methodologies which will particularly
member-agencies and other concerned entities enhance the efficiency of resource allocation
of the Authority at various levels participate; decisions within the technical education and
b) to provide analytical inputs to policy skills development sector;
decision-making of the Authority on allocation of 2) to lead in the preparation and periodic
resources and institutional roles and updating of a national plan for technical
responsibilities as shall be embodied in annual education and skills development which shall
agencies technical education and skills become the basis for resource allocation
development plans, in accordance with the decisions within the sector;
manpower plan for middle-level skilled workers
as approved by the Authority; 3) to conduct researches, studies and develop
c) to recommend measures, and implement the information systems for effective and efficient
same upon approval by the Authority, for the planning and policy-making within the
effective and efficient implementation of the sector;
national technical education and skills 4) to develop and implement programs and
development plan; projects aimed at building up planning
d) to propose to the Authority the specific allocation capabilities of various institutions within the
of resources for the programs and projects it shall sector; and dctai
undertake pursuant to approved national
technical education and skills development plan; 5) to perform such other powers and functions as
e) to submit to the Authority periodic reports on the may be authorized by the Authority.
progress and accomplishment of work programs b) Skills Standards and Certification Office (SSCO). —
of implementation of plans and policies for The Skills Standards and Certification Office shall be
technical educational and skills development; under the office of the Deputy Director-General and shall
f) to prepare for approval by the Authority an have the following functions:
annual report to the President on technical
education and skills development; 1) to develop and establish a national system of
g) to implement and administer the apprenticeship skills standardization, testing and
program as provided for in Section 18 of this Act; certification in the country;
h) to prepare and implement upon approval by the 2) to design, innovate and adopt processes and
Authority a program for the training of trainers, methodologies whereby industry groups and
supervisors, planners and managers as provided workers' guilds take note on progressively the
for in Section 23 of this Act; responsibility of setting skills standards for
i) to enter into agreement to implement approved identified occupational areas, and the local
plans and programs and perform activities as government units actively participate in
shall implement the declared policy of this Act; promoting skills standards, testing and
and certification;
j) to perform such other functions and duties as 3) to establish and implement a system of
may be assigned by the Board. accrediting private enterprises, workers'
SECTION 11. Director-General. — The TESDA associations and guilds and public
Secretariat shall be headed by a Director-General, who institutions to serve as skills testing venues;


4) to conduct research and development on 4) to perform such other powers and functions as
various occupational areas in order to may be authorized.
recommend policies, rules and regulations for f) Office of Apprenticeship (OA). — The Office of
effective and efficient skills standardization, Apprenticeship shall be under the Office of the Deputy
testing and certification system in the Director-General and shall have the following functions:
country; and
1) to provide direction, policies and guidelines on
5) to perform such other duties and functions as the implementation of the Apprenticeship
may be authorized. system;
c) National Institute for Technical Vocational and 2) to accredit, coordinate, monitor and evaluate all
Education Training (NITVET). — The National Institute for apprenticeship schemes and programs
Technical Vocational and Education Training to be under implemented by various institutions and
the office of the Deputy Director-General and shall have enterprises;
the following functions:
3) to establish a network of institutions and
1) to serve as the research and development arm enterprises conducting apprenticeship
of the government in the field of schemes and programs;
technical-vocational education and training;
4) to perform such other powers and functions as
2) to develop curricula and program standards for may be authorized.
various technical-vocational education and
training areas; g) Regional TESDA Offices. — The Regional TESDA
Offices shall be headed by Regional Directors with the
3) to develop and implement an integrated rank and emoluments of Director IV to be appointed by
program for continuing development of the President.
trainors, teachers and instructors within the
technical education and skills development The Regional TESDA Offices shall be under the direct
sector; control of the Director-General and shall have the
following functions:
4) to develop programs and projects which will
build up institutional capabilities within the 1) to serve as Secretariat to Regional Technical
sector; and Education Skills Development (TESDA)
Committees;
5) to perform such other powers and functions as
may be authorized. 2) to provide effective supervision, coordination
and integration of technical education and
d) Office of Formal Technical Vocational Education skills development programs, projects and
and Training (OFFVET). — The Office of Formal Technical related activities in their respective
Vocational Education and Training to be under the office jurisdiction;
of the Deputy Director-General and shall have the
following functions: 3) to develop and recommend TESDA programs
for regional and local-level implementation
1) to provide policies, measures and guidelines for within the policies set by the Authority;
effective and efficient administration of
formal technical-vocational education and 4) to perform such other duties and functions as
training programs implemented by various may be deemed necessary.
institutions in the country; SECTION 15. The Provincial TESDA Offices. — The
2) to establish and maintain a system for Provincial Offices shall be headed by Skill Development
accrediting, coordinating integrating, Officers who shall have the rank and emoluments of a
monitoring and evaluating the different Director III.
formal technical-vocational education and The Provincial TESDA Offices shall be under the direct
training programs vis-a-vis the approved control of the Director-General and shall have the
national technical education and skills following functions:
development plan;
1) to serve as Secretariat to Provincial TESDA
3) to establish and maintain a network of Committees;
institutions engaged in institutionalized
technical-vocational education and training, 2) to provide technical assistance particularly to local
particularly with local government units; and government units for effective supervision,
coordination, integration and monitoring of
4) to perform such other duties and functions as technical-vocational education and training
may be authorized. programs within their localities;
e) Office of the Non-Formal Technical-Vocational 3) to review and recommend TESDA programs for
Education and Training (ONFTVET). — The Office of the implementation within their localities; and
Non-Formal Technical-Vocational Education and Training
to be under the Office of the Deputy Director-General 4) to perform such other duties and functions as may
and shall have the following functions: be authorized.
1) to provide direction, policies and guidelines for Furthermore, the TESDA Secretariat may be further
effective implementation of non-formal, composed by such offices as may be deemed necessary
community-based technical-vocational by the Authority. The Director-General shall appoint such
education and training; personnel necessary to carry out the objectives, policies
and functions of the Authority subject to Civil Service
2) to accredit, coordinate, monitor and evaluate laws, rules and regulations.
various non-formal technical-vocational
education and training programs SECTION 16. Compliance with the Salaries
implemented by various institutions Standardization Law. — The compensation and
particularly, by local government units; emoluments of the officials and employees of the
Authority shall be in accordance with the salary
3) to establish and maintain a network of standardization law and other applicable laws under the
institutions including local government units, national compensation and classification plan.
non-government organizations
implementing non-formal, community-based SECTION 17. Consultants and Technical Assistance,
technical-vocational education and training; Publication and Research. — In pursuing its objectives,
the Authority is hereby authorized to set aside a portion
of its appropriation for the hiring of services of qualified



consultants, and private organizations for research work endorsement by the Authority to the Department of
and publication in the field of technical education and Budget and Management.
skills development. It shall avail itself of the services of The Authority shall evaluate the efficiency and
other agencies of the Government as may be required. effectiveness of agencies skills development programs
SECTION 18. Transfer of the Apprenticeship and schemes to make them conform with the
Program. — The Apprenticeship Program of the Bureau quantitative and qualitative objectives of the national
of Local Employment of the Department of Labor and technical education and skills development plan.
Employment shall be transferred to the Authority which SECTION 22. Establishment and Administration of
shall implement and administer said program in National Trade Skills Standards. — There shall be
accordance with existing laws, rules and regulations. national occupational skills standards to be established
SECTION 19. Technical Education and Skills by TESDA-accredited industry committees. The Authority
Development Committees. — The Authority shall shall develop and implement a certification and
establish Technical Education and Skills Development accreditation program in which private industry groups
Committees at the regional and local levels to coordinate and trade associations are accredited to conduct
and monitor the delivery of all skills development approved trade tests, and the local government units to
activities by the public and private sectors. These promote such trade testing activities in their respective
committees shall likewise serve as the Technical areas in accordance with the guidelines to be set by the
Education and Skills Development Committees of the Authority.
Regional and local development councils. The The Secretary of Labor and Employment shall
composition of the Technical Education and Skills determine the occupational trades for mandatory
Development Committees shall be determined by the certification.
Director-General subject to the guidelines to be
promulgated by the Authority. All certificates relating to the national trade skills
testing and certification system shall be issued by the
SECTION 20. Skills Development Centers. — The Authority through the TESDA Secretariat.
Authority shall strengthen the network of national,
regional and local skills training centers for the purpose of SECTION 23. Administration of Training Programs.
promoting skills development. — The Authority shall design and administer training
programs and schemes that will develop the capabilities
This network shall include skills training centers in of public and private institutions to provide quality and
vocational and technical schools, technical institutes, cost-effective technical education and skills development
polytechnic colleges, and all other duly accredited public and related opportunities. Such training programs and
and private dual system educational institutions. The schemes shall include teacher's trainors' training, skills
technical education and skills development centers shall training for entrepreneur development and technology
be administered and operated under such rules and development, cost-effective training in occupational
regulations as may be established by the Authority in trades and related fields of employment, and value
accordance with the National Technical Education and development as an integral component of all skills
Skills Development Plan. training programs.
SECTION 21. Formulation of a Comprehensive SECTION 24. Assistance to Employers and
Development Plan for Middle-Level Manpower. — The Organizations. — The Authority shall assist any employer
Authority shall formulate a comprehensive development or organization engaged in skills training schemes
plan for middle-level manpower based on a national designed to attain its objectives under rules and
employment plan or policies for the optimum allocation, regulations which the Authority shall establish for this
development and utilization of skilled workers for purpose.
employment entrepreneurship and technology
development for economic and social growth. This plan SECTION 25. Coordination of All Skills Training
shall, after adoption by the Authority, be updated Schemes. — In order to integrate the national skills
periodically and submitted to the President of the development efforts, all technical education and skills
Philippines for approval. Thereafter, it shall be the plan for training schemes as provided for in this Act shall be
technical education and skills development for the entire coordinated with the Authority particularly those having
country within the framework of the National to do with the setting of trade skills standards. For this
Development Plan. The Authority shall direct the TESDA purpose, existing technical education and skills training
Secretariat to call on its member-agencies, the private programs in the Government and in the private sector,
sector and the academe to assist in this effort. specifically those wholly or partly financed with
government funds, shall be reported to the Authority
The comprehensive plan shall provide for a reformed which shall assess and evaluate such programs to ensure
industry-based training program including their efficiency and effectiveness.
apprenticeship, dual training system and other similar
schemes intended to: SECTION 26. Industry Boards. — The Authority shall
establish effective and efficient institutional
a) promote maximum protection and welfare of the arrangements with industry boards and such other
worker-trainee; bodies or associations to provide direct participation of
b) improve the quality and relevance and social employers and workers in the design and
accountability of technical education and implementation of skills development schemes, trade
skills development; skills standardization and certification and such other
c) accelerate the employment-generation efforts of functions in the fulfillment of the Authority's objectives.
the government; and SECTION 27. Incentives Schemes. — The Authority
d) expand the range of opportunities for upward shall develop and administer appropriate incentives
social mobility of the school-going population schemes to encourage government and private
beyond the traditional higher levels of formal industries and institutions to provide high-quality
education. technical education and skills development
opportunities.
All government and non-government agencies
receiving financial and technical assistance from the SECTION 28. Skills Development Opportunities. —
government shall be required to formulate their The Authority shall design and implement an effective
respective annual agency technical education and skills and efficient delivery system for quality technical
development plan in line with the national technical education and skills development opportunities
education and skills development plan. The budget to particularly in disadvantaged sectors, with new tools of
support such plans shall be subject to review and wealth creation and with the capability to take on higher


value-added gainful activities and to share equitably in b) Within three (3) months after the appointment of
productivity gains. the private sector representatives, the President shall,
SECTION 29. Devolution of TESDA's Training upon the recommendation of the Board, appoint the
Function to Local Governments. — In establishing the Director-General.
delivery system provided for in the preceding Section, the c) Within four (4) months after the appointment of
Authority shall formulate, implement and finance a the Director-General, the Board shall convene to
specific plan to develop the capability of local determine the organizational structure and staffing
government units to assume ultimately the responsibility pattern of the Authority.
for effectively providing community-based technical d) Within one (1) year after the organization of the
education and skills development opportunities: Authority, the Board shall commission an expert group on
Provided, however, That there shall be formulated and funding schemes for the TESDA Development Fund, as
implemented, an effective and timely retraining of TESDA provided in Section 31, the results of which shall be used
personnel that would be affected by the devolution to as the basis for appropriate action by the Board.
ensure their being retained if the concerned local
government units would not be able to absorb them. e) The personnel of the existing National Manpower
and Youth Council (NMYC) of the Department of Labor
SECTION 30. Skills Olympics. — To promote quality and Employment and the Bureau of Technical and
skills development in the country and with the view of Vocational Education (BTVE) of the Department of
participating in international skills competitions, the Education, Culture and Sports, shall, in a holdover
Authority, with the active participation of private capacity, continue to perform their respective duties and
industries, shall organize and conduct annual National responsibilities and receive their corresponding salaries
Skills Olympics. The Authority, through the TESDA and benefits until such time when the organizational
Secretariat, shall promulgate the necessary rules and structure and staffing pattern of the Authority shall have
guidelines for the effective and efficient conduct of been approved by the Board: Provided, That the
Annual National Skills Olympics and for the country's preparation and approval of the said new organizational
participation in international skills olympics. structure and staffing pattern shall, as far as practicable,
SECTION 31. The TESDA Development Fund. — A respect and ensure the security of tenure and seniority
TESDA Development Fund is hereby established, to be rights of affected government employees.
managed/administered by the Authority, the income Those personnel whose positions are not included in
from which shall be utilized exclusively in awarding of the new staffing pattern approved by the Board or who
grants and providing assistance to training institutions, are not reappointed or who choose to be separated as a
industries, local government units for upgrading their result of the reorganization shall be paid their separation
capabilities and to develop and implement training and or retirement benefits under existing laws.
training-related activities. The contribution to the fund
shall be the following: SECTION 35. Automatic Review. — Every five (5)
years, after the effectivity of this Act, an independent
a) a one-time lump sum appropriation from the review panel composed of three (3) persons appointed by
National Government; the President shall review the performance of the
b) an annual contribution from the Overseas Workers Authority and shall make recommendations, based on its
Welfare Administration Fund, the amount of findings to the President and to both Houses of Congress.
which should be part of the study on SECTION 36. Implementing Rules and Guidelines.
financing in conjunction with letter (D) of — The TESDA Board shall issue, within a period of ninety
Section 34; (90) days after the effectivity of this Act, the rules and
c) donations, grants, endowments, and other regulations for the effective implementation of this Act.
bequests or gifts, and The TESDA Board shall submit to the Committees on
d) any other income generated by the Authority. Education, Arts and Culture of both Houses of Congress
The TESDA Board shall be the administrator of the copies of the implementing rules and guidelines within
fund, and as such, shall formulate the necessary thirty (30) days after its promulgation.
implementing guidelines for the management of the Any violation of this Section shall render the official/s
fund, subject to the following: a) unless otherwise concerned liable under R.A. No. 6713, otherwise known as
stipulated by the private donor, only earnings of private the "Code of Conduct and Ethical Standards for Public
contributions shall be used; and b) no part of the seed Officials, and Employees" and other existing
capital of the fund, including earnings, thereof, shall be administrative and/or criminal laws.
used to underwrite expenses for administration. SECTION 37. Repealing Clause. — All laws,
The Board shall appoint a reputable presidential decrees, executive orders, presidential
government-accredited investment institution as fund proclamations, rules and regulations or parts thereof
manager, subject to guidelines promulgated by the contrary to or inconsistent with this Act are hereby
Board. repealed or modified accordingly.
SECTION 32. Scholarship Grants. — The Authority SECTION 38. Separability Clause. — If any provision
shall adopt a system of allocation and funding of of this Act is declared unconstitutional, the same shall not
scholarship grants which shall be responsive to the affect the validity and effectivity of the other provisions
technical education and skills development needs of the hereof.
different regions in the country. SECTION 39. Effectivity Clause. — This Act shall take
SECTION 33. TESDA Budget. — The amount effect fifteen (15) days after its complete publication in
necessary to finance the initial implementation of this Act two (2) newspapers of general circulation.
shall be charged against the existing appropriations of Approved: August 25, 1994
the NMYC and the BTVE. Thereafter, such funds as may
be necessary for the continued implementation of this Published in the Philippine Times Journal and the
Act shall be included in the annual General Manila Times on August 31, 1994. Published in the Official
Appropriations Act. Gazette, Vol. 90 No. 42 page 6235 on October 17, 1994.
SECTION 34. Transitory Provisions. — a) Within two (An Act Creating the Technical Education and Skills
(2) months after the approval of this Act, the President Development Authority, Providing for Its Powers,
shall, in consultation with the Secretary of Labor and Structure and for Other Purposes, Republic Act No. 7796,
Employment and the Secretary of Education, Culture and [August 25, 1994])
Sports, appoint the private sector representatives of the
TESDA Board.


e) To facilitate integration of persons with disability

RA No 7277 | Magna Carta for Persons into the mainstream of society, the State shall
with Disability advocate for and encourage respect for persons
with disability. The State shall exert all efforts to
Previously, Magna Carta for Disabled Persons, as remove all social, cultural, economic,
amended by RA Nos 9442, 10070, 10524, and 10754 environmental and attitudinal barriers that are
prejudicial to persons with disability.
SECTION 3. Coverage. — This Act shall cover all
Rules and Regulation Implementing the Magna persons with disability and, to the extent herein provided,
Carta for Persons with Disability departments, offices and agencies of the national
government or nongovernment organizations involved in
RA 9442 Amending Magna Carta for PWDs Granting the attainment of the objectives of this Act.
Additional Privileges and Incentives and Prohibitions
SECTION 4. Definition of Terms. — For purposes of
RA 10070 An Act Establishing an Institutional this Act, these terms are defined as follows:
Mechanism to Ensure the Implementation of a) Disabled persons are those suffering from
Programs and Service restriction or different abilities, as a result of a
mental, physical or sensory impairment, to
RA 10524 An Act Expanding the Positions Reserved for perform an activity in the manner or within the
Persons with Disability range considered normal for a human being;
b) Impairment is any loss, diminution or aberration of
psychological, physiological, or anatomical
March 24, 1992 structure or function;
c) Disability shall mean 1) a physical or mental
AN ACT PROVIDING FOR THE impairment that substantially limits one or more
psychological, physiological or anatomical
REHABILITATION, SELF-DEVELOPMENT function of an individual or activities of such
AND SELF-RELIANCE OF PERSONS WITH individual; 2) a record of such an impairment; or 3)
DISABILITY AND THEIR INTEGRATION being regarded as having such an impairment;
INTO THE MAINSTREAM OF SOCIETY AND d) Handicap refers to a disadvantage for a given
individual, resulting from an impairment or a
FOR OTHER PURPOSES disability, that limits or prevents the function or
activity, that is considered normal given the age
TITLE ONE General Provisions and sex of the individual;
e) Rehabilitation is an integrated approach to
CHAPTER 1 Basic Principle
physical, social, cultural, spiritual, educational and
SECTION 1. Title. — This Act shall be known and cited vocational measures that create conditions for
as the "Magna Carta for Persons with Disability" (As the individual to attain the highest possible level
amended by RA No. 9442, [April 30, 2007]) of functional ability;
SECTION 2. Declaration of Policy — The grant of the f) Social Barriers refer to the characteristics of
rights and privileges for persons with disability shall be institutions, whether legal, economic, cultural,
guided by the following principles: recreational or other, any human group,
a) Disabled persons are part of Philippine society, community, or society which limit the fullest
thus the State shall give full support to the possible participation of persons with disability in
improvement of the total well-being of persons the life of the group. Social barriers include
with disability and their integration into the negative attitudes which tend to single out and
mainstream of society. Toward this end, the State exclude persons with disability and which distort
shall adopt policies ensuring the rehabilitation, roles and inter-personal relationships;
self-development and self-reliance of persons g) Auxiliary Aids and Services include:
with disability. It shall develop their skills and
1) qualified interpreters or other effective
potentials to enable them to compete favorably
methods of delivering materials to individuals
for available opportunities.
with hearing impairments;
b) Disabled persons have the same rights as other
2) qualified readers, taped tests, or other effective
people to take their proper place in society. They
methods of delivering materials to individuals
should be able to live freely and as independently
with visual impairments;
as possible. This must be the concern of everyone
— the family, community and all government and 3) acquisition or modification of equipment or
nongovernment organizations. Disabled persons' devices; and
rights must never be perceived as welfare 4) other similar services and actions or all types of
services by the Government. aids and services that facilitate the learning
c) The rehabilitation of the persons with disability process of people with mental disability.
shall be the concern of the Government in order h) Reasonable Accommodation include 1)
to foster their capacity to attain a more improvement of existing facilities used by
meaningful, productive and satisfying life. To employees in order to render these readily
reach out to a greater number of persons with accessible to and usable by persons with
disability, the rehabilitation services and benefits disability; and 2) modification of work schedules,
shall be expanded beyond the traditional reassignment to a vacant position, acquisition or
urban-based centers to community based modification of equipment or devices,
programs, that will ensure full participation of appropriate adjustments or modifications of
different sectors as supported by national and examinations, training materials or company
local government agencies. policies, rules and regulations, the provision of
d) The State also recognizes the role of the private auxiliary aids and services, and other similar
sector in promoting the welfare of persons with accommodations for persons with disability;
disability and shall encourage partnership in i) Sheltered Employment refers to the provision of
programs that address their needs and concerns. productive work for persons with disability


through workshops providing special facilities, incentives or allowances as a qualified able bodied
income-producing projects or homework person.
schemes with a view to giving them the At least one percent (1%) of all positions in all
opportunity to earn a living thus enabling them government agencies, offices or corporations shall be
to acquire a working capacity required in open reserved for persons with disability: Provided, That private
industry; corporations with more than one hundred (100)
j) Auxiliary Social Services are the supportive activities employees are encouraged to reserve at least one
in the delivery of social services to the percent (1%) of all positions for persons with disability.
marginalized sectors of society; (Amendment to R.A. No. 7277 (Magna Carta for Persons
k) Marginalized Disabled Persons refer to persons with Disability) Re: Positions Reserved for Persons with
with disability who lack access to rehabilitative Disability, Republic Act No. 10524, [April 23, 2013]).
services and opportunities to be able to SECTION 6. Sheltered Employment — If suitable
participate fully in socioeconomic activities and employment for persons with disability cannot be found
who have no means of livelihood and whose through open employment as provided in the
incomes fall below the poverty threshold; immediately preceding Section, the State shall endeavor
l) Qualified Individual with a Disability shall mean an to provide it by means of sheltered employment. In the
individual with a disability who, with or without placement of persons with disability in sheltered
reasonable accommodations, can perform the employment, it shall accord due regard to the individual
essential functions of the employment position qualities, vocational goals and inclinations to ensure a
that such individual holds or desires. However, good working atmosphere and efficient production.
consideration shall be given to the employer's SECTION 7. Apprenticeship. — Subject to the
judgment as to what functions of a job are provisions of the Labor Code as amended, persons with
essential, and if an employer has prepared a disability shall be eligible as apprentices or learners:
written description before advertising or Provided, That their handicap is not much as to effectively
interviewing applicants for the job, this impede the performance of job operations in the
description shall be considered evidence of the particular occupation for which they are hired: Provided,
essential functions of the job; further, That after the lapse of the period of
m) Readily Achievable means a goal can be easily apprenticeship, if found satisfactory in the job
attained and carried out without much difficulty performance, they shall be eligible for employment.
or expense. In determining whether an action is SECTION 8. Incentives for Employers. — a) To
readily achievable, factors to be considered encourage the active participation of the private sector in
include — promoting the welfare of persons with disability and to
1) the nature and cost of the action; ensure gainful employment for qualified persons with
disability, adequate incentives shall be provided to private
2) the overall financial resources of the facility or entities which employ persons with disability.
facilities involved in the action; the number of
persons employed at such facility; the effect b) Private entities that employ persons with disability
on expenses and resources, or the impact who meet the required skills or qualifications, either as
otherwise of such action upon the operation regular employee, apprentice or learner, shall be entitled
of the facility; to an additional deduction, from their gross income,
equivalent to twenty-five percent (25%) of the total
3) the overall financial resources of the covered amount paid as salaries and wages to persons with
entity with respect to the number of its disability: Provided, however, That such entities present
employees; the number, type and location of proof as certified by the Department of Labor and
its facilities; and Employment that persons with disability are under their
4) the type of operation or operations of the employ:Provided, further, That the disabled employee is
covered entity, including the composition, accredited with the Department of Labor and
structure and functions of the work force of Employment and the Department of Health as to his
such entity; the geographic separateness, disability, skills and qualifications.
administrative or fiscal relationship of the c) Private entities that improve or modify their
facility or facilities in question to the covered physical facilities in order to provide reasonable
entity. accommodation for persons with disability shall also be
n) Public Transportation means transportation by air, entitled to an additional deduction from their net taxable
land and sea that provides the public with income, equivalent to fifty percent (50%) of the direct
general or special service on a regular and costs of the improvements or modifications. This Section,
continuing basis; however, does not apply to improvements or
modifications of facilities required under Batas
o) Covered Entity means an employer, employment Pambansa Bilang 344.
agency, labor organization or joint-labor
management committee; and SECTION 9. Vocational Rehabilitation. — Consistent
with the principle of equal opportunity for disabled
p) Commerce shall be taken to mean as travel, trade, workers and workers in general, the State shall take
traffic, commerce, transportation, or appropriate vocational rehabilitation measures that shall
communication among the provinces or between serve to develop the skills and potentials of persons with
any foreign country or any territory or possession disability and enable them to compete favorably for
and any province. available productive and remunerative employment
opportunities in the labor market.
TITLE TWO Rights and Privileges of Disabled
The State shall also take measures to ensure the
Persons
provision of vocational rehabilitation and livelihood
services for persons with disability in the rural areas. In
CHAPTER 1 Employment addition, it shall promote cooperation and coordination
SECTION 5. Equal Opportunity for Employment. — between the government and nongovernmental
No person with disability shall be denied access to organizations and other private entities engaged in
opportunities for suitable employment A qualified vocational rehabilitation activities.
employee with disability shall be subject to the same The Department of Social Welfare and Development
terms and conditions of employment and the same shall design and implement training programs that will
compensation, privileges, benefits, fringe benefits, provide persons with disability with vocational skills to
enable them to engage in livelihood activities or obtain



gainful employment. The Department of Labor and with disability. It shall develop and implement sports and
Employment shall likewise design and conduct training physical fitness programs specifically designed for
programs geared towards providing persons with persons with disability taking into consideration the
disability with skills for livelihood. nature of their handicap.
SECTION 10. Vocational Guidance and Counseling. SECTION 16. Non-Formal Education. — The State
— The Department of Social and Welfare and shall develop non-formal education programs intended
Development, shall implement measures providing and for the total human development of persons with
evaluating vocational guidance and counseling to enable disability. It shall provide adequate resources for
persons with disability to secure, retain and advance in non-formal education programs and projects that cater
employment. It shall ensure the availability and training to the special needs of persons with disability.
of counselors and other suitably qualified staff SECTION 17. State Universities and Colleges. — If
responsible for the vocational guidance and counseling of viable and needed, the state university or state college in
persons with disability. each region or province shall be responsible for (a) the
SECTION 11. Implementing Rules and Regulations. development of material appliances and technical aids
— The Department of Labor and Employment shall in for persons with disability; (b) the development of training
coordination with the Department of Social Welfare and materials for vocational rehabilitation and special
Development (DSWD) and National Council for the education instructions; (c) the research on special
Welfare of the Disabled Persons (NCWDP) shall problems, particularly of the visually-impaired,
promulgate the rules and regulations necessary to hearing-impaired, speech-impaired, and
implement the provisions under this Chapter. orthopedically-impaired students, mentally retarded, and
multi-handicapped and others, and the elimination of
CHAPTER 2 Education social barriers and discrimination against persons with
disability; and (d) inclusion of the Special Education for
SECTION 12. Access to Quality Education. — The
Disabled (SPED) course in the curriculum.
State shall ensure that persons with disability are
provided with adequate access to quality education and The national government shall provide these state
ample opportunities to develop their skills. It shall take universities and colleges with the necessary special
appropriate steps to make such education accessible to facilities for visually-impaired, hearing-impaired,
all persons with disability. It shall be unlawful for any speech-impaired, and orthopedically-impaired students.
learning institution to deny a disabled person admission It shall likewise allocate the necessary funds in support of
to any course it offers by reason of handicap or disability. the above.
The State shall take into consideration the special
requirements of persons with disability in the formulation CHAPTER 3 Health
of educational policies and programs. It shall encourage SECTION 18. National Health Program. — The
learning institutions to take into account the special Department of Health in coordination with the National
needs of persons with disability with respect to the use of Council for the Welfare of Disabled Persons, shall institute
school facilities, class schedules, physical education a national health program which shall aim to attain the
requirements, and other pertinent consideration. following:
The State shall also promote the provision by learning a) prevention of disability, whether occurring
institutions, especially higher learning institutions of prenatally or post-natally;
auxiliary services that will facilitate the learning process b) recognition and early diagnosis of disability; and
for persons with disability.
c) early rehabilitation of the disabled.
SECTION 13. Assistance to Disabled Students. —
The State shall provide financial assistance to SECTION 19. Rehabilitation Centers. — The
economically marginalized but deserving disabled Department of Health shall establish medical
students pursuing post secondary or tertiary education. rehabilitation centers in government provincial hospitals,
Such assistance may be in the form of scholarship grants, and shall include in its annual appropriation the
student loan programs, subsidies, and other incentives to necessary funds for the operation of such centers.
qualified disabled students in both public and private The Department of Health shall formulate and
schools. At least five percent (5%) of the allocation for the implement a program to enable marginalized persons
Private Education Student Financial Assistance Program with disability to avail of free rehabilitation services in
created by virtue of R.A. 6725 shall be set aside for government hospitals.
disabled students pursuing vocational or technical and
degree courses. SECTION 20. Health Services. — The State shall
protect and promote the right to health of persons with
SECTION 14. Special Education. — The State shall disability and shall adopt an integrated and
establish, maintain and support complete, adequate and comprehensive approach to their health development
integrated system of special education for the visually which shall make essential health services available to
impaired, hearing impaired, mentally retarded persons them at affordable cost.
and other types of exceptional children in all regions of
the country. Toward this end, the Department of The national government shall provide an integrated
Education, Culture and Sports shall establish, special health service for persons with disability which shall
education classes in public schools in cities, or include, but not limited to, the following:
municipalities. It shall also establish, where viable, Braille a) prevention of disability through immunization,
and Record Libraries in provinces, cities or municipalities. nutrition, environmental protection and preservation, and
The National Government shall allocate funds genetic counseling; and early detection of disability and
necessary for the effective implementation of the special timely intervention to arrest disabling condition; and
education program nationwide. Local government units b) medical treatment and rehabilitation.
may likewise appropriate counterpart funds to
supplement national funds. The Department of Health shall field medical
personnel specializing in the treatment and rehabilitation
SECTION 15. Vocational or Technical and Other of persons with disability to provincial hospitals and,
Training Programs. — The State shall provide persons when viable, to municipal health centers. It shall also train
with disability with training in civics, vocational efficiency, its field health personnel in the provision of medical
sports and physical fitness, and other skills. The attention to persons with disability. It shall further ensure
Department of Education, Culture and Sports shall that its field health units have the necessary capabilities
establish in at least one government-owned vocational to fit prosthetic and orthotic appliances on persons with
and technical school in every province a special disability.
vocational and technical training program for persons



be allowed to drive motor vehicles, subject to the rules
CHAPTER 4 Auxiliary Social Services and regulations issued by the Land Transportation Office
SECTION 21. Auxiliary Social Services. — The State pertinent to the nature of their disability and the
shall ensure that marginalized persons are provided with appropriate adaptations or modifications made on such
the necessary auxiliary services that will restore their vehicles.
social functioning and participation in community affairs. SECTION 27. Access to Public Transport Facilities.
Towards this end, the Department of Social Welfare and — The Department of Social Welfare and Development
Development shall develop and implement programs on shall develop a program to assist marginalized persons
auxiliary social services that respond to the needs of with disability gain access in the use of public transport
marginalized persons with disability. The components of facilities. Such assistance may be in the form of
such a program shall be as follows: subsidized transportation fare.
a) assistance in the acquisition of prosthetic devices The said department shall also allocate such funds as
and medical intervention of specialty services; may be necessary for the effective implementation of the
b) provision of specialized training activities designed public transport program for the persons with disability.
to improve functional limitations of persons with The "Accessibility Law", as amended, shall be made
disability related to communication skills; suppletory to this Act.
c) development among persons with disability of a SECTION 28. Implementing Rules and Regulations.
positive self-image through the provision of — The Department of Transportation and
counseling, orientation and mobility and Communications shall formulate the rules and
strengthening daily living capability; regulations necessary to implement the provisions of this
d) provision of family care services geared towards Chapter.
developing the capability of families to respond to
the needs of the disabled members of the family; CHAPTER 7 Political and Civil Rights
e) provision of substitute family care services and the SECTION 29. System of Voting. — Disabled persons
facilities therefor for abandoned, neglected, shall be allowed to be assisted by a person of his choice in
abused and unattached persons with disability voting in the national or local elections. The person thus
who need custodial care; chosen shall prepare the ballot for the disabled voter
f) provision of aftercare and follow-up services for the inside the voting booth. The person assisting shall bind
continued rehabilitation in a community-based himself in a formal document under oath to fill out the
setting of persons with disability who were ballot strictly in accordance with the instructions of the
released from residential care or rehabilitation voter and not to reveal the contents of the ballot prepared
centers; and by him. Violation of this provision shall constitute an
election offense.
g) provision of day care services for disabled children
of pre-school age. Polling places should be made accessible to persons
with disability during national or local elections.
CHAPTER 5 Telecommunications SECTION 30. Right to Assemble. — Consistent with
the provisions of the Constitution, the State shall
SECTION 22. Broadcast Media. — Television stations
recognize the right of persons with disability to
shall be encouraged to provide a sign-language inset or
participate in processions, rallies, parades,
subtitles in at least one (1) newscast program a day and
demonstrations, public meetings, and assemblages or
special programs covering events of national significance.
other forms of mass or concerned action held in public.
SECTION 23. Telephone Services. — All telephone
SECTION 31. Right to Organize. — The State
companies shall be encouraged to install special
recognizes the right of persons with disability to form
telephone devices or units for the hearing-impaired and
organizations or associations that promote their welfare
ensure that they are commercially available to enable
and advance or safeguard their interests. The national
them to communicate through the telephone system.
government, through its agencies, instrumentalities and
SECTION 24. Free Postal Charges for the Disabled. subdivisions, shall assist persons with disability in
— Postal charges shall be free on the following: establishing self-help organizations by providing them
a) articles and literatures like books and periodicals, with the necessary technical and financial assistance.
orthopedic and other devices, and teaching aids Concerned government agencies and offices shall
for the use of the disabled sent by mail within the establish close linkages with organizations of the persons
Philippines and abroad; and with disability in order to respond expeditiously to the
b) aids and orthopedic devices for the disabled sent needs of persons with disability. National line agencies
by abroad by mail for repair: and local government units shall assist persons with
Provided, That the aforesaid items are for personal disability in setting up specific projects that will be
purposes only: Provided, further, That the disabled person managed like business propositions.
is a marginalized disabled as certified by the Social To ensure the active participation of persons with
Welfare and Development Office of the local government disability in the social and economic development of the
unit concerned or the Department of Social Welfare and country, their organizations shall be encouraged to
Development. participate in the planning, organization and
management of government programs and projects for
CHAPTER 6 Accessibility persons with disability.
SECTION 25. Barrier-Free Environment. — The State Organizations of persons with disability shall
shall ensure the attainment of a barrier-free environment participate in the identification and preparation of
that will enable persons with disability to have access in programs that shall serve to develop employment
public and private buildings and establishments and opportunities for the persons with disability.
such other places mentioned in Batas Pambansa Bilang
344, otherwise known as the "Accessibility Law". CHAPTER 8 Other Privileges and Incentives
The national and local governments shall allocate SECTION 32. Persons with disability shall be entitled
funds for the provision of architectural facilities or to the following:
structural features for persons with disability in
(a) At least twenty percent (20%) discount and
government buildings and facilities.
exemption from the value-added tax (VAT), if applicable,
SECTION 26. Mobility. — The State shall promote the
mobility of persons with disability. Disabled persons shall



on the following sale of goods and services for the (iii) Transportation discount fare Identification Card
exclusive use and enjoyment or availment of the PWD: (ID) issued by the National Council for the Welfare of
(1) On the fees and charges relative to the utilization Disabled Persons (NCWDP).
of all services in hotels and similar lodging The privileges may not be claimed if the PWD claims
establishments; restaurants and recreation centers; a higher discount as may be granted by the commercial
(2) On admission fees charged by theaters, cinema establishment and/or under other existing laws or in
houses, concert halls, circuses, carnivals and other similar combination with other discount program/s.
places of culture, leisure and amusement; The establishments may claim the discounts granted
(3) On the purchase of medicines in all drugstores; in subsection (a), paragraphs (1), (2), (3), (5), (6), (7), and (8)
as tax deductions based on the net cost of the goods sold
(4) On medical and dental services including or services rendered: Provided, however, That the cost of
diagnostic and laboratory fees such as, but not limited to, the discount shall be allowed as deduction from the gross
x-rays, computerized tomography scans and blood tests, income for the same taxable year that the discount is
and professional fees of attending doctors in all granted: Provided, further, That the total amount of the
government facilities, subject to the guidelines to be claimed tax deduction net of value-added tax, if
issued by the Department of Health (DOH), in applicable, shall be included in their gross sales receipts
coordination with the Philippine Health Insurance for tax purposes and shall be subject to proper
Corporation (PhilHealth); documentation and to the provisions of the National
(5) On medical and dental services including Internal Revenue Code (NIRC), as amended. (as amended
diagnostic and laboratory fees, and professional fees of by Expansion of Benefits and Privileges of Persons with
attending doctors in all private hospitals and medical Disability (PWD), Republic Act No. 10754, [March 23, 2016])
facilities, in accordance with the rules and regulations to
be issued by the DOH, in coordination with the
PhilHealth; SECTION 33. Incentives. — Those caring for and
living with a person with disability shall be granted the
(6) On fare for domestic air and sea travel; following incentives:
(7) On actual fare for land transportation travel such (a) PWD, who are within the fourth civil degree of
as, but not limited to, public utility buses or jeepneys consanguinity or affinity to the taxpayer,
(PUBs/PUJs), taxis, asian utility vehicles (AUVs), shuttle regardless of age, who are not gainfully employed
services and public railways, including light Rail Transit and chiefly dependent upon the taxpayer, shall
(LRT), Metro Rail Transit (MRT) and Philippine National be treated as dependents under Section 35 (b) of
Railways (PNR); and the NIRC of 1997, as amended, and as such,
(8) On funeral and burial services for the death of the individual taxpayers caring for them shall be
PWD: Provided, That the beneficiary or any person who accorded the privileges granted by the Code
shall shoulder the funeral and burial expenses of the insofar as having dependents under the same
deceased PWD shall claim the discount under this rule section are concerned; (as amended by
for the deceased PWD upon presentation of the death Expansion of Benefits and Privileges of Persons
certificate. Such expenses shall cover the purchase of with Disability (PWD), Republic Act No. 10754,
casket or urn, embalming, hospital morgue, transport of [March 23, 2016]) and
the body to intended burial site in the place of origin, but (b) Individuals or nongovernmental institutions
shall exclude obituary publication and the cost of the establishing homes, residential communities or
memorial lot. retirement villages solely to suit the needs and
(b) Educational assistance to PWD, for them to requirements of persons with disability shall be
pursue primary, secondary, tertiary, post tertiary, as well accorded the following:
as vocational or technical education, in both public and (i) Realty tax holiday for the first five years of
private schools, through the provision of scholarships, operation; and
grants, financial aids, subsidies and other incentives to
qualified PWD, including support for books, learning (ii) Priority in the building and/or maintenance of
materials, and uniform allowance to the extent feasible: provincial or municipal roads leading to the aforesaid
Provided, That PWD shall meet the minimum admission home, residential community or retirement village. (As
requirements; amended by RA No. 9442, [April 30, 2007])
(c) To the extent practicable and feasible, the TITLE THREE Prohibition on Discrimination
continuance of the same benefits and privileges given by Against Disabled Persons
the Government Service Insurance System (GSIS), Social
Security System (SSS), and Pag-IBIG, as the case may be, CHAPTER 1 Discrimination on Employment
as are enjoyed by those in actual service;
SECTION 34. Discrimination on Employment. — No
(d) To the extent possible, the government may grant entity, whether public or private, shall discriminate
special discounts in special programs for PWD on against a qualified disabled person by reason of disability
purchase of basic commodities, subject to the guidelines in regard to job application procedures, the hiring,
to be issued for the purpose by the Department of Trade promotion, or discharge of employees, employee
and Industry (DTI) and the Department of Agriculture compensation, job training, and other terms, conditions,
(DA); and and privileges of employment. The following constitute
(e) Provision of express lanes for PWD in all acts of discrimination:
commercial and government establishments; in the a) Limiting, segregating or classifying a disabled job
absence thereof, priority shall be given to them. applicant in such a manner that adversely affects
The abovementioned privileges are available only to his work opportunities;
PWD who are Filipino citizens upon submission of any of b) Using qualification standards, employment tests or
the following as proof of his/her entitlement thereto: other selection criteria that screen out or tend to
(i) An identification card issued by the city or screen out a disabled person unless such
municipal mayor or the barangay captain of the place standards, tests or other selection criteria are
where the PWD resides; shown to be job-related for the position in
(ii) The passport of the PWD concerned; or question and are consistent with business
necessity;
c) Utilizing standards, criteria, or methods of
administration that:


1) have the effect of discrimination on the basis of a) an inn, hotel, motel, or other place of lodging,
disability; or except for an establishment located within a
2) perpetuate the discrimination of others who building that contains not more than five (5)
are subject to common administrative rooms for rent or hire and that is actually
control. occupied by the proprietor of such establishment
as the residence of such proprietor;
d) Providing less compensation, such as salary, wage
or other forms of remuneration and fringe b) a restaurant, bar, or other establishment serving
benefits, to a qualified disabled employee, by food or drink;
reason of his disability, than the amount to which c) a motion picture, theater, concert hall, stadium, or
a non-disabled person performing the same work other place of exhibition or entertainment;
is entitled; d) an auditorium, convention center, lecture hall, or
e) Favoring a non-disabled employee over a qualified other place of public gathering;
disabled employee with respect to promotion, e) a bakery, grocery store, hardware store, shopping
training opportunities, study and scholarship center, or other sales or rental establishment;
grants, solely on account of the latter's disability;
f) a bank, barber shop, beauty shop, travel service,
f) Re-assigning or transferring a disabled employee to funeral parlor, gas station, office of a lawyer,
a job or position he cannot perform by reason of pharmacy, insurance office, professional office of
his disability; a health care provider, hospital or other service
g) Dismissing or terminating the services of a establishment;
disabled employee by reason of his disability g) a terminal, depot, or other station used for
unless the employer can prove that he impairs specified public transportation;
the satisfactory performance of the work involved
to the prejudice of the business entity: Provided, h) a museum, gallery, library or other place of public
however, That the employer first sought to display or collection;
provide reasonable accommodations for persons i) a park, zoo, amusement park, or other place of
with disability; recreation;
h) Failing to select or administer in the most effective j) a nursery, elementary, secondary, undergraduate, or
manner employment tests which accurately post-graduate private school, or other place of
reflect the skills, aptitude or other factor of the education;
disabled applicant or employee that such tests
purports to measure, rather than the impaired k) a gymnasium, health spa, bowling alley, golf
sensory, manual or speaking skills of such course; or
applicant or employee, if any; and l) other place of exercise or recreation.
i) Excluding persons with disability from membership SECTION 38. Discrimination on the Use of Public
in labor unions or similar organizations. Accommodations. — a) No disabled person shall be
SECTION 35. Employment Entrance Examination. discriminated on the basis of disability in the full and
— Upon an offer of employment, a disabled applicant equal enjoyment of the goods, services, facilities,
may be subjected to medical examination, on the privileges, advantages or accommodations of any place of
following occasions: public accommodation by any person who owns, leases,
or operates a place of public accommodation. The
a) all entering employees are subjected to such an following constitute acts of discrimination:
examination regardless of disability;
1) denying a disabled person, directly or through
b) information obtained during the medical condition contractual, licensing, or other arrangement, the
or history of the applicant is collected and opportunity to participate in or benefit from the
maintained on separate forms and in separate goods, services, facilities, privileges, advantages,
medical files and is treated as a confidential or accommodations of an entity by reason of his
medical record; Provided, however, That: disability;
1) supervisors and managers may be informed 2) affording a disabled person, on the basis of his
regarding necessary restrictions on the work disability, directly or through contractual,
or duties of the employees and necessary licensing, or other arrangement, with the
accommodations; opportunity to participate in or benefit from a
2) first aid and safety personnel may be informed, good service, facility, privilege, advantage, or
when appropriate, if the disability may accommodation that is not equal to that afforded
require emergency treatment; to other able-bodied persons; and
3) government officials investigating compliance 3) providing a disabled person, on the basis of his
with this Act shall be provided relevant disability, directly or through contractual,
information on request; and licensing, or other arrangement, with a good,
service, facility, advantage, privilege, or
4) the results of such examination are used only accommodation that is different or separate form
in accordance with this Act. that provided to other able-bodied persons
unless such action is necessary to provide the
CHAPTER 2 Discrimination on Transportation disabled person with a good, service, facility,
SECTION 36. Public Transportation. — It shall be advantage, privilege, or accommodation, or other
considered discrimination for the franchisees or opportunity that is as effective as that provided to
operators and personnel of sea, land, and air others;
transportation facilities to charge higher fare or to refuse For purposes of this Section, the term "individuals or
to convey a passenger, his orthopedic devices, personal class of individuals" refers to the clients or customers of
effects, and merchandise by reason of his disability. the covered public accommodation that enters into the
contractual, licensing or other arrangement.
CHAPTER 3 Discrimination on the Use of
Public Accommodations and Services b) Integrated Settings — Goods, services, facilities,
privileges, advantages, and accommodations shall be
SECTION 37. Public Accommodations and Services. afforded to individual with a disability in the most
— For purposes of this Chapter, public accommodations integrated setting appropriate to the needs of the
and services shall include the following: individual.


c) Opportunity to Participate — Notwithstanding the making fun or contemptuous imitating or making
existence of separate or different programs or activities mockery of persons with disability whether in writing, or
provided in accordance with this section, an individual in words, or in action due to their impairment/s.
with a disability shall not be denied the opportunity to SECTION 42. No individual, group or community shall
participate in such programs or activities that are not execute any of these acts of ridicule against persons with
separate or different. disability in any time and place which could intimidate or
d) Association — It shall be discriminatory to exclude result in loss of self-esteem of the latter.
or otherwise deny equal goods, services, facilities,
advantages, privileges, accommodations or other CHAPTER 2 Deliverance from Vilification
opportunities to an individual or entity because of the
SECTION 43. Vilification. — For purposes of this
known disability of an individual with whom the
Chapter, vilification shall be defined as:
individual or entity is known to have a relationship or
association. (a) The utterance of slanderous and abusive
statements against a person with disability; and/or
e) Prohibitions — For purposes of this Section, the
following shall be considered as discriminatory: (b) An activity in public which incites hatred towards,
serious contempt for, or severe ridicule of persons with
1) the imposition or application of eligibility
disability.
criteria that screen out or tend to screen out
an individual with a disability or any class or SECTION 44. Any individual, group or community is
individuals with disabilities from fully and hereby prohibited from vilifying any person with disability
equally enjoying any goods, services, facilities, which could result into loss of self-esteem of the latter. (As
privileges, advantages, or accommodations, amended by RA No. 9442, [April 30, 2007]).
unless such criteria can be shown to be
necessary for the provision of the goods, TITLE FIVE Final Provisions
services, facilities, privileges, or SECTION 45. Housing Program. — The National
accommodations being offered; Government shall take into consideration in its national
2) a failure to make reasonable modifications in shelter program the special housing requirements of
policies, practices, or procedures, when such persons with disability.
modifications are necessary to afford such SECTION 46. Role of National Agencies and Local
goods, services, facilities, privileges, Government Units. — (a) Local government units shall
advantages, or accommodations to promote the establishment of organizations of persons
individuals with disabilities, unless the entity with disabilities (PWDs) in their respective territorial
can demonstrate that making such jurisdictions. National agencies and local government
modifications would fundamentally alter the units may enter into joint ventures with organizations or
nature of the goods, facilities, services, associations of PWDs to explore livelihood opportunities
privileges, advantages, or accommodations; and other undertakings that shall enhance the health,
3) failure to take such steps as may be necessary physical fitness and the economic and social well-being
to ensure that no individual with a disability is of PWDs.
excluded, denied services, segregated or (b) Local government units shall organize and
otherwise treated differently than other establish the following:
individuals because of the absence of
auxiliary aids and services, unless the entity (1) Persons with Disability Affairs Office
can demonstrate that taking such steps (PDAO)
would fundamentally alter the nature of the A PDAO shall be created in every province,
good, service, facility, privilege, advantage or city and municipality. The local chief executive
accommodation being offered or would shall appoint a PWD affairs officer who shall
result in undue burden; manage and oversee the operations of the office,
4) a failure to remove architectural barriers, and pursuant to its mandate under this Act. Priority
communication barriers that are structural in shall be given to qualified PWDs to head and
nature, in existing facilities, where such man the said office in carrying out the following
removal is readily achievable; and functions:
5) where an entity can demonstrate that the (i) Formulate and implement policies,
removal of a barrier under clause (4) is not plans and programs for the promotion of the
readily achievable, a failure to make such welfare of PWDs in coordination with
goods, services, facilities, privileges, concerned national and local government
advantages, or accommodations available agencies;
through alternative methods if such methods (ii) Coordinate the implementation of the
are readily achievable. provisions of this Act, Batas Pambansa Blg.
SECTION 39. Use of Government Recreational or 344, otherwise known as the Accessibility
Sports Centers Free of Charge. — Recreational or sports Law, and other relevant laws at the local level;
centers owned or operated by the Government shall be (iii) Represent PWDs in meetings of local
used, free of charge, by marginalized persons with development councils and other special
disability during their social, sports or recreational bodies;
activities.
(iv) Recommend and enjoin the
SECTION 40. Implementing Rules and Regulations. participation of nongovernment
— The Department of Public Works and Highways shall organizations (NGOs) and people's
formulate the rules and regulations necessary to organizations (POs) in the implementation of
implement the provisions of this Chapter all disability-related laws and policies;
TITLE FOUR Prohibitions on Verbal, Non-verbal (v) Gather and compile relevant data on
PWDs in their localities;
Ridicule and Vilification Against Persons with
Disability (vi) Disseminate information including,
but not limited to, programs and activities for
CHAPTER 1 Deliverance from Public Ridicule PWDs, statistics on PWDs, including children
with disability, and training and employment
SECTION 41. Public Ridicule. — For purposes of this opportunities for PWDs;
Chapter, public ridicule shall be defined as an act of



(vii) Submit reports to the office of the 4) freedom from expropriations;
local chief executive on the implementation 5) freedom from requisition of investment;
of programs and services for the promotion of
the welfare of PWDs in their respective areas 6) income tax holiday;
of jurisdiction; 7) additional deduction for labor expense;
(viii) Ensure that the policies, plans and 8) tax and duty exemption on imported capital
programs for the promotion of the welfare of equipment;
PWDs are funded by both the national and
local government; 9) tax credit on domestic capital equipment;
(ix) Monitor fundraising activities being 10) exemption from contractor's tax;
conducted for the benefit of PWDs; 11) simplification of customs procedures;
(x) Seek donations in cash or in kind from 12) unrestricted use of consigned equipment;
local or foreign donors to implement an
approved work plan for PWDs, in accordance 13) employment of foreign nationals;
with existing laws and regulations; and 14) tax credit for taxes and duties on raw materials;
(xi) Perform such other functions as may 15) access to bonded manufacturing/traded
be necessary for the promotion and warehouse system;
protection of the welfare of the PWDs. 16) exemption from taxes and duties on imported
(2) Focal person spare parts; and
In consideration of budget restraints, local 17) exemption from wharfage dues and any export
chief executives of fourth (4th), fifth (5th) and tax, duty, impost and fee.
sixth (6th) class municipalities may, in lieu of the SECTION 49. Continuity Clause. — Should any
creation of a PDAO, designate a focal person who department or agency tasked with the enforcement or
shall perform the functions of the PDAO. Priority formulation of rules and regulations and guidelines for
in appointment should be given to a PWD with implementation of any provision of this Act is abolished,
experience in providing services to PWDs. merged with another department or agency or modified,
The establishment of a PDAO or the appointment of such shall not affect the enforcement or formulation of
a focal person, as the case may be, should be done in rules, regulations and guidelines for implementation of
consultation and coordination with the National Council this Act to the effect that —
on Disability Affairs (NCDA), NGOs and POs. (As amended a) In case of abolition, the department or agency
by RA No. 10070, [April 6, 2010]) established to replace the abolished department
SECTION 47. Support From Nongovernment or agency shall take-over the functions under this
Organizations. — Nongovernment organizations or Act of the abolished department or agency.
private volunteer organizations dedicated to the purpose b) In case the department or agency tasked with the
of promoting and enhancing the welfare of persons with enforcement or formulation of rules, regulations
disability shall, as they are hereby encouraged, become and guidelines for implementation of this Act is
partners of the Government in the implementation of merged with another department or agency, the
vocational rehabilitation measures and other related former shall continue the functions under this
programs and projects. Accordingly, their participation in Act of the merged department or agency.
the implementation of said measures, programs and
projects is to be extended all possible support by the c) In case of modification, the department or agency
government. modified shall continue the functions under this
Act of the department or agency that has
The government shall sponsor a volunteer service undergone the modification.
program which shall harness the involvement of private
individuals in the provision of assistance to persons with SECTION 50. Enforcement by the Secretary of
disability. Justice. —
SECTION 48. Tax Incentives. — a) Any donation, a) Denial of Right
bequest, subsidy or financial aid which may be made to 1) Duty to Investigate — the Secretary of Justice
government agencies engaged in the rehabilitation of shall investigate alleged violations of this Act,
persons with disability and organizations of persons with and shall undertake periodic reviews of
disability shall be exempt from the donor's tax subject to compliance of covered entities under this Act.
the provisions of Section 94 of the National Internal
Revenue Code (NIRC), as amended and shall be allowed b) Potential Violations — If the Secretary of Justice
as deductions from the donor's gross income for has reasonable cause to believe that —
purposes of computing the taxable income subject to the 1) any person or group of persons is engaged in a
provisions of Section 29 (h) of the Code. pattern or practice of discrimination under
b) Donations from foreign countries shall be exempt this Act; or
from taxes and duties on importation subject to the 2) any person or group or persons has been
provisions of Section 105 of the Tariff and Customs Code discriminated against under this Act and
of the Philippines, as amended, Section 103 of the NIRC, such discrimination raises an issue of general
as amended and other relevant laws and international public importance, the Secretary of Justice
agreements. may commence a legal action in any
c) Local manufacturing or technical aids and appropriate court.
appliances used by persons with disability shall be SECTION 51. Authority of Court. — The court may
considered as a preferred area of investment subject to grant any equitable relief that such court considers to be
the provisions of Executive Order No. 226 otherwise appropriate, including, to the extent required by this Act:
known as the "Omnibus Investments Code of 1987" and,
as such, shall enjoy the rights, privileges and incentives as a) granting temporary, preliminary or permanent
provided in said Code such as, but not limited, to the relief;
following: b) providing an auxiliary aid or service, modification of
1) repatriation of investments; policy, practice or procedure, or alternative
method; and
2) remittance of earnings;
c) making facilities readily accessible to and usable by
3) remittance of payments on foreign contracts; individuals with disabilities.



SECTION 52. Penal Clause. — (a) Any person who SECTION 2. Declaration of Policy. — It is the declared
violates any provision of this Act shall suffer the following policy of the State to:
penalties: (a) Affirm labor as a primary social economic force in
(1) For the first violation, a fine of not less than promoting sustainable development;
Fifty thousand pesos (P50,000.00) but not (b) Afford full protection to labor, local and overseas,
exceeding One hundred thousand pesos organized and unorganized, and promote full and
(P100,000.00) or imprisonment of not less productive employment and equality of employment
than six months but not more than two years, opportunities for all; and
or both at the discretion of the court; and
(c) Promote the rights of the people to a balanced
(2) For any subsequent violation, a fine of not less and healthful ecology in accord with the rhythm and
than One hundred thousand pesos harmony of nature.
(P100,000.00) but not exceeding Two
hundred thousand pesos (P200,000.00) or The State shall identify needed skills, develop training
imprisonment for not less than two years but programs, and train and certify workers for jobs in a range
not more than six years, or both at the of industries that produce goods and render services for
discretion of the court. the benefit of the environment, conserve natural
resources for the future generation, and ensure the
(b) Any person who abuses the privileges granted sustainable development of the country and its transition
herein shall be punished with imprisonment of not less into a green economy. In recognition of the participation
than six months or a fine of not less than Five thousand of individuals and business enterprises in jobs creation,
pesos (P5,000.00), but not more than Fifty thousand the State shall provide incentives therefor.
pesos (P50,000.00), or both, at the discretion of the court.
SECTION 3. Coverage. — This Act shall apply to all
(c) If the violator is a corporation, organization or any business enterprises unless otherwise provided herein.
similar entity, the officials thereof directly involved shall
be liable therefor. SECTION 4. Definition of Terms. — As used in this
Act:
(d) If the violator is an alien or a foreigner, he shall be
deported immediately after service of sentence without (a) Business enterprises refer to establishments
further deportation proceedings. engaged in the production, manufacturing, processing,
repacking, assembly, or sale of goods and/or services,
Upon filing of an appropriate complaint, and after including service-oriented enterprises. It shall include
due notice and hearing, the proper authorities may also self-employed or own-account workers, micro, small, and
cause the cancellation or revocation of the business medium enterprises (MSMEs) and community-based
permit, permit to operate, franchise and other similar business enterprises;
privileges granted to any business entity that fails to
abide by the provisions of this Act. (As amended by RA (b) Climate change refers to a change in climate that
No. 9442, [April 30, 2007]) can be identified by changes in the mean or variability of
its properties and that persists for an extended period
SECTION 53. Appropriations. — The amount typically decades or longer, whether due to natural
necessary to carry out the provisions of this Act shall be variability or as a result of human activity;
included in the General Appropriations Act of the year
following its enactment into law and thereafter. (c) Green jobs refer to employment that contributes
to preserving or restoring the quality of the environment,
SECTION 54. Separability Clause. — Should any be it in the agriculture, industry or services sector.
provisions of this Act be found unconstitutional by a court Specifically, but not exclusively, this include jobs that help
of law, such provisions shall be severed from the to protect ecosystems and biodiversity, reduce energy,
remainder of the Act, and such action shall not affect the materials and water consumption through high
enforceability of the remaining provisions of this Act. efficiency strategies, decarbonize the economy, and
SECTION 55. Repealing Clause. — All laws, minimize or altogether avoid generation of all forms of
presidential decrees, executive orders and rules and waste and pollution. Green jobs are decent jobs that are
regulations inconsistent with the provisions of this Act are productive, respect the rights of workers, deliver a fair
hereby repealed or modified accordingly. income, provide security in the workplace and social
SECTION 56. Effectivity. — This Act shall take effect protection for families, and promote social dialogue.
fifteen (15) days after its publication in any two (2) (d) Green economy refers to one which is low-carbon
newspapers of general circulation. and resource-efficient, and results in the generation of
Approved: March 24, 1992 green jobs and in improved human well-being and social
equity, while significantly reducing environmental risks
Published in the Philippine Times Journal and and ecological scarcities;
Malaya on March 28, 1992. Published in the Official
Gazette, Vol. 88 No. 18 page 2537 on May 4, 1992. (e) Green goods and services refer to goods and
services that benefit the environment or conserve natural
(Magna Carta for Disabled Persons, Republic Act No. resources, and may include research and development,
7277, [March 24, 1992]) installation and maintenance services;

(f) Green technologies refer to the development and
RA No 10771 | Philippine Green Jobs Act application of products, equipment and systems used to
conserve the environment and natural resources; and
of 2016 (g) Sustainable development refers to development
that meets the needs of the present generation without
compromising the ability of the future generations to
Rules and Regulations Implementing the Philippine meet their own needs.
Green Jobs Act of 2016 SECTION 5. Incentives. — For the purposes of
encouraging business enterprises to generate and

sustain green jobs as certified by the Climate Change
April 29, 2016 Commission, as provided in Section 6 (o) hereof, business
AN ACT PROMOTING THE CREATION OF GREEN enterprises shall enjoy the following incentives:
JOBS, GRANTING INCENTIVES AND APPROPRIATING (a) Special deduction from the taxable income
FUNDS THEREFOR equivalent to fifty percent (50%) of the total expenses for
SECTION 1. Short Title. — This Act shall be known as skills training and research development expenses which
the "Philippine Green Jobs Act of 2016". is over and above the allowable ordinary and necessary


business deductions for said expenses under the National (g) The National Economic and Development

Internal Revenue Code of 1997, as amended; and Authority (NEDA) shall ensure the mainstreaming of
(b) Tax and duty free importation of capital green jobs concern in development plans.
equipment: Provided, That the capital equipment is (h) The Department of Trade and Industry (DTI) shall
actually, directly and exclusively used in the promotion of develop a special business facilitation program for
green jobs of the business enterprise. individuals and business enterprises that create green
Incentives that will be granted under this Act shall be jobs.
in addition to fiscal and non-fiscal incentives already (i) The Professional Regulation Commission (PRC)
granted or provided under existing laws, orders, issuances shall encourage the development of qualifications
and regulations. Nothing in this Act shall be interpreted framework that can facilitate the recognition of
or construed to diminish or limit, in whatever manner, the knowledge, skills, and competencies of professionals
incentives granted or provided under existing laws, working in the green economy.
orders, issuances and regulations which shall include, but (j) The Department of Science and Technology
not limited to, Republic Act No. 10121 or the "Philippine (DOST) shall, together with the TESDA, assist the DOLE in
Disaster Risk Reduction and Management Act of 2010"; analyzing skills, training and re-training needs in relation
Republic Act No. 10068 or the "Organic Agriculture Act of to the use of green technology that has the potential to
2010"; Republic Act No. 9513 or the "Renewable Energy create new green occupations and greener jobs,
Act of 2008"; Republic Act No. 9367 or the "Biofuels Act of especially in industries or sectors undergoing structural
2006"; Republic Act No. 9275 or the "Philippine Clean changes due to climate change and greening of the
Water Act of 2004"; Republic Act No. 9003 or the economy. It shall also provide a range of business
"Ecological Solid Waste Management Act of 2000"; development support to MSMEs. These may include
Republic Act No. 8749 or the "Philippine Clean Air Act of prototyping or modeling of technologies, conducting
1999"; and Republic Act No. 8550 or the "Philippine assessment to match technological needs and demands,
Fisheries Code of 1998". subcontracting business to develop clean technologies,
SECTION 6. Role of Agencies. — providing technical written guides, procedures as well as
(a) The Department of Labor and Employment instructions and training on clean technology for
(DOLE) shall, in coordination with other government business.
agencies, formulate a National Green Jobs Human (k) The Department of Transportation and
Resource Development Plan on the development, Communications (DOTC) shall ensure the mainstreaming
enhancement and utilization of the labor force, both in of green jobs concern in its sectoral development plan
the private and public sectors. The plan shall have the and encourage more investments in public transport
primary objective of enabling and sustaining the infrastructure and services to optimize the potential of
transition into a green economy and the generation of public transport to foster green growth and job creation.
green jobs towards more employment and equal It shall also explore strategies of shifting to more
opportunities and the promotion of social justice and environmentally friendly modes of transport and
workers' welfare. It shall include programs, projects, and improving the efficiency of all modes of transportation.
activities pertaining to basic, higher and (l) The Department of Tourism (DOT) shall outline
technical-vocational education and training, database sustainable tourism planning and integrated approach
that identifies and links green job opportunities with for the promotion of job rich in sustainable tourism
private and public entities, and information on industry.
knowledge and skill requirements of a green economy.
(m) The Department of Public Works and Highways
The DOLE, in coordination with the Philippine (DPWH) shall develop and implement programs that
Statistics Authority (PSA), shall also maintain a database promote the importance of green building practices in
of green careers, professions and skills, as well as a list of safeguarding the environment and its role in sustainable
emerging business enterprises, which generate and economic development.
sustain green jobs. It shall facilitate skills training
assessment and certification, career advocacy, provide (n) Any provision in their respective charters to the
productivity and livelihood training, and extend technical contrary notwithstanding, government financial
assistance to enterprises to ensure labor law compliance. institutions (GFIs) shall, in consultation with the Bangko
Sentral ng Pilipinas (BSP), provide preferential financial
(b) The Department of Finance (DOF) shall administer packages to business enterprises that create green jobs.
the grant of incentives as discussed in Section 5 of this
Act to qualified individuals and business enterprises (o) The Climate Change Commission (CCC), in
engaged in registered strategic activities, and shall consulting with concerned agencies, such as the DENR,
maintain a database on the same. the DTI, the DOLE, the Department of Agriculture (DA),
the Department of Energy (DOE), the Department of the
(c) The Department of Environment and Natural Interior and Local Government (DILG), and the DOST, shall
Resources (DENR) shall establish and maintain a climate develop and administer appropriate standards for the
change information management system and network as assessment and certification of green goods and services,
reference in the formulation of strategies and approaches and green technologies and practices for the purpose of
to develop potential green jobs. regulating the availment of incentives and ensuring
(d) The Department of Education (DepED) shall green jobs content pursuant to the National Green Jobs
implement faculty, facility and curriculum development Human Resource Development Plan as provided in
for primary and secondary education in support of the Section 6 (a) hereof.
knowledge and skills requirement of a green economy. SECTION 7. Role of the Secretary of Labor and
(e) The Commission on Higher Education (CHED) Employment. — The Secretary of Labor and Employment
shall develop and implement curriculum and related shall be included as an additional member of the Climate
standards and instructional materials in support of the Change Commission constituted under Section 5 of
green economy. Republic Act No. 9729, as amended or the "Climate
(f) The Technical Education and Skills Development Change Act of 2009".
Authority (TESDA) shall formulate the necessary training SECTION 8. Appropriations. — The amount
regulations for the implementation of skills training, necessary to carry out the operation of this Act shall be
program registration and assessment and certification in included in the annual General Appropriations Act.
support of the requirements for skilled manpower of the SECTION 9. Implementing Rules and Regulations. —
green economy. Within one hundred eighty (180) days from the effectivity
of this Act, the Secretary of Labor and Employment in
coordination with concerned agencies as may be



deemed necessary, shall formulate the necessary rules For purposes of this Act, delivery shall include childbirth
and regulations to implement the provision of this Act. or any miscarriage.
SECTION 10. Separability Clause. — Should any SECTION 3. Definition of Term. — For purposes of this
provision of this Act be declared unconstitutional, the Act, Paternity Leave refers to the benefits granted to a
remainder thereof not otherwise affected shall remain in married male employee allowing him not to report for
full force and effect. work for seven (7) days but continues to earn the
SECTION 11. Repealing Clause. — Section 5 of compensation therefor, on the condition that his spouse
Republic Act No. 9729, as amended or the "Climate has delivered a child or suffered a miscarriage for
Change Act of 2009", is deemed amended or modified by purposes of enabling him to effectively lend support to
Section 7 of this Act. All other existing laws, presidential his wife in her period of recovery and/or in the nursing of
decrees, executive orders, proclamations or the newly-born child.
administrative regulations that are inconsistent with the SECTION 4. The Secretary of Labor and Employment, the
provisions of this Act are hereby repealed, amended or Chairman of the Civil Service Commission and the
modified accordingly. Secretary of Health shall, within thirty (30) days from the
SECTION 12. Effectivity. — This Act shall take effect effectivity of this Act, issue such rules and regulations
fifteen (15) days following the completion of its necessary for the proper implementation of the
publication in the Official Gazette or in two (2) provisions hereof.
newspapers of general circulation. SECTION 5. Any person, corporation, trust, firm,
Approved: April 29, 2016. partnership, association or entity found violating this Act
or the rules and regulations promulgated thereunder
Published in The Philippine Star on May 3, 2016. shall be punished by a fine not exceeding Twenty-Five
(Philippine Green Jobs Act of 2016, Republic Act No. 10771, thousand pesos (P25,000) or imprisonment of not less
[April 29, 2016]) than thirty (30) days nor more than six (6) months.
If the violation is committed by a corporation, trust or
firm, partnership, association or any other entity, the
III. Labor Laws Related to penalty of imprisonment shall be imposed on the entity's
Conditions of Employment responsible officers, including, but not limited to, the
president, vice-president, chief executive officer, general
manager, managing director or partner directly
Rules and Regulations Implementing RA No 6727 the responsible therefor.
Wage Rationalization Act SECTION 6. Nondiminution Clause. — Nothing in this
Act shall be construed to reduce any existing benefits of
DO No 131-B-16 Revised Rules on Labor Laws any form granted under existing laws, decrees, executive
Compliance System orders, or any contract, agreement or policy between
employer and employee.
DO No 156-16 Rules and Regulations Governing the SECTION 7. Repealing Clause. — All laws, ordinances,
Working and Living Conditions of Fishers in rules, regulations, issuances, or parts thereof which are
Commercial Fishing inconsistent with this Act are hereby repealed or
modified accordingly.
DO No 174-17 Rules Implementing Arts 106-109
SECTION 8. Effectivity. — This Act shall take effect fifteen
DO No 183-17 Revised Rules on the Administration and (15) days from its publication in the Official Gazette or in
Enforcement of Labor Laws Pursuant to Article 128 at least two (2) newspapers of national circulation.
Approved: June 11, 1996

Published in Malaya and the Manila Times on June 20,
1996. Published in the Official Gazette, Vol. 92 No. 33 page
RA No 8187 | Paternity Leave Act of 1996 5077 on August 12, 1996.
(Paternity Leave Act of 1996, Republic Act No. 8187, [June
11, 1996])
Rules and Regulations Implementing the Paternity
Leave Act

PD No 851 | 13th-Month Pay Act
June 11, 1996
AN ACT GRANTING PATERNITY LEAVE December 16, 1976
OF SEVEN (7) DAYS WITH FULL PAY TO REQUIRING ALL EMPLOYERS TO PAY THEIR
EMPLOYEES A 13th-MONTH PAY
ALL MARRIED MALE EMPLOYEES IN
WHEREAS, it is necessary to further protect the level of
THE PRIVATE AND PUBLIC SECTORS real wages from the ravage of worldwide inflation;
FOR THE FIRST FOUR (4) DELIVERIES WHEREAS, there has been no increase in the legal
OF THE LEGITIMATE SPOUSE WITH minimum wage rates since 1970;
WHOM HE IS COHABITING AND FOR WHEREAS, the Christmas season is an opportune time for
OTHER PURPOSES society to show its concern for the plight of the working
masses so they may properly celebrate Christmas and
SECTION 1. Short Title. — This Act shall be known as the New Year.
"Paternity Leave Act of 1996".
NOW, THEREFORE, I, FERDINAND E. MARCOS, by virtue
SECTION 2. Notwithstanding any law, rules and of the powers vested in me by the Constitution, do hereby
regulations to the contrary, every married male employee decree as follows:
in the private and public sectors shall be entitled to a
paternity leave of seven (7) days with full pay for the first Section 1. All employers are hereby required to pay all
four (4) deliveries of the legitimate spouse with whom he their employees receiving a basic salary of not more than
is cohabiting. The male employee applying for paternity P1,000 a month, regardless of the nature of their
leave shall notify his employer of the pregnancy of his employment, a 13th-month pay not later than December
legitimate spouse and the expected date of such delivery. 24 of every year.


Section 2. Employers already paying their employees a an employer pays less than 1/12th of the employees basic
13th-month pay or its equivalent are not covered by this salary, the employer shall pay the difference.
Decree. Section 4. Employees covered Except as provided in
Section 3. This Decree shall take effect immediately. Section 3 of this issuance, all employees of covered
Done in the City of Manila, this 16th day of December 1975. employers shall be entitled to benefit provided under the
Decree who are receiving not more than P1,000 a month,
regardless of their position, designation or employment
status, and irrespective of the method by which their
wages are paid, provided that they have worked for at
RULES AND REGULATIONS IMPLEMENTING least one month during the calendar year.
PRESIDENTIAL DECREE NO. 851
Section 5. Option of covered employers A covered
By virtue of the powers vested in me by law, the following employer may pay one-half of the 13th-month pay
rules and regulations implementing Presidential Decree required by the Decree before the opening of the regular
No. 851 are hereby issued for the guidance of all school year and the other half on or before the 24th day
concerned. of December of every year.
Section 1. Payment of 13-month Pay All employers In any establishment where a union has been recognized
covered by Presidential Decree No. 851, hereinafter or certified as the collective bargaining agent of the
referred to as the "Decree", shall pay to all their employees employees therein, the periodicity or frequency of
receiving a basic salary of not more than P1,000 a month payment of the 13th month pay may be the subject of
a thirteenth-month pay not later than December 24 of agreement.
every year.
Nothing herein shall prevent employers from giving the
Section 2. Definition of certain terms As used in this benefits provided in the Decree to their employees who
issuance. are receiving more than One Thousand (P1,000) Pesos a
(a) "Thirteenth-month pay" shall mean one twelfth (1/12) of month or benefits higher than those provided by the
the basic salary of an employee within a calendar year; Decree.
(b) "Basic salary" shall include all remunerations or Section 6. Special feature of benefit The benefits granted
earnings paid by an employer to an employee for services under this issuance shall not be credited as part of the
rendered but may not include cost-of-living allowances regular wage of the employees for purposes of
granted pursuant to Presidential Decree No. 525 or Letter determining overtime and premium pay, fringe benefits,
of Instructions No. 174, profit-sharing payments, and all as well as premium contributions to the State Insurance
allowances and monetary benefits which are not Fund, social security, medicare and private welfare and
considered or integrated as part of the regular or basic retirement plans.
salary of the employee at the time of the promulgation of Section 7. Exemption of Distressed employers Distressed
the Decree on December 16, 1975. employers shall qualify for exemption from the
Section 3. Employers covered The Decree shall apply to requirement of the Decree upon prior authorization by
all employers except to: the Secretary of Labor. Petitions for exemptions may be
filed within the nearest regional office having jurisdiction
(a) Distressed employers, such as (1) those which are over the employer not later than January 15, 1976. The
currently incurring substantial losses or (2) in the case of regional offices shall transmit the petitions to the
non-profit institutions and organizations, where their Secretary of Labor within 24 hours from receipt thereof.
income, whether from donations, contributions, grants
and other earnings from any source, has consistently Section 8. Report of compliance Every covered employer
declined by more than forty (40%) percent of their normal shall make a report of his compliance with the Decree to
income for the last two (2) years, subject to the provision the nearest regional labor office not later than January 15
of Section 7 of this issuance; of each year.
(b) The Government and any of its political subdivisions, The report shall conform substantially with the following
including government-owned and controlled form:
corporations, except those corporations operating REPORT ON COMPLIANCE WITH PD NO. 851
essentially as private subsidiaries of the Government;
1. Name of establishment
(c) Employers already paying their employees 13-month
pay or more in a calendar year of its equivalent at the 2. Address
time of this issuance; 3. Principal product or business
(d) Employers of household helpers and persons in the 4. Total employment
personal service of another in relation to such workers;
and 5. Total number of workers benefited
(e) Employers of those who are paid on purely 6. Amount granted per employee
commission, boundary, or task basis, and those who are 7. Total amount of benefits granted
paid a fixed amount for performing a specific work, 8. Name, position and tel. no. of person giving information
irrespective of the time consumed in the performance
thereof, except where the workers are paid on piece-rate Section 9. Adjudication of claims Non-payment of the
basis in which case the employer shall be covered by this thirteenth-month pay provided by the Decree and these
issuance insofar as such workers are concerned. rules shall be treated as money claims cases and shall be
processed in accordance with the Rules Implementing
As used herein, workers paid on piece-rate basis shall the Labor Code of the Philippines and the Rules of the
refer to those who are paid a standard amount for every National Labor Relations Commission.
piece or unit of work produced that is more or less
regularly replicated, without regard to the time spent in Section 10. Prohibition against reduction or elimination
producing the same. of benefits Nothing herein shall be construed to
authorize any employer to eliminate, or diminish in any
The term "its equivalent" as used in paragraph c) hereof way, supplements, or other employee benefits or
shall include Christmas bonus, mid-year bonus, favorable practice being enjoyed by the employee at the
profit-sharing payments and other cash bonuses time of promulgation of this issuance.
amounting to not less than 1/12th of the basic salary but
shall not include cash and stock dividends, cost of living Section 11. Transitory Provision These rules and
allowances and all other allowances regularly enjoyed by regulations shall take effect immediately and for
the employee, as well as non-monetary benefits. Where purposes of the 13-month pay for 1975, the same shall


apply only to those who are employees as of December empowerment of women and pursue equal
16, 1975. opportunities for women and men and ensure equal
Manila, Philippines, 22 December 1975. access to resources and to development results and
outcome. Further, the State realizes that equality of men
and women entails the abolition of the unequal
structures and practices that perpetuate discrimination
and inequality. To realize this, the State shall endeavor to
SUPPLEMENTARY RULES AND REGULATIONS develop plans, policies, programs, measures, and
IMPLEMENTING P.D. NO. 851 mechanisms to address discrimination and inequality in
To insure uniformity in the interpretation, application and the economic, political, social, and cultural life of women
enforcement of the provisions of P.D. No. 851 and its and men.
implementing regulations, the following clarifications are The State condemns discrimination against women in all
hereby made for the information and guidance of all its forms and pursues by all appropriate means and
concerned: without delay the policy of eliminating discrimination
1. Contractors and Subcontractors, including Security and against women in keeping with the Convention on the
Watchman Agencies, are exempt for the year 1975 subject Elimination of All Forms of Discrimination Against
to the following conditions: Women (CEDAW) and other international instruments
consistent with Philippine law. The State shall accord
(a) that the contracts of such enterprises were entered women the rights, protection, and opportunities available
into before December 16, 1975; to every member of society.
(b) that such enterprises have complied with all labor The State affirms women's rights as human rights and
standards laws during the year; shall intensify its efforts to fulfill its duties under
(c) that the contract cannot really accommodate international and domestic law to recognize, respect,
13-month pay or its equivalent; and protect, fulfill, and promote all human rights and
(d) that the contract does not provide for cost escalation fundamental freedoms of women, especially
clause. marginalized women, in the economic, social, political,
cultural, and other fields without distinction or
This exemption is without prejudice on the part of the discrimination on account of class, age, sex, gender,
workers to negotiate with their employers or to seek language, ethnicity, religion, ideology, disability,
payment thereof by filing appropriate complaints with education, and status. The State shall provide the
the Regional Offices of the Department of Labor. necessary mechanisms to enforce women's rights and
2. Private school teachers, including faculty members of adopt and undertake all legal measures necessary to
colleges and universities, are entitled to 1/12 of their foster and promote the equal opportunity for women to
annual basic pay regardless of the number of months participate in and contribute to the development of the
they teach or are paid within a year. political, economic, social, and cultural realms.
3. New establishments operating for less than one year The State, in ensuring the full integration of women's
are not covered except subsidiaries or branches of foreign concerns in the mainstream of development, shall
and domestic corporations. provide ample opportunities to enhance and develop
their skills, acquire productive employment and
4. Overtime pay, earnings and other remunerations which contribute to their families and communities to the fullest
are not part of the basic salary shall not be included in the of their capabilities.
computation of the 13-month pay.
In pursuance of this policy, the State reaffirms the right of
5. In view of the lack of sufficient time for the women in all sectors to participate in policy formulation.
dissemination of the provisions of P.D. No. 851 and its planning, organization, implementation, management,
Rules and the unavailability of adequate cash flow due to monitoring, and evaluation of all programs, projects, and
the long holiday season, compliance and reporting of services. It shall support policies, researches, technology,
compliance with this Decree are hereby extended up to and training programs and other support services such as
March 31, 1976 except in private schools where financing, production, and marketing to encourage
compliance for 1975 may be made not later than 30 June active participation of women in national development.
1976.
Section 3. Principles of Human Rights of Women. -
6. Nothing herein shall sanction the withdrawal or Human rights are universal and inalienable. All people in
diminution of any compensation, benefits or any the world are entitled to them. The universality of human
supplements being enjoyed by the employees on the rights is encompassed in the words of Article 1 of the
effective date of this issuance. Universal Declaration of Human Rights, which states that
all human beings are free and equal in dignity and rights.
Human rights are indivisible. Human rights are inherent
RA No 9710 | Magna Carta of Women to the dignity of every human being whether they relate
to civil, cultural, economic, political, or social issues.
Human rights are interdependent and interrelated. The
Rules and Regulations Implementing the Magna fulfillment of one right often depends, wholly or in part,
Carta of Women upon the fulfillment of others.
All individuals are equal as human beings by virtue of the
August 14, 2009 inherent dignity of each human person. No one,
AN ACT PROVIDING FOR THE MAGNA CARTA OF therefore, should suffer discrimination on the basis of
WOMEN ethnicity, gender, age, language, sexual orientation, race,
color, religion, political, or other opinion, national, social,
Be it enacted by the Senate and House of or geographical origin, disability, property, birth, or other
Representatives of the Philippines in Congress status as established by human rights standards.
assembled::
All people have the right to participate in and access
Section 1. Short Title. - This Act shall be known as "The information relating to the decision- making processes
Magna Carta of Women". that affect their lives and well-being. Rights-based
Section 2. Declaration of Policy. - Recognizing that the approaches require a high degree of participation by
economic, political, and sociocultural realities affect communities, civil society, minorities, women, young
women's current condition, the State affirms the role of people, indigenous peoples, and other identified groups.
women in nation building and ensures the substantive
equality of women and men. It shall promote



States and other duty-bearers are answerable for the aquatic resources. These include, but are not to be limited

observance of human rights. They have to comply with to, women engaged in fishing in municipal waters,
the legal norms and standards enshrined in international coastal and marine areas, women workers in commercial
human rights instruments in accordance with the fishing and aquaculture, vendors and processors of fish
Philippine Constitution. Where they fail to do so, and coastal products, and subsistence producers such as
aggrieved rights-holders are entitled to institute shell-gatherers, managers, and producers of mangrove
proceedings for appropriate redress before a competent resources, and other related producers:
court or other adjudicator in accordance with the rules (3) "Urban Poor" refers to those residing in urban and
and procedures provided by law. urbanizable slum or blighted areas, with or without the
benefit of security of abode, where the income of the
CHAPTER II DEFINITION OF TERMS head of the family cannot afford in a sustained manner to
Section 4. Definitions. - For purposes of this Act, the provide for the family's basic needs of food, health,
following terms shall mean: education, housing, and other essentials in life;
(a) "Women Empowerment" refers to the provision, (4) "Workers in the Formal Economy" refers to those who
availability, and accessibility of opportunities, services, are employed by any person acting directly or indirectly
and observance of human rights which enable women to in the interest of an employer in relation to an employee
actively participate and contribute to the political, and shall include the government and all its branches,
economic, social, and cultural development of the nation subdivisions, and instrumentalities, all government-
as well as those which shall provide them equal access to owned and -controlled corporations and institutions, as
ownership, management, and control of production, and well as nonprofit private institutions or organizations;
of material and informational resources and benefits in (5) "Workers in the Informal Economy" refers to
the family, community, and society. self-employed, occasionally or personally hired,
(b) "Discrimination Against Women" refers to any subcontracted, paid and unpaid family workers in
gender-based distinction, exclusion, or restriction which household incorporated and unincorporated enterprises,
has the effect or purpose of impairing or nullifying the including home workers, micro-entrepreneurs and
recognition, enjoyment, or exercise by women, producers, and operators of sari-sari stores and all other
irrespective of their marital status, on a basis of equality of categories who suffer from violation of workers' rights:
men and women, of human rights and fundamental (6) "Migrant Workers" refers to Filipinos who are to be
freedoms in the political, economic, social, cultural, civil, engaged, are engaged, or have been engaged in a
or any other field. remunerated activity in a State of which they are not legal
It includes any act or omission, including by law; policy, residents, whether documented or undocumented;
administrative measure, or practice, that directly or (7) "Indigenous Peoples" refers to a group of people or
indirectly excludes or restricts women in the recognition homogenous societies identified by self-ascription and
and promotion of their rights and their access to and ascription by other, who have continuously lived as
enjoyment of opportunities, benefits, or privileges. organized community on communally bounded and
A measure or practice of general application is defined territory, and who have, under claims of
discrimination against women if it fails to provide for ownership since time immemorial, occupied; possessed
mechanisms to offset or address sex or gender-based customs, tradition, and other distinctive cultural traits, or
disadvantages or limitations of women, as a result of who have, through resistance to political, social, and
which women are denied or restricted in the recognition cultural inroads of colonization, non- indigenous religions
and protection of their rights and in their access to and and culture, became historically differentiated from the
enjoyment of opportunities, benefits, or privileges; or majority of Filipinos. They shall likewise include peoples
women, more than men, are shown to have suffered the who are regarded as indigenous on account of their
greater adverse effects of those measures or practices. descent from the populations which inhabited the
country, at the dime of conquest or colonization, or at the
Provided, finally, That discrimination compounded by or
time of inroads of non-indigenous religions and cultures,
intersecting with other grounds, status, or condition, such
or the establishment of present state boundaries, who
as ethnicity, age, poverty, or religion shall be considered
retain some or all of their own social, economic, cultural,
discrimination against women under this Act.
and political institutions, but who may have been
(c) "Marginalization" refers to a condition where a whole displaced from their traditional domains or who may
category of people is excluded from useful and have resettled outside their ancestral domains as defined
meaningful participation in political, economic, social, under Section 3(h), Chapter II of Republic Act No. 8371,
and cultural life. otherwise known as "The Indigenous Peoples Rights Act
(d) "Marginalized" refers to the basic, disadvantaged, or of 1997" (IPRA of 1997);
vulnerable persons or groups who are mostly living in (8) "Moro" refers to native peoples who have historically
poverty and have little or no access to land and other inhabited Mindanao, Palawan, and Sulu, and who are
resources, basic social and economic services such as largely of the Islamic faith;
health care, education, water and sanitation, employment
(9) "Children" refers to those who are below eighteen (18)
and livelihood opportunities, housing, social security,
years of age or over but are unable to fully take care of
physical infrastructure; and the justice system.
themselves or protect themselves from abuse, neglect,
These include, but are not limited to, women in the cruelty, exploitation, or discrimination because of a
following sectors and groups: physical or mental disability or condition;
(1) "Small Farmers and Rural Workers" refers to those who (10) "Senior Citizens" refers to those sixty (60) years of age
are engaged directly or indirectly in small farms and and above;
forest areas, workers in commercial farms and
(11) "Persons with Disabilities" refers to those who are
plantations, whether paid or unpaid, regular or
suffering from restriction or different abilities, as a result
season-bound. These shall include. but are not limited to,
of a mental, physical, or sensory impairment to perform
(a) small farmers who own or are still amortizing for lands
an activity in the manner or within the range considered
that is not more than three (3) hectares, tenants,
normal for a human being; and
leaseholders, and stewards; and (b) rural workers who are
either wage earners, self-employed, unpaid family (12) "Solo Parents" refers to those who fall under the
workers directly and personally engaged in agriculture, category of a solo parent defined under Republic Act No.
small-scale mining, handicrafts, and other related farm 8972, otherwise known as the "Solo Parents Welfare Act
and off-farm activities; of 2000".
(2) "Fisherfolk" refers to those directly or indirectly (e) "Substantive Equality" refers to the full and equal
engaged in taking, culturing, or processing fishery or enjoyment of rights and freedoms contemplated under



this Act. It encompasses de jure and de facto equality and (l) "Women in the Military" refers to women employed in
also equality in outcomes. the military, both in the major and technical services, who
(f) "Gender Equality" refers to the principle asserting the are performing combat and/or noncombat functions,
equality of men and women and their right to enjoy equal providing security to the State, and protecting the people
conditions realizing their full human potentials to from various forms of threat. It also includes women
contribute to and benefit from the results of trainees in all military training institutions.
development, and with the State recognizing that all (m) "Social Protection" refers to policies and programs
human beings are free and equal in dignity and rights. that seek to reduce poverty and vulnerability to risks and
(g) "Gender Equity" refers to the policies, instruments, enhance the social status and rights of all women,
programs, services, and actions that address the especially the marginalized by promoting and protecting
disadvantaged position of women in society by providing livelihood and employment, protecting against hazards
preferential treatment and affirmative action. Such and sudden loss of income, and improving people's
temporary special measures aimed at accelerating de capacity to manage risk. Its components are labor market
facto equality between men and women shall not be programs, social insurance, social welfare, and social
considered discriminatory but shall in no way entail as a safety nets.
consequence the maintenance of unequal or separate
standards. These measures shall be discontinued when CHAPTER III DUTIES RELATED TO THE HUMAN
the objectives of equality of opportunity and treatment RIGHTS OF WOMEN
have been achieved. The State, private sector, society in general, and all
(h) "Gender and Development (GAD)" refers to the individuals shall contribute to the recognition, respect,
development perspective and process that are and promotion of the rights of women defined and
participatory and empowering, equitable, sustainable, guaranteed under this Act.
free from violence, respectful of human rights, supportive Section 5. The State as the Primary Duty-Bearer. - The
of self-determination and actualization of human State, as the primary duty-bearer, shall:
potentials. It seeks to achieve gender equality as a
fundamental value that should be reflected in (a) Refrain from discriminating against women and
development choices; seeks to transform society's social, violating their rights;
economic, and political structures and questions the (b) Protect women against discrimination and from
validity of the gender roles they ascribed to women and violation of their rights by private corporations, entities,
men; contends that women are active agents of and individuals; and
development and not just passive recipients of
(c) Promote and fulfill the rights of women in all spheres,
development assistance; and stresses the need of women
including their rights to substantive equality and
to organize themselves and participate in political
non-discrimination.
processes to strengthen their legal rights.
The State shall fulfill these duties through law, policy,
(i) "Gender Mainstreaming" refers to the strategy for
regulatory instruments, administrative guidelines, and
making women's as well as men's concerns and
other appropriate measures, including temporary special
experiences an integral dimension of the design,
measures.
implementation, monitoring, and evaluation of policies
and programs in all political, economic, and societal Recognizing the interrelation of the human rights of
spheres so that women and men benefit equally and women, the State shall take measures and establish
inequality is not perpetuated. It is the process of mechanisms to promote the coherent and integrated
assessing the implications for women and men of any implementation, and enforcement of this Act and related
planned action, including legislation, policies, or laws, policies, or other measures to effectively stop
programs in all areas and at all levels. discrimination against and advance the rights of women.
(j) "Temporary Special Measures" refers to a variety of The State shall keep abreast with and be guided by
legislative, executive, administrative, and regulatory progressive developments in human rights of women
instruments, policies, and practices aimed at accelerating under international law and design of policies, laws, and
this de facto equality of women in specific areas. These other measures to promote the objectives of this Act.
measures shall not be considered discriminatory but shall Section 6. Duties of the State Agencies and
in no way entail as a consequence the maintenance of Instrumentalities. - These duties of the State shall extend
unequal or separate standards. They shall be to all state agencies, offices, and instrumentalities at all
discontinued when their objectives have been achieved. levels and government-owned and -controlled
(k) "Violence Against Women" refers to any act of corporations, subject to the Constitution and pertinent
gender-based violence that results in, or is likely to result laws, policies, or administrative guidelines that define
in, physical, sexual, or psychological harm or suffering to specific duties of state agencies and entities concerned.
women, including threats of such acts, coercion, or Section 7. Suppletory Effect. - This chapter shall be
arbitrary deprivation of liberty, whether occurring in deemed integrated into and be suppletory to other
public or in private life. It shall be understood to provisions of this Act, particularly those that guarantee
encompass, but not limited to, the following: specific rights to women and define specific roles and
(1) Physical, sexual, psychological, and economic violence require specific conduct of state organs.
occurring in the family, including battering, sexual abuse
of female children in the household, dowry-related CHAPTER IV RIGHTS AND EMPOWERMENT
violence, marital rape, and other traditional practices Section 8. Human Rights of Women. - All rights in the
harmful to women, non-spousal violence, and violence Constitution and those rights recognized under
related to exploitation; international instruments duly signed and ratified by the
(2) Physical, sexual, and psychological violence occurring Philippines, in consonance with Philippine law, shall be
within the general community, including rape, sexual rights of women under this Act to be enjoyed without
abuse, sexual harassment, and intimidation at work, in discrimination.
educational institutions and elsewhere, trafficking in Section 9. Protection from Violence. - The State shall
women, and prostitution; and ensure that all women shall be protected from all forms
(3) Physical, sexual, and psychological violence of violence as provided for in existing laws. Agencies of
perpetrated or condoned by the State, wherever it occurs. government shall give priority to the defense and
It also includes acts of violence against women as protection of women against gender-based offenses and
defused in Republic Acts No. 9208 and 9262. help women attain justice and healing.


Towards this end, measures to prosecute and reform international level and to participate in the work of
offenders shall likewise be pursued. international organizations;
(a) Within the next five (5) years, there shall be an (e) Integration of Women in Political Parties. - The State
incremental increase in the recruitment and training of shall provide incentives to political parties with women's
women in the police force, forensics and medico-legal, agenda. It shall likewise encourage the integration of
legal services, and social work services availed of by women in their leadership hierarchy, internal
women who are victims of gender-related offenses until policy-making structures, appointive, and electoral
fifty percent (50%) of the personnel thereof shall be nominating processes; and
women. (f) Private Sector. - The State shall take measures to
(b) Women shall have the right to protection and security encourage women leadership in the private sector in the
in situations of armed conflict and militarization. Towards form of incentives.
this end, they shall be protected from all forms of Section 12. Equal Treatment Before the Law. - The State
gender-based violence, particularly rape and other forms shall take steps to review and, when necessary, amend
of sexual abuse, and all forms of violence in situations of and/or repeal existing laws that are discriminatory to
armed conflict. The State shall observe international women within three (3) years from the effectivity of this
standards for the protection of civilian population in Act.
circumstances of emergency and armed conflict. It shall
not force women, especially indigenous peoples, to Section 13. Equal Access and Elimination of
abandon their lands, territories, and means of Discrimination in Education, Scholarships, and
subsistence, or relocate them in special centers for Training. - (a) The State shall ensure that gender
military purposes under any discriminatory condition. stereotypes and images in educational materials and
curricula are adequately and appropriately revised.
(c) All government personnel involved in the protection Gender-sensitive language shall be used at all times.
and defense of women against gender-based violence Capacity-building on gender and development (GAD),
shall undergo a mandatory training on human rights and peace and human rights, education for teachers, and all
gender sensitivity pursuant to this Act. those involved in the education sector shall be pursued
(d) All local government units shall establish a Violence toward this end. Partnerships between and among
Against Women's Desk in every barangay to ensure that players of the education sector, including the private
violence against women cases are fully addressed in a sector, churches, and faith groups shall be encouraged.
gender-responsive manner. (b) Enrollment of women in nontraditional skills training
Section 10. Women Affected by Disasters, Calamities, in vocational and tertiary levels shall be encouraged.
and Other Crisis Situations. - Women have the right to (c) Expulsion and non-readmission of women faculty due
protection and security in times of disasters, calamities, to pregnant;- outside of marriage shall be outlawed. No
and other crisis situations especially in all phases of relief, school shall turn out or refuse admission to a female
recovery, rehabilitation, and construction efforts. The student solely on the account of her having contracted
State shall provide for immediate humanitarian pregnancy outside of marriage during her term in school.
assistance, allocation of resources, and early resettlement,
if necessary. It shall also address the particular needs of Section 14. Women in Sports. - The State shall develop,
women from a gender perspective to ensure their full establish, and strengthen programs for the participation
protection from sexual exploitation and other sexual and of women and girl-children in competitive and
gender- based violence committed against them. noncompetitive sports as a means to achieve excellence,
Responses to disaster situations shall include the promote physical and social well-being, eliminate
provision of services, such as psychosocial support, gender-role stereotyping, and provide equal access to the
livelihood support, education, psychological health, and full benefits of development for all persons regardless of
comprehensive health services, including protection sex, gender identity, and other similar factors.
during pregnancy. For this purpose, all sports-related organizations shall
Section 11. Participation and Representation. - The create guidelines that will establish and integrate
State shall undertake temporary special measures to affirmative action as a strategy and gender equality as a
accelerate the participation and equitable representation framework in planning and implementing their policies,
of women in all spheres of society particularly in the budgets, programs, and activities relating to the
decision-making and policy-making processes in participation of women and girls in sports.
government and private entities to fully realize their role The State will also provide material and nonmaterial
as agents and beneficiaries of development. incentives to local government units, media
The State shall institute the following affirmative action organizations, and the private sector for promoting,
mechanisms so that women can participate meaningfully training, and preparing women and girls for participation
in the formulation, implementation, and evaluation of in competitive and noncompetitive sports, especially in
policies, plans, and programs for national, regional, and local and international events, including, but not limited
local development: to, the Palarong Pambansa, Southeast Asian Games,
Asian Games, and the Olympics.
(a) Empowerment within the Civil Service. - Within the
next five (5) years, the number of women in third (3rd) No sports event or tournament will offer or award a
level positions in government shall be incrementally different sports prize, with respect to its amount or value,
increased to achieve a fifty-fifty (50-50) gender balance; to women and men winners in the same sports category:
Provided, That the said tournament, contest, race, match,
(b) Development Councils and Planning Bodies. - To event, or game is open to both sexes: Provided, further,
ensure the participation of women in all levels of That the sports event or tournament is divided into male
development planning and program implementation, at or female divisions.
least forty percent (40%) of membership of all
development councils from the regional, provincial, city, The State shall also ensure the safety and well-being of all
municipal and barangay levels shall be composed of women and girls participating in sports, especially, but
women; not limited to, trainees, reserve members, members,
coaches, and mentors of national sports teams, whether
(c) Other Policy and Decision-Making Bodies. - Women's in studying, training, or performance phases, by providing
groups shall also be represented in international, national, them comprehensive health and medical insurance
and local special and decision-making bodies; coverage, as well as integrated medical, nutritional, and
(d) International Bodies. - The State shall take all healthcare services.
appropriate measures to ensure the opportunity of Schools, colleges, universities, or any other learning
women, on equal terms with men and without any institution shall take into account its total women student
discrimination, to represent their governments at the



population in granting athletic scholarship. There shall be (3) Responsible, ethical, legal, safe, and effective methods

a pro rata representation of women in the athletic of family planning;
scholarship program based on the percentage of women (4) Family and State collaboration in youth sexuality
in the whole student population. education and health services without prejudice to the
Section 15. Women in the Military. - The State shall primary right and duty of parents to educate their
pursue appropriate measures to eliminate discrimination children;
of women in the military, police, and other similar (5) Prevention and management of reproductive tract
services, including revising or abolishing policies and infections, including sexually transmitted diseases, HIV,
practices that restrict women from availing of both and AIDS;
combat and noncombat training that are open to men, or
from taking on functions other than administrative tasks, (6) Prevention and management of reproductive tract
such as engaging in combat, security-related, or field cancers like breast and cervical cancers, and other
operations. Women in the military shall be accorded the gynecological conditions and disorders;
same promotional privileges and opportunities as men, (7) Prevention of abortion and management of
including pay increases, additional remunerations and pregnancy-related complications;
benefits, and awards based on their competency and
quality of performance. Towards this end, the State shall (8) In cases of violence against women and children,
ensure that the personal dignity of women shall always women and children victims and survivors shall be
be respected. provided with comprehensive health services that include
psychosocial, therapeutic, medical, and legal
Women in the military, police, and other similar services interventions and assistance towards healing, recovery,
shall be provided with the same right to employment as and empowerment;
men on equal conditions. Equally, they shall be accorded
the same capacity as men to act in and enter into (9) Prevention and management of infertility and sexual
contracts, including marriage. dysfunction pursuant to ethical norms and medical
standards;
Further, women in the military, police; and other similar
services shall be entitled to leave benefits such as (10) Care of the elderly women beyond their child-bearing
maternity leave, as provided for by existing laws. years; and
Section 16. Nondiscriminatory and Nonderogatory (11) Management, treatment, and intervention of mental
Portrayal of Women in Media and Film. - The State shall health problems of women and girls. In addition, healthy
formulate policies and programs for the advancement of lifestyle activities are encouraged and promoted through
women in collaboration with government and programs and projects as strategies in the prevention of
nongovernment media-related organizations. It shall diseases.
likewise endeavor to raise the consciousness of the (b) Comprehensive Health Information and Education. -
general public in recognizing the dignity of women and The State shall provide women in all sectors with
the role and contribution of women in the family; appropriate, timely, complete, and accurate information
community, and the society through the strategic use of and education on all the above-stated aspects of
mass media. women's health in government education and training
For this purpose, the State shall ensure allocation of programs, with due regard to the following:
space; airtime, and resources, strengthen programming, (1) The natural and primary right and duty of parents in
production, and image-making that appropriately the rearing of the youth and the development of moral
present women's needs, issues, and concerns in all forms character and the right of children to be brought up in an
of media, communication, information dissemination, atmosphere of morality and rectitude for the enrichment
and advertising. and strengthening of character;
The State, in cooperation with all schools of journalism, (2) The formation of a person's sexuality that affirms
information, and communication, as well as the national human dignity; and
media federations and associations, shall require all
media organizations and corporations to integrate into (3) Ethical, legal, safe, and effective family planning
their human resource development components regular methods including fertility awareness.
training on gender equality and gender-based Section 18. Special Leave Benefits for Women. - A
discrimination, create and use gender equality guidelines woman employee having rendered continuous
in all aspects of management, training, production, aggregate employment service of at least six (6) months
information, dissemination, communication, and for the last twelve (12) months shall be entitled to a
programming; and convene a gender equality committee special leave benefit of two (2) months with full pay based
that will promote gender mainstreaming as a framework on her gross monthly compensation following surgery
and affirmative action as a strategy, and monitor and caused by gynecological disorders.
evaluate the implementation of gender equality Section 19. Equal Rights in All Matters Relating to
guidelines. Marriage and Family Relations. - The State shall take all
Section 17. Women's Right to Health. - (a) appropriate measures to eliminate discrimination against
Comprehensive Health Services. - The State shall, at all women in all matters relating to marriage and family
times, provide for a comprehensive, culture-sensitive, and relations and shall ensure:
gender-responsive health services and programs (a) the same rights to enter into and leave marriages or
covering all stages of a woman's life cycle and which common law relationships referred to under the Family
addresses the major causes of women's mortality and Code without prejudice to personal or religious beliefs;
morbidity: Provided, That in the provision for
comprehensive health services, due respect shall be (b) the same rights to choose freely a spouse and to enter
accorded to women's religious convictions, the rights of into marriage only with their free and full consent. The
the spouses to found a family in accordance with their betrothal and the marriage of a child shall have no legal
religious convictions, and the demands of responsible effect;
parenthood, and the right of women to protection from (c) the joint decision on the number and spacing of their
hazardous drugs, devices, interventions, and substances. children and to have access to the information, education
Access to the following services shall be ensured: and means to enable them to exercise these rights;
(1) Maternal care to include pre- and post-natal services to (d) the same personal rights between spouses or
address pregnancy and infant health and nutrition; common law spouses including the right to choose freely
a profession and an occupation;
(2) Promotion of breastfeeding;


(e) the same rights for both spouses or common law (4) Information and assistance in claiming rights to the
spouses in respect of the ownership, acquisition, land shall be made available to women at all times;
management, administration, enjoyment, and disposition (5) Equal rights to women to the enjoyment, use, and
of property; management of land, water, and other natural resources
(f) the same rights to properties and resources, whether within their communities or ancestral domains;
titled or not, and inheritance, whether formal or (6) Equal access to the use and management of fisheries
customary; and and aquatic resources, and all the rights and benefits
(g) women shall have equal rights with men to acquire, accruing to stakeholders in the fishing industry;
change, or retain their nationality. The State shall ensure (7) Equal status shall be given to women and men in the
in particular that neither marriage to an alien nor change issuance of stewardship or lease agreements and other
of nationality by the husband during marriage shall fishery rights that may be granted for the use and
automatically change the nationality of the wife, render management of coastal and aquatic resources. In the
her stateless or force upon her the nationality of the same manner, women's organizations shall be given
husband. Various statutes of other countries concerning equal treatment as with other marginalized fishers
dual citizenship that may be enjoyed equally by women organizations in the issuance of stewardship or lease
and men shall likewise be considered. agreements or other fishery rights for the use and
Customary laws shall be respected: Provided, however, management of such coastal and aquatic resources
That they do not discriminate against women. which may include providing support to
women-engaged coastal resources;
CHAPTER V RIGHTS AND EMPOWERMENT OF (8) There shall be no discrimination against women in the
MARGINALIZED SECTORS deputization of fish wardens;
Women in marginalized sectors are hereby guaranteed (9) Women-friendly and sustainable agriculture
all civil, political, social, and economic rights recognized, technology shall be designed based on accessibility and
promoted, and protected under existing laws including, viability in consultation with women's organizations;
but not limited to, the Indigenous Peoples Rights Act, the
Urban Development and Housing Act, the (10) Access to small farmer-based and controlled seeds
Comprehensive Agrarian Reform Law, the Fisheries Code, production and distribution shall be ensured and
the Labor Code, the Migrant Workers Act, the Solo protected;
Parents Welfare Act, and the Social Reform and Poverty (11) Indigenous practices of women in seed storage and
Alleviation Act. cultivation shall be recognized, encouraged, and
Section 20. Food Security and Productive Resources. - protected;
The State recognizes the contribution of women to food (12) Equal rights shall be given to women to be members
production and shall ensure its sustainability and of farmers' organizations to ensure wider access to and
sufficiency with the active participation of women. control of the means of production;
Towards this end, the State shall guarantee, at all times,
(13) Provide opportunities for empowering women fishers
the availability in the market of safe and health-giving
to be involved in the control and management, not only
food to satisfy the dietary needs of the population, giving
of the catch and production of aquamarine resources but
particular attention to the specific needs of poor
also, to engage in entrepreneurial activities which will
girl-children and marginalized women, especially
add value to production and marketing ventures; and
pregnant and lactating mothers and their young
children. To further address this, the State shall ensure: (14) Provide economic opportunities for the indigenous
women. particularly access to market for their produce.
(a) Right to Food. - The State shall guarantee the
availability of food in quantity and quality sufficient to In the enforcement of the foregoing, the requirements of
satisfy the dietary needs of individuals, the physical and law shall be observed at all times.
economic accessibility for everyone to adequate food that Section 21. Right to Housing. - The State shall develop
is culturally acceptable and free from unsafe substances housing programs for women that are localized, simple,
and culturally accepted, and the accurate and substantial accessible, with potable water, and electricity, secure,
information to the availability of food, including the right with viable employment opportunities and affordable
to full, accurate, and truthful information about safe and amortization. In this regard, the State shall consult
health-giving foods and how to produce and have regular women and involve them in community planning and
and easy access to them; development, especially in matters pertaining to land use,
(b) Right to Resources for Food Production. - The State zoning, and relocation.
shall guarantee women a vital role in food production by Section 22. Right to Decent Work. - The State shall
giving priority to their rights to land, credit, and progressively realize and ensure decent work standards
infrastructure support, technical training, and for women that involve the creation of jobs of acceptable
technological and marketing assistance. The State shall quality in conditions of freedom, equity, security, and
promote women-friendly technology as a high priority human dignity.
activity in agriculture and shall promote the right to
adequate food by proactively engaging in activities (a) Decent work involves opportunities for work that are
intended to strengthen access to, utilization of, and productive and fairly remunerative as family living wage,
receipt of accurate and substantial information on security in the workplace, and social protection for
resources and means to ensure women's livelihood, families, better prospects for personal development and
including food security: social integration, freedom for people to express their
concerns organize, participate in the decisions that affect
(1) Equal status shall be given to women and men, their lives, and equality of opportunity and treatment for
whether married or not, in the titling of the land and all women and men.
issuance of stewardship contracts and patents;
(b) The State shall further ensure:
(2) Equal treatment shall be given to women and men
beneficiaries of the agrarian reform program, wherein the (1) Support services and gears to protect them from
vested right of a woman agrarian reform beneficiary is occupational and health hazards taking into account
defined by a woman's relationship to tillage, i.e., her direct women's maternal functions;
and indirect contribution to the development of the land; (2) Support services that will enable women to balance
(3) Customary rights of women to the land, including their family obligations and work responsibilities
access to and control of the fruits and benefits, shall be including, but not limited to, the establishment of day
recognized in circumstances where private ownership is care centers and breast-feeding stations at the
not possible, such as ancestral domain claims:


workplace, and providing maternity leave pursuant to the (c) The State shall endeavor to reduce and eventually
Labor Code and other pertinent laws; eliminate transfer costs of remittances from abroad
(3) Membership in unions regardless of status of through appropriate bilateral and multilateral
employment and place of employment; and agreements. It shall likewise provide access to investment
opportunities for remittances in line with national
(4) Respect for the observance of indigenous peoples' development efforts.
cultural practices even in the workplace.
(d) The State shall establish a health insurance program
(c) In recognition of the temporary nature of overseas for senior citizens and indigents.
work, the State shall exert all efforts to address the causes
of out-migration by developing local employment and (e) The State shall support women with disabilities on a
other economic opportunities for women and by community-based social protection scheme.
introducing measures to curb violence and forced and Section 28. Recognition and Preservation of Cultural
involuntary displacement of local women. The State shall Identity and Integrity. - The State shall recognize and
ensure the protection and promotion of the rights and respect the rights of Moro and indigenous women to
welfare of migrant women regardless of their work status, practice, promote, protect, and preserve their own
and protect them against discrimination in wages, culture, traditions, and institutions and to consider these
conditions of work, and employment opportunities in rights in the formulation and implementation of national
host countries. policies and programs. To this end, the State shall adopt
Section 23. Right to Livelihood, Credit, Capital, and measures in consultation with the sectors concerned to
Technology. - The State shall ensure that women are protect their rights to their indigenous knowledge
provided with the following: systems and practices, traditional livelihood, and other
manifestations of their cultures and ways of life: Provided,
(a) Equal access to formal sources of credit and capital; That these cultural systems and practices are not
(b) Equal share to the produce of farms and aquatic discriminatory to women.
resources; and Section 29. Peace and Development. - The peace
(c) Employment opportunities for returning women process shall be pursued with the following
migrant workers taking into account their skills and considerations:
qualifications. Corollarily, the State shall also promote (a) Increase the number of women participating in
skills and entrepreneurship development of returning discussions and decision-making in the peace process,
women migrant workers. including membership in peace panels recognizing
Section 24. Right to Education and Training. - The State women's role in conflict- prevention and peace-making
shall ensure the following: and in indigenous system of conflict resolution;
(a) Women migrant workers have the opportunity to (b) Ensure the development and inclusion of women's
undergo skills training, if they so desire, before taking on welfare and concerns in the peace agenda in the overall
a foreign job, and possible retraining upon return to the peace strategy and women's participation in the
country: planning, implementation, monitoring, and evaluation of
rehabilitation and rebuilding of conflict-affected areas;
(b) Gender-sensitive training and seminars; and
(c) The institution of measures to ensure the protection of
(c) Equal opportunities in scholarships based on merit civilians in conflict-affected communities with special
and fitness, especially to those interested in research and consideration for the specific needs of women and girls:
development aimed towards women-friendly farm
technology. (d) Include the peace perspective in the education
curriculum and other educational undertakings; and
Section 25. Right to Representation and Participation.
- The State shall ensure women's participation in (e) The recognition and support for women's role in
policy-making or decision-making bodies in the regional, conflict-prevention, management, resolution and
national, and international levels. It shall also ensure the peacemaking, and in indigenous systems of conflict
participation of grassroots women leaders in decision and resolution.
policy-making bodies in their respective sectors Section 30. Women in Especially Difficult
including, but not limited to, the Presidential Agrarian Circumstances. - For purposes of this Act, "Women in
Reform Council (PARC) and its local counterparts; Especially Difficult Circumstances" (WEDC) shall refer to
community-based resource management bodies or victims and survivors of sexual and physical abuse, illegal
mechanisms on forest management and stewardship; recruitment, prostitution, trafficking, armed conflict,
the National Fisheries and Aquatic Resources women in detention, victims and survivors of rape and
Management Council (NFARMC) and its local incest, and such other related circumstances which have
counterparts; the National Commission on Indigenous incapacitated them functionally. Local government units
Peoples; the Presidential Commission for the Urban Poor; are therefore mandated to deliver the necessary services
the National Anti-Poverty Commission; and, where and interventions to WEDC under their respective
applicable, the local housing boards. jurisdictions.
Section 26. Right to Information. - Access to information Section 31. Services and Interventions. - WEDC shall be
regarding policies on women, including programs, provided with services and interventions as necessary
projects, and funding outlays that affect them, shall be such as, but not limited to, the following:
ensured.
(a) Temporary and protective custody;
Section 27. Social Protection. -
(b) Medical and dental services;
(a) The Social Security System (SSS) and the Philippine
Health Insurance Corporation (PhilHealth) shall support (c) Psychological evaluation;
indigenous and community-based social protection (d) Counseling;
schemes. (e) Psychiatric evaluation;
(b) The State shall institute policies and programs that (f) Legal services;
seek to reduce the poverty and vulnerability to risks and
enhance the social status and rights of the marginalized (g) Productivity skills capability building;
women by promoting and protecting livelihood and (h) Livelihood assistance;
employment, protecting against hazards and sudden;
loss of income, and improving people's capacity to (i) Job placement;
manage risks. (j) Financial assistance: and
(k) Transportation assistance.


Section 32. Protection of Girl-Children. - (a) The State agencies receiving official development assistance
shall pursue measures to eliminate all forms of should ensure the allocation and proper utilization of
discrimination against girl-children in education, health such funds to gender-responsive programs that
and nutrition, and skills development. complement the government GAD funds and annually
(b) Girl-children shall be protected from all forms of abuse report accomplishments thereof to the National
and exploitation. Economic and Development Authority (NEDA) and the
Philippine Commission on Women (PCW).
(c) Equal access of Moro and indigenous girl-children in
the Madaris, schools of living culture and traditions, and The utilization and outcome of the GAD budget shall be
the regular schools shall be ensured. annually monitored and evaluated in terms of its success
in influencing the gender-responsive implementation of
(d) Gender-sensitive curriculum, including legal literacy, agency programs funded by the remaining ninety-five
books, and curriculum in the Madaris and schools of percent (95%) budget.
living culture and traditions shall be developed.
The Commission on Audit (COA) shall conduct an annual
(e) Sensitivity of regular schools to particular Moro and audit on the use of the GAD budget for the purpose of
indigenous practices, such as fasting in the month of determining its judicious use and the efficiency, and
Ramadan, choice of clothing (including the wearing of effectiveness of interventions in addressing gender issues
hijab), and availability of halal food shall be ensured. towards the realization of the objectives of the country's
Section 33. Protection of Senior Citizens. - The State commitments, plans, and policies on women
shall protect women senior citizens from neglect, empowerment, gender equality, and GAD.
abandonment, domestic violence, abuse, exploitation, Local government units are also encouraged to develop
and discrimination. Towards this end, the State shall and pass a GAD Code based on the gender issues and
ensure special protective mechanisms and support concerns in their respective localities based on
services against violence, sexual abuse, exploitation, and consultation with their women constituents and the
discrimination of older women. women's empowerment and gender equality agenda of
Section 34. Women are entitled to the recognition and the government. The GAD Code shall also serve as basis
protection of their rights defined and guaranteed under for identifying programs, activities, and projects on GAD.
this Act including their right to nondiscrimination. Where needed, temporary gender equity measures shall
Section 35. Discrimination Against Women is be provided for in the plans of all departments, including
Prohibited. - Public and private entities and individuals their attached agencies, offices, bureaus, state
found to have committed discrimination against women universities and colleges, government-owned and
shall be subject to the sanctions provided in Section 41 -controlled corporations, local government units, and
hereof. Violations of other rights of women shall be other government instrumentalities.
subject to sanctions under pertinent laws and To move towards a more sustainable, gender-responsive,
regulations. and performance-based planning and budgeting, gender
issues and concerns shall be integrated in, among others,
CHAPTER VI INSTITUTIONAL MECHANISMS the following plans:
Section 36. Gender Mainstreaming as a Strategy for (1) Macro socioeconomic plans such as the Medium-Term
Implementing the Magna Carta of Women. - Within a Philippine Development Plan and Medium-Term
period prescribed in the implementing rules and Philippine Investment Plan;
regulations, the National Commission on the Role of
(2) Annual plans of all departments, including their
Filipino Women (NCRFW) shall assess its gender
attached agencies, offices, bureaus, state universities and
mainstreaming program for consistency with the
colleges, and government-owned and -controlled
standards under this Act. It shall modify the program
corporations; and
accordingly to ensure that it will be an effective strategy
for implementing this Act and attaining its objectives. (3) Local plans and agenda such as executive-legislative
agenda, comprehensive development plan (CDP),
All departments, including their attached agencies,
comprehensive land use plan (CLUP), provincial
offices, bureaus, state universities and colleges,
development and physical framework plan (PDPFP), and
government-owned and -controlled corporations, local
annual investment plan.
government units, and other government
instrumentalities shall adopt gender mainstreaming as a (b) Creation and/or Strengthening of the GAD Focal
strategy to promote women's human rights and Points (GFP). All departments, including their attached
eliminate gender discrimination in their systems, agencies, offices, bureaus, state universities and colleges,
structures, policies, programs, processes, and procedures government- owned and -controlled corporations, local
which shall include, but not limited to, the following: government units, and other government
instrumentalities shall establish or strengthen their GAD
(a) Planning, budgeting, monitoring and evaluation for
Focal Point System or similar GAD mechanism to catalyze
GAD. GAD programs addressing gender issues and
and accelerate gender mainstreaming within the agency
concerns shall be designed and implemented based on
or local government unit.
the mandate of government agencies and local
government units, Republic Act No. 7192, gender equality The GAD Focal Point System shall be composed of the
agenda of the government and other GAD-related agency head or local chief executive, an executive
legislation, policies, and commitments. The development committee with an Undersecretary (or its equivalent),
of GAD programs shall proceed from the conduct of a local government unit official, or office in a strategic
gender audit of the agency or the local government unit decision-making position as Chair; and a technical
and a gender analysis of its policies, programs, services working group or secretariat which is composed of
and the situation of its clientele; the generation and representatives from various divisions or offices within
review of sex-disaggregated data; and consultation with the agency or local government unit.
gender/women's rights advocates and agency/women The tasks and functions of the members of the GFP shall
clientele. The cost of implementing GAD programs shall form part of their regular key result areas and shall be
be the agency's or the local government unit's GAD given due consideration in their performance evaluation.
budget which shall be at least five percent (5%) of the
agency's or the local government unit's total budget (c) Generation and Maintenance of GAD Database. All
appropriations. departments, including their attached agencies, offices,
bureaus, state universities and colleges,
Pursuant to Republic Act No. 7192, otherwise known as government-owned and - controlled corporations, local
the Women in Development and Nation Building Act, government units, and other government
which allocates five percent (5%) to thirty percent (30%) of instrumentalities shall develop and maintain a GAD
overseas development assistance to GAD, government



database containing gender statistics and recommend amendments to improve its provisions:
sexdisaggregated data that have been systematically Provided, finally, That these reports shall be submitted to
gathered, regularly updated; and subjected to; gender Congress every three (3) years or as determined in the
analysis for planning, programming, and policy implementing rules and regulations.
formulation. Section 41. Penalties. - Upon finding of the CHR that a
Section 37. Gender Focal Point Officer in Philippine department, agency, or instrumentality of government,
Embassies and Consulates. - An officer duly trained on government-owned and -controlled corporation, or local
GAD shall be designated as the gender focal point in the government unit has violated any provision of this Act
consular section of Philippine embassies or consulates. and its implementing rules and regulations, the sanctions
Said officer shall be primarily responsible in handling under administrative law, civil service, or other
gender concerns of women migrant workers. Attached appropriate laws shall be recommended to the Civil
agencies shall cooperate in strengthening the Philippine Service Commission and/or the Department of the
foreign posts' programs for the delivery of services to Interior and Local Government. The person directly
women migrant workers. responsible for the violation as well as the head of the
Section 38. National Commission on the Role of agency or local chief executive shall be held liable under
Filipino Women (NCRFW). - The National Commission on this Act.
the Role of Filipino Women (NCRFW) shall be renamed as If the violation is committed by a private entity or
the Philippine Commission on Women (PCW), the individual, the person directly responsible for the violation
primary policymaking and coordinating body of the shall be liable to pay damages.
women and gender equality concerns under the Office of Filing a complaint under this Act shall not preclude the
the President. The PCW shall be the overall monitoring offended party from pursuing other remedies available
body and oversight to ensure the implementation of this under the law and to invoke any of the provisions of
Act. In doing so, the PCW may direct any government existing laws especially those recently enacted laws
agency and instrumentality, as may be necessary, to protecting women and children, including the Women in
report on the implementation of this Act and for them to Development and Nation Building Act (Republic Act No.
immediately respond to the problems brought to their 7192), the Special Protection of Children Against Child
attention in relation to this Act. The PCW shall also lead in Abuse, Exploitation and Discrimination Act (Republic Act
ensuring that government agencies are capacitated on No. 7610), the Anti-Sexual Harassment Act of 1995
the effective implementation of this Act. The chairperson (Republic Act No. 7877), the Anti-Rape Law of 1997
shall likewise report to the President in Cabinet meetings (Republic Act No. 8353), the Rape Victim Assistance and
on the implementation of this Act. Protection Act of 1998 (Republic Act No. 8505), the
To the extent possible, the PCW shall influence the Anti-Trafficking in Persons Act of 2003 (Republic Act No.
systems, processes, and procedures of the executive, 9208) and the Anti- Violence Against Women and Their
legislative, and judicial branches of government vis-a-vis Children Act of 2004 (Republic Act No. 9262). If violence
GAD to ensure the implementation of this Act. has been proven to be perpetrated by agents of the State
To effectively and efficiently undertake and accomplish including, but not limited to, extrajudicial killings,
its functions, the PCW shall revise its structure and enforced disappearances, torture, and internal
staffing pattern with the assistance of the Department of displacements, such shall be considered aggravating
Budget and Management. offenses with corresponding penalties depending on the
severity of the offenses.
Section 39. Commission on Human Rights (CHR). - The
Commission, acting as the Gender and Development Section 42. Incentives and Awards. - There shall be
Ombud, consistent with its mandate, shall undertake established an incentives and awards system which shall
measures such as the following: be administered by a board under such rules and
regulations as may be promulgated by the PCW to
(a) Monitor with the PCW and other state agencies, deserving entities, government agencies, and local
among others, in developing indicators and guidelines to government units for their outstanding performance in
comply with their duties related to the human rights of upholding the rights of women and effective
women, including their right to nondiscrimination implementation of gender-responsive programs.
guaranteed under this Act;
Section 43. Funding. - The initial funding requirements
(b) Designate one (1) commissioner and/or its Women's for the implementation of this Act shall be charged
Human Rights Center to be primarily responsible for against the current appropriations of the agencies
formulating and implementing programs and activities concerned. Thereafter, such sums as may be necessary
related to the promotion and protection of the human for the implementation of this Act shall be included in the
rights of women, including the investigations and agencies' yearly budgets under the General
complaints of discrimination and violations of their rights Appropriations Act.
brought under this Act and related laws and regulations;
The State shall prioritize allocation of all available
(c) Establish guidelines and mechanisms, among others, resources to effectively fulfill its obligations specified
that will facilitate access of women to legal remedies under this Act. The State agencies' GAD budgets, which
under this Act and related laws, and enhance the shall be at least five percent (5%) of their total budgetary
protection and promotion of the rights of women, allocation, shall also be utilized for the programs and
especially marginalized women; activities to implement this Act.
(d) Assist in the filing of cases against individuals, Section 44. Implementing Rules and Regulations. - As
agencies, institutions, or establishments that violate the the lead agency, the PCW shall, in coordination with the
provisions of this Act; and Commission on Human Rights and all concerned
(e) Recommend to the President of the Philippines or the government departments and agencies including, as
Civil Service Commission any possible administrative observers, both Houses of Congress through the
action based on noncompliance or failure to implement Committee on Youth, Women and Family Relations
the provisions of this Act. (Senate) and the Committee on Women and Gender
Equality (House of Representatives) and with the
Section 40. Monitoring Progress and Implementation participation of representatives from nongovernment
and Impact of this Act. - The PCW, in coordination with organizations (NGOs) and civil society groups with proven
other state agencies and the CHR, shall submit to track record of involvement and promotion of the rights
Congress regular reports on the progress of the and welfare of Filipino women and girls identified by the
implementation of this Act highlighting the impact PCW, formulate the implementing rules and regulations
thereof on the status and human rights of women: (IRR) of this Act within one hundred eighty (180) days
Provided, That the second report shall include an after its effectivity.
assessment of the effectiveness of this Act and



Section 45. Separability Clause. - If any provision or part (8) Unmarried mother/father who has preferred to keep
hereof is held invalid or unconstitutional, the remainder and rear her/his child/children instead of having others
of the law or the provisions not otherwise affected shall care for them or give them up to a welfare institution;
remain valid and subsisting. (9) Any other person who solely provides parental care
Section 46. Repealing Clause. - Any law, presidential and support to a child or children;
decree or issuance, executive order, letter of instruction, (10) Any family member who assumes the responsibility
administrative order, rule, or regulation contrary to, or of head of family as a result of the death, abandonment,
inconsistent with, the provisions of this Act is hereby disappearance or prolonged absence of the parents or
repealed, modified, or amended accordingly. solo parent.
Section 47. Effectivity Clause. - This Act shall take effect A change in the status or circumstance of the parent
fifteen (15) days after its publication in at least two (2) claiming benefits under this Act, such that he/she is no
newspapers of general circulation. longer left alone with the responsibility of parenthood,
shall terminate his/her eligibility for these benefits.
RA No 8972 | Solo Parents’ Welfare Act (b) "Children" - refer to those living with and dependent
upon the solo parent for support who are unmarried,
of 2000 unemployed and not more than eighteen (18) years of
age, or even over eighteen (18) years but are incapable of

self-support because of mental and/or physical
defect/disability.
Rules and Regulations Implementing the Solo Parents'
Welfare Act of 2000 (c) "Parental responsibility" - with respect to their minor

children shall refer to the rights and duties of the parents
AN ACT PROVIDING FOR BENEFITS AND PRIVILEGES as defined in Article 220 of Executive Order No. 209, as
TO SOLO PARENTS AND THEIR CHILDREN, amended, otherwise known as the "Family Code of the
APPROPRIATING FUNDS THEREFOR AND FOR OTHER Philippines."
PURPOSES (d) "Parental leave" - shall mean leave benefits granted to
Be it enacted by the Senate and House of a solo parent to enable him/her to perform parental
Representatives of the Philippines Congress assembled: duties and responsibilities where physical presence is
required.
Section 1. Title. - This Act shall be known as the "Solo
Parents' Welfare Act of 2000." (e) "Flexible work schedule" - is the right granted to a solo
parent employee to vary his/her arrival and departure
Section 2. Declaration of Policy. - It is the policy of the time without affecting the core work hours as defined by
State to promote the family as the foundation of the the employer.
nation, strengthen its solidarity and ensure its total
development. Towards this end, it shall develop a Section 4. Criteria for Support. - Any solo parent whose
comprehensive program of services for solo parents and income in the place of domicile falls below the poverty
their children to be carried out by the Department of threshold as set by the National Economic and
Social Welfare and Development (DSWD), the Development Authority (NEDA) and subject to the
Department of Health (DOH), the Department of assessment of the DSWD worker in the area shall be
Education, Culture and Sports (DECS), the Department of eligible for assistance: Provided, however, That any solo
the Interior and Local Government (DILG), the parent whose income is above the poverty threshold shall
Commission on Higher Education (CHED), the Technical enjoy the benefits mentioned in Sections 6, 7 and 8 of
Education and Skills Development Authority (TESDA), the this Act.
National Housing Authority (NHA), the Department of Section 5. Comprehensive Package of Social
Labor and Employment (DOLE) and other related Development and Welfare Services. - A comprehensive
government and nongovernment agencies. package of social development and welfare services for
Section 3. Definition of Terms. - Whenever used in this solo parents and their families will be developed by the
Act, the following terms shall mean as follows: DSWD, DOH, DECS, CHED, TESDA, DOLE, NHA and DILG,
in coordination with local government units and a
(a) "Solo parent" - any individual who falls under any of nongovernmental organization with proven track record
the following categories: in providing services for solo parents.
(1) A woman who gives birth as a result of rape and other The DSWD shall coordinate with concerned agencies the
crimes against chastity even without a final conviction of implementation of the comprehensive package of social
the offender: Provided, That the mother keeps and raises development and welfare services for solo parents and
the child; their families. The package will initially include:
(2) Parent left solo or alone with the responsibility of (a) Livelihood development services which include
parenthood due to death of spouse; trainings on livelihood skills, basic business management,
(3) Parent left solo or alone with the responsibility of value orientation and the provision of seed capital or job
parenthood while the spouse is detained or is serving placement.
sentence for a criminal conviction for at least one (1) year; (b) Counseling services which include individual, peer
(4) Parent left solo or alone with the responsibility of group or family counseling. This will focus on the
parenthood due to physical and/or mental incapacity of resolution of personal relationship and role conflicts.
spouse as certified by a public medical practitioner; (c) Parent effectiveness services which include the
(5) Parent left solo or alone with the responsibility of provision and expansion of knowledge and skills of the
parenthood due to legal separation or de facto separation solo parent on early childhood development, behavior
from spouse for at least one (1) year, as long as he/she is management, health care, rights and duties of parents
entrusted with the custody of the children; and children.
(6) Parent left solo or alone with the responsibility of (d) Critical incidence stress debriefing which includes
parenthood due to declaration of nullity or annulment of preventive stress management strategy designed to
marriage as decreed by a court or by a church as long as assist solo parents in coping with crisis situations and
he/she is entrusted with the custody of the children; cases of abuse.
(7) Parent left solo or alone with the responsibility of (e) Special projects for individuals in need of protection
parenthood due to abandonment of spouse for at least which include temporary shelter, counseling, legal
one (1) year; assistance, medical care, self-concept or ego-building,
crisis management and spiritual enrichment.


Section 6. Flexible Work Schedule. - The employer shall inconsistent with the provisions of this Act are hereby
provide for a flexible working schedule for solo parents: repealed, amended or modified accordingly.
Provided, That the same shall not affect individual and Section 16. Separability Clause. - If any provision of this
company productivity: Provided, further, That any Act is held invalid or unconstitutional, other provisions
employer may request exemption from the above not affected thereby shall continue to be in full force and
requirements from the DOLE on certain meritorious effect.
grounds.
Section 17. Effectivity Clause. - This Act shall take effect
Section 7. Work Discrimination. - No employer shall fifteen (15) days following its complete publication in the
discriminate against any solo parent employee with Official Gazette or in at least two (2) newspaper of general
respect to terms and conditions of employment on circulation.
account of his/her status.

Section 8. Parental Leave. - In addition to leave privileges
under existing laws, parental leave of not more than RA No 7877 | Anti-Sexual Harassment
seven (7) working days every year shall be granted to any
solo parent employee who has rendered service of at Act of 1995
least one (1) year.
Section 9. Educational Benefits. - The DECS, CHED and
TESDA shall provide the following benefits and privileges: Rules and Regulations Implementing the Anti-Sexual
Harassment Act of 1995
(1) Scholarship programs for qualified solo parents and
their children in institutions of basic, tertiary and
technical/skills education; and AN ACT DECLARING SEXUAL HARASSMENT UNLAWFUL

IN THE EMPLOYMENT, EDUCATION OR TRAINING
(2) Nonformal education programs appropriate for solo ENVIRONMENT, AND FOR OTHER PURPOSES.
parents and their children.
The DECS, CHED and TESDA shall promulgate rules and Representatives of the Philippines in Congress
regulations for the proper implementation of this assembled:
program.
Section 1. Title. - This Act shall be known as the
Section 10. Housing Benefits. - Solo parents shall be given "Anti-Sexual Harassment Act of 1995."
allocation in housing projects and shall be provided with
liberal terms of payment on said government low-cost Section 2. Declaration of Policy. - The State shall value
housing projects in accordance with housing law the dignity of every individual, enhance the development
provisions prioritizing applicants below the poverty line as of its human resources, guarantee full respect for human
declared by the NEDA. rights, and uphold the dignity of workers, employees,
applicants for employment, students or those
Section 11. Medical Assistance. - The DOH shall develop a undergoing training, instruction or education. Towards
comprehensive health care program for solo parents and this end, all forms of sexual harassment in the
their children. The program shall be implemented by the employment, education or training environment are
DOH through their retained hospitals and medical hereby declared unlawful.
centers and the local government units (LGUs) through
their provincial/district/city/municipal hospitals and rural Section 3. Work, Education or Training -Related, Sexual
health units (RHUs). Harassment Defined. - Work, education or
training-related sexual harassment is committed by an
Section 12. Additional Powers and Functions of the employer, employee, manager, supervisor, agent of the
DSWD. — The DSWD shall perform the following employer, teacher, instructor, professor, coach, trainor, or
additional powers and functions relative to the welfare of any other person who, having authority, influence or
solo parents and their families: moral ascendancy over another in a work or training or
(a) Conduct research necessary to: (1) develop a new body education environment, demands, requests or otherwise
of knowledge on solo parents; (2) define executive and requires any sexual favor from the other, regardless of
legislative measures needed to promote and protect the whether the demand, request or requirement for
interest of solo parents and their children; and (3) assess submission is accepted by the object of said Act.
the effectiveness of programs designed for (a) In a work-related or employment environment, sexual
disadvantaged solo parents and their children; harassment is committed when:
(b) Coordinate the activities of various governmental and (1) The sexual favor is made as a condition in the hiring or
nongovernmental organizations engaged in promoting in the employment, re-employment or continued
and protecting the interests of solo parents and their employment of said individual, or in granting said
children; and individual favorable compensation, terms of conditions,
(c) Monitor the implementation of the provisions of this promotions, or privileges; or the refusal to grant the
Act and suggest mechanisms by which such provisions sexual favor results in limiting, segregating or classifying
are effectively implemented. the employee which in any way would discriminate,
Section 13. Implementing Rules and Regulations. - An deprive or diminish employment opportunities or
interagency committee headed by the DSWD, in otherwise adversely affect said employee;
coordination with the DOH, DECS, CHED, TESDA, DOLE, (2) The above acts would impair the employee's rights or
NHA, and DILG is hereby established which shall privileges under existing labor laws; or
formulate, within ninety (90) days upon the effectivity of (3) The above acts would result in an intimidating, hostile,
this Act, the implementing rules and regulations in or offensive environment for the employee.
consultation with the local government units,
nongovernment organizations and people's (b) In an education or training environment, sexual
organizations. harassment is committed:
Section 14. Appropriations. - The amount necessary to (1) Against one who is under the care, custody or
carry out the provisions of this Act shall be included in the supervision of the offender;
budget of concerned government agencies in the (2) Against one whose education, training, apprenticeship
General Appropriations Act of the year following its or tutorship is entrusted to the offender;
enactment into law and thereafter.1awphil.net
(3) When the sexual favor is made a condition to the
Section 15. Repealing Clause. - All laws, decrees, giving of a passing grade, or the granting of honors and
executive orders, administrative orders or parts thereof


scholarships, or the payment of a stipend, allowance or thousand pesos (P20,000), or both such fine and
other benefits, privileges, or consideration; or imprisonment at the discretion of the court.
(4) When the sexual advances result in an intimidating, Any action arising from the violation of the provisions of
hostile or offensive environment for the student, trainee this Act shall prescribe in three (3) years.
or apprentice. Section 8. Separability Clause. - If any portion or
Any person who directs or induces another to commit provision of this Act is declared void or unconstitutional,
any act of sexual harassment as herein defined, or who the remaining portions or provisions hereof shall not be
cooperates in the commission thereof by another without affected by such declaration.
which it would not have been committed, shall also be Section 9. Repealing Clause. - All laws, decrees, orders,
held liable under this Act. rules and regulations, other issuances, or parts thereof
Section 4. Duty of the Employer or Head of Office in a inconsistent with the provisions of this Act are hereby
Work-related, Education or Training Environment. - It repealed or modified accordingly.
shall be the duty of the employer or the head of the Section 10. Effectivity Clause.- This Act shall take effect
work-related, educational or training environment or fifteen (15) days after its complete publication in at least
institution, to prevent or deter the commission of acts of two (2) national newspapers of general circulation.
sexual harassment and to provide the procedures for the

resolution, settlement or prosecution of acts of sexual
harassment. Towards this end, the employer or head of
office shall: RA No 7160 | Special Protection of
(a) Promulgate appropriate rules and regulations in Children Against Abuse, Exploitation
consultation with and joint1y approved by the employees and Discrimination Act
or students or trainees, through their duly designated As amended by RA No 9231, the Anti-Child Labor Law
representatives, prescribing the procedure for the
investigation of sexual harassment cases and the
administrative sanctions therefor.
Rules and Regulations Implementing the Anti-Child
Administrative sanctions shall not be a bar to prosecution
Labor Law
in the proper courts for unlawful acts of sexual
harassment.
The said rules and regulations issued pursuant to this June 17, 1992
subsection (a) shall include, among others, guidelines on AN ACT PROVIDING FOR STRONGER DETERRENCE AND
proper decorum in the workplace and educational or SPECIAL PROTECTION AGAINST CHILD ABUSE,
training institutions. EXPLOITATION AND DISCRIMINATION, AND FOR
(b) Create a committee on decorum and investigation of OTHER PURPOSES
cases on sexual harassment. The committee shall Be it enacted by the Senate and House of
conduct meetings, as the case may be, with officers and Representatives of the Philippines in Congress
employees, teachers, instructors, professors, coaches, assembled:
trainors, and students or trainees to increase
understanding and prevent incidents of sexual ARTICLE I Title, Policy, Principles and Definitions
harassment. It shall also conduct the investigation of of Terms
alleged cases constituting sexual harassment.
Section 1. Title. – This Act shall be known as the
In the case of a work-related environment, the committee "Special Protection of Children Against Abuse,
shall be composed of at least one (1) representative each Exploitation and Discrimination Act."
from the management, the union, if any, the employees
from the supervisory rank, and from the rank and file Section 2. Declaration of State Policy and
employees. Principles. – It is hereby declared to be the policy of the
State to provide special protection to children from all
In the case of the educational or training institution, the forms of abuse, neglect, cruelty, exploitation and
committee shall be composed of at least one (1) discrimination, and other conditions prejudicial to their
representative from the administration, the trainors, development including child labor and its worst forms;
instructors, professors or coaches and students or provide sanctions for their commission and carry out a
trainees, as the case may be. program for prevention and deterrence of and crisis
The employer or head of office, educational or training intervention in situations of child abuse, exploitation and
institution shall disseminate or post a copy of this Act for discrimination. The State shall intervene on behalf of the
the information of all concerned. child when the parent, guardian, teacher or person
Section 5. Liability of the Employer, Head of Office, having care or custody of the child fails or is unable to
Educational or Training Institution. - The employer or protect the child against abuse, exploitation and
head of office, educational or training institution shall be discrimination or when such acts against the child are
solidarily liable for damages arising from the acts of committed by the said parent, guardian, teacher or
sexual harassment committed in the employment, person having care and custody of the same.
education It shall be the policy of the State to protect and
or training environment if the employer or head of office, rehabilitate children gravely threatened or endangered
educational or training institution is informed of such by circumstances which affect or will affect their survival
acts by the offended party and no immediate action is and normal development and over which they have no
taken. control.
Section 6. Independent Action for Damages. - Nothing in The best interests of children shall be the paramount

this Act shall preclude the victim of work, education or consideration in all actions concerning them, whether
training-related sexual harassment from instituting a undertaken by public or private social welfare institutions,
separate and independent action for damages and other courts of law, administrative authorities, and legislative
affirmative relief. bodies, consistent with the principle of First Call for
Children as enunciated in the United Nations Convention
Section 7. Penalties. - Any person who violates the on the Rights of the Child. Every effort shall be exerted to
provisions of this Act shall, upon conviction, be penalized promote the welfare of children and enhance their
by imprisonment of not less than one (1) month nor more opportunities for a useful and happy life.
than six (6) months, or a fine of not less than Ten
thousand pesos (P10,000) nor more than Twenty Section 3. Definition of Terms. –


(a) "Children" refers to person below eighteen (18) coercion or influence of any adult, syndicate or group,
years of age or those over but are unable to fully take care indulge in sexual intercourse or lascivious conduct, are
of themselves or protect themselves from abuse, neglect, deemed to be children exploited in prostitution and other
cruelty, exploitation or discrimination because of a sexual abuse.
physical or mental disability or condition; The penalty of reclusion temporal in its medium
(b) "Child abuse" refers to the maltreatment, whether period to reclusion perpetua shall be imposed upon the
habitual or not, of the child which includes any of the following:
following: (a) Those who engage in or promote, facilitate or
(1) Psychological and physical abuse, neglect, induce child prostitution which include, but are not
cruelty, sexual abuse and emotional maltreatment; limited to, the following:
(2) Any act by deeds or words which debases, (1) Acting as a procurer of a child prostitute;
degrades or demeans the intrinsic worth and dignity of a (2) Inducing a person to be a client of a child
child as a human being; prostitute by means of written or oral advertisements or
(3) Unreasonable deprivation of his basic needs for other similar means;
survival, such as food and shelter; or (3) Taking advantage of influence or relationship to
(4) Failure to immediately give medical treatment to procure a child as prostitute;
an injured child resulting in serious impairment of his (4) Threatening or using violence towards a child to
growth and development or in his permanent incapacity engage him as a prostitute; or
or death.
(5) Giving monetary consideration goods or other
(c) "Circumstances which gravely threaten or pecuniary benefit to a child with intent to engage such
endanger the survival and normal development of child in prostitution.
children" include, but are not limited to, the following;
(b) Those who commit the act of sexual intercourse
(1) Being in a community where there is armed of lascivious conduct with a child exploited in prostitution
conflict or being affected by armed conflict-related or subject to other sexual abuse; Provided, That when the
activities; victims is under twelve (12) years of age, the perpetrators
(2) Working under conditions hazardous to life, shall be prosecuted under Article 335, paragraph 3, for
safety and normal which unduly interfere with their rape and Article 336 of Act No. 3815, as amended, the
normal development; Revised Penal Code, for rape or lascivious conduct, as the
(3) Living in or fending for themselves in the streets case may be: Provided, That the penalty for lascivious
of urban or rural areas without the care of parents or a conduct when the victim is under twelve (12) years of age
guardian or basic services needed for a good quality of shall be reclusion temporal in its medium period; and
life; (c) Those who derive profit or advantage therefrom,
(4) Being a member of a indigenous cultural whether as manager or owner of the establishment
community and/or living under conditions of extreme where the prostitution takes place, or of the sauna, disco,
poverty or in an area which is underdeveloped and/or bar, resort, place of entertainment or establishment
lacks or has inadequate access to basic services needed serving as a cover or which engages in prostitution in
for a good quality of life; addition to the activity for which the license has been
issued to said establishment.
(5) Being a victim of a man-made or natural disaster
or calamity; or Section 6. Attempt To Commit Child Prostitution. –
There is an attempt to commit child prostitution under
(6) Circumstances analogous to those above stated Section 5, paragraph (a) hereof when any person who, not
which endanger the life, safety or normal development of being a relative of a child, is found alone with the said
children. child inside the room or cubicle of a house, an inn, hotel,
(d) "Comprehensive program against child abuse, motel, pension house, apartelle or other similar
exploitation and discrimination" refers to the coordinated establishments, vessel, vehicle or any other hidden or
program of services and facilities to protected children secluded area under circumstances which would lead a
against: reasonable person to believe that the child is about to be
exploited in prostitution and other sexual abuse.
(1) Child Prostitution and other sexual abuse;
There is also an attempt to commit child prostitution,
(2) Child trafficking; under paragraph (b) of Section 5 hereof when any person
(3) Obscene publications and indecent shows; is receiving services from a child in a sauna parlor or bath,
massage clinic, health club and other similar
(4) Other acts of abuses; and establishments. A penalty lower by two (2) degrees than
(5) Circumstances which threaten or endanger the that prescribed for the consummated felony under
survival and normal development of children. Section 5 hereof shall be imposed upon the principals of
the attempt to commit the crime of child prostitution
ARTICLE II Program on Child Abuse, Exploitation under this Act, or, in the proper case, under the Revised
and Discrimination Penal Code.
Section 4. Formulation of the Program. – There shall ARTICLE IV Child Tra cking
be a comprehensive program to be formulated, by the
Department of Justice and the Department of Social Section 7. Child Trafficking. – Any person who shall
Welfare and Development in coordination with other engage in trading and dealing with children including,
government agencies and private sector concerned, but not limited to, the act of buying and selling of a child
within one (1) year from the effectivity of this Act, to for money, or for any other consideration, or barter, shall
protect children against child prostitution and other suffer the penalty of reclusion temporal to reclusion
sexual abuse; child trafficking, obscene publications and perpetua. The penalty shall be imposed in its maximum
indecent shows; other acts of abuse; and circumstances period when the victim is under twelve (12) years of age.
which endanger child survival and normal development. Section 8. Attempt to Commit Child Trafficking. –
There is an attempt to commit child trafficking under
ARTICLE III Child Prostitution and Other Sexual Section 7 of this Act:
Abuse
(a) When a child travels alone to a foreign country
Section 5. Child Prostitution and Other Sexual without valid reason therefor and without clearance
Abuse. – Children, whether male or female, who for issued by the Department of Social Welfare and
money, profit, or any other consideration or due to the



Development or written permit or justification from the accommodation, whether for occupancy, food, drink or
child's parents or legal guardian; otherwise, including residential places, who allows any
(c) When a person, agency, establishment or person to take along with him to such place or places any
child-caring institution recruits women or couples to bear minor herein described shall be imposed a penalty of
children for the purpose of child trafficking; or prision mayor in its medium period and a fine of not less
than Fifty thousand pesos (P50,000), and the loss of the
(d) When a doctor, hospital or clinic official or license to operate such a place or establishment.
employee, nurse, midwife, local civil registrar or any other
person simulates birth for the purpose of child trafficking; (e) Any person who shall use, coerce, force or
or intimidate a street child or any other child to;
(e) When a person engages in the act of finding (1) Beg or use begging as a means of living;
children among low-income families, hospitals, clinics, (2) Act as conduit or middlemen in drug trafficking
nurseries, day-care centers, or other child-during or pushing; or
institutions who can be offered for the purpose of child (3) Conduct any illegal activities, shall suffer the
trafficking. penalty of prision correccional in its medium period to
A penalty lower two (2) degrees than that prescribed reclusion perpetua.
for the consummated felony under Section 7 hereof shall For purposes of this Act, the penalty for the
be imposed upon the principals of the attempt to commission of acts punishable under Articles 248, 249,
commit child trafficking under this Act. 262, paragraph 2, and 263, paragraph 1 of Act No. 3815, as
amended, the Revised Penal Code, for the crimes of
ARTICLE V Obscene Publications and Indecent murder, homicide, other intentional mutilation, and
Shows serious physical injuries, respectively, shall be reclusion
Section 9. Obscene Publications and Indecent perpetua when the victim is under twelve (12) years of
Shows. – Any person who shall hire, employ, use, age. The penalty for the commission of acts punishable
persuade, induce or coerce a child to perform in obscene under Article 337, 339, 340 and 341 of Act No. 3815, as
exhibitions and indecent shows, whether live or in video, amended, the Revised Penal Code, for the crimes of
or model in obscene publications or pornographic qualified seduction, acts of lasciviousness with the
materials or to sell or distribute the said materials shall consent of the offended party, corruption of minors, and
suffer the penalty of prision mayor in its medium period. white slave trade, respectively, shall be one (1) degree
higher than that imposed by law when the victim is
If the child used as a performer, subject or under twelve (12) years age.
seller/distributor is below twelve (12) years of age, the
penalty shall be imposed in its maximum period. The victim of the acts committed under this section
shall be entrusted to the care of the Department of Social
Any ascendant, guardian, or person entrusted in any Welfare and Development.
capacity with the care of a child who shall cause and/or
allow such child to be employed or to participate in an ARTICLE VII Sanctions for Establishments or
obscene play, scene, act, movie or show or in any other
acts covered by this section shall suffer the penalty of Enterprises
prision mayor in its medium period. Section 11. Sanctions of Establishments or
Enterprises which Promote, Facilitate, or Conduct
ARTICLE VI Other Acts of Abuse Activities Constituting Child Prostitution and Other
Sexual Abuse, Child Trafficking, Obscene Publications
Section 10. Other Acts of Neglect, Abuse, Cruelty or
and Indecent Shows, and Other Acts of Abuse. – All
Exploitation and Other Conditions Prejudicial to the
establishments and enterprises which promote or
Child's Development. –
facilitate child prostitution and other sexual abuse, child
(a) Any person who shall commit any other acts of trafficking, obscene publications and indecent shows,
child abuse, cruelty or exploitation or to be responsible for and other acts of abuse shall be immediately closed and
other conditions prejudicial to the child's development their authority or license to operate cancelled, without
including those covered by Article 59 of Presidential prejudice to the owner or manager thereof being
Decree No. 603, as amended, but not covered by the prosecuted under this Act and/or the Revised Penal Code,
Revised Penal Code, as amended, shall suffer the penalty as amended, or special laws. A sign with the words "off
of prision mayor in its minimum period. limits" shall be conspicuously displayed outside the
(b) Any person who shall keep or have in his establishments or enterprises by the Department of
company a minor, twelve (12) years or under or who in ten Social Welfare and Development for such period which
(10) years or more his junior in any public or private place, shall not be less than one (1) year, as the Department may
hotel, motel, beer joint, discotheque, cabaret, pension determine. The unauthorized removal of such sign shall
house, sauna or massage parlor, beach and/or other be punishable by prision correccional.
tourist resort or similar places shall suffer the penalty of An establishment shall be deemed to promote or
prision mayor in its maximum period and a fine of not facilitate child prostitution and other sexual abuse, child
less than Fifty thousand pesos (P50,000): Provided, That trafficking, obscene publications and indecent shows,
this provision shall not apply to any person who is related and other acts of abuse if the acts constituting the same
within the fourth degree of consanguinity or affinity or occur in the premises of said establishment under this
any bond recognized by law, local custom and tradition or Act or in violation of the Revised Penal Code, as amended.
acts in the performance of a social, moral or legal duty. An enterprise such as a sauna, travel agency, or
(c) Any person who shall induce, deliver or offer a recruitment agency which: promotes the aforementioned
minor to any one prohibited by this Act to keep or have in acts as part of a tour for foreign tourists; exhibits children
his company a minor as provided in the preceding in a lewd or indecent show; provides child masseurs for
paragraph shall suffer the penalty of prision mayor in its adults of the same or opposite sex and said services
medium period and a fine of not less than Forty include any lascivious conduct with the customers; or
thousand pesos (P40,000); Provided, however, That solicits children or activities constituting the
should the perpetrator be an ascendant, stepparent or aforementioned acts shall be deemed to have committed
guardian of the minor, the penalty to be imposed shall be the acts penalized herein.
prision mayor in its maximum period, a fine of not less
than Fifty thousand pesos (P50,000), and the loss of ARTICLE VIII Working Children
parental authority over the minor. Section 12. Employment of Children. – Children
(d) Any person, owner, manager or one entrusted below fifteen (15) years of age shall not be employed
with the operation of any public or private place of except:


1) When a child works directly under the sole and other income amount to at least two hundred
responsibility of his/her parents or legal guardian and thousand pesos (P200,000.00) annually, for which he/she
where only members of his/her family are employed: shall render a semi-annual accounting of the fund to the
Provided, however, That his/her employment neither Department of Labor and Employment, in compliance
endangers his/her life, safety, health, and morals, nor with the provisions of this Act. The child shall have full
impairs his/her normal development: Provided, further, control over the trust fund upon reaching the age of
That the parent or legal guardian shall provide the said majority.
child with the prescribed primary and/or secondary Section 12-D. Prohibition Against Worst Forms of
education; or Child Labor. - No child shall be engaged in the worst
2) Where a child's employment or participation in forms of child labor. The phrase "worst forms of child
public entertainment or information through cinema, labor" shall refer to any of the following:
theater, radio, television or other forms of media is (1) All forms of slavery, as defined under the
essential: Provided, That the employment contract is "Anti-trafficking in Persons Act of 2003", or practices
concluded by the child's parents or legal guardian, with similar to slavery such as sale and trafficking of children,
the express agreement of the child concerned, if possible, debt bondage and serfdom and forced or compulsory
and the approval of the Department of Labor and labor, including recruitment of children for use in armed
Employment: Provided, further, That the following conflict; or
requirements in all instances are strictly complied with:
(2) The use, procuring, offering or exposing of a child
(a) The employer shall ensure the protection, health, for prostitution, for the production of pornography or for
safety, morals and normal development of the child; pornographic performances; or
(b) The employer shall institute measures to prevent (3) The use, procuring or offering of a child for illegal
the child's exploitation or discrimination taking into or illicit activities, including the production and trafficking
account the system and level of remuneration, and the of dangerous drugs and volatile substances prohibited
duration and arrangement of working time; and under existing laws; or
(c) The employer shall formulate and implement, (4) Work which, by its nature or the circumstances in
subject to the approval and supervision of competent which it is carried out, is hazardous or likely to be harmful
authorities, a continuing program for training and skills to the health, safety or morals of children, such that it:
acquisition of the child.
a) Debases, degrades or demeans the intrinsic worth
In the above-exceptional cases where any such child and dignity of a child as a human being; or
may be employed, the employer shall first secure, before
engaging such child, a work permit from the Department b) Exposes the child to physical, emotional or sexual
of Labor and Employment which shall ensure observance abuse, or is found to be highly stressful psychologically or
of the above requirements. may prejudice morals; or
For purposes of this Article, the term "child" shall c) Is performed underground, underwater or at
apply to all persons under eighteen (18) years of age. dangerous heights; or
Section 12-A. Hours of Work of a Working Child. - d) Involves the use of dangerous machinery,
Under the exceptions provided in Section 12 of this Act, as equipment and tools such as power-driven or explosive
amended: power-actuated tools; or
(1) A child below fifteen (15) years of age may be e) Exposes the child to physical danger such as, but
allowed to work for not more than twenty (20) hours a not limited to the dangerous feats of balancing, physical
week: Provided, That the work shall not be more than four strength or contortion, or which requires the manual
(4) hours at any given day; transport of heavy loads; or
(2) A child fifteen (15) years of age but below eighteen f) Is performed in an unhealthy environment
(18) shall not be allowed to work for more than eight (8) exposing the child to hazardous working conditions,
hours a day, and in no case beyond forty (40) hours a elements, substances, co-agents or processes involving
week; ionizing, radiation, fire, flammable substances, noxious
components and the like, or to extreme temperatures,
(3) No child below fifteen (15) years of age shall be noise levels, or vibrations; or
allowed to work between eight o'clock in the evening and
six o'clock in the morning of the following day and no g) Is performed under particularly difficult conditions;
child fifteen (15) years of age but below eighteen (18) shall or
be allowed to work between ten o'clock in the evening h) Exposes the child to biological agents such as
and six o'clock in the morning of the following day. bacteria, fungi, viruses, protozoans, nematodes and other
Section 12-B. Ownership, Usage and parasites; or
Administration of the Working Child's Income. - The i) Involves the manufacture or handling of explosives
wages, salaries, earnings and other income of the and other pyrotechnic products.
working child shall belong to him/her in ownership and
shall be set aside primarily for his/her support, education
or skills acquisition and secondarily to the collective Section 13. Access to Education and Training for
needs of the family: Provided, That not more than twenty Working Children - a) No child shall be deprived of
percent (20%) of the child's income may be used for the formal or non-formal education. In all cases of
collective needs of the family. employment allowed in this Act, the employer shall
The income of the working child and/or the property provide a working child with access to at least primary
acquired through the work of the child shall be and secondary education.
administered by both parents. In the absence or b) To ensure and guarantee the access of the working
incapacity of either of the parents, the other parent shall child to education and training, the Department of
administer the same. In case both parents are absent or Education (DEPED) shall:
incapacitated, the order of preference on parental
authority as provided for under the Family Code shall (1) formulate, promulgate, and implement relevant
apply. and effective course designs and educational programs;
Section 12-C. Trust Fund to Preserve Part of the (2) conduct the necessary training for the
Working Child's Income. - The parent or legal guardian implementation of the appropriate curriculum for the
of a working child below eighteen (18) years of age shall purpose;
set up a trust fund for at least thirty percent (30%) of the (3) ensure the availability of the needed educational
earnings of the child whose wages and salaries from work facilities and materials; and



(4) conduct continuing research and development shall likewise order the immediate closure of such firm or
program for the necessary and relevant alternative establishment if:
education of the working child. (1) The violation of any provision of this Act has
c) The DEPED shall promulgate a course design resulted in the death, insanity or serious physical injury of
under its non-formal education program aimed at a child employed in such establishment; or
promoting the intellectual, moral and vocational (2) Such firm or establishment is engaged or
efficiency of working children who have not undergone employed in prostitution or in obscene or lewd shows.
or finished elementary or secondary education. Such
course design shall integrate the learning process h) In case of such closure, the employer shall be
deemed most effective under given circumstances. required to pay the employee(s) the separation pay and
other monetary benefits provided for by law.
Section 14. Prohibition on the Employment of
Children in Certain Advertisements. – No child shall be Section 16-A. Trust Fund from Fines and Penalties -
employed as a model in any advertisement directly or The fine imposed by the court shall be treated as a Trust
indirectly promoting alcoholic beverages, intoxicating Fund, administered by the Department of Labor and
drinks, tobacco and its byproducts, gambling or any form Employment and disbursed exclusively for the needs,
of violence or pornography. including the costs of rehabilitation and reintegration
into the mainstream of society of the working children
Section 15. Duty of Employer. – Every employer shall who are victims of the violations of this Act, and for the
comply with the duties provided for in Articles 108 and programs and projects that will prevent acts of child
109 of Presidential Decree No. 603. labor.
Section 16. Penal Provisions. –
a) Any employer who violates Sections 12, 12-A, and ARTICLE IX Children of Indigenous Cultural
Section 14 of this act, as amended, shall be penalized by Communities
imprisonment of six (6) months and one (1) day to six (6) Section 17. Survival, Protection and Development. –
years or a fine of not less than Fifty thousand pesos In addition to the rights guaranteed to children under
(P50,000.00) but not more than Three hundred thousand this Act and other existing laws, children of indigenous
pesos (P300,000.00) or both at the discretion of the court. cultural communities shall be entitled to protection,
b) Any person who violates the provision of Section survival and development consistent with the customs
12-D of this act or the employer of the subcontractor who and traditions of their respective communities.
employs, or the one who facilitates the employment of a Section 18. System of and Access to Education. –
child in hazardous work, shall suffer the penalty of a fine The Department of Education, Culture and Sports shall
of not less than One hundred thousand pesos develop and institute an alternative system of education
(P100,000.00) but not more than One million pesos for children of indigenous cultural communities which
(P1,000,000.00), or imprisonment of not less than twelve culture-specific and relevant to the needs of and the
(12) years and one (1) day to twenty (20) years, or both such existing situation in their communities. The Department
fine and imprisonment at the discretion of the court. of Education, Culture and Sports shall also accredit and
c) Any person who violates Sections 12-D(1) and support non-formal but functional indigenous
12-D(2) shall be prosecuted and penalized in accordance educational programs conducted by non-government
with the penalty provided for by R. A. 9208 otherwise organizations in said communities.
known as the "Anti-trafficking in Persons Act of 2003": Section 19. Health and Nutrition. – The delivery of
Provided, That Such penalty shall be imposed in its basic social services in health and nutrition to children of
maximum period. indigenous cultural communities shall be given priority
d) Any person who violates Section 12-D (3) shall be by all government agencies concerned. Hospitals and
prosecuted and penalized in accordance with R.A. 9165, other health institution shall ensure that children of
otherwise known as the "Comprehensive Dangerous indigenous cultural communities are given equal
Drugs Act of 2002"; Provided, That such penalty shall be attention. In the provision of health and nutrition services
imposed in its maximum period. to children of indigenous cultural communities,
indigenous health practices shall be respected and
e) If a corporation commits any of the violations recognized.
aforecited, the board of directors/trustees and officers,
which include the president, treasurer and secretary of Section 20. Discrimination. – Children of indigenous
the said corporation who participated in or knowingly cultural communities shall not be subjected to any and
allowed the violation, shall be penalized accordingly as all forms of discrimination.
provided for under this Section. Any person who discriminate against children of
f) Parents, biological or by legal fiction, and legal indigenous cultural communities shall suffer a penalty of
guardians found to be violating Sections 12, 12-A, 12-B and arresto mayor in its maximum period and a fine of not
12-C of this Act shall pay a fine of not less than Ten less than Five thousand pesos (P5,000) more than Ten
thousand pesos (P10,000.00) but not more than One thousand pesos (P10,000).
hundred thousand pesos (P100,000.00), or be required to Section 21. Participation. – Indigenous cultural
render community service for not less than thirty (30) communities, through their duly-designated or
days but not more than one (1) year, or both such fine and appointed representatives shall be involved in planning,
community service at the discretion of the court: decision-making implementation, and evaluation of all
Provided, That the maximum length of community government programs affecting children of indigenous
service shall be imposed on parents or legal guardians cultural communities. Indigenous institution shall also be
who have violated the provisions of this Act three (3) recognized and respected.
times; Provided, further, That in addition to the
community service, the penalty of imprisonment of thirty ARTICLE X Children in Situations of Armed
(30) days but not more than one (1) year or both at the Conflict
discretion of the court, shall be imposed on the parents or
legal guardians who have violated the provisions of this Section 22. Children as Zones of Peace. – Children
Act more than three (3) times. are hereby declared as Zones of Peace. It shall be the
responsibility of the State and all other sectors concerned
g) The Secretary, of Labor and Employment or his/her to resolve armed conflicts in order to promote the goal of
duly authorized representative may, after due notice and children as zones of peace. To attain this objective, the
hearing, order the closure of any business firm or following policies shall be observed.
establishment found to have violated any of the
provisions of this Act more than three (3) times. He/she (a) Children shall not be the object of attack and
shall be entitled to special respect. They shall be



protected from any form of threat, assault, torture or agency or such other officer as the court may designate
other cruel, inhumane or degrading treatment; subject to such conditions as it may prescribe.
(b) Children shall not be recruited to become The aforesaid child whose sentence is suspended can
members of the Armed Forces of the Philippines of its appeal from the order of the court in the same manner as
civilian units or other armed groups, nor be allowed to appeals in criminal cases.
take part in the fighting, or used as guides, couriers, or Section 26. Monitoring and Reporting of Children
spies; in Situations of Armed Conflict. – The chairman of the
(c) Delivery of basic social services such as education, barangay affected by the armed conflict shall submit the
primary health and emergency relief services shall be names of children residing in said barangay to the
kept unhampered; municipal social welfare and development officer within
(d) The safety and protection of those who provide twenty-four (24) hours from the occurrence of the armed
services including those involved in fact-finding missions conflict.
from both government and non-government institutions Section 26-A. Jurisdiction - The family courts shall
shall be ensured. They shall not be subjected to undue have original jurisdiction over all cases involving offenses
harassment in the performance of their work; punishable under this Act: Provided, That in cities or
(e) Public infrastructure such as schools, hospitals provinces where there are no family courts yet, the
and rural health units shall not be utilized for military regional trial courts and the municipal trial courts shall
purposes such as command posts, barracks, have concurrent jurisdiction depending on the penalties
detachments, and supply depots; and prescribed for the offense charged.
(f) All appropriate steps shall be taken to facilitate The preliminary investigation of cases filed under this
the reunion of families temporarily separated due to Act shall be terminated within a period of thirty (30) days
armed conflict. from the date of filing.
Section 23. Evacuation of Children During Armed If the preliminary investigation establishes a prima
Conflict. – Children shall be given priority during facie case, then the corresponding information shall be
evacuation as a result of armed conflict. Existing filed in court within forty eight (48) hours from the
community organizations shall be tapped to look after termination of the investigation.
the safety and well-being of children during evacuation Trial of cases under this Act shall be terminated by
operations. Measures shall be taken to ensure that the court not later than ninety (90) days from the date of
children evacuated are accompanied by persons filing of information. Decision on said cases shall be
responsible for their safety and well-being. rendered within a period of fifteen (15) days from the date
Section 24. Family Life and Temporary Shelter. – of submission of the case.
Whenever possible, members of the same family shall be Section 26-B. Exemptions from Filing Fees. - When
housed in the same premises and given separate the victim of child labor institutes a separate civil action
accommodation from other evacuees and provided with for the recovery of civil damages, he/she shall be exempt
facilities to lead a normal family life. In places of from payment of filing fees.
temporary shelter, expectant and nursing mothers and Section 26-C. Access to Immediate Legal, Medical
children shall be given additional food in proportion to and Psycho-Social Services - The working child shall
their physiological needs. Whenever feasible, children have the right to free legal, medical and psycho-social
shall be given opportunities for physical exercise, sports services to be provided by the State.
and outdoor games.
Section 25. Rights of Children Arrested for Reasons ARTICLE XI Remedial Procedures
Related to Armed Conflict. – Any child who has been
Section 27. Who May File a Complaint. – Complaints
arrested for reasons related to armed conflict, either as
on cases of unlawful acts committed against the children
combatant, courier, guide or spy is entitled to the
as enumerated herein may be filed by the following:
following rights;
(a) Offended party;
(a) Separate detention from adults except where
families are accommodated as family units; (b) Parents or guardians;
(b) Immediate free legal assistance; (c) Ascendant or collateral relative within the third
degree of consanguinity;
(c) Immediate notice of such arrest to the parents or
guardians of the child; and (d) Officer, social worker or representative of a
licensed child-caring institution;
(d) Release of the child on recognizance within
twenty-four (24) hours to the custody of the Department (e) Officer or social worker of the Department of
of Social Welfare and Development or any responsible Social Welfare and Development;
member of the community as determined by the court. (f) Barangay chairman; or
If after hearing the evidence in the proper (g) At least three (3) concerned responsible citizens
proceedings the court should find that the aforesaid child where the violation occurred.
committed the acts charged against him, the court shall
determine the imposable penalty, including any civil Section 28. Protective Custody of the Child. – The
liability chargeable against him. However, instead of offended party shall be immediately placed under the
pronouncing judgment of conviction, the court shall protective custody of the Department of Social Welfare
suspend all further proceedings and shall commit such and Development pursuant to Executive Order No. 56,
child to the custody or care of the Department of Social series of 1986. In the regular performance of this function,
Welfare and Development or to any training institution the officer of the Department of Social Welfare and
operated by the Government, or duly-licensed agencies Development shall be free from any administrative, civil
or any other responsible person, until he has had reached or criminal liability. Custody proceedings shall be in
eighteen (18) years of age or, for a shorter period as the accordance with the provisions of Presidential Decree No.
court may deem proper, after considering the reports and 603.
recommendations of the Department of Social Welfare Section 29. Confidentiality. – At the instance of the
and Development or the agency or responsible individual offended party, his name may be withheld from the
under whose care he has been committed. public until the court acquires jurisdiction over the case.
The aforesaid child shall subject to visitation and It shall be unlawful for any editor, publisher, and
supervision by a representative of the Department of reporter or columnist in case of printed materials,
Social Welfare and Development or any duly-licensed announcer or producer in case of television and radio


broadcasting, producer and director of the film in case of Section 36. Effectivity Clause. – This Act shall take
the movie industry, to cause undue and sensationalized effect upon completion of its publication in at least two
publicity of any case of violation of this Act which results (2) national newspapers of general circulation.
in the moral degradation and suffering of the offended Approved: June 17, 1992.
party.

Section 30. Special Court Proceedings. – Cases
involving violations of this Act shall be heard in the RA No 10706 | Seafarers Protection Act
chambers of the judge of the Regional Trial Court duly
designated as Juvenile and Domestic Court.
Any provision of existing law to the contrary Rules and Regulations Implementing the Seafarers
notwithstanding and with the exception of habeas Protection Act
corpus, election cases, and cases involving detention
prisoners and persons covered by Republic Act No. 4908,
all courts shall give preference to the hearing or November 6, 2015
disposition of cases involving violations of this Act.
AN ACT PROTECTING SEAFARERS AGAINST
AMBULANCE CHASING AND IMPOSITION OF
ARTICLE XII Common Penal Provisions EXCESSIVE FEES, AND PROVIDING PENALTIES
Section 31. Common Penal Provisions. – THEREFOR
(a) The penalty provided under this Act shall be Be it enacted by the Senate and House of
imposed in its maximum period if the offender has been Representatives of the Philippines in Congress
previously convicted under this Act; assembled:
(b) When the offender is a corporation, partnership SECTION 1. This Act shall be known as the “Seafarers
or association, the officer or employee thereof who is Protection Act”.
responsible for the violation of this Act shall suffer the SECTION 2. Declaration of Policy. — It shall be the
penalty imposed in its maximum period; policy of the State to promote and protect every Filipino
(c) The penalty provided herein shall be imposed in seafarer desiring to work overseas by securing the best
its maximum period when the perpetrator is an possible terms and conditions of employment. As some
ascendant, parent guardian, stepparent or collateral unscrupulous individuals have taken advantage of the
relative within the second degree of consanguinity or plight of our seafarers who met an accident, illness or
affinity, or a manager or owner of an establishment which death in the course of their service by exploiting the
has no license to operate or its license has expired or has compensation system, our seafarers have fallen prey to an
been revoked; unfair scheme where ambulance chasers charge
(d) When the offender is a foreigner, he shall be exorbitant fees, with the promise of huge monetary
deported immediately after service of sentence and award. Towards this end, such practice shall be declared
forever barred from entry to the country; unlawful.
(e) The penalty provided for in this Act shall be SECTION 3. Prohibition on Ambulance Chasing. — It
imposed in its maximum period if the offender is a public shall be unlawful for any person to engage in ambulance
officer or employee: Provided, however, That if the penalty chasing or the act of soliciting, personally or through an
imposed is reclusion perpetua or reclusion temporal, then agent, from seafarers, or their heirs, the pursuit of any
the penalty of perpetual or temporary absolute claim against them employers for the purpose of recovery
disqualification shall also be imposed: Provided, finally, of monetary claim or benefit, including legal interest,
That if the penalty imposed is prision correccional or arising from accident, illness or death, in exchange of an
arresto mayor, the penalty of suspension shall also be amount or fee which shall be retained or deducted from
imposed; and the monetary claim or benefit granted to or awarded to
the seafarers or their heirs.
(f) A fine to be determined by the court shall be
imposed and administered as a cash fund by the SECTION 4. Imposition of Excessive Fees. — When
Department of Social Welfare and Development and any contract or arrangement between a seafarer or
disbursed for the rehabilitation of each child victim, or his/her heirs, and a person who appears for or represents
any immediate member of his family if the latter is the them in any case for recovery of monetary claim or
perpetrator of the offense. benefit, including legal interest, arising from accident,
illness or death before the National Labor Relations
Commission (NLRC) or any labor arbiter, the National
ARTICLE XIII Final Provisions
Conciliation and Mediation Board (NCMB), the Philippine
Section 32. Rules and Regulations. – Unless Overseas Employment Administration (POEA), the
otherwise provided in this Act, the Department of Justice, Department of Labor and Employment (DOLE) or its
in coordination with the Department of Social Welfare regional offices, or other quasi-judicial bodies handling
and Development, shall promulgate rules and regulations labor disputes stipulates that the person who appears for
of the effective implementation of this Act. or represents them shall be entitled to fees, such fees
Such rules and regulations shall take effect upon shall not exceed ten percent (10%) of the compensation or
their publication in two (2) national newspapers of benefit awarded to the seafarer or his/her heirs.
general circulation. For purposes of this Act, fees referred to in this
Section 33. Appropriations. – The amount necessary section shall mean the total amount of compensation of
to carry out the provisions of this Act is hereby authorized the person who appears for or represents the seafarer, or
to be appropriated in the General Appropriations Act of his/her heirs for services rendered.
the year following its enactment into law and thereafter. SECTION 5. Penalties. — Any person who violates
Section 34. Separability Clause. – If any provision of Section 3 of this Act shall be punished by a fine of not less
this Act is declared invalid or unconstitutional, the than fifty thousand pesos (P50,000.00) but not more than
remaining provisions not affected thereby shall continue one hundred thousand pesos (P100,000.00), or by
in full force and effect. imprisonment of one (1) year but not more than two (2)
years, or both fine and imprisonment. The same penalties
Section 35. Repealing Clause. – All laws, decrees, or shall be imposed upon any person who shall be in
rules inconsistent with the provisions of this Acts are collusion in the commission of the prohibited act in
hereby repealed or modified accordingly. Section 3 hereof.1âwphi1
SECTION 6. Implementing Rules and Regulations. —
Within ninety (90) days from the approval of this Act, the



Secretary of Labor and Employment, in coordination with term only. The appointive members of the Commission
the Maritime Industry Authority (MARINA) and the POEA, shall receive at least two thousand five hundred pesos
shall promulgate the necessary rules and regulations for (P2,500.00) per diem for each meeting actually attended
the effective implementation of the provisions of this Act. by them but not to exceed Ten thousand pesos
SECTION 7. Repealing Clause. — All laws, orders, (P10,000.00) a month:: Provided, That members of the
issuances, decrees, rules and regulations inconsistent Commission shall also receive a per diem of at least Two
with the provisions of this Act are hereby repealed or thousand five hundred pesos (P2,500.00) but not to
modified accordingly. exceed Fifteen thousand pesos (P15,000.00) a month:
Provided , further, That said members of the Commission
SECTION 8. Effectivity Clause. — This Act shall take shall also receive reasonable transportation and
effect fifteen (15) days after its publication in the Official representation allowances as may be fixed by the
Gazette or in at least two (2) newspapers of general Commission, but not to exceed Ten thousand pesos
circulation. (P10,000.00) a month.
(b) The general conduct of the operations and
management functions of the SSS shall be vested in the
SSS President who shall serve as the chief executive
IV. Labor Laws Related to officer immediately responsible for carrying out the
program of the SSS and the policies of the Commission.
Health, Safety and Social The SSS President shall be a person who has had previous
experience in the technical and administrative fields
Welfare Benefits related to the purposes of this Act. He shall be appointed
by the President of the Philippines and shall receive salary
to be fixed by the Commission with the approval of the
RA No 8282 | Social Security Act of 1997 President of the Philippines, payable from the funds of
the SSS.
May 01, 1997 (c) The Commission, upon the recommendation of the
SSS President, shall appoint an actuary, and such other
AN ACT FURTHER STRENGTHENING THE SOCIAL
personnel as may be deemed necessary, fix their
SECURITY SYSTEM THEREBY AMENDING FOR THIS
reasonable compensation, allowances and other benefits,
PURPOSE, REPUBLIC ACT NO. 1161, AS AMENDED,
prescribe their duties and establish such methods and
OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW
procedures as may be necessary to insure the efficient,
Be it enacted by the Senate and House of honest and economical administration of the provisions
Representatives of the Philippines in Congress and purposes of this Act: Provided, however, That the
assembled:: personnel of the SSS below the rank of Vice-President
SECTION 1. Short Title. - This Act shall be known as the shall be appointed by the SSS President: Provided,
"AN ACT FURTHER STRENGTHENING THE SOCIAL further, That the personnel appointed by the SSS
SECURITY SYSTEM THEREBY AMENDING FOR THIS President, except those below the rank of assistant
PURPOSE, REPUBLIC ACT NO. 1161, AS AMENDED, manager, shall be subject to the confirmation by the
OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW." Commission: Provided, further, That the personnel of the
SSS shall be selected only from civil service eligibles and
SECTION 2. Declaration of Policy. - It is the policy of the be subject to civil service rules and regulations: Provided,
Republic of the Philippines to establish, develop, promote finally, That the SSS shall be exempt from the provisions
and perfect a sound and viable tax-exempt social security of Republic Act No. 6758 and Republic Act No. 7430.
service suitable to the needs of the people throughout
the Philippines which shall promote social justice and SECTION 4. Powers and Duties of the Commission and
provide meaningful protection to members and their SSS. - (a) The Commission. - For the attainment of its
beneficiaries against the hazards of disability, sickness, main objectives as set forth in Section 2 hereof, the
maternity, old age, death, and other contingencies Commission shall have the following powers and duties:
resulting in loss of income or financial burden. Towards (1) To adopt, amend and rescind, subject to the approval
this end, the State shall endeavor to extend social security of the President of the Philippines, such rules and
protection to workers and their beneficiaries. regulations as may be necessary to carry out the
SECTION 3. Social Security System. - (a) To carry out the provisions and purposes of this Act;
purposes of this Act, the Social Security System, (2) To establish a provident fund for the members which
hereinafter referred to as 'SSS', a corporate body, with will consist of voluntary contributions of employers and/or
principal place of business in Metro Manila, Philippines is employees, self-employed and voluntary members and
hereby created. The SSS shall be directed and controlled their earnings, for the payment of benefits to such
by a Social Security Commission, hereinafter referred to as members or their beneficiaries, subject to such rules and
'Commission', composed of the Secretary of Labor and regulations as it may promulgate and approved by the
Employment or his duly designated undersecretary, the President of the Philippines;
SSS president and seven (7) appointive members, three
(3) To maintain a provident fund which consists of
(3) of whom shall represent the workers' group, at least
contributions made by both the SSS and its officials and
one of whom shall be a woman; three (3), the employers'
employees and their earnings, for the payment of
group, at least one (1) of whom shall be a woman; and one
benefits to such officials and employees or their heirs
(1), the general public whose representative shall have
under such terms and conditions as it may prescribe;
adequate knowledge and experience regarding social
security, to be appointed by the President of the (4) To approve restructuring proposals for the payment of
Philippines. The six (6) members representing workers due but unremitted contributions and unpaid loan
and employers shall be chosen from among the amortizations under such terms and conditions as it may
nominees of workers' and employers' organizations, prescribe;
respectively. The Chairman of the Commission shall be (5) To authorize cooperatives registered with the
designated by the President of the Philippines from cooperative development authority or associations
among its members. The term of the appointive registered with the appropriate government agency to
members shall be three (3) years: Provided, That the act as collecting agents of the SSS with respect to their
terms of the first six (6) appointive members shall be one members: Provided, That the SSS shall accredit the
(1), two (2) and three (3) years for every two members, cooperative or association: Provided, further, That the
respectively: Provided, further, That they shall continue to persons authorized to collect are bonded;
hold office until their successors shall have been
appointed and duly qualified. All vacancies, prior to the (6) To compromise or release, in whole or in part, any
expiration of the term, shall be filled for the unexpired interest, penalty or any civil liability to SSS in connection



with the investments authorized under Section 26 hereof, shall become final and executory fifteen (15) days after
under such terms and conditions as it may prescribe and the date of notification, and judicial review thereof shall
approved by the President of the Philippines; and be permitted only after any party claiming to be
(7) To approve, confirm, pass upon or review any and all aggrieved thereby has exhausted his remedies before the
actions of the SSS in the proper and necessary exercise of Commission. The Commission shall be deemed to be a
its powers and duties hereinafter enumerated. party to any judicial action involving any such decision,
and may be represented by an attorney employed by the
(b) The Social Security System. - Subject to the provision Commission, or when requested by the Commission, by
of Section four (4), paragraph seven (7) hereof, the SSS the Solicitor General or any public prosecutors.
shall have the following powers and duties:
(c) Court Review. - The decision of the Commission upon
(1) To submit annually not later than April 30, a public any disputed matter may be reviewed both upon the law
report to the President of the Philippines and to the and the facts by the Court of Appeals. For the purpose of
Congress of the Philippines covering its activities in the such review, the procedure concerning appeals from the
administration and enforcement of this Act during the Regional Trial Court shall be followed as far as practicable
preceding year including information and and consistent with the purposes of this Act. Appeal from
recommendations on broad policies for the development a decision of the Commission must be taken within
and perfection of the program of the SSS; fifteen (15) days from notification of such decision. If the
(2) To require the actuary to submit a valuation report on decision of the Commission involves only questions of
the SSS benefit program every four (4) years, or more law, the same shall be reviewed by the Supreme Court.
frequently as may be necessary, to undertake the No appeal bond shall be required. The case shall be heard
necessary actuarial studies and calculations concerning in a summary manner, and shall take precedence over all
increases in benefits taking into account inflation and the cases, except that in the Supreme Court, criminal cases
financial stability of the SSS, and to provide for feasible wherein life imprisonment or death has been imposed by
increases in benefits every four (4) years, including the the trial court shall take precedence. No appeal shall act
addition of new ones, under such rules and regulations as as a supersedeas or a stay of the order of the Commission
the Commission may adopt, subject to the approval of unless the Commission itself, or the Court of Appeals or
the President of the Philippines: Provided, That the the Supreme Court, shall so order.
actuarial soundness of the reserve fund shall be (d) Execution of Decisions. - The Commission may, motu
guaranteed: Provided, further, That such increases in proprio or on motion of any interested party, issue a writ
benefits shall not require any increase in the rate of of execution to enforce any of its decisions or awards,
contribution; after it has become final and executory, in the same
(3) To establish offices of the SSS to cover as many manner as the decision of the Regional Trial Court by
provinces, cities and congressional districts, whenever directing the city or provincial sheriff or the sheriff whom
and wherever it may be expedient, necessary and it may appoint to enforce such final decision or execute
feasible, and to inspect or cause to be inspected such writ; and any person who shall fail or refuse to
periodically such offices; comply with such decision, award or writ, after being
required to do so shall, upon application by the
(4) To enter into agreements or contracts for such service Commission pursuant to Rule 71 of the Rules of Court, be
and aid, as may be needed for the proper, efficient and punished for contempt.
stable administration of the SSS;
SECTION 6. Auditor and Counsel. - (a) The Chairman of
(5) To adopt, from time to time, a budget of expenditures the Commission on Audit shall be the ex-officio Auditor of
including salaries of personnel, against all funds available the SSS. He or his representative shall check and audit all
to the SSS under this Act; the accounts, funds and properties of the SSS in the same
(6) To set up its accounting system and provide the manner and as frequently as the accounts, funds and
necessary personnel therefor; properties of the government are checked and audited
under existing laws, and he shall have, as far as
(7) To require reports, compilations and analyses of practicable, the same powers and duties as he has with
statistical and economic data and to make investigation respect to the checking and auditing of public accounts,
as may be needed for the proper administration and funds and properties in general.
development of the SSS;
(b) The Secretary of Justice shall be the ex-officio counsel
(8) To acquire and dispose of property, real or personal, of the SSS. He or his representative shall act as legal
which may be necessary or expedient for the attainment adviser and counsel thereof.
of the purposes of this Act;
SECTION 7. Oaths, Witnesses, and Production of
(9) To acquire, receive, or hold, by way of purchase, Records. - When authorized by the Commission, an
expropriation or otherwise, public or private property for official or employee thereof shall have the power to
the purpose of undertaking housing projects preferably administer oath and affirmation, take depositions, certify
for the benefit of low-income members and for the to official acts, and issue subpoena and subpoena duces
maintenance of hospitals and institutions for the sick, tecum to compel the attendance of witnesses and the
aged and disabled, as well as schools for the members production of books, papers, correspondence and other
and their immediate families; records deemed necessary as evidence in connection
(10) To sue and be sued in court; and with any question arising under this Act. Any case of
(11) To perform such other corporate acts as it may deem contumacy shall be dealt with by the Commission in
appropriate for the proper enforcement of this Act. accordance with law.
SECTION 5. Settlement of Disputes. - (a) Any dispute SECTION 8. Terms Defined. - For purposes of this Act,
arising under this Act with respect to coverage, benefits, the following terms shall, unless the context indicates
contributions and penalties thereon or any other matter otherwise, have the following meanings:
related thereto, shall be cognizable by the Commission, (a) SSS - The Social Security System created by this Act.
and any case filed with respect thereto shall be heard by (b) Commission - The Social Security Commission as
the Commission, or any of its members, or by hearing herein created.
officers duly authorized by the Commission and decided
within twenty (20) days after the submission of the (c) Employer- Any person, natural or juridical, domestic or
evidence. The filing, determination and settlement of foreign, who carries on in the Philippines any trade,
disputes shall be governed by the rules and regulations business, industry, undertaking, or activity of any kind
promulgated by the Commission. and uses the services of another person who is under his
orders as regards the employment, except the
(b) Appeal to Courts. - Any decision of the Commission, in Government and any of its political subdivisions,
the absence of an appeal therefrom as herein Provided, branches or instrumentalities, including corporations



owned or controlled by the Government: Provided, That a fifty percent (50%) of the share of the legitimate,
self-employed person shall be both employee and legitimated or legally adopted children: Provided, further,
employer at the same time. That in the absence of the dependent legitimate,
(d) Employee - Any person who performs services for an legitimated children of the member, his/her dependent
employer in which either or both mental or physical illegitimate children shall be entitled to one hundred
efforts are used and who receives compensation for such percent (100%) of the benefits. In their absence, the
services, where there is an employer-employee dependent parents who shall be the secondary
relationship: Provided, That a self-employed person shall beneficiaries of the member. In the absence of all the
be both employee and employer at the same time. foregoing, any other person designated by the member
as his/her secondary beneficiary.
(e) Dependents - The dependents shall be the following:
(l) Contingency - The retirement, death, disability, injury or
(1) The legal spouse entitled by law to receive support sickness and maternity of the member.
from the member;
(m) Average monthly salary credit - The result obtained
(2) The legitimate, legitimated or legally adopted, and by dividing the sum of the last sixty (60) monthly salary
illegitimate child who is unmarried, not gainfully credits immediately preceding the semester of
employed, and has not reached twenty-one (21) years of contingency by sixty (60), or the result obtained by
age, or if over twenty-one (21) years of age, he is dividing the sum of all the monthly salary credits paid
congenitally or while still a minor has been permanently prior to the semester of contingency by the number of
incapacitated and incapable of self-support, physically or monthly contributions paid in the same period,
mentally; and whichever is greater: Provided, That the injury or sickness
(3) The parent who is receiving regular support from the which caused the disability shall be deemed as the
member. permanent disability for the purpose of computing the
average monthly salary credit.
(f) Compensation - All actual remuneration for
employment, including the mandated cost-of-living (n) Average daily salary credit- The result obtained by
allowance, as well as the cash value of any remuneration dividing the sum of the six (6) highest monthly salary
paid in any medium other than cash except that part of credits in the twelve-month period immediately
the remuneration in excess of the maximum salary credit preceding the semester of contingency by one hundred
as Provided under Section Eighteen of this Act. eighty (180).
(g) Monthly salary credit - The compensation base for (o) Semester - A period of two (2) consecutive quarters
contributions and benefits as indicated in the schedule in ending in the quarter of contingency.
Section Eighteen of this Act. (p) Quarter - A period of three (3) consecutive calendar
(h) Monthly - The period from one end of the last payroll months ending on the last day of March, June,
period of the preceding month to the end of the last September and December.
payroll period of the current month if compensation is on (q) Credited years of service - For a member covered prior
hourly, daily or weekly basis; if on any other basis, to January nineteen hundred and eighty five (1985) minus
'monthly' shall mean a period of one (1) month. the calendar year of coverage plus the number of
(i) Contribution - The amount paid to the SSS by and on calendar years in which six (6) or more contributions have
behalf of the members in accordance with Section been paid from January nineteen hundred and eighty
Eighteen of this Act. five (1985) up to the calendar year containing the
semester prior to the contingency. For a member covered
(j) Employment - Any service performed by an employee in or after January nineteen hundred and eighty five
for his employer except: (1985), the number of calendar years in which six (6) or
(1) Employment purely casual and not for the purpose of more contributions have been paid from the year of
occupation or business of the employer; coverage up to the calendar year containing the semester
prior to the contingency: Provided, That the Commission
(2) Service performed on or in connection with an alien may provide for a different number of contributions in a
vessel by an employee if he is employed when such vessel calendar year for it to be considered as a credited year of
is outside the Philippines; service.
(3) Service performed in the employ of the Philippine (r) Member - The worker who is covered under Section
Government or instrumentality or agency thereof; Nine and Section Nine-A of this Act.
(4) Service performed in the employ of a foreign (s) Self-employed - Any person whose income is not
government or international organization, or their derived from employment, as defined under this Act, as
wholly-owned instrumentality: Provided, however, That well as those workers enumerated in Section Nine-A
this exemption notwithstanding, any foreign hereof.
government, international organization or their
wholly-owned instrumentality employing workers in the (t) Net earnings - Net income before income taxes plus
Philippines or employing Filipinos outside of the non-cash charges such as depreciation and depletion
Philippines, may enter into an agreement with the appearing in the regular financial statement of the
Philippine Government for the inclusion of such issuing or assuming institution.
employees in the SSS except those already covered by (u) Fixed charges - Recurring expense such as
their respective civil service retirement systems: Provided, amortization of debt discount or rentals for leased
further, That the terms of such agreement shall conform properties, including interest on funded and unfunded
with the provisions of this Act on coverage and amount of debt.
payment of contributions and benefits: Provided, finally,
That the provisions of this Act shall be supplementary to SECTION 9. Coverage. - (a) Coverage in the SSS shall be
any such agreement; and compulsory upon all employees not over sixty (60) years
of age and their employers: Provided, That in the case of
(5) Such other services performed by temporary and domestic helpers, their monthly income shall not be less
other employees which may be excluded by regulation of than One thousand pesos (P1,000.00) a month: Provided,
the Commission. Employees of bona fide independent further, That any benefit already earned by the
contractors shall not be deemed employees of the employees under private benefit plans existing at the
employer engaging the service of said contractors. time of the approval of this Act shall not be discontinued,
(k) Beneficiaries - The dependent spouse until he or she reduced or otherwise impaired: Provided, further, That
remarries, the dependent legitimate, legitimated or private plans which are existing and in force at the time of
legally adopted, and illegitimate children, who shall be compulsory coverage shall be integrated with the plan of
the primary beneficiaries of the member: Provided, That the SSS in such a way where the employer's contribution
the dependent illegitimate children shall be entitled to to his private plan is more than that required of him in



this Act, he shall pay to the SSS only the contribution (i) Three hundred pesos (P300.00; plus
required of him and he shall continue his contribution to (ii) Twenty percent (20%) of the average monthly salary
such private plan less his contribution to the SSS so that credit; plus
the employer's total contribution to his benefit plan and
to the SSS shall be the same as his contribution to his (iii) Two percent (2%) of the average monthly salary credit
private benefit plan before the compulsory coverage: for each credited year of service in excess of ten (10) years;
Provided, further, That any changes, adjustments, or
modifications, eliminations or improvements in the (2) Forth percent (40%) of the average monthly salary
benefits to be available under the remaining private plan, credit; or
which may be necessary to adopt by reason of the
reduced contributions thereto as a result of the (3) One thousand pesos (P1,000.00): Provided, That the
integration, shall be subject to agreements between the monthly pension shall in no case be paid for an
employers and employees concerned: Provided, further, aggregate amount of less than sixty (60) months.
That the private benefit plan which the employer shall (b) Notwithstanding the preceding paragraph, the
continue for his employees shall remain under the minimum pension shall be One thousand two hundred
employer's management and control unless there is an pesos (P1,200.00) for members with at least ten (10)
existing agreement to the contrary: Provided, finally, That credited years of service and Two thousand four hundred
nothing in this Act shall be construed as a limitation on pesos (P2,400.00) for those with twenty (20) credited
the right of employers and employees to agree on and years of service.
adopt benefits which are over and above those Provided
under this Act. SECTION 12-A. Dependents' Pension. - Where monthly
pension is payable on account of death, permanent total
(b) Spouses who devote full time to managing the disability or retirement, dependents' pension equivalent
household and family affairs, unless they are also to ten percent (10%) of the monthly pension or Two
engaged in other vocation or employment which is hundred fifty pesos (P250.00), whichever is higher, shall
subject to mandatory coverage, may be covered by the also be paid for each dependent child conceived on or
SSS on a voluntary basis. before the date of the contingency but not exceeding five
(c) Filipinos recruited by foreign-based employers for (5), beginning with the youngest and without
employment abroad may be covered by the SSS on a substitution: Provided, That where there are legitimate or
voluntary basis. illegitimate children, the former shall be preferred.
SECTION 9-A. Compulsory Coverage of the SEC. 12-B. Retirement Benefits. - (a) A member who has
Self-Employed. - Coverage in the SSS shall also be paid at least one hundred twenty (120) monthly
compulsory upon such self-employed persons as may be contributions prior to the semester of retirement and
determined by the Commission under such rules and who: (1) has reached the age of sixty (60) years and is
regulations as it may prescribe, including but not limited already separated from employment or has ceased to be
to the following: self-employed; or (2) has reached the age of sixty-five (65)
years, shall be entitled for as long as he lives to the
1. All self-employed professionals; monthly pension: Provided, That he shall have the option
2. Partners and single proprietors of businesses; to receive his first eighteen (18) monthly pensions in lump
sum discounted at a preferential rate of interest to be
3. Actors and actresses, directors, scriptwriters and news determined by the SSS.
correspondents who do not fall within the definition of
the term "employee" in Section 8 (d) of this Act; (b) A covered member who is sixty (60) years old at
retirement and who does not qualify for pension benefits
4. Professional athletes, coaches, trainers and jockeys; and under paragraph (a) above, shall be entitled to a lump
5. Individual farmers and fishermen. sum benefit equal to the total contributions paid by him
Unless otherwise specified herein, all provisions of this and on his behalf: Provided, That he is separated from
Act applicable to covered employees shall also be employment and is not continuing payment of
applicable to the covered self-employed persons. contributions to the SSS on his own.
SECTION 10. Effective Date of Coverage. - Compulsory (c) The monthly pension shall be suspended upon the
coverage of the employer shall take effect on the first day reemployment or resumption of self-employment of a
of his operation and that of the employee on the day of retired member who is less than sixty-five (65) years old.
his employment: Provided, That the compulsory coverage He shall again be subject to Section Eighteen and his
of the self-employed person shall take effect upon his employer to Section Nineteen of this Act.
registration with the SSS. (d) Upon the death of the retired member, his primary
SECTION 11. Effect of Separation from Employment. - beneficiaries as of the date of his retirement shall be
When an employee under compulsory coverage is entitled to receive the monthly pension: Provided, That if
separated from employment, his employer's contribution he has no primary beneficiaries and he dies within sixty
on his account and his obligation to pay contributions (60) months from the start of his monthly pension, his
arising from that employment shall cease at the end of secondary beneficiaries shall be entitled to a lump sum
the month of separation, but said employee shall be benefit equivalent to the total monthly pensions
credited with all contributions paid on his behalf and corresponding to the balance of the five-year guaranteed
entitled to benefits according to the provisions of this Act. period, excluding the dependents' pension.
He may, however, continue to pay the total contributions (e) The monthly pension of a member who retires after
to maintain his right to full benefit. reaching age sixty (60) shall be the higher of either: (1) the
SECTION 11-A. Effect of Interruption of Business or monthly pension computed at the earliest time he could
Professional Income. - If the self-employed realizes no have retired had he been separated from employment or
income in any given month, he shall not be required to ceased to be self-employed plus all adjustments thereto;
pay contributions for that month. He may, however, be or (2) the monthly pension computed at the time when
allowed to continue paying contributions under the same he actually retires.
rules and regulations applicable to a separated employee SECTION 13. Death Benefits. - Upon the death of a
member: Provided, That no retroactive payment of member who has paid at least thirty-six (36) monthly
contributions shall be allowed other than as prescribed contributions prior to the semester of death, his primary
under Section Twenty-two-A hereof. beneficiaries shall be entitled to the monthly pension:
SECTION 12. Monthly Pension. - (a) The monthly pension Provided, That if he has no primary beneficiaries, his
shall be the highest of the following amounts: secondary beneficiaries shall be entitled to a lump sum
benefit equivalent to thirty-six (36) times the monthly
(1) The sum of the following: pension. If he has not paid the required thirty-six (36)


monthly contributions, his primary or secondary

beneficiaries shall be entitled to a lump sum benefit One big toe 6
equivalent to the monthly pension times the number of
monthly contributions paid to the SSS or twelve (12) times One hand 39
the monthly pension, whichever is higher.
SECTION 13-A. Permanent Disability Benefits. - (a) One arm 50
Upon the permanent total disability of a member who
has paid at least thirty-six (36) monthly contributions prior
to the semester of disability, he shall be entitled to the One foot 31
monthly pension: Provided, That if he has not paid the
required thirty-six (36) monthly contributions, he shall be One leg 46
entitled to a lump sum benefit equivalent to the monthly
pension times the number of monthly contributions paid
to the SSS or twelve (12) times the monthly pension, One ear 10
whichever is higher. A member who (1) has received a
lump sum benefit; and (2) is reemployed or has resumed
self-employment not earlier than one (1) year from the Both ears 20
date of his disability shall again be subject to compulsory
coverage and shall be considered a new member. Hearing of one ear 10
(b) The monthly pension and dependents' pension shall
be suspended upon the reemployment or resumption of Hearing of both ears 50
self-employment or the recovery of the disabled member
from his permanent total disability or his failure to
present himself for examination at least once a year upon Sight of one eye 25
notice by the SSS.
(g) The percentage degree of disability which is
(c) Upon the death of the permanent total disability
equivalent to the ratio that the designated number of
pensioner, his primary beneficiaries as of the date of
months of compensability bears to seventy-five (75),
disability shall be entitled to receive the monthly pension:
rounded to the next higher integer, shall not be additive
Provided, That if he has no primary beneficiaries and he
for distinct, separate and unrelated permanent partial
dies within sixty (60) months from the start of his
disabilities, but shall be additive for deteriorating and
monthly pension, his secondary beneficiaries shall be
related permanent partial disabilities to a maximum of
entitled to a lump sum benefit equivalent to the total
one hundred percent (100%), in which case, the member
monthly pensions corresponding to the balance of the
shall be deemed as permanently totally disabled.
five-year guaranteed period excluding the dependents'
pension. (h) In case of permanent partial disability, the monthly
pension benefit shall be given in lump sum if it is payable
(d) The following disabilities shall be deemed permanent
for less than twelve (12) months.
total:
(i) For the purpose of adjudicating retirement, death and
1. Complete loss of sight of both eyes;
permanent total disability pension benefits, contributions
2. Loss of two limbs at or above the ankle or wrists; shall be deemed paid for the months during which the
3. Permanent complete paralysis of two limbs; member received partial disability pension: Provided,
That such contributions shall be based on his last
4. Brain injury resulting to incurable imbecility or insanity; contribution prior to his disability.
and
(j) Should a member who is on partial disability pension
5. Such cases as determined and approved by the SSS. retire or die, his disability pension shall cease upon his
(e) If the disability is permanent partial, and such retirement or death.
disability occurs before thirty-six (36) monthly SECTION 13-B. Funeral Benefit. - A funeral grant
contributions have been paid prior to the semester of equivalent to Twelve thousand pesos (P12,000.00) shall be
disability, the benefit shall be such percentage of the paid, in cash or in kind, to help defray the cost of funeral
lump sum benefit described in the preceding paragraph expenses upon the death of a member, including
with due regard to the degree of disability as the permanently totally disabled member or retiree.
Commission may determine.
SECTION 14. Sickness Benefit. - (a) A member who has
(f) If the disability is permanent total and such disability paid at least three (3) monthly contributions in the
occurs after thirty-six (36) monthly contributions have twelve-month period immediately preceding the
been paid prior to the semester of disability, the benefit semester of sickness or injury and is confined therefor for
shall be the monthly pension for permanent total more than three (3) days in a hospital or elsewhere with
disability payable not longer than the period designated the approval of the SSS, shall, for each day of
in the following schedule: compensable confinement or a fraction thereof, be paid
by his employer, or the SSS, if such person is unemployed
Complete and permanent Number of or self-employed, a daily sickness benefit equivalent to
loss of use of Months ninety percent (90%) of his average daily salary credit,
subject to the following conditions:
One thumb 10 (1) In no case shall the daily sickness benefit be paid
longer than one hundred twenty (120) days in one (1)
calendar year, nor shall any unused portion of the one
One index finger 8 hundred twenty (120) days of sickness benefit granted
under this section be carried forward and added to the
One middle finger 6 total number of compensable days allowable in the
subsequent year;
One right finger 5 (2) The daily sickness benefit shall not be paid for more
than two hundred forty (240) days on account of the
same confinement; and
One little finger 3
(3) The employee member shall notify his employer of the
fact of his sickness or injury within five (5) calendar days
after the start of his confinement unless such


confinement is in a hospital or the employee became sick (c) That payment of daily maternity benefits shall be a bar

or was injured while working or within the premises of to the recovery of sickness benefits Provided by this Act
the employer in which case, notification to the employer for the same period for which daily maternity benefits
is necessary: Provided, That if the member is unemployed have been received;
or self-employed, he shall directly notify the SSS of his (d) That the maternity benefits Provided under this
confinement within five (5) calendar days after the start section shall be paid only for the first four (4) deliveries or
thereof unless such confinement is in a hospital in which miscarriages;
case notification is also not necessary: Provided, further,
That in cases where notification is necessary, the (e) That the SSS shall immediately reimburse the
confinement shall be deemed to have started not earlier employer of one hundred percent (100%) of the amount
than the fifth day immediately preceding the date of of maternity benefits advanced to the employee by the
notification. employer upon receipt of satisfactory proof of such
payment and legality thereof; and
(b) The compensable confinement shall begin on the first
day of sickness, and the payment of such allowances shall (f) That if an employee member should give birth or suffer
be promptly made by the employer every regular payday miscarriage without the required contributions having
or on the fifteenth and last day of each month, and been remitted for her by her employer to the SSS, or
similarly in the case of direct payment by the SSS, for as without the latter having been previously notified by the
long as such allowances are due and payable: Provided, employer of the time of the pregnancy, the employer
That such allowance shall begin only after all sick leaves of shall pay to the SSS damages equivalent to the benefits
absence with full pay to the credit of the employee which said employee member would otherwise have
member shall have been exhausted. been entitled to.
(c) One hundred percent (100%) of the daily benefits SECTION 15. Non-Transferability of Benefits. - The SSS
Provided in the preceding paragraph shall be reimbursed shall promptly pay the benefits Provided in this Act to
by the SSS to said employer upon receipt of satisfactory such persons as may be entitled thereto in accordance
proof of such payment and legality thereof: Provided, with the provisions of this Act: Provided, That the SSS
That the employer has notified the SSS of the shall pay the retirement benefits on the day of
confinement within five (5) calendar days after receipt of contingency to qualified members who have submitted
the notification from the employee member: Provided, the necessary documents at least six (6) months before:
further, That if the notification to the SSS is made by the Provided, further, That the beneficiary who is a national of
employer beyond five (5) calendar days after receipt of a foreign country which does not extend benefits to a
the notification from the employee member, said Filipino beneficiary residing in the Philippines, or which is
employer shall be reimbursed only for each day of not recognized by the Philippines, shall not be entitled to
confinement starting from the tenth calendar day receive any benefit under this Act: Provided, further, That
immediately preceding the date of notification to the notwithstanding the foregoing, where the best interest of
SSS: Provided, finally, That the SSS shall reimburse the the SSS will be served, the Commission may direct
employer or pay the unemployed member only for payments without regard to nationality or country of
confinement within the one-year period immediately residence: Provided, further, That if the recipient is a
preceding the date the claim for benefit or minor or a person incapable of administering his own
reimbursement is received by the SSS, except affairs, the Commission shall appoint a representative
confinement in a hospital in which case the claim for under such terms and conditions as it may deem proper:
benefit or reimbursement must be filed within one (1) Provided, further, That such appointment shall not be
year from the last day of confinement. necessary in case the recipient is under the custody of or
living with the parents or spouse of the member in which
(d) Where the employee member has given the required case the benefits shall be paid to such parents or spouse,
notification but the employer fails to notify the SSS of the as representative payee of the recipient. Such benefits are
confinement or to file the claim for reimbursement not transferable and no power of attorney or other
within the period prescribed in this section resulting in document executed by those entitled thereto in favor of
the reduction of the benefit or denial of the claim, such any agent, attorney or any other person for the collection
employer shall have no right to recover the thereof on their behalf shall be recognized, except when
corresponding daily allowance he advanced to the they are physically unable to collect personally such
employee member as required in this section. benefits: Provided, further, That in case of death benefits,
(e)The claim of reimbursement shall be adjudicated by if no beneficiary qualifies under this Act, said benefits
the SSS within a period of two (2) months from receipt shall be paid to the legal heirs in accordance with the law
thereof: Provided, That should no payment be received by of succession.
the employer within one (1) month after the period SECTION 16. Exemption from Tax, Legal Process and
prescribed herein for adjudication, the reimbursement Lien. - All laws to the contrary notwithstanding, the SSS
shall thereafter earn simple interest of one percent (1%) and all its assets and properties, all contributions
per month until paid. collected and all accruals thereto and income or
(f) The provisions regarding the notification required of investment earnings therefrom as well as all supplies,
the member and the employer as well as the period equipment, papers or documents shall be exempt from
within which the claim for benefit or reimbursement may any tax, assessment, fee, charge, or customs or import
be filed shall apply to all claims filed with the SSS. duty; and all benefit payments made by the SSS shall
SECTION 14-A. Maternity Leave Benefit. - A female likewise be exempt from all kinds of taxes, fees or
member who has paid at least three (3) monthly charges, and shall not liable to attachments,
contributions in the twelve-month period immediately garnishments, levy or seizure by or under any legal or
preceding the semester of her childbirth or miscarriage equitable process whatsoever, either before or after
shall be paid a daily maternity benefit equivalent to one receipt by the person or persons entitled thereto, except
hundred percent (100%) of her average daily salary credit to pay any debt of the member to the SSS. No tax
for sixty (60) days or seventy-eight (78) days in case of measure of whatever nature enacted shall apply to the
caesarian delivery, subject to the following conditions: SSS, unless it expressly revokes the declared policy of the
State in Section 2 hereof granting tax-exemption to the
(a) That the employee shall have notified her employer of SSS. Any tax assessment imposed against the SSS shall
her pregnancy and the probable date of her childbirth, be null and void. (As amended by Sec. 9, P.D. No. 24, S.
which notice shall be transmitted to the SSS in 1972; and Sec. 14, P. D. No. 735, S. 1975).
accordance with the rules and regulations it may provide;
SECTION 17. Fee of Agents, Attorneys, Etc. - No agent,
(b) The full payment shall be advanced by the employer attorney or other person in charge of the preparation,
within thirty (30) days from the filing of the maternity filing or pursuing any claim for benefit under this Act
leave application; shall demand or charge for his services any fee, and any



stipulation to the contrary shall be null and void. The
retention or deduction of any amount from any benefit XV 7,750.00 - 8000 403.30 266.70 672.00
granted under this Act for the payment of fees for such 8.249.99
services is prohibited: Provided, however, That any
member of the Philippine Bar who appears as counsel in XVI 8,250.00 - 8500 430.70 283.30 714.00
any case heard by the Commission shall be entitled to 8,749.99
attorneys' fees not exceeding ten percent (10%) of the
benefits awarded by the Commission, which fees shall
not be payable before the actual payment of the benefits, XVII 8,750.00 - 9000 456.00 300.00 756.00
and any stipulation to the contrary shall be null and void. OVER
Any violation of the provisions of this Section shall be The foregoing schedule of contribution shall also apply to
punished by a fine of not less than Five hundred pesos self-employed and voluntary members.
(P500.00) nor more than Five thousand pesos (P5,000.00),
or imprisonment for not less than six (6) months nor The maximum monthly salary credit shall be Nine
more than one (1) year, or both, at the discretion of the thousand pesos (P9,000.00) effective January Nineteen
court. hundred and ninety six (1996); Provided, That it shall be
increased by One thousand pesos (P1,000.00) every year
SECTION 18. Employee's Contributions. - (a) Beginning thereafter until it shall have reached Twelve thousand
as of the last day of the calendar month when an pesos (P12,000.00) by Nineteen hundred and ninety nine
employee's compulsory coverage takes effect and every (1999): Provided, further, That the minimum and
month thereafter during his employment, the employer maximum monthly salary credits as well as the rate of
shall deduct and withhold from such employee's monthly contributions may be fixed from time to time by the
salary, wage, compensation or earnings, the employee's Commission through rules and regulations taking into
contribution in an amount corresponding to his salary, consideration actuarial calculations and rate of benefits,
wage, compensation or earnings during the month in subject to the approval of the President of the
accordance with the following schedule: Philippines.
MONTHLY MONTHLY CONTRIBUTION SECTION 19. Employer's Contributions. - (a) Beginning
SALARY RANGE OF
BRACKET COMPENSATION
SALARY as of the last day of the month when an employee's
CREDIT compulsory coverage takes effect and every month
EMPLOYER EMPLOYEE TOTAL
thereafter during his employment, his employer shall pay,
I 1,000.00 - 1000 50.70 33.30 84.00 with respect to such covered employee, the employer's
contribution in accordance with the schedule indicated in
1,249.99
Section Eighteen of this Act. Notwithstanding any
contract to the contrary, an employer shall not deduct,
II 1,250.00 - 1500 76.00 50.00 126.00 directly or indirectly, from the compensation of his
1,749.99 employees covered by the SSS or otherwise recover from
them the employer's contributions with respect to such
III 1,750.00 - 2000 101.30 66.70 168.00 employees.
2,249.99 (b) The remittance of such contributions by the employer
shall be supported by a quarterly collection list to be
IV 2,250.00 - 2500 126.70 83.30 210.00 submitted to the SSS at the end of each calendar quarter
indicating the correct ID number of the employer, the
2,749.99 correct names and the SSS numbers of the employees
and the total contributions paid for their account during
V 2,750.00 - 3000 152.00 100.00 252.00 the quarter.
3,249.99 SECTION 19-A. Contributions of the Self-Employed
Member. - The contributions to the SSS of the
VI 3,250.00 - 3500 177.30 116.70 294.00 self-employed member shall be determined in
3,749.99 accordance with Section Eighteen of this Act: Provided,
That the monthly earnings declared by the self-employed
VII 3,750.00 - 4000 202.70 133.30 336.00 member at the time of his registration with the SSS shall
be considered as his monthly compensation and he shall
4,249.99 pay both the employer and the employee contributions:
Provided, further, That the contributions of self-employed
VIII 4,250.00 - 4500 228.00 150.00 378.00 persons earning One thousand pesos (P1,000.00) monthly
4,749.99 or below may be reduced by the Commission.
"The monthly earnings declared by the self-employed
IX 4,750.00 - 5000 253.30 166.70 420.00 member at the time of his registration shall remain the
5,249.99 basis of his monthly salary credit, unless he makes
another declaration of his monthly earnings, in which
case such latest declaration becomes the new basis of his
X 5,250.00 - 5500 278.70 183.70 462.40
monthly salary credit.
5,749.99
SECTION 20. Government Contribution. - As the
contribution of the Government to the operation of the
XI 5,750.00 - 6000 304.00 200.00 504.00 SSS, Congress shall annually appropriate out of any funds
6,249.99 in the National Treasury not otherwise appropriated, the
necessary sum or sums to meet the estimated expenses
XII 6,250.00 - 6500 329.30 216.78 546.00 of the SSS for each ensuing year. In addition to this
6,749.99 contribution, Congress shall appropriate from time to
time such sum or sums as may be needed to assure the
maintenance of an adequate working balance of the
XIII 6,750.00 - 7000 354.70 233.30 588.00 funds of the SSS as disclosed by suitable periodic
7,249.99 actuarial studies to be made of the operations of the SSS.
SECTION 21. Government Guarantee. - The benefits
XIV 7,250.00 - 7500 380.00 250.00 630.00 prescribed in this Act shall not be diminished and to
7,749.99 guarantee said benefits the Government of the Republic


of the Philippines accepts general responsibility for the subject to compulsory coverage should die or become
solvency of the SSS. sick or disabled or reach the age of sixty (60) without the
SECTION 22. Remittance of Contributions. - (a) The SSS having previously received any report or written
contributions imposed in the preceding Section shall be communication about him from his employer, the said
remitted to the SSS within the first ten (10) days of each employer shall pay to the SSS damages equivalent to the
calendar month following the month for which they are benefits to which said employee member would have
applicable or within such time as the Commission may been entitled had his name been reported on time by the
prescribe. Every employer required to deduct and to employer to the SSS, except that in case of pension
remit such contributions shall be liable for their payment benefits, the employer shall be liable to pay the SSS
and if any contribution is not paid to the SSS as herein damages equivalent to the accumulated pension due as
prescribed, he shall pay besides the contribution a of the date of settlement of the claim or to the five (5)
penalty thereon of three percent (3%) per month from the years' pension, including dependents' pension: Provided,
date the contribution falls due until paid. If deemed further, That if the contingency occurs within thirty (30)
expedient and advisable by the Commission, the days from the date of employment, the employer shall be
collection and remittance of contributions shall be made relieved of his liability for damages: Provided, further, That
quarterly or semi-annually in advance, the contributions any person or entity engaging the services of an
payable by the employees to be advanced by their independent contractor shall be subsidiarily liable with
respective employers: Provided, That upon separation of such contractor for any civil liability incurred by the latter
an employee, any contribution so paid in advance but not under this Act: Provided, finally, That the same person or
due shall be credited or refunded to his employer. entity engaging the services of an independent
contractor shall require such contractor to post a surety
(b) The contributions payable under this Act in cases bond to guarantee the payment of the worker's benefits.
where an employer refuses or neglects to pay the same
shall be collected by the SSS in the same manner as taxes (b) Should the employer misrepresent the true date of
are made collectible under the National Internal Revenue employment of the employee member or remit to the
Code, as amended. Failure or refusal of the employer to SSS contributions which are less than those required in
pay or remit the contributions herein prescribed shall not this Act or fail to remit any contribution due prior to the
prejudice the right of the covered employee to the date of contingency, resulting in a reduction of benefits,
benefits of the coverage. the employer shall pay to the SSS damages equivalent to
the difference between the amount of benefit to which
The right to institute the necessary action against the the employee member or his beneficiary is entitled had
employer may be commenced within twenty (20) years the proper contributions been remitted to the SSS and
from the time the delinquency is known or the the amount payable on the basis of contributions actually
assessment is made by the SSS, or from the time the remitted: Provided, That if the employee member or his
benefit accrues, as the case may be. beneficiary is entitled to pension benefits, damages shall
(c) Should any person, natural or juridical, default in any be equivalent to the accumulated pension due as of the
payment of contributions, the Commission may also date of settlement of the claim or to the five (5) years'
collect the same in either of the following ways: pension, whichever is higher, including dependents'
pension.
1. By an action in court, which shall hear and dispose of
the case in preference to any other civil action; or In addition to the liability mentioned in the preceding
paragraphs (a) and (b) hereof, the employer shall also be
2. By issuing a warrant to the Sheriff of any province or liable for the corresponding unremitted contributions
city commanding him to levy upon and sell any real and and penalties thereon.
personal property of the debtor. The Sheriff's sale by
virtue of said warrant shall be governed by the same (c) The records and reports duly accomplished and
procedure prescribed for executions against property submitted to the SSS by the employer or the member, as
upon judgments by a court of record. the case may be, shall be kept confidential by the SSS
except in compliance with a subpoena duces tecum
(d) The last complete record of monthly contributions issued by the Court, shall not be divulged without the
paid by the employer or the average of the monthly consent of the SSS President or any official of the SSS
contributions paid during the past three (3) years as of duly authorized by him, shall be presumed correct as to
the date of filing of the action for collection shall be the data and other matters stated therein, unless the
presumed to be the monthly contributions payable by necessary corrections to such records and reports have
and due from the employer to the SSS for each of the been properly made by the parties concerned before the
unpaid month, unless contradicted and overcome by right to the benefit being claimed accrues, and shall be
other evidence: Provided, That the SSS shall not be barred made the basis for the adjudication of the claim. If as a
from determining and collecting the true and correct result of such adjudication the SSS in good faith pays a
contributions due the SSS even after full payment monthly pension to a beneficiary who is inferior in right
pursuant to this paragraph, nor shall the employer be to another beneficiary or with whom another beneficiary
relieved of his liability under Section Twenty-eight of this is entitled to share, such payments shall discharge the
Act. SSS from liability unless and until such other beneficiary
SECTION 22-A. Remittance of Contributions of notifies the SSS of his claim prior to the payments.
Self-Employed Member. - Self-employed members shall (d) Every employer shall keep true and accurate work
remit their monthly contributions quarterly on such dates records for such period and containing such information
and schedules as the Commission may specify through as the Commission may prescribe, in addition to an
rules and regulations: Provided, That no retroactive Annual Register of New and Separated Employees" which
payment of contributions shall be allowed, except as shall be secured from the SSS wherein the employer shall
Provided in this Section. enter on the first day of employment or on the effective
SECTION 23. Method of Collection and Payment. - The date of separation, the names of the persons employed or
SSS shall require a complete and proper collection and separated from employment, their SSS numbers, and
payment of contributions and proper identification of the such other data that the Commission may require and
employer and the employee. Payment may be made in said annual register shall be submitted to the SSS in the
cash, checks, stamps, coupons, tickets, or other month of January of each year. Such records shall be
reasonable devices that the Commission may adopt. open for inspection by the SSS or its authorized
representatives quarterly or as often as the SSS may
SECTION 24. Employment Records and Reports. - (a) require.
Each employer shall immediately report to the SSS the
names, ages, civil status, occupations, salaries and The SSS may also require each employer to submit, with
dependents of all his employees who are subject to respect to the persons in his employ, reports needed for
compulsory coverage: Provided, That if an employee the effective administration of this Act.


(e) Each employer shall require, as a condition to agency or instrumentality of the government shall be
employment, the presentation of a registration number guaranteed by the Government of the Philippines or any
secured by the prospective employee from the SSS in government financial institution or acceptable
accordance with such procedure as the SSS may adopt: multilateral agency: Provided, further, That the SSS shall
Provided, That in case of employees who have been have priority over the revenues of the projects: Provided,
assigned registration numbers by virtue of a previous finally, That such investments shall not exceed thirty
employment, such numbers originally assigned to them percent (30%) of the Investment Reserve Fund;
should be used for purposes of this Section: Provided, (c) In bonds, securities, promissory notes or other
further, That the issuance of such registration numbers evidence of indebtedness of government financial
by the SSS shall not exempt the employer from institutions or government corporations with acceptable
complying with the provisions of paragraph (a) of this credit or guarantee: Provided, That such investments shall
Section. not exceed thirty percent (30%) of the Investment
(f) Notwithstanding any law to the contrary, microfilm, or Reserve Fund;
non-erasable optical disk and other similar archival media (d) In bonds, securities, promissory notes or other
copies of original SSS records and reports, duly certified evidence of indebtedness of any bank doing business in
by the official custodian thereof, shall have the same the Philippines and in good standing with the Bangko
evidentiary value as the originals and be admissible as Sentral ng Pilipinas to finance loans to private
evidence in all legal proceedings. corporations doing business in the Philippines, including
(g) Notwithstanding any law to the contrary, local schools, hospitals, small-and-medium scale industries,
government units shall, prior to issuing any annual cooperatives and non-governmental organizations, in
business license or permit, require submission of which case the collaterals or securities shall be assigned
certificate of SSS coverage and compliance with the to the SSS under such terms and conditions as the
provisions of this Act: Provided, That the certification or Commission may prescribe: Provided, That in the case of
clearance shall be issued by the SSS within five (5) bank deposits, they shall not exceed at any time the
working days from receipt of the request. unimpaired capital and surplus or total private deposits of
SECTION 24-A. Report and Registration of the the depository bank, whichever is smaller: Provided,
Self-Employed Member. - Each covered self-employed further, That said bank shall first have been designated as
person shall, within thirty (30) days from the first day he a depository for this purpose by the Monetary Board of
started the practice of his profession or business the Bangko Sentral ng Pilipinas: Provided, finally, That
operations register and report to the SSS his name, age, such investments shall not exceed forty percent (40%) of
civil status, and occupation, average monthly net income the Investment Reserve Fund;
and his dependents. (e) In bonds, securities, promissory notes or other
SECTION 25. Deposits and Disbursements. - All money evidence of indebtedness of shelter agencies of the
paid to or collected by the SSS every year under this Act, National Government or financial intermediaries to
and all accruals thereto shall be deposited, administered finance housing loans of members; and in long-term
and disbursed in the same manner and under the same direct individual or group housing loans giving priority to
conditions and requirements as Provided by law for other the low-income groups, up to a maximum of ninety
public special funds: Provided, That not more than twelve percent (90%) of the appraised value of the properties to
percent (12%) of the total yearly contributions plus three be mortgaged by the borrowers; and
percent (3%) of other revenues shall be disbursed for In short and medium term loans to members such as
operational expenses such as salaries and wages, supplies salary, educational, livelihood, marital, calamity and
and materials, depreciation and the maintenance of emergency loans: Provided, That not more than thirty five
offices of the SSS: Provided, further, That if the expenses percent (35%) of the Investment Reserve Fund at any time
in any year are less than the maximum amount shall be invested for housing purposes: Provided, further,
permissible, the difference shall not be availed of as That not more than ten percent (10%) of the Investment
additional expenses in the following years. Reserve Fund shall be invested in short and medium
SECTION 26. Investment of Reserve Funds. - All term loans;
revenues of the SSS that are not needed to meet the (f) In bonds, securities, promissory notes or other
current administrative and operational expenses evidence of indebtedness of educational or medical
incidental to the carrying out of this Act shall be institutions to finance the construction, improvement
accumulated in a fund to be known as the "Reserve and maintenance of schools and hospitals and their
Fund." Such portions of the Reserve Fund as are not equipment and facilities: Provided, That such investments
needed to meet the current benefit obligations thereof shall not exceed ten percent (10%) of the Investment
shall be known as the "Investment Reserve Fund" which Reserve Fund;
the Commission shall manage and invest with the skill, (g) In real estate property, including shares of stocks
care, prudence and diligence necessary under the involving real estate property, and investment secured by
circumstances then prevailing that a prudent man acting first mortgages on real estate or other collaterals
in like capacity and familiar with such matters would acceptable to the SSS: Provided, That such projects and
exercise in the conduct of an enterprise of a like character investments shall, in the determination of the
and with similar aims. Pursuant thereto, and in line with Commission, redound to the benefit of the SSS, its
the basic principles of safety, good yield and liquidity, the members, as well as the general public: Provided, further,
Commission shall invest the funds to earn an annual That investment in real estate property, including shares
income not less than the average rates of treasury bills or of stocks involving real estate property shall not exceed
any other acceptable market yield indicator in any or in all five percent (5%) of the Investment Reserve Fund:
of the following: Provided, finally, That investments in other income
(a) In bonds, securities, promissory notes or other earning projects and investments secured by first
evidence of indebtedness of the Government of the mortgages or other collaterals shall not exceed twenty
Philippines, or in bonds, securities, promissory notes or five percent (25%) of the Investment Reserve Fund;
other evidence of indebtedness to which the full faith, (h) In bonds, debentures, securities, promissory notes or
credit and unconditional guarantee of the Government of other evidence of indebtedness of any prime corporation
the Philippines is pledged; or multilateral institutions to finance domestic projects:
(b) In bonds, securities, promissory notes or other Provided, That the issuing or assuming entity or its
evidence of indebtedness of the Government of the predecessors shall not have defaulted in the payment of
Philippines, or any agencies or instrumentalities to interest on any of its securities and that during each of
finance domestic infrastructure projects such as roads, any three (3) including the last two (2) of the five (5) fiscal
bridges, ports, telecommunications, and other similar years next preceding the date of acquisition by the SSS of
projects: Provided, That the instruments issued by an such bonds, debentures or other evidence of



indebtedness, the net earnings of the issuing or SECTION 26-A. Fund Managers. - As part of its
assuming institution available for its fixed charges, as investment operations, the SSS may appoint local or, in
defined in this Act, shall have been not less than one and the absence thereof, foreign fund managers to manage
one-quarter times the total of its fixed charges for such the Investment Reserve Fund, as it may deem
year: Provided, further, That such investments shall not appropriate.
exceed thirty percent (30%) of the Investment Reserve SECTION 26-B. Mortgagor Insurance Account. - (a) As
Fund; part of its investment operations, the SSS shall act as
(i) In preferred or common shares of stocks listed or about insurer of all or part of its interest on SSS properties
to be listed in the stock exchange or options or warrants mortgaged to the SSS, or lives of mortgagors whose
to such stocks or, subject to prior approval of the Bangko properties are mortgaged to the SSS. For this purpose,
Sentral ng Pilipinas, such other risk management the SSS shall establish a separate account to be known as
instruments of any prime or solvent corporation or the "Mortgagors' Insurance Account." All amounts
financial institution created or existing under the laws of received by the SSS in connection with the aforesaid
the Philippines with proven track record of profitability insurance operations shall be placed in the Mortgagors'
over the last three (3) years and payment of dividends at Insurance Account. The assets and liabilities of the
least once over the same period: Provided, That such Mortgagors' Insurance Account shall at all times be
investments shall not exceed thirty percent (30%) of the clearly identifiable and distinguishable from the assets
Investment Reserve Fund; and liabilities in all other accounts of the SSS.
(j) In domestic or foreign mutual funds in existence for at Notwithstanding any provision of law to the contrary, the
least three (3) years; Provided, That such investments shall assets held in the Mortgagors' Insurance Account shall
not exceed twenty percent (20%) of the Investment not be chargeable with the liabilities arising out of any
Reserve Fund: Provided, further, That investments in other business the SSS may conduct but shall be held
foreign mutual funds shall not exceed one percent (1%) of and applied exclusively for the benefit of the owners or
the Investment Reserve Fund in the first year which shall beneficiaries of the insurance contracts issued by the SSS
be increased by one percent (1%) for each succeeding under this paragraph.
year, but in no case shall it exceed seven and one-half (b) The SSS may insure any of its interest or part thereof
percent (7.5%) of the Investment Reserve Fund; with any private company or reinsurer. The Insurance
(k) In foreign currency deposits or triple "A" foreign Commission or its authorized representatives shall make
currency denominated debts, prime and non-speculative an examination into the financial condition and methods
equities, and other Bangko Sentral ng Pilipinas approved of transacting business of the SSS at least once in two (2)
financial instruments or other assets issued in years, but such examination shall be limited to the
accordance with the existing laws of the countries where insurance operation of the SSS as authorized under this
such financial instruments are issued: Provided, That paragraph and shall not embrace the other operations of
these instruments or assets are listed in bourses of the the SSS; and the report of said examination shall be
respective countries where these instruments or assets submitted to the Commission and a copy thereof shall be
are issued: Provided, further, That the issuing company furnished the Office of the President of the Philippines
has proven track of record of profitability over the last within a reasonable time after the close of the
three (3) years and a record of regular dividend pay-out examination: Provided, That for each examination, the
over the same period: Provided, finally, That such SSS shall pay to the Insurance Commission an amount
investments shall not exceed one percent (1%) of the equal to the actual expense of the Insurance Commission
Investment Reserve Fund in the first year which shall be in the conduct of examination, including the salaries of
increased by one percent (1%) for each succeeding year, the examiners and of the actuary of the Insurance
but in no case shall it exceed seven and one-half percent Commission who have been assigned to make such
(7.5%) of the Investment Reserve Fund; examination for the actual time spent in said
examination: Provided, further, That the general law on
(l) In loans secured by such collaterals like cash, insurance and the rules and regulations promulgated
government securities or guarantees of multilateral thereunder shall have suppletory application insofar as it
institutions: Provided, That such investments shall not is not in conflict with this Act and its rules and
exceed thirty percent (30%) of the Investment Reserve regulations.
Fund; and
SECTION 27. Records and Reports. - The SSS President
(m) In other Bangko Sentral ng Pilipinas approved shall keep and cause to keep records of operations of the
investment instruments with the same intrinsic quality as funds of the SSS and of disbursements thereof and all
those enumerated in paragraphs (a) to (l) hereof, subject accounts of payments made out of said funds. During the
to the policies and guidelines which the Commission may month of January of each year, the SSS President shall
formulate. prepare for submission to the President of the Philippines
No portion of the Investment Reserve Fund or income and to Congress of the Philippines a report of operations
thereof shall accrue to the general fund of the National of the SSS during the preceding year, including statistical
Government or to any of its agencies or instrumentalities, data on the number of persons covered and benefited,
including government-owned or controlled corporations, their occupations and employment status, the duration
except as may be allowed under this Act: Provided, That and amount of benefits paid, the finances of the SSS at
no portion of the Investment Reserve Fund shall be the close of the said year, and recommendations. He shall
invested for any purpose or in any instrument, institution also cause to be published in two (2) newspapers of
or industry over and above the prescribed cumulative general circulation in the Philippines a synopsis of the
ceilings as follows: annual report, showing in particular the status of the
finances of the SSS and the benefits administered.
40% in private securities
SECTION 28. Penal Clause. - (a) Whoever, for the
35% in housing purpose of causing any payment to be made under this
30% in real estate related investments Act, or under an agreement thereunder, where none is
authorized to be paid, shall make or cause to be made
10% in short and medium-term member loans false statement or representation as to any compensation
30% in government financial institutions and paid or received or whoever makes or causes to be made
corporations any false statement of a material fact in any claim for any
30% in infrastructure projects benefit payable under this Act, or application for loan
with the SSS, or whoever makes or causes to be made any
15% in any particular industry false statement, representation, affidavit or document in
7.5% in foreign-currency denominated investments connection with such claim or loan, shall suffer the


penalties Provided for in Article One hundred the employee concerned either under this Act or in
seventy-two of the Revised Penal Code. appropriate cases under the Revised Penal Code:
(b) Whoever shall obtain or receive any money or check Provided, That such criminal action may be filed by the
under this Act or any agreement thereunder, without SSS in the city or municipality where the SSS office is
being entitled thereto with intent to defraud any located, if the violation was committed within its
member, employer or the SSS, shall be fined not less than territorial jurisdiction or in Metro Manila, at the option of
Five thousand pesos (P5,000.00) nor more than Twenty the SSS.
thousand pesos (P20,000.00) and imprisoned for not less SECTION 29. Government Aid. - The establishment of the
than six (6) years and one (1) day nor more than twelve (12) SSS shall not disqualify the members and employers
years. from receiving such government assistance, financial or
(c) Whoever buys, sells, offers for sale, uses, transfers or otherwise, as may be Provided.
takes or gives in exchange, or pledges or gives in pledge, SECTION 30. Transitory Clause. - Any employer who is
except as authorized in this Act or in regulations made delinquent or has not remitted all contributions due and
pursuant thereto, any stamp, coupon, ticket, book or payable to the SSS may, within six (6) months from the
other device, prescribed pursuant to Section effectivity of this Act, remit said contributions or submit a
Twenty-three hereof by the Commission for the collection proposal to pay the same in installment within a period of
or payment of contributions required herein, shall be not more than twelve (12) months from the effectivity of
fined not less than Five thousand pesos (P5,000.00) nor this Act without incurring the prescribed penalty, subject
more than Twenty thousand pesos (P20,000.00), or to the implementing rules and regulations which the
imprisoned for not less than six (6) years and one (1) day Commission may prescribe: Provided, That the employer
nor more than twelve (12) years, or both, at the discretion submits the corresponding collection lists together with
of the court. the remittance or proposal to pay in installments:
(d) Whoever, with intent to defraud, alters, forges, makes Provided, further, That in case the employer fails to remit
or counterfeits any stamp, coupon, ticket, book or other contributions within the six-month grace period or
device prescribed by the Commission for the collection or defaults in the payment of any amortization Provided the
payment of any contribution required herein, or uses, approved proposal, the prescribed penalty shall be
sells, lends, or has in his possession any such altered, imposed from the time the contributions first became
forged or counterfeited materials, or makes, uses, sells or due as Provided in Section 22 (a) hereof."
has in his possession any such altered, forged, material in Section 2. Separability Clause. - If any provision of this
imitation of the material used in the manufacture of such Act is declared invalid, the other provisions not affected
stamp, coupon, ticket, book or other device, shall be fined thereby shall remain valid.
not less than Five thousand pesos (P5,000.00) non more Section 3. Repealing Clause. - All laws, proclamations,
than Twenty thousand pesos (P20,000.00) or imprisoned executive orders, rules and regulations or parts thereof
for not less than six years (6) and one (1) day nor more inconsistent with this Act are hereby repealed, modified
than twelve (12) years, or both, at the discretion of the or amended accordingly: Provided, That no person shall
court. be deemed to be vested with any property or other right
(e) Whoever fails or refuses to comply with the provisions by virtue of the enactment or operation of this Act.
of this Act or with the rules and regulations promulgated Section 4. Effectivity Clause. - This Act shall take effect
by the Commission, shall be punished by a fine of not less fifteen (15) days after its complete publication in the
than Five thousand pesos (P5,000.00) nor more than Official Gazette or in at least two (2) national newspapers
Twenty thousand pesos (P20,000.00), or imprisonment for of general circulation whichever comes earlier.
not less than six (6) years and one (1) day nor more than
twelve (12) years, or both, at the discretion of the court: Approved: May 01, 1997
Provided, That where the violation consists in failure or
refusal to register employees or himself, in case of the
covered self-employed or to deduct contributions from
the employees' compensation and remit the same to the
RA No 8291 | GSIS Act of 1997
SSS, the penalty shall be a fine of not less Five thousand
pesos (P5,000.00) nor more than Twenty thousand pesos
(P20,000.00) and imprisonment for not less than six (6) Rules and Regulations Implementing the GSIS Act
years and one (1) day nor more than twelve (12) years.
(f) If the act or omission penalized by this Act be May 30, 1997
committed by an association, partnership, corporation or AN ACT AMENDING PRESIDENTIAL DECREE NO. 1146,
any other institution, its managing head, directors or AS AMENDED, EXPANDING AND INCREASING THE
partners shall be liable for the penalties Provided in this COVERAGE AND BENEFITS OF THE GOVERNMENT
Act for the offense. SERVICE INSURANCE SYSTEM, INSTITUTING REFORMS
(g) Any employee of the SSS who receives or keeps funds THEREIN AND FOR OTHER PURPOSES
or property belonging, payable or deliverable to the SSS Be it enacted by the Senate and House of
and who shall appropriate the same, or shall take or Representatives of the Philippines in Congress
misappropriate, or shall consent, or through assembled::
abandonment or negligence, shall permit any other
person to take such property or funds, wholly or partially, SECTION 1. Title. - The title of this Act shall be: "The
or shall otherwise be guilty of misappropriation of such Government Service Insurance System Act of 1997."
funds or property, shall suffer the penalties Provided in
Article Two hundred seventeen of the Revised Penal A. DEFINITIONS
Code. SECTION 2. Definition of terms.- Unless the context
(h) Any employer who, after deducting the monthly otherwise indicates, the following terms shall mean:
contributions or loan amortizations from his employee's (a) GSIS- The Government Service Insurance System
compensation, fails to remit the said deduction to the SSS created by Commonwealth Act No. 186;
within thirty (30) days from the date they became due,
shall be presumed to have misappropriated such (b) Board- The Board of Trustees of the Government
contributions or loan amortizations and shall suffer the Service Insurance System;
penalties Provided in Article Three hundred fifteen of the (c) Employer- The national government, its political
Revised Penal Code. subdivisions, branches, agencies or instrumentalities,
(i) Criminal action arising from a violation of the including government-owned or controlled corporations,
provisions of this Act may be commenced by the SSS or


and financial institutions with original charters, the continue with his/her current gainful occupation or
constitutional commissions and the judiciary; engage in any other gainful occupation;
(d) Employee or Member- Any person receiving (r) Total Disability- Complete incapacity to continue with
compensation while in the service of an employer as his present employment or engage in any gainful
defined herein, whether by election or appointment, occupation due to the loss or impairment of the normal
irrespective of status of appointment, including barangay functions of the physical and/or mental faculties of the
and Sanggunian officials; member;
(e) Active Member- A member who is not separated from (s) Permanent Total Disability- Accrues or arises when
the service; recovery from the impairment mentioned in Section 2 (Q)
(f) Dependents- Dependents shall be the following: (a) is medically remote;
the legitimate spouse dependent for support upon the (t) Temporary Total Disability- Accrues or arises when the
member or pensioner; (b) the legitimate, legitimated, impaired physical and/or mental faculties can be
legally adopted child, including the illegitimate child, who rehabilitated and/or restored to their normal functions;
is unmarried, not gainfully employed, not over the age of (u) Permanent Partial Disability- Accrues or arises upon
majority, or is over the age of majority but incapacitated the irrevocable loss or impairment of certain portion/s of
and incapable of self-support due to a mental or physical the physical faculties, despite which the member is able
defect acquired prior to age of majority; and (c) the to pursue a gainful occupation.
parents dependent upon the member for support;
(g) Primary beneficiaries- The legal dependent spouse B. MEMBERSHIP IN THE GSIS
until he/she remarries and the dependent children;
SECTION 3. Compulsory Membership. - Membership in
(h) Secondary beneficiaries- The dependent parents and, the GSIS shall be compulsory for all employees receiving
subject to the restrictions on dependent children, the compensation who have not reached the compulsory
legitimate descendants; retirement age, irrespective of employment status, except
(i) Compensation- The basic pay or salary received by an members of the Armed Forces of the Philippines and the
employee, pursuant to his election/appointment, Philippine National Police, subject to the condition that
excluding per diems, bonuses, overtime pay, honoraria, they must settle first their financial obligation with the
allowances and any other emoluments received in GSIS, and contractuals who have no employer and
addition to the basic pay which are not integrated into employee relationship with the agencies they serve.
the basic pay under existing laws; Except for the members of the judiciary and
(j) Contribution- The amount payable to the GSIS by the constitutional commissions who shall have life insurance
member and the employer in accordance with Section 5 only, all members of the GSIS shall have life insurance,
of this Act; retirement, and all other social security protections such
as disability, survivorship, separation, and unemployment
(k) Current Daily Compensation- The actual daily benefits.
compensation or the actual monthly compensation
divided by the number of working days in the month of SECTION 4. Effect of Separation from the Service. - A
contingency but not to exceed twenty-two (22) days; member separated from the service shall continue to be
a member, and shall be entitled to whatever benefits he
(l) Average Monthly Compensation (AMC)- The quotient has qualified to in the event of any contingency
arrived at after dividing the aggregate compensation compensable under this Act.
received by the member during his last thirty-six (36)
months of service preceding his separation/retirement/ C. SOURCES OF FUNDS
disability/death by thirty-six (36), or by the number of
months he received such compensation if he has less SECTION 5. Contributions. - (a) It shall be mandatory for
than thirty-six (36) months of service: Provided, That the the member and employer to pay the monthly
average monthly compensation shall in no case exceed contributions specified in the following schedule:
the amount and rate as may be respectively set by the Percentage of
Board under the rules and regulations implementing this Monthly
Act as determined by the actuary of the GSIS: Provided, Monthly Compensation
Compensation
further, That initially the average monthly compensation Payable by
shall not exceed Ten thousand pesos (P10,000.00), and
premium shall be nine percent (9%) and twelve percent Member Employer
(12%) for employee and employer covering the AMC limit
and below and two percent (2%) and twelve percent (12%) I. Maximum Average
for employee and employer covering the compensation Monthly Compensation
above the AMC limit; 9.0% 12.0%
(AMC) Limit and Below
(m) Revalued average monthly compensation- An
amount equal to one hundred seventy percent (170%) of II. Over the Maximum AMC
the first One thousand pesos (P1,000.00) of the average Limit
monthly compensation plus one hundred percent (100%)
-Up to the Maximum AMC 9.0% 12.0%
of the average monthly compensation in excess of One
thousand pesos (P1,000.00); Limit
(n) Lump sum- The basic monthly pension multiplied by -In Excess of the AMC Limit 2.0% 12.0%
sixty (60);
Members of the judiciary and constitutional
(o) Pensioner- Any person receiving old-age permanent commissioners shall pay three percent (3%) of their
total disability pension or any person who has received monthly compensation as personal share and their
the lump sum excluding one receiving survivorship employers a corresponding three percent (3%) share for
pension benefits as defined in Section 20 of this Act; their life insurance coverage.
(p) Gainful Occupation- Any productive activity that (b) The employer shall include in its annual appropriation
provided the member with income at least equal to the the necessary amounts for its share of the contributions
minimum compensation of government employees; indicated above, plus any additional premiums that may
(q) Disability- Any loss or impairment of the normal be required on account of the hazards or risks of its
functions of the physical and/or mental faculty of a employee’s occupation.
member which reduces or eliminates his/her capacity to (c) It shall be mandatory and compulsory for all
employers to include the payment of contributions in
their annual appropriations. Penal sanctions shall be



imposed upon employers who fail to include the that part-time and other services with compensation
payment of contributions in their annual appropriations may be included under such rules and regulations as may
or otherwise fail to remit the accurate/exact amount of be prescribed by the GSIS.
contributions on time, or delay the remittance of
premium contributions to the GSIS. The heads of offices SEPARATION BENEFITS
and agencies shall be administratively liable for
SECTION 11. Separation Benefits. - The separation
non-remittance or delayed remittance of premium
benefits shall consist of: (a) a cash payment equivalent to
contributions to the GSIS.
one hundred percent (100%) of his average monthly
SECTION 6. Collection and Remittance of compensation for each year of service he paid
Contributions. - (a) The employer shall report to the GSIS contributions, but not less than Twelve thousand pesos
the names of all its employees, their corresponding (P12,000) payable upon reaching sixty (60) years of age
employment status, positions, salaries and such other upon separation, whichever comes later: Provided, that
pertinent information, including subsequent changes the member resigns or separates from the service after
therein, if any, as may be required by the GSIS; the he has rendered at least three (3) years of service but less
employer shall deduct each month from the monthly than fifteen (15) years; or
salary or compensation of each employee the
(b) a cash payment equivalent to eighteen (18) times his
contribution payable by him in accordance with the
basic monthly pension at the time of resignation or
schedule prescribed in the rules and regulations
separation, plus an old-age pension benefit equal to the
implementing this Act.
basic monthly pension payable monthly for life upon
(b) Each employer shall remit directly to the GSIS the reaching the age of sixty (60): Provided, that the member
employee’s and employer’s contributions within the first resigns or separates from the service after he has
ten (10) days of the calendar month following the month rendered at least fifteen (15) years of service and is below
to which the contributions apply. The remittance by the sixty (60) years of age at the time of resignation or
employer of the contribution to the GSIS shall take separation.
priority over and above the payment of any and all
SECTION 12. Unemployment or Involuntary Separation
obligations, except salaries and wages of its employees.
Benefits. - Unemployment benefits in the form of
SECTION 7. Interest on Delayed Remittances. - monthly cash payments equivalent to fifty percent (50%)
Agencies which delay the remittance of any and all of the average monthly compensation shall be paid to a
monies due the GSIS shall be charged interests as may be permanent employee who is involuntarily separated from
prescribed by the Board but not less than two percent the service due to the abolition of his office or position
(2%) simple interest per month. Such interest shall be usually resulting from reorganization: Provided, That he
paid by the employers concerned. has been paying integrated contributions for at least one
SECTION 8. Government Guarantee. - The government (1) year prior to separation. Unemployment benefits shall
of the Republic of the Philippines hereby guarantees the be paid in accordance with the following schedules:
fulfillment of the obligations of the GSIS to its members Contributions Made Benefit Duration
as and when they fall due.
1 year but less than 3 years 2 months
D. BENEFITS 3 or more years but less than 6 years 3 months
SECTION 9. Computation of the Basic Monthly Pension. 6 or more years but less than 9 years 4 months
- (a) The basic monthly pension is equal to: 9 or more years but less than 11 years 5 months
1) thirty-seven and one-half percent (37.5%) of the 11 or more years but less than 15 years 6 months
revalued average monthly compensation; plus
The first payment shall be equivalent to two (2) monthly
2) two and one-half percent (2.5%) of said revalued benefits. A seven-day (7) waiting period shall be imposed
average monthly compensation for each year of service in on succeeding monthly payments.
excess of (15) years: Provided, That the basic monthly
pension shall not exceed ninety percent (90%) of the All accumulated unemployment benefits paid to the
average monthly compensation. employee during his entire membership with the GSIS
shall be deducted from voluntary separation benefits.
(b) The basic monthly pension may be adjusted upon the
recommendation of the President and General Manager The GSIS shall prescribe the detailed guidelines in the
of the GSIS and approved by the President of the operationalization of this section in the rules and
Philippines in accordance with the rules and regulations regulations implementing this Act.
prescribed by the GSIS: Provided, however, that the basic
monthly pension shall not be less than One thousand RETIREMENT BENEFITS
and three hundred pesos (P1,300.00): Provided, further, SECTION 13. Retirement Benefits. - (a) Retirement
that the basic monthly pension for those who have benefits shall be:
rendered at least twenty (20) years of service after the
effectivity of this Act shall not be less than Two thousand (1) the lump sum payment as defined in this Act payable
four hundred pesos (P2,400.00) a month. at the time of retirement plus an old-age pension benefit
equal to the basic monthly pension payable monthly for
SECTION 10. Computation of Service. - (a) The life, starting upon expiration of the five-year (5)
computation of service for the purpose of determining guaranteed period covered by the lump sum; or
the amount of benefits payable under this Act shall be
from the date of original appointment/election, including (2) cash payment equivalent to eighteen (18) months of
periods of service at different times under one or more his basic monthly pension plus monthly pension for life
employers, those performed overseas under the authority payable immediately with no five-year (5) guarantee.
of the Republic of the Philippines, and those that may be (b) Unless the service is extended by appropriate
prescribed by the GSIS in coordination with the Civil authorities, retirement shall be compulsory for an
Service Commission. employee of sixty-five (65) years of age with at least
(b) All service credited for retirement, resignation or fifteen (15) years of service: Provided, That if he has less
separation for which corresponding benefits have been than fifteen (15) years of service, he may be allowed to
awarded under this Act or other laws shall be excluded in continue in the service in accordance with existing civil
the computation of service in case of reinstatement in service rules and regulations.
the service of an employer and subsequent retirement or SECTION 13-A. Conditions for Entitlement. - A member
separation which is compensable under this Act. who retires from the service shall be entitled to the
For the purpose of this section, the term service shall retirement benefits enumerated in paragraph (a) of
include full-time service with compensation: Provided, Section 13 hereof: Provided, That:


(1) he has rendered at least fifteen years of service; (1) complete and permanent loss of the use of:
(2) he is at least sixty (60) years of age at the time of (i) any finger
retirement; and (ii) any toe
(3) he is not receiving a monthly pension benefit from (iii) one arm
permanent total disability.
(iv) one hand
SECTION 14. Periodic Pension Adjustment. - The
monthly pension of all pensioners including all those (v) one foot
receiving survivorship pension benefits shall be (vi) one leg
periodically adjusted as may be recommended by the
GSIS actuary and approved by the Board in accordance (vii) one or both ears
with the rules and regulations prescribed by the GSIS. (viii) hearing of one or both ears
(ix) sight of both eyes
PERMANENT DISABILITY BENEFITS
(2) such other cases as may be determined by the GSIS.
SECTION 15. General Conditions for Entitlement. - A
member who suffers permanent disability for reasons not
due to his grave misconduct, notorious negligence, TEMPORARY DISABILITY BENEFITS
habitual intoxication, or willful intention to kill himself or SECTION 18. Temporary Total Disability Benefits. - (a) A
another, shall be entitled to the benefits provided for member who suffers temporary total disability for reasons
under Sections 16 and 17 immediately following, subject not due to any of the conditions enumerated in Section 15
to the corresponding conditions thereof. hereof shall be entitled to seventy-five percent (75%) of
SECTION 16. Permanent Total Disability Benefits. - (a) If his current daily compensation for each day or fraction
the permanent disability is total, he shall receive a thereof of temporary disability benefit not exceeding one
monthly income benefit for life equal to the basic hundred twenty (120) days in one calendar year after
monthly pension effective from the date of disability: exhausting all his sick leave credits and collective
Provided, That: bargaining agreement sick leave benefits, if any, but not
earlier than the fourth day of his temporary total
(1) he is in the service at the time of disability; or disability: Provided, That:
(2) if separated from the service, he has paid at least (1) he is in the service at the time of his disability; or
thirty-six (36) monthly contributions within the five (5)
year period immediately preceding disability, or has paid (2) if separated, he has rendered at least three (3) years of
a total of at least one hundred eighty (180) monthly service and has paid at least six (6) monthly contributions
contributions, prior to his disability: Provided, further, That in the twelve-month period immediately preceding his
if at the time of disability, he was in the service and has disability.
paid a total of at least one hundred eighty (180) monthly Provided, however, That a member cannot enjoy the
contributions, in addition to the monthly income benefit, temporary total disability benefit and sick leave pay
he shall receive a cash payment equivalent to eighteen simultaneously: Provided, further, That if the disability
(18) times his basic monthly pension: Provided, finally, requires more extensive treatment that lasts beyond one
That a member cannot enjoy the monthly income benefit hundred twenty (120) days, the payment of the temporary
for permanent disability and the old-age retirement total disability benefit may be extended by the GSIS but
simultaneously. not to exceed a total of two hundred forty (240) days.
(b) If a member who suffers permanent total disability (b) The temporary total disability benefit shall in no case
does not satisfy conditions (1) and (2) in paragraph (a) of be less than Seventy pesos (P70.00) a day.
this section but has rendered at least three (3) years of (c) The notices required of the member and the employer,
service at the time of his disability, he shall be advanced the mode of payment, and the other requirements for
the cash payment equivalent to one hundred percent entitlement to temporary total disability benefits shall be
(100%) of his average monthly compensation for each provided in the rules and regulations to be prescribed by
year of service he paid contributions, but not less than the GSIS.
Twelve thousand pesos (P12,000.00) which should have
been his separation benefit. SECTION 19. Non-scheduled Disability. - For injuries or
illnesses resulting in a disability not listed in the schedule
(c) Unless the member has reached the minimum of partial/total disability provided herein, the GSIS shall
retirement age, disability benefit shall be suspended determined the nature of the disability and the
when: corresponding benefits therefor.
(1) he is reemployed; or
(2) he recovers from his disability as determined by the SURVIVORSHIP BENEFITS
GSIS, whose decision shall be final and binding; or SECTION 20. Survivorship Benefits. - When a member
(3) he fails to present himself for medical examination or pensioner dies, the beneficiaries shall be entitled to
when required by the GSIS. survivorship benefits provided in Sections 21 and 22
hereunder subject to the conditions therein provided for.
(d) The following disabilities shall be deemed total and The survivorship pension shall consist of:
permanent:
(1) the basic survivorship pension which is fifty percent
(1) complete loss of sight of both eyes; (50%) of the basic monthly pension; and
(2) loss of two (2) limbs at or above the ankle or wrist; (2) the dependent children’s pension not exceeding fifty
(3) permanent complete paralysis of two (2) limbs; percent (50%) of the basic monthly pension
(4) brain injury resulting in incurable imbecility or SECTION 21. Death of a Member. - (a) Upon the death of a
insanity; and member, the primary beneficiaries shall be entitled to:
(5) such other cases as may be determined by the GSIS. (1) survivorship pension: Provided, That the deceased:
SECTION 17. Permanent Partial Disability Benefits. - (a) (i) was in the service at the time of his death; or
If the disability is partial, he shall receive a cash payment (ii) if separated from the service, has at least three (3)
in accordance with a schedule of disabilities to be years of service at the time of his death and has paid
prescribed by the GSIS: Provided, That he satisfies either thirty-six (36) monthly contributions within the five-year
conditions (1) or (2) of Section 16 (a); period immediately preceding his death; or has paid a
(b) The following disabilities shall be deemed permanent total of at least one hundred eighty (180) monthly
partial: contributions prior to his death; or


(2) the survivorship pension plus a cash payment Philippines (AFP) and the Philippine National Police
equivalent to one hundred percent (100%) of his average (PNP) shall, under such terms and conditions as may be
monthly compensation for every year of service: Provided, promulgated by the GSIS, be compulsorily covered with
That the deceased was in the service at the time of his life insurance, which shall automatically take effect as
death with at least three (3) years of service; or follows:
(3) a cash payment equivalent to one hundred percent (1) for those employed after the effectivity of this Act, their
(100%) of his average monthly compensation for each insurance shall take effect on the date of their
year of service he paid contributions, but not less than employment;
Twelve thousand pesos (P12,000.00): Provided, That the (2) for those whose insurance will mature after the
deceased has rendered at least three (3) years of service effectivity of this Act, their insurance shall be deemed
prior to his death but does not qualify for the benefits renewed on the day following the maturity or expiry date
under item (1) or (2) of this paragraph. of their insurance;
(b) The survivorship pension shall be paid as follows: (3) for those without any life insurance as of the effectivity
(1) when the dependent spouse is the only survivor, of this Act, their insurance shall take effect following said
he/she shall receive the basic survivorship pension for life effectivity.
or until he/she remarries; SECTION 25. Dividends. - An annual dividend may be
(2) when only dependent children are the survivors, they granted to all members of the GSIS whose life insurance
shall be entitled to the basic survivorship pension for as is in force for at least one (1) year in accordance with a
long as they are qualified, plus the dependent children’s dividends allocation formula to be determined by the
pension equivalent to ten percent (10%) of the basic GSIS.
monthly pension for every dependent child not SECTION 26. Optional Insurance. - Subject to the rules
exceeding five (5), counted from the youngest and and regulations prescribed by the GSIS, a member may
without substitution; apply for insurance and/or pre-need coverage embracing
(3) when the survivors are the dependent spouse and the life, health, hospitalization, education, memorial plans,
dependent children, the dependent spouse shall receive and such other plans as may be designed by the GSIS, for
the basic survivorship pension for life or until he/she himself and/or his dependents. Any employer may
remarries, and the dependent children shall receive the likewise apply for group insurance coverage for its
dependent children’s pension mentioned in the employees. The payment of the premiums/installments
immediately preceding paragraph (2) hereof. for optional insurance and pre-need products may be
(c) In the absence of primary beneficiaries, the secondary made by the insured or his employer and/or any person
beneficiaries shall be entitled to: acceptable to the GSIS.
(1) the cash payment equivalent to one hundred percent SECTION 27. Reinsurance. - The GSIS may reinsure any of
(100%) of his average monthly compensation for each its interests or part thereof with any private company or
year of service he paid contributions, but not less than reinsurer whether domestic of foreign: Provided, That the
Twelve thousand pesos (P12,000.00): Provided, That the GSIS shall submit an annual report on its reinsurance
member is in the service at the time of his death and has operations to the Insurance Commission.
at least three (3) years of service; or
E. ADJUDICATION OF CLAIMS AND DISPUTES
(2) in the absence of secondary beneficiaries, the benefits
under this paragraph shall be paid to his legal heirs. SECTION 28. Prescription. - Claims for benefits under
this Act except for life and retirement shall prescribe after
(d) For purposes of the survivorship benefits, legitimate four (4) years from the date of contingency.
children shall include legally adopted and legitimated
children. SECTION 29. Facility of Payment. - The GSIS shall
prescribe rules and regulations to facilitate payment of
SECTION 22. Death of a Pensioner. - Upon the death of benefits, proceeds, and claims under this Act and any
an old-age pensioner or a member receiving the monthly other laws administered by the GSIS. Payments made by
income benefit for permanent disability, the qualified the GSIS prior to its receipt of an adverse claim, to a
beneficiaries shall be entitled to the survivorship pension beneficiary or claimant subsequently found not entitled
defined in Section 20 of this Act, subject to the provisions thereto, shall not bar the legal and eligible recipient to his
of paragraph (b) of Section 21 hereof. When the pensioner right to demand the payment of benefits, proceeds, and
dies within the period covered by the lump sum, the claims from the GSIS, who shall, however, have a right to
survivorship pension shall be paid only after the institute the appropriate action in a court of law against
expiration of the said period. the ineligible recipient.
FUNERAL BENEFITS SECTION 30. Settlement of Disputes. - The GSIS shall
have original and exclusive jurisdiction to settle any
SECTION 23. Funeral Benefits. - The amount of the disputes arising under this Act and any other laws
funeral benefits shall be determined and specified by the administered by the GSIS.
GSIS in the rules and regulations but shall not be less
than Twelve thousand pesos (P12,000.00): Provided, That The Board may designate any member of the Board, or
it shall be increased to at least Eighteen thousand pesos official of the GSIS who is a lawyer, to act as hearing
(P18,000.00) after five (5) years and shall be paid upon the officer to receive evidence, make findings of fact and
death of: submit recommendations, together with all
documentary and testimonial evidence to the Board
(a) an active member as defined under Section 2 (e) of within thirty (30) working days from the time the parties
this Act; or have closed their respective evidence and filed their last
(b) a member who has been separated from the service, pleading. The Board shall decide the case within thirty
but who may be entitled to future benefit pursuant to (30) days from the receipt of the hearing officer’s findings
Section 4 of this Act; or and recommendations. The cases heard directly by the
Board shall be decided within thirty (30) working days
(c) a pensioner, as defined in Section 2 (o) of this Act; or from the time they are submitted by the parties for
(d) a retiree who at the time of his retirement was of decision.
pensionable age under this Act but who opted to retire SECTION 31. Appeals. - Appeals from any decision or
under Republic Act No. 1616. award of the Board shall be governed by Rules 43 and 45
of the 1997 Rules of Civil Procedure adopted by the
LIFE INSURANCE BENEFITS Supreme Court on April 8, 1997 which will take effect on
SECTION 24. Compulsory Life Insurance. - All employees July 1, 1997: Provided, That pending cases and those filed
except for Members of the Armed Forces of the prior to July 1, 1997 shall be governed by the applicable



rules of procedure: Provided, further, That the appeal shall an annual report on all investments made to both Houses

take precedence over all other cases except criminal of Congress of the Philippines, to wit:
cases when the penalty of life imprisonment or death or (a) in interest-bearing bonds or securities or other
reclusion perpetua is imposable. evidence of indebtedness of the Government of the
The appeal shall not stay the execution of the order or Philippines;
award unless ordered by the Board, by the Court of (b) in interest-bearing deposits or securities in any
Appeals or by the Supreme Court and the appeal shall be domestic bank doing business in the Philippines:
without prejudice to the special civil action of certiorari Provided, That in the case of such deposits, there shall not
when proper. exceed at any time the unimpaired capital and surplus or
SECTION 32. Execution of Decision. - When no appeal is total private deposits of the depository bank, whichever is
perfected and there is no order to stay by the Board, by smaller: Provided, further, That the said bank has prior
the Court of Appeals or by the Supreme Court, any designation as a depository for the purpose by the
decision or award of the Board shall be enforced and Monetary Board of the Central Monetary Authority;
executed in the same manner as decisions of the (c) in direct housing loans to members and group
Regional Trial Court. For this purpose, the Board shall housing projects secured by first mortgage, giving
have the power to issue to the city or provincial sheriff or priority to the low income groups and in short and
its appointed sheriff such writs of execution as may be medium term loans to members such as salary, policy,
necessary for the enforcement of such decision or award, educational, emergency stock purchase plan and other
and any person who shall fail or refuse to comply with similar loans: Provided, That no less than forty percent
such decision, award, writ or process after being required (40%) of the investible fund of the GSIS Social Insurance
to do so shall, upon application by the GSIS, be punished Fund shall be invested for these purposes;
for contempt.
(d) in bonds, securities, promissory notes or other
SECTION 33. Oaths, Witnesses, and Production of evidence of indebtedness of educational or medical
Records. - When authorized by the Board, an official or institutions to finance the construction, improvement
employee of the GSIS shall have the power to administer and maintenance of schools and hospitals;
oath and affirmation, take deposition, certify to official
acts, and issue subpoena ad testificandum and (e) in real estate property including shares of stocks
subpoena duces tecum to compel the attendance of involving real estate property and investments secured by
witnesses and the production of books, papers, first mortgages on real estate or other collaterals
correspondences, and other records deemed necessary acceptable to the GSIS: Provided, That such investment
as evidence in connection with any question arising shall, in the determination of the Board, redound to the
under this Act. Any case of contumacy shall be dealt with benefit of the GSIS, its members as well as the general
in accordance with the provisions of Section 580 of the public;
Revised Administrative Code. (f) in debt instruments and other securities traded in the
secondary markets;
F. FUNDS OF THE GSIS
(g) in loans to, or in bonds, debentures, promissory notes
SECTION 34. Funds. - All contributions payable under or other evidence of indebtedness of any solvent
Section 5 of this Act together with the earnings and corporation created or existing under the laws of the
accruals thereon shall constitute the GSIS Social Philippines;
Insurance Fund. The said fund shall be used to finance
the benefits administered by the GSIS under this Act. In (h) in common and preferred stocks of any solvent
addition, the GSIS shall administer the optional insurance corporation or financial institution created or existing
fund for the insurance coverage described in Section 26 under the laws of the Philippines listed in the stock
hereof, the Employees’ Compensation Insurance Fund exchange with proven track record of profitability over
created under P.D. 626, as amended, General Insurance the last three (3) years and payment of dividends at least
Fund created under Act No. 656, as amended, and such once over the same period;
other special funds existing or that may be created for (i) in domestic mutual funds including investments
special groups or persons rendering services to the related to the operations of mutual funds; and
government. The GSIS shall maintain the required
(j) in foreign mutual funds and in foreign currency
reserves to guarantee the fulfillment of its obligations
deposits or foreign currency-denominated debts,
under this Act.
non-speculative equities and other financial instruments
The funds of the GSIS shall not be used for purposes other or other assets issued in accordance with existing laws of
than what are provided for under this Act. Moreover, no the countries where such financial instruments are
portion of the funds of the GSIS or income thereof shall issued: Provided, That these instruments or assets are
accrue to the General Fund of the national government listed in bourses of the respective countries where these
and its political subdivisions, instrumentalities and other instruments or assets are issued: Provided, further, That
agencies including government-owned and controlled the issuing company has proven track record of
corporations except as may be allowed under this Act. profitability over the last three (3) years and payment of
SECTION 35. Deposits and Disbursements. - All dividends at least once over the same period.
revenues collected and all accruals thereto shall be SECTION 37. Records and Reports. - The GSIS shall keep
deposited, administered and disbursed in accordance and cause to keep such records as may be necessary for
with the law. A maximum expense loading of twelve the purpose of making actuarial studies, calculations and
percent (12%) of the yearly revenues from all sources may valuations of the funds of the GSIS including such data
be disbursed for administrative and operational expenses needed in the computation of rates of disability, mortality,
except as may be otherwise approved by the President of morbidity, separation and retirement among the
the Philippines on the basis of actuarial and members and any other information useful for the
management studies. adjustment of the benefits of the members. The GSIS
SECTION 36. Investment of Funds. - The funds of the shall maintain appropriate books of accounts to record its
GSIS which are not needed to meet the current assets, liabilities, income, expenses, receipts and
obligations may be invested under such terms and disbursement of funds and other financial transactions
conditions and rules and regulations as may be and operations.
prescribed by the Board: Provided, That investments shall SECTION 38. Examination and Valuation of the Funds.
satisfy the requirements of liquidity, safety/security and - The GSIS shall make a periodic actuarial examination
yield in order to ensure the actuarial solvency of the funds and valuation of its funds in accordance with accepted
of the GSIS: Provided, further, That the GSIS shall submit actuarial principles.


SECTION 39. Exemption from Tax, Legal Process and or the allocation or re-allocation of the funds to the
Lien. - It is hereby declared to be the policy of the State contingencies covered;
that the actuarial solvency of the funds of the GSIS shall (f) to have the power of succession;
be preserved and maintained at all times and that
contribution rates necessary to sustain the benefits under (g) to sue and be sued;
this Act shall be kept as low as possible in order not to (h) to enter into, make, perform and carry out contracts of
burden the members of the GSIS and their employers. every kind and description with any person, firm or
Taxes imposed on the GSIS tend to impair the actuarial association or corporation, domestic or foreign;
solvency of its funds and increase the contribution rate
necessary to sustain the benefits of this Act. Accordingly, (i) to carry on any other lawful business whatsoever in
notwithstanding any laws to the contrary, the GSIS, its pursuance of, or in connection with the provisions of this
assets, revenues including all accruals thereto, and Act;
benefits paid, shall be exempt from all taxes, (j) to have one or more offices in and outside of the
assessments, fees, charges, or duties of all kinds. These Philippines, and to conduct its business and exercise its
exemptions shall continue unless expressly and powers throughout and in any part of the Republic of the
specifically revoked and any assessment against the GSIS Philippines and/or in any or all foreign countries, states
as of the approval of this Act are hereby considered paid. and territories: Provided, That the GSIS shall maintain a
Consequently, all laws, ordinances, regulations, issuances, branch office in every province where there exists a
opinions or jurisprudence contrary to or in derogation of minimum of fifteen thousand (15,000) membership;
this provision are hereby deemed repealed, superseded
and rendered ineffective and without legal force and (k) to borrow funds from any source, private or
effect. government, foreign or domestic, only as an incident in
the securitization of housing mortgages of the GSIS and
Moreover, these exemptions shall not be affected by on account of its receivables from any government or
subsequent laws to the contrary unless this section is private entity;
expressly, specifically and categorically revoked or
repealed by law and a provision is enacted to substitute (l) to invest, own or otherwise participate in equity in any
or replace the exemption referred to herein as an establishment, firm or entity;
essential factor to maintain or protect the solvency of the (m) to approve appointments in the GSIS except
fund, notwithstanding and independently of the appointments to positions which are policy determining,
guaranty of the national government to secure such primarily confidential or highly technical in nature
solvency or liability. according to the Civil Service rules and regulations:
The funds and/or the properties referred to herein as well Provided, That all positions in the GSIS shall be governed
as the benefits, sums or monies corresponding to the by the compensation and position classification system
benefits under this Act shall be exempt from attachment, and qualifications standards approved by the GSIS Board
garnishment, execution, levy or other processes issued by of Trustees based on a comprehensive job analysis and
the courts, quasi-judicial agencies or administrative audit of actual duties and responsibilities: Provided,
bodies including Commission on Audit (COA) further, That the compensation plan shall be comparable
disallowances and from all financial obligations of the with the prevailing compensation plans in the private
members, including his pecuniary accountability arising sector and shall be subject to the periodic review by the
from or caused or occasioned by his exercise or Board no more than once every four (4) years without
performance of his official functions or duties, or incurred prejudice to yearly merit reviews or increases based on
relative to or in connection with his position or work productivity and profitability;
except when his monetary liability, contractual or (n) to design and adopt an Early Retirement Incentives
otherwise, is in favor of the GSIS. Plan (ERIP) and/or financial assistance for the purpose of
retirement for its own personnel;
G. ADMINISTRATION (o) to fix and periodically review and adjust the rates of
SECTION 40. Implementing Body. - The Government interest and other terms and conditions for loans and
Service Insurance System as created under credits extended to members or other persons, whether
Commonwealth Act No. 186 shall implement the natural or juridical;
provisions of this Act. (p) to enter into agreement with the Social Security
SECTION 41. Powers and Functions of the GSIS. - The System or any other entity, enterprise, corporation or
GSIS shall exercise the following powers and functions: partnership for the benefit of members transferring from
one system to another subject to the provisions of
(a) to formulate, adopt, amend and/or rescind such rules
Republic Act No. 7699, otherwise known as the Portability
and regulations as may be necessary to carry out the
Law;
provisions and purposes of this Act, as well as the
effective exercise of the powers and functions, and the (q) to be able to float proper instrument to liquefy
discharge of duties and responsibilities of the GSIS, its long-term maturity by pooling funds for short-term
officers and employees; secondary market;
(b) to adopt or approve the annual and supplemental (r) to submit annually, not later than June 30, a public
budget of receipts and expenditures including salaries report to the President of the Philippines and the
and allowances of the GSIS personnel; to authorize such Congress of the Philippines regarding its activities in the
capital and operating expenditures and disbursements of administration and enforcement of this Act during the
the GSIS as may be necessary and proper for the effective preceding year including information and
management and operation of the GSIS; recommendations on board policies for the development
and perfection of the programs of the GSIS;
(c) to invest the funds of the GSIS, directly or indirectly, in
accordance with the provisions of this Act; (s) to maintain a provident fund, which consists of
contributions made by both the GSIS and its officials and
(d) to acquire, utilize or dispose of, in any manner
employees and their earnings, for the payments of
recognized by law, real or personal property in the
benefits to such officials and employees or their heirs
Philippines or elsewhere necessary to carry out the
under such terms and conditions as it may prescribe;
purposes of this Act;
(t) to approve and adopt guidelines affecting
(e) to conduct continuing actuarial and statistical studies
investments, insurance coverage of government
and valuations to determine the financial €condition of
properties, settlement of claims, disposition of acquired
the GSIS and taking into consideration such studies and
assets, privatization or expansion of subsidiaries,
valuations and the limitations herein provided, re-adjust
development of housing projects, increased benefit and
the benefits, contributions, premium rates, interest rates


loan packages to members, and the enforcement of the duties and responsibilities of the GSIS, its officers and
provision of this Act; employees;
(u) any provision of law to the contrary notwithstanding, (c) upon the recommendation of the President and
to authorize the payment of extra remuneration to the General Manager, to approve the annual and
officials and employees directly involved in the collection supplemental budget of receipts and expenditures of the
and/or remittances of contributions, loan repayments, GSIS, and to authorize such operating and capital
and other monies due to the GSIS at such rates and expenditures and disbursements of the GSIS as may be
under such conditions as it may adopt: Provided, That the necessary or proper for the effective management,
best interest of the GSIS shall be observed thereby; operation and administration of the GSIS;
(v) to determine, fix and impose interest upon unpaid (d) upon the recommendation of the President and
premiums due from employers and employees; General Manager, to approve the GSIS organizational and
(w) to ensure the collection or recovery of all administrative structure and staffing pattern, and to
indebtedness, liabilities and/or accountabilities, including establish, fix, review, revise and adjust the appropriate
unpaid premiums or contributions in favor of the GSIS compensation packages for the officers and employees of
arising from any cause or source whatsoever, due from the GSIS and reasonable allowances, incentives, bonuses,
obligors, whether public or private. The Board shall privileges and other benefits as may be necessary or
demand payment or settlement of the obligations proper for the effective management, operation and
referred to herein within thirty (30) days from the date administration of the GSIS, which shall be exempt from
the obligation becomes due, and in the event of failure or Republic Act No. 6758, otherwise known as the Attrition
refusal of the obligor or debtor to comply with the Law;
demand, to initiate or institute the necessary or proper (e) to fix and periodically review and adjust the rates of
actions or suits, criminal, civil or administrative or interest and other terms and conditions for loans and
otherwise, before the courts, tribunals, commissions, credits extended to its members or other persons,
boards, or bodies of proper jurisdiction within thirty (30) whether natural or juridical;
days reckoned from the expiry date of the period fixed in (f) the provision of any law to the contrary
the demand within which to pay or settle the account; notwithstanding, to compromise or release, in whole or in
(x) to design and implement programs that will promote part, any claim or settle liability to the GSIS, regardless of
and mobilize savings and provide additional resources for the amount involved, under such terms and conditions as
social security expansion and at the same time afford it may impose for the best interest of the GSIS;
individual members appropriate returns on their (g) to approve and adopt guidelines affecting
savings/investments. The programs shall be so designed investments, insurance coverage of government
as to spur socio-economic take-off and maintain properties, settlement of claims, disposition of acquired
continued growth; and assets, development of housing projects, increased
(y) to exercise such powers and perform such other acts benefit and loan packages to members, and the
as may be necessary, useful, incidental or auxiliary to carry enforcement of the provisions of this Act;
out the provisions of this Act, or to attain the purposes (h) to determine, fix, and impose interest upon unpaid or
and objectives of this Act. unremitted premiums and/or contributions; and
SECTION 42. The Board of Trustees; its Composition; (i) to do and perform any and all acts necessary, proper or
Tenure and Compensation. - The corporate powers and incidental to the attainment of the purposes and
functions of the GSIS shall be vested in and exercised by objectives of this Act.
the Board of Trustees composed of the President and
General Manager of the GSIS and eight (8) other SECTION 44. Appointment, Qualifications, and
members to be appointed by the President of the Compensation of the President and General Manager
Philippines, one (1) of whom shall be either the President and of other Personnel. - The President and General
of the Philippine Public School Teachers Association Manager of the GSIS shall be its Chief Executive Officer
(PPSTA) or the President of the Philippine Association of and shall be appointed by the President of the
School Superintendents (PASS), another two (2) shall Philippines. He shall be a person with management and
represent the leading organizations or associations of investments expertise necessary for the effective
government employees/retirees, another four (4) from the performance of his duties and functions under this Act.
banking, finance, investment, and insurance sectors, and The GSIS President and General Manager shall be assisted
one (1) recognized member of the legal profession who at by one or more executive vice-presidents, senior
the time of appointment is also a member of the GSIS. vice-presidents and managers in addition to the usual
The Trustees shall elect from among themselves a supervisory and rank-and-file positions who shall be
Chairman while the President and General Manager of appointed and removed by the President and General
the GSIS shall automatically be the vice-chairman. Manager with the approval of the Board, in accordance
The Trustees, except the President and General Manager with the existing Civil Service rules and regulations.
who shall cease as trustee upon his separation, shall hold SECTION 45. Powers and Duties of the President and
office for six (6) years without reappointment, or until General Manager. - The President and General Manager
their successors are duly appointed and qualified. of the GSIS shall, among others, execute and administer
Vacancy, other than through the expiration of the term, the policies and resolutions approved by the Board and
shall be filled for the unexpired term only. The members direct and supervise the administration and operations of
of the Board shall be entitled to a per diem of Two the GSIS. The President and General Manager, subject to
thousand five hundred pesos (P2,500.00) for each board the approval of the Board, shall appoint the personnel of
meeting actually attended by them, but not to exceed the GSIS, remove, suspend or otherwise discipline them
Ten thousand pesos (P10,000.00) a month and reasonable for cause, in accordance with the existing Civil Service
transportation and representation allowances as may be rules and regulations, and prescribe their duties and
fixed by the Board. qualifications to the end that only competent persons
SECTION 43. Powers and Functions of the Board of may be employed.
Trustees. - The Board of Trustees shall have the following SECTION 46. Auditor. - (a) The Chairman of the
powers and functions: Commission on Audit shall be the ex officio auditor of the
(a) to formulate the policies, guidelines and programs to GSIS, and the necessary personnel to assist said
effectively carry out the purposes of this Act; representative in the performance of his duties.
(b) to promulgate such rules and regulations as may be (b) The Chairman of the Commission on Audit or his
necessary or proper for the effective exercise of the authorized representatives, shall submit to the Board
powers and functions as well as the discharge of the soon after the close of each calendar year, an audited


statement showing the financial condition and progress

of the GSIS for the calendar year just ended. I. PENAL PROVISIONS
SECTION 47. Legal Counsel. - The Government SECTION 52. Penalty. - (a) Any person found to have
Corporate Counsel shall be the legal adviser and participated directly or indirectly in the commission of
consultant of the GSIS, but the GSIS may assign to the fraud, collusion, falsification, or misrepresentation in any
Office of the Government Corporate Counsel (OGCC) transaction with the GSIS, whether for him or for some
cases for legal action or trial, issues for legal opinions, other persons, shall suffer the penalties provided for in
preparation and review of contracts/agreements and Article 172 of the Revised Penal Code.
others, as the GSIS may decide or determine from time to (b) Whoever shall obtain or receive any money or check
time: Provided, however, That the present legal services invoking any provision of this Act or any agreement
group in the GSIS shall serve as its in-house legal counsel. thereunder, without being entitled thereto with the
The GSIS may, subject to approval by the proper court, intent to defraud any member, any employer, the GSIS, or
deputize any personnel of the legal service group to act any third party, shall be punished by a fine of not less
as special sheriff in the enforcement of writs and than Five thousand pesos (P5,000.00) nor more than
processes issued by the court, quasi-judicial agencies or Twenty thousand pesos (P20,000.00) or by imprisonment
administrative bodies in cases involving the GSIS. of not less than six (6) years and one (1) day to twelve (12)
years, or both, at the discretion of the court.
SECTION 48. Powers of the Insurance Commission. -
The Insurance Commissioner or his authorized (c) Whoever fails or refuses to comply with the provisions
representatives shall make an examination of financial of this Act or with the rules and regulations adopted by
condition and methods of transacting business of the the GSIS, shall be punished by a fine of not less than Five
GSIS at least once every three (3) years and the report of thousand pesos (P5,000.00) nor more than Twenty
said examination shall be submitted to the Board of thousand pesos (P20,000.00) or imprisonment of not less
Trustees and copies thereof be furnished the Office of the than six (6) years and one (1) day to twelve (12) years, or
President of the Philippines and the two houses of the both, at the discretion of the court.
Congress of the Philippines within five (5) days after the (d) The treasurer, finance officer, cashier, disbursing
close of examination: Provided, however, That for each officer, budget officer or other official or employee who
examination, the GSIS shall pay the office of the fails to include in the annual budget the amount
Insurance Commissioner an amount equal to the actual corresponding to the employer and employee
expenses incurred by the said office in the conduct of contributions, or who fails or refuses or delays by more
examination, including the salaries of the examiners and than thirty (30) days from the time such amount
of the actuary of such examination for the actual time becomes due and demandable, or to deduct the monthly
spent. contributions of the employee shall, upon conviction by
final judgment, suffer the penalties of imprisonment
H. GENERAL PROVISION from six (6) months and one (1) day to six (6) years, and a
SECTION 49. Dispensation of Social Insurance fine of not less than Three thousand pesos (P3,000.00)
Benefits. - (a) The GSIS shall pay the retirement benefits but not more than Six thousand pesos (P6,000.00), and in
to the employee on his last day of service in the addition, shall suffer absolute perpetual disqualification
government: Provided, That all requirements are from holding public office and from practicing any
submitted to the GSIS within a reasonable period prior to profession or calling licensed by the government.
the effective date of the retirement; (e) Any employee or member who receives or keeps fund
(b) The GSIS shall discontinue the processing and or property belonging, payable or deliverable to the GSIS
adjudication of retirement claims under R.A. No. 1616 and appropriates the same, or takes or misappropriates or
except refund of retirement premium under R. A. No. 910. uses the same for any purpose other than authorized by
Instead, all agencies concerned shall process and pay the this Act, or permits another person to take,
gratuities of their employees. The Board shall adopt the misappropriate or use said fund or property by expressly
proper rules and procedures for the implementation of consenting thereto, or through abandonment or
this provision. negligence, or is otherwise guilty of the misappropriation
of said fund or property, in whole or in part, shall suffer
SECTION 50. Development and Disposition of Acquired the penalties provided in Article 217 of the Revised Penal
Assets. - The GSIS shall have the right to develop and Code, and in addition, shall suffer absolute perpetual
dispose of its acquired assets obtained in the ordinary disqualification from holding public office and from
course of its business. To add value to, improve practicing any profession or calling licensed by the
profitability on, and/or enhance the marketability of an government.
acquired asset, the GSIS may further develop/renovate
the same either with its own capital or through a joint (f) Any employee who, after deducting the monthly
venture arrangement with private companies or contribution or loan amortization from a member’s
individuals. compensation, fails to remit the same to the GSIS within
thirty (30) days from the date they should have been
The GSIS may sell its acquired assets in accordance with remitted under Section 6(a), shall be presumed to have
existing Commission on Audit (COA) rules and misappropriated such contribution or loan amortization
regulations for an amount not lower than the current and shall suffer the penalties provided in Article 315 of the
market value of the property. For this purpose, the GSIS Revised Penal Code, and in addition, shall suffer absolute
shall conduct an annual appraisal of its property or perpetual disqualification from holding public office and
acquired assets to determine its current market value. All from practicing any profession or calling licensed by the
notices of sale shall be published in newspapers of government.
general circulation.
(g) The heads of the offices of the national government,
No injunction or restraining order issued by any court, its political subdivisions, branches, agencies and
commission, tribunal or office shall bar, impede or delay instrumentalities, including government-owned or
the sale and disposition by the GSIS of its acquired assets controlled corporations and government financial
except on questions of ownership and national or public institutions, and the personnel of such offices who are
interest. involved in the collection of premium contributions, loan
SECTION 51. Government Assistance to the GSIS. - The amortization and other accounts due the GSIS who shall
GSIS may call upon any employer for such assistance as fail, refuse or delay the payment, turnover, remittance or
may be necessary in the discharge of its duties and delivery of such accounts to the GSIS within thirty (30)
functions. days from the time that the same shall have been due
and demandable shall, upon conviction by final
judgment, suffer the penalties of imprisonment of not
less than one (1) year nor more than five (5) years and a



fine of not less than Ten thousand pesos (P10,000.00) nor
more than Twenty thousand pesos (P20,000.00), and in

addition, shall suffer absolute perpetual disqualification RA No 7875 | National Health Insurance
from holding public office and from practicing any Act of 2013
profession or calling licensed by the government. Previously, National Health Insurance Act of 1995, as
(h) The officers and/or personnel referred to in paragraph amended by RA Nos 9241, and 10606
(g) of this section shall be liable not only criminally but

also civilly to the GSIS or to the employee or member
concerned in the form of damages, including surcharges
Rules and Regulations Implementing the National
and interests.
Health Insurance Act of 2013
(i) For the charges or complaints referred to in paragraph
(g) of this section, the liabilities therein set forth shall be Quasi-Judicial Provisions of the Revised Rules and
construed as waiver of the State of its immunity from suit, Regulations Implementing the National Health
hence, the above-mentioned officials and/or personnel Insurance Act of 2013
may not invoke the defense of non-suability of the State.
(j) Failure of the Members of the GSIS Board, including February 14, 1995
the chairman and the vice-chairman, to comply with the
AN ACT INSTITUTING A NATIONAL HEALTH INSURANCE
provisions of paragraph (w) of Section 41 hereof, shall
PROGRAM FOR ALL FILIPINOS AND ESTABLISHING THE
subject them to imprisonment of not less than six (6)
PHILIPPINE HEALTH INSURANCE CORPORATION FOR
months nor more than one (1) year or a fine of not less
THE PURPOSE
than Five thousand pesos (P5,000.00) nor more than Ten
thousand pesos (P10,000.00) without prejudice to any SECTION 1. Short Title. — This Act shall be known as the
civil or administrative liability which may also arise “National Health Insurance Act of 2013”. (As amended by
therefrom. RA No 10606)
(k) Criminal actions arising from violations of the
provisions of this Act may be commenced by the GSIS or ARTICLE I Guiding Principles
by the aggrieved member, either under this Act or, in SECTION 2. Declaration of Principles and Policies. — It is
appropriate cases, under the Revised Penal Code. hereby declared the policy of the State to adopt an
SECTION 53. Implementing Rules and Regulations. - The integrated and comprehensive approach to health
implementing rules and regulations to carry out the development which shall endeavor to make essential
provisions of this Act shall be adopted and promulgated goods, health and other social services available to all the
by the GSIS not later than ninety (90) days after the people at affordable cost and to provide free medical care
approval of this Act. to paupers. Towards this end, the State shall provide
comprehensive health care services to all Filipinos
SECTION 54. Non-impairment of Benefits, Powers, through a socialized health insurance program that will
Jurisdiction, Rights, Privileges, Functions and Activities. prioritize the health care needs of the underprivileged,
-Nothing in this Act shall be construed to repeal, amend sick, elderly, persons with disabilities (PWDs), women and
or limit any provision of existing laws, Presidential children and provide free health care services to
Decrees and Letters of Instructions, not otherwise indigents. (National Health Insurance Act of 2013,
specifically inconsistent with the provisions of this Act. Republic Act No. 10606, [June 19, 2013])
SECTION 55. Exclusiveness of Benefits. - Whenever other Pursuant to this policy, the State shall adopt the following
laws provide similar benefits for the same contingencies principles:
covered by this Act, the member who qualifies to the
benefits shall have the option to choose which benefits a) Allocation of National Resources for Health — The
will be paid to him. However, if the benefits provided by Program shall underscore the importance for
the law chosen are less than the benefits provided under government to give priority to health as a strategy for
this Act, the GSIS shall pay only the difference. bringing about faster economic development and
improving quality of life.
SECTION 56. Appropriations. - The amount necessary to
carry out the provisions of this Act shall be included in the b) Universality — The Program shall provide all citizens
respective budgets of the agencies in the national with the mechanism to gain financial access to health
government obligation program of the year following its services, in combination with other government health
enactment into law and thereafter." programs. The National Health Insurance Program shall
give the highest priority to achieving coverage of the
Section 2. Separability Clause. - Should any provision of entire population with at least a basic minimum package
this Act or any part thereof be declared invalid, the other of health insurance benefits;
provisions, so far as they are separable from the invalid
ones, shall remain in force and effect. c) Equity — The Program shall provide for uniform basic
benefits. Access to care must be a function of a person's
Section 3. Repealing Clause. - All laws and any other law health needs rather than his ability to pay;
or parts of law specifically inconsistent herewith are
hereby repealed or modified accordingly: Provided, That d) Responsiveness — The Program shall adequately meet
the rights under the existing laws, rules and regulations the needs for personal health services at various stages of
vested upon or acquired by an employee who is already in a member's life;
the service as of the effectivity of this Act shall remain in e) Social Solidarity — The Program shall be guided by
force and effect: Provided, further, That subsequent to the community spirit. It must enhance risk sharing among
effectivity of this Act, a new employee or an employee income groups, age groups, and persons of differing
who has previously retired or separated and is health status, and residing in different geographic areas;
reemployed in the service shall be covered by the f) Effectiveness — The Program shall balance economical
provisions of this Act. use of resources with quality of care;
Section 4. Effectivity. - This Act shall take effect fifteen g) Innovation — The Program shall adapt to changes in
(15) days after its publication in the Official Gazette or in at medical technology, health service organizations, health
least two (2) newspapers of general circulation. care provider payment systems, scopes of professional
This Act, which is a consolidation of Senate Bill No. 2013 practice, and other trends in the health sector. It must be
and House Bill No. 8561, was finally passed by the Senate cognizant of the appropriate roles and respective
and the House of Representatives on May 29, 1997 and strengths of the public and private sectors in health care,
May 28, 1997, respectively. including people's organizations and community-based
Approved: May 30, 1997. health care organizations;


h) Devolution — The Program shall be implemented in

consultation with local government units (LGUs), subject ARTICLE II Definitions of Terms
to the overall policy directions set by the National SECTION 4. Definitions of Terms. — For the purpose of
Government; this Act, the following terms shall be defined as follows:
i) Fiduciary Responsibility — The Program shall provide a) Beneficiary — Any person entitled to health care
effective stewardship, funds management, and benefits under this Act.
maintenance of reserves;
b) Benefit Package — Services that the Program offers to
j) Informed Choice — The Program shall encourage its members.
members to choose from among accredited health care
c) Capitation — A payment mechanism where a fixed
providers. The Corporation's local offices shall objectively
rate, whether per person, family, household, or group, is
apprise its members of the full range of providers
negotiated with a health care provider who shall be
involved in the Program and of the services and privileges
responsible for delivering or arranging for the delivery of
to which they are entitled as members. This explanation,
health services required by the covered person under the
which the members may use as a guide in selecting the
conditions of a health care provider contract.
appropriate and most suitable provider, shall be given in
clear and simple Filipino and in the local languages that d) Contribution — The amount paid by or in behalf of a
is comprehensible to the member; member to the Program for coverage, based on salaries
or wages in the case of formal sector employees, and on
k) Maximum Community Participation — The Program
household earnings and assets, in the case of
shall build on existing community initiatives for its
self-employed, or on other criteria as may be defined by
organization and human resource requirements;
the Corporation in accordance with the guiding
l) Compulsory Coverage — All citizens of the Philippines principles set forth in Article 1 of this Act.
shall be required to enroll in the National Health
e) Coverage — The entitlement of an individual, as a
Insurance Program in order to avoid adverse selection
member or as a dependent, to the benefits of the
and social inequity;
Program.
m) Cost Sharing — The Program shall continuously
f) Dependent — The legal dependents of a member are: 1)
evaluate its cost sharing schedule to ensure that costs
the legitimate spouse who is not a member; 2) the
borne by the members are fair and equitable and that the
unmarried and unemployed legitimate, legitimated,
charges by health care providers are reasonable;
illegitimate, acknowledged children as appearing in the
n) Professional Responsibility of Health Care Providers — birth certificate; legally adopted or stepchildren below
The Program shall assure that all participating health care twenty-one (21) years of age; 3) children who are
providers are responsible and accountable in all their twenty-one (21) years old or above but suffering from
dealings with the Corporation and its members; congenital disability, either physical or mental, or any
o) Public Health Services — The Government shall be disability acquired that renders them totally dependent
responsible for providing public health services for all on the member of our support; (4) the parents who are
groups such as women, children, indigenous people, sixty (60) years old or above whose monthly income is
displaced communities and communities in below an amount to be determined by the Corporation in
environmentally endangered areas, while the Program accordance with the guiding principles set forth in Article
shall focus on the provision of personal health services. I of this Act; and (5) parents with permanent disability
Preventive and promotive public health services are that render them totally dependent on the member for
essential for reducing the need and spending for subsistence. (National Health Insurance Act of 2013,
personal health services; Republic Act No. 10606, [June 19, 2013])
p) Quality of Services — The Program shall promote the g) Diagnostic Procedure — Any procedure to identify a
improvement in the quality of health services provided disease or condition through analysis and examination.
through the institutionalization of programs of quality h) Emergency — An unforeseen combination of
assurance at all levels of the health service delivery circumstances which calls for immediate action to
system. The satisfaction of the community, as well as preserve the life of a person or to preserve the sight of
individual beneficiaries, shall be a determinant of the one or both eyes; the hearing of one or both ears; or one
quality of service delivery; or two limbs at or above the ankle or wrist.
q) Cost Containment — The program shall incorporate i) Employee — Any person who performs services for an
features of cost containment in its design and operations employer in which either or both mental and physical
and provide a viable means of helping the people pay for efforts are used and who receives compensation for such
health care services; and services, where there is an employer-employee
r) Care for the Indigent — The Government shall be relationship.
responsible for providing a basic package of needed j) Employer — A natural or juridical person who employs
personal health services to indigents through premium the services of an employee.
subsidy, or through direct service provision until such
k) Enrollment — The process to be determined by the
time that the program is fully implemented.
Corporation in order to enlist individuals as members or
SECTION 3. General Objectives. — This Act seeks to: dependents covered by the Program.
a) provide all citizens of the Philippines with the l) Fee for Service — A fee pre-determined by the
mechanism to gain financial access to health services; Corporation for each service delivered by a health care
b) create the National Health Insurance Program, provider based on the bill. The payment system shall be
hereinafter referred to as the Program, to serve as the based on a pre-negotiated schedule promulgated by the
means to help the people pay for health care services; Corporation. (National Health Insurance Act of 2013,
Republic Act No. 10606, [June 19, 2013])
c) prioritize and accelerate the provision of health services
to all Filipinos, especially that segment of the population m) Global Budget — An approach to the purchase of
who cannot afford such services; and medical services by which health care provider
negotiations concerning the costs of providing a specific
d) establish the Philippine Health Insurance Corporation, package of medical benefits is based solely on a
hereinafter referred to as the Corporation, that will predetermined and fixed budget.
administer the Program at central and local levels.
n) Government Service Insurance System — The
Government Service Insurance System created under
Commonwealth Act No. 186, as amended.
o) Health Care Provider — Refers to:


(1) a health care institution, which is duly licensed and x) Personal Health Services — Health Services in which
accredited devoted primarily to the maintenance and benefits accrue to the individual person. These are
operation of facilities for health promotion, prevention, categorized into inpatient and outpatient services.
diagnosis, treatment, and care of individuals suffering y) Philippine Medical Care Commission — The Philippine
from illness, disease, injury, disability or deformity, drug Medical Care Commission created under Republic Act No.
addiction or in need of obstetrical or other medical and 6111, as amended.
nursing care. It shall also be construed as any institution,
building, or place where there are installed beds, cribs, or z) Philippine National Drug Formulary — The essential
bassinets for twenty-four hour use or longer by patients in drugs list for the Philippines which is prepared by the
the treatment of diseases, injuries, deformities, or National Drug Committee of the Department of Health in
abnormal physical and mental states, maternity cases or consultation with experts and specialists from organized
sanitarial care; or infirmaries, nurseries, dispensaries, professional medical societies, medical academe and the
rehabilitation centers and such other similar names by pharmaceutical industry, and which is updated every
which they may be designated; or year.
(2) a health care professional, who is any doctor of (aa) Portability — The enablement of a member to avail of
medicine, nurse, midwife, dentist, or other health care Program benefits in an area outside the jurisdiction of his
professional or practitioner duly licensed to practice in Local Health Insurance Office.
the Philippines and accredited by the Corporation; or (bb) Prescription Drug — A drug which has been
(3) a health maintenance organization, which is an entity approved by the Bureau of Food and Drug and which can
that provides, offers, or arranges for coverage of be dispensed only pursuant to a prescription order from a
designated health services needed by plan members for physician who is duly licensed to do so.
a fixed prepaid premium; or (cc) Public Health Services — Services that strengthen
(4) a community-based health care organization, which is preventive and promotive health care through improving
an association of indigenous members of the community conditions in partnership with the community at large.
organized for the purpose of improving the health status These include control of communicable and
of that community through preventive, promotive and non-communicable diseases, health promotion, public
curative health services. information and education, water and sanitation,
environmental protection, and health-related data
p) Health Insurance Identification (ID) Card — The collection, surveillance, and outcome monitoring.
document issued by the Corporation to members and
dependents upon their enrollment to serve as the (dd) Quality Assurance — A formal set of activities to
instrument for proper identification, eligibility verification, review and ensure the quality of services provided.
and utilization recording. Quality assurance includes quality assessment and
corrective actions to remedy any deficiencies identified in
q) Indigent — A person who has no visible means of the quality of direct patient, administrative, and support
income, or whose income is insufficient for the services.
subsistence of his family, as identified by the Department
of Social Welfare and Development (DSWD) based on (ee) Residence — The place where the member actually
specific criteria set for this purpose in accordance with lives.
the guiding principles set forth in Article I of this Act. (ff) Retiree — A member of the Program who has reached
(National Health Insurance Act of 2013, Republic Act No. the age of retirement as provided for by law or who was
10606, [June 19, 2013]) retired on account of permanent disability as certified by
r) Inpatient Education Package — A set of informational the employer and the Corporation. (National Health
services made available to an individual who is confined Insurance Act of 2013, Republic Act No. 10606, [June 19,
in a hospital to afford him with knowledge about his 2013])
illness and its treatment, and of the means available, (gg) Self-employed — A person who works for himself and
particularly lifestyle changes, to prevent the recurrence or is therefore both employee and employer at the same
aggravation of such illness and to promote his health in time.
general.
(hh) Social Security System — The Social Security System
s) Member — Any person whose premiums have been created under Republic Act No. 1161, as amended.
regularly paid to the National Health Insurance Program
who may be a paying member, a sponsored member, or a (ii) Treatment Procedure — Any method used to remove
lifetime member. (National Health Insurance Act of 2013, the symptoms and cause of a disease.
Republic Act No. 10606, [June 19, 2013]) (jj) Utilization Review — A formal review of patient
t) Means Test — A protocol administered at the barangay utilization or of the appropriateness of health care
level to determine the ability of individuals or households services, on a prospective, concurrent or retrospective
to pay varying levels of contributions to the Program, basis.
ranging from the indigent in the community whose (kk) Rehabilitation Center — Refers to a facility, which
contributions should be totally subsidized by the undertakes rehabilitation of drug dependents. It includes
government, to those who can afford to subsidize part institutions, agencies and the like which have for their
but not all the required contributions for the Program. purpose, the development of skills, or which provides
u) Medicare — The health insurance program currently counselling, or which seeks to inculcate, social and moral
being implemented by the Philippine Medical Care values to clientele who have a drug problem with the aim
Commission. It consists of: of weaning them from drugs and making them drug
free, adapted to their families and peers, and readjusted
(1) Program I, which covers members of the SSS and GSIS into the community as law-abiding, useful and productive
including their legal dependents; and citizens.
(2) Program II, which is intended for those not covered (ll) Home Care and Medical Rehabilitation Services —
under Program I. Refer to skilled nursing care, which members get in their
v) National Health Insurance Program — The compulsory homes/clinics for the treatment of an illness or injury that
health insurance program of the government as severely affects their activities or daily living. Home care
established in this Act, which shall provide universal and medical rehabilitation services include hospice or
health insurance coverage and ensure affordable, palliative care for people who are terminally ill but does
acceptable, available and accessible health care services not include custodial and non-skilled personal care.
for all citizens of the Philippines. (Amendment to R.A. No. 7875, Republic Act No. 9241,
[February 10, 2004])
w) Pensioner — An SSS or GSIS member who receives
pensions therefrom.



(mm) Abandoned Children — Children who have no or private entity according to the rules as may be
known family willing and capable to take care of them prescribed by the Corporation.
and are under the care of the DSWD, orphanages, (National Health Insurance Act of 2013, Republic Act No.
churches and other institutions. 10606, [June 19, 2013])
(nn) Case-based Payment — Hospital payment method
that reimburses to hospitals a predetermined fixed rate ARTICLE III The National Health Insurance
for each treated case or disease; also called per case Program
payment.
SECTION 5. Establishment and Purposes. — There is
(oo) Health Technology Assessment — A field of science hereby created the National Health Insurance Program
that investigates the value of a health technology such as which shall provide health insurance coverage and
procedure, process, products, or devices, specifically on ensure affordable, acceptable, available and accessible
their quality, relative cost-effectiveness and safety. It health care services for all citizens of the Philippines, in
usually involves the science of epidemiology and accordance with the policies and specific provisions of
economics. It has implications on policy, decision to adopt this Act. This social insurance program shall serve as the
and invest in these technologies, or in health benefit means for the healthy to help pay for the care of the sick
coverage. and for those who can afford medical care to subsidize
(pp) Informal Sector — Units engaged in the production those who cannot. It shall initially consist of programs I
of goods and services with the primary objective of and II or Medicare and be expanded progressively to
generating employment and income for the persons constitute one universal health insurance program for the
concerned. It consists of households, unincorporated entire population. The Program shall include a
enterprises that are market and nonmarket producers of sustainable system of funds constitution, collection,
goods, as well as market producers of services. management and disbursement for financing the
availment of a basic minimum package and other
These enterprises are operated by own-account workers, supplementary packages of health insurance benefits by
which may employ unpaid family workers as well as a progressively expanding proportion of the population.
occasional, seasonally hired workers. The Program shall be limited to paying for the utilization
To this sector belong, among others, street hawkers, of health services by covered beneficiaries or to
market vendors, pedicab and tricycle drivers, small purchasing health services in behalf of such beneficiaries.
construction workers and home-based industries and It shall be prohibited from providing health care directly,
services. from buying and dispensing drugs and pharmaceuticals,
from employing physicians and other professionals for
(qq) Other Self-earning Individuals — Individuals who
the purpose of directly rendering care, and from owning
render services or sell goods as a means of livelihood
or investing in health care facilities.
outside of an employer-employee relationship, or as a
career, but do not belong to the informal sector. These SECTION 6. Mandatory Coverage. — All citizens of the
include businessmen, entrepreneurs, actors, actresses Philippines shall be covered by the National Health
and other performers, news correspondents, professional Insurance Program. In accordance with the principles of
athletes, coaches, trainers, and other individuals as universality and compulsory coverage enunciated in
recognized by the Department of Labor and Employment Section 2(b) and 2(l) hereof, implementation of the
(DOLE) and/or the Bureau of Internal Revenue (BIR). Program shall ensure sustainability of coverage and
continuous enhancement of the quality of service:
(rr) Out-patient Services — Health services such as
Provided, That the Program shall be compulsory in all
diagnostic consultation, examination, treatment, surgery
provinces, cities and municipalities nationwide,
and rehabilitation on an out-patient basis.
notwithstanding the existence of LGU-based health
(ss) Professional Practitioners — Include doctors, lawyers, insurance programs: Provided, further, That the
certified public accountants, and other practitioners Corporation, Department of Health (DOH), local
required to pass government licensure examinations in government units (LGUs), and other agencies including
order to practice their professions. nongovernmental organizations (NGOs) and other
(tt) Traditional and Alternative Health Care — The national government agencies (NGAs) shall ensure that
application of traditional knowledge, skills and practice of members in such localities shall have access to quality
alternative health care or healing methods which include and cost-effective health care services. (National Health
reflexology, acupuncture, massage, accupressure, Insurance Act of 2013, Republic Act No. 10606, [June 19,
chiropractics, nutritional therapy and other similar 2013])
methods in accordance with the accreditation guidelines SECTION 7. Enrollment. — The Corporation shall enroll
set forth by the Corporation and the Food and Drug beneficiaries in order for them to avail of benefits under
Administration (FDA). this Act with the assistance of the financial arrangements
(uu) Lifetime Member — A former member who has provided by the Corporation under the following
reached the age of retirement under the law and has categories:
paid at least one hundred twenty (120) monthly premium (a) Members in the formal economy;
contributions.
(b) Members in the informal economy;
(vv) Members in the Formal Economy — Workers with
(c) Indigents;
formal contracts and fixed terms of employment
including workers in the government and private sector, (d) Sponsored members; and
whose premium contribution payments are equally (e) Lifetime members.
shared by the employee and the employer.
The process of enrollment shall include the identification
(ww) Members in the Informal Economy — Workers who of beneficiaries, issuance of appropriate documentation
are not covered by formal contracts or agreements and specifying eligibility to benefits, and indicating how
whose premium contributions are self-paid or subsidized membership was obtained or is being maintained.
by another individual through a defined criteria set by the
Corporation. (National Health Insurance Act of 2013, Republic Act No.
10606, [June 19, 2013])
(xx) Migrant Workers — Documented or undocumented
Filipinos who are engaged in a remunerated activity in SECTION 8. Health Insurance Identification (ID) Card and
another country of which they are not citizens. ID Number. — In conjunction with the enrollment
provided above, the Corporation through its local office
(yy) Sponsored Member — A member whose contribution shall issue a health insurance ID with a corresponding ID
is being paid by another individual, government agency, number which shall be used for purposes of
identification, eligibility verification, and utilization


recording. The issuance of this ID card shall be entitled to the benefits of the Program: Provided, That
accompanied by a clear explanation to the enrollee of his such member can show that contributions have been
rights, privileges and obligations as a member. A list of made with sufficient regularity: Provided, further, That
health care providers accredited by the Local Health the member is not currently subject to legal penalties as
Insurance Office shall likewise be provided to the provided for in Section 44 of this Act.
member together with the ID card. The following need not pay the monthly contributions to
The absence of the ID card shall not prejudice the right of be entitled to the Program's benefits:
any member to avail of benefits or medical services under (a) Retirees and pensioners of the SSS and GSIS prior to
the National Health Insurance Program (NHIP). the effectivity of this Act; and
This health insurance ID card with a corresponding ID (b) Lifetime members.
number shall be recognized as a valid government
identification and shall be presented and honored in (National Health Insurance Act of 2013, Republic Act No.
transactions requiring the verification of a person's 10606, [June 19, 2013])
identity. SECTION 13. Portability of Benefits. — The corporation
(National Health Insurance Act of 2013, Republic Act No. shall develop and enforce mechanisms and procedures to
10606, [June 19, 2013]) assure that benefits are portable across Offices.
SECTION 9. Change of Residence. — A citizen can be
ARTICLE IV The Philippine Health Insurance
under only one Local Health Insurance Office which shall
be located in the province or city of his place of residence. Corporation
A person who changes residence, becomes temporarily SECTION 14. Creation and Nature of the Corporation. —
employed, or for other justifiable reasons, is transferred to There is hereby created a Philippine Health Insurance
another locality should inform said Office of such transfer Corporation, which shall have the status of a tax-exempt
and subsequently transfer his Program membership. government corporation attached to the Department of
SECTION 10. Benefit Package. — Members and their Health for Policy coordination and guidance.
dependents are entitled to the following minimum SECTION 15. Exemption from Taxes and Duties. — The
services, subject to the limitations specified in this Act Corporation shall be exempt from the payment of taxes
and as may be determined by the Corporation: on all contributions thereto and all accruals on its income
(a) Inpatient hospital care: or investment earnings.
(1) room and board; Any donation, contribution, bequest, subsidy or financial
aid which may be made to the Corporation shall
(2) services of health care professionals; constitute as allowable deduction from the income of the
(3) diagnostic, laboratory, and other medical examination donor for income tax purposes and shall be exempt from
services; donor's tax, subject to such conditions as provided in the
National Internal Revenue Code, as amended.
(4) use of surgical or medical equipment and facilities;
SECTION 16. Powers and Functions. — The Corporation
(5) prescription drugs and biologicals, subject to the shall have the following powers and functions:
limitations stated in Section 37 of this Act; and
a) to administer the National Health Insurance Program;
(6) inpatient education packages;
b) to formulate and promulgate policies for the sound
(b) Outpatient care: administration of the Program;
(1) services of health care professionals; c) To supervise the provision of health benefits and to set
(2) diagnostic, laboratory, and other medical examination standards, rules, and regulations necessary to ensure
services; quality of care, appropriate utilization of services, fund
viability, member satisfaction, and overall
(3) personal preventive services; and
accomplishment of Program objectives; (National Health
(4) prescription drugs and biologicals, subject to the Insurance Act of 2013, Republic Act No. 10606, [June 19,
limitations described in Section 37 of this Act; 2013])
(c) Emergency and transfer services; and d) to formulate and implement guidelines on
(d) Such other health care services that the Corporation contributions and benefits; portability of benefits, cost
and the DOH shall determine to be appropriate and containment and quality assurance; and health care
cost-effective. provider arrangements, payment methods; and referral
systems;
These services and packages shall be reviewed annually
to determine their financial sustainability and relevance e) to establish branch offices as mandated in Article V of
to health innovations, with the end in view of quality this Act;
assurance, increased benefits and reduced out-of-pocket f) to receive and manage grants, donations, and other
expenditure. forms of assistance;
(National Health Insurance Act of 2013, Republic Act No. g) to sue and be sued in court;
10606, [June 19, 2013])
h) to acquire property, real and personal, which may be
SECTION 11. Excluded Personal Health Services. — The necessary or expedient for the attainment of the
Corporation shall not cover expenses for health services purposes of this Act;
which the Corporation and the DOH consider
i) to collect, deposit, invest, administer, and disburse the
cost-ineffective through health technology assessment.
National Health Insurance Fund in accordance with the
The Corporation may institute additional exclusions and provisions of this Act;
limitations as it may deem reasonable in keeping with its
j) To negotiate and enter into contracts with health care
protection objectives and financial sustainability.
institutions, professionals, and other persons, juridical or
(Amendment to R.A. No. 7875, Republic Act No. 9241,
natural, regarding the pricing, payment mechanisms,
[February 10, 2004], as further amended by National
design and implementation of administrative and
Health Insurance Act of 2013, Republic Act No. 10606,
operating systems and procedures, financing, and
[June 19, 2013])
delivery of health services in behalf of its members;
SECTION 12. Entitlement to Benefits. — A member whose (National Health Insurance Act of 2013, Republic Act No.
premium contributions for at least three (3) months have 10606, [June 19, 2013])
been paid within six (6) months prior to the first day of
k) to authorize Local Health Insurance Offices to
availment, including those of the dependents, shall be
negotiate and enter into contracts in the name and on



behalf of the Corporation with any accredited (y) To mandate the national agencies and LGUs to require
government or private sector health provider proof of PhilHealth membership before doing business
organization, including but not limited to health with a private individual or group;
maintenance organizations, cooperatives and medical (z) To accredit independent pharmacies and retail drug
foundations, for the provision of at least the minimum outlets; and
package of personal health services prescribed by the
Corporation; (aa) To perform such other acts as it may deem
appropriate for the attainment of the objectives of the
l) to determine requirements and issue guidelines for the Corporation and for the proper enforcement of the
accreditation of health care providers for the Program in provisions of this Act.
accordance with this Act;
(National Health Insurance Act of 2013, Republic Act No.
m) To visit, enter and inspect facilities of health care 10606, [June 19, 2013])
providers and employers during office hours, unless there
is reason to believe that inspection has to be done SECTION 17. Quasi-Judicial Powers. — The Corporation, to
beyond office hours, and where applicable, secure copies carry out its tasks more effectively, shall be vested with
of their medical, financial, and other records and data the following powers:
pertinent to the claims, accreditation, premium a) Subject to the respondent's right to due process, to
contribution, and that of their patients or employees, who conduct investigations for the determination of a
are members of the Program; (National Health question, controversy, complaint, or unresolved grievance
Insurance Act of 2013, Republic Act No. 10606, [June 19, brought to its attention, and render decisions, orders, or
2013]) resolutions thereon. It shall proceed to hear and
n) to organize its office, fix the compensation of and determine the case even in the absence of any party who
appoint personnel as may be deemed necessary and has been properly served with notice to appear. It shall
upon the recommendation of the president of the conduct its proceedings or any part thereof in public or in
Corporation; executive session; adjourn its hearings to any time and
place; refer technical matters or accounts to an expert
o) to submit to the President of the Philippines and to and to accept his reports as evidence; direct parties to be
both Houses of Congress its Annual Report which shall joined in or excluded from the proceedings; and give all
contain the status of the National Health Insurance Fund, such directions as it may deem necessary or expedient in
its total disbursements, reserves, average costings to the determination of the dispute before it; (National
beneficiaries, any request for additional appropriation, Health Insurance Act of 2013, Republic Act No. 10606,
and other data pertinent to the implementation of the [June 19, 2013])
Program and publish a synopsis of such report in two (2)
newspapers of general circulation; b) to summon the parties to a controversy, issue
subpoenas requiring the attendance and testimony of
p) To keep records of the operations of the Corporation witnesses or the production of documents and other
and investments of the National Health Insurance Fund; materials necessary to a just determination of the case
(q) To establish and maintain an electronic database of all under investigation;
its members and ensure its security to facilitate efficient c) Subject to the respondent's right to due process, to
and effective services; suspend temporarily, revoke permanently, or restore the
(r) To invest in the acceleration of the Corporation's accreditation of a health care provider or the right to
information technology systems; benefits of a member and/or impose fines. The decision
(s) To conduct an information campaign on the principles shall immediately be executory, even pending appeal,
of the NHIP to the public and to accredited health care when the public interest so requires and as may be
providers. This campaign must include the current provided for in the implementing rules and regulations.
benefit packages provided by the Corporation, the Suspension of accreditation shall not exceed six (6)
mechanisms to avail of the current benefit packages, the months. Suspension of the rights of members shall not
list of accredited and disaccredited health care providers, exceed six (6) months.
and the list of offices/branches where members can pay The revocation of a health care provider's accreditation
or check the status of paid health premiums; shall operate to disqualify him from obtaining another
(t) To conduct post-audit on the quality of services accreditation in his own name, under a different name, or
rendered by health care providers; through another person, whether natural or juridical.
(u) To establish an office, or where it is not feasible, The Corporation shall not be bound by the technical rules
designate a focal person in every Philippine Consular of evidence.
Office in all countries where there are Filipino citizens. (National Health Insurance Act of 2013, Republic Act No.
The office or the focal person shall, among others, 10606, [June 19, 2013])
process, review and pay the claims of the overseas Filipino SECTION 18. The Board of Directors. —
workers (OFWs);
a) Composition — The Corporation shall be governed by a
(v) Notwithstanding the provisions of any law to the Board of Directors hereinafter referred to as the Board,
contrary, to impose interest and/or surcharges of not composed of the following members:
exceeding three percent (3%) per month, as may be fixed
by the Corporation, in case of any delay in the remittance The Secretary of Health;
of contributions which are due within the prescribed The Secretary of Labor and Employment or a permanent
period by an employer, whether public or private. representative;
Notwithstanding the provisions of any law to the contrary,
the Corporation may also compromise, waive or release, The Secretary of the Interior and Local Government or a
in whole or in part, such interest or surcharges imposed permanent representative;
upon employers regardless of the amount involved under The Secretary of Social Welfare and Development or a
such valid terms and conditions it may prescribe; permanent representative;
(w) To endeavor to support the use of technology in the The Secretary of the Department of Finance (DOF) or a
delivery of health care services especially in farflung areas permanent representative;
such as, but not limited to, telemedicine, electronic health
record, and the establishment of a comprehensive health The President and Chief Executive Officer (CEO) of the
database; Corporation;
(x) To monitor compliance by the regulatory agencies The SSS Administrator or a permanent representative;
with the requirements of this Act and to carry out The GSIS General Manager or a permanent
necessary actions to enforce compliance; representative;



The Vice Chairperson for the basic sector of the National d) Salary — The President shall receive a salary to be fixed
Anti-Poverty Commission or a permanent representative; by the Board, with the approval of the President of the
The Chairperson of the Civil Service Commission (CSC) or Philippines, payable from the funds of the Corporation.
a permanent representative; e) Prohibition — To avoid conflict of interest, the President
A permanent representative of Filipino migrant workers; must not be involved in any health care institution as
owner or member of its board.
A permanent representative of the members in the
informal economy; SECTION 20. Health Finance Policy Research. — Among
the staff departments that will be established by the
A permanent representative of the members in the Corporation shall be the Health Finance Policy Research
formal economy; Department, which shall have the following duties and
A representative of employers; functions:
A representative of health care providers to be endorsed a) development of broad conceptual framework for
by their national associations of health care institutions implementation of the Program through a national
and medical health professionals; health finance master plan to ensure sustained
investments in health care, and to provide guidance for
A permanent representative of the elected local chief additional appropriations from the National Government;
executives to be endorsed by the League of Provinces,
League of Cities and League of Municipalities; and b) conduct of researches and studies toward the
development of policies necessary to ensure the viability,
An independent director to be appointed by the adequacy and responsiveness of the Program;
Monetary Board.
c) review, evaluation, and assessment of the Program's
The Secretary of Health shall be the ex officio Chairperson impact on the access to as well as the quality and cost of
while the President and CEO of the Corporation shall be health care in the country;
the Vice Chairperson of the Board.
d) periodic review of fees, charges, compensation rates,
(b) Appointment and Tenure. — Except for ex officio capitation rates, medical standards, health outcomes and
members, the other members of the Board shall be satisfaction of members, benefits, and other matters
appointed by the President of the Philippines in pertinent to the operations of the Program;
accordance with the provisions of Republic Act No. 10149,
otherwise known as the 'GOCC Governance Act of 2011': e) comparison in the delivery, quality, use, and cost of
Provided, That sectoral board members shall be health care services of the different Offices;
appointed by the President of the Philippines upon the f) submission for consideration of program of quality
recommendation of the Chairperson and after due assurance, utilization review, and technology assessment;
consultations with the sectors concerned.
(g) submission of recommendations on policy and
The term of office of the appointive members of the operational issues that will help the Corporation meet the
Board shall be in accordance with Republic Act No. 10149. objectives of this Act; and
(National Health Insurance Act of 2013, Republic Act No. (h) conduct of client-satisfaction surveys and research in
10606, [June 19, 2013]) order to assess outcomes of service rendered by health
c) Meetings and Quorum. — The Board shall hold regular care providers.
meetings at least once a month. Special meetings may (National Health Insurance Act of 2013, Republic Act No.
be convened at the call of the Chairperson or by a 10606, [June 19, 2013])
majority of the members of the Board. The presence of a
majority of all the members shall constitute a quorum. In SECTION 21. Actuary of the Corporation. — An Office of
the absence of the Chairperson and Vice Chairperson, a Actuary shall be created within the Corporation to
temporary presiding officer shall be designated by the conduct the necessary actuarial studies and present
majority of the quorum. recommendations on insurance premium, investments
and other related matters.
d) Allowances and Per Diems — The members of the
Board shall receive a per diem for every meeting actually ARTICLE V Local Health Insurance O ce
attended subject to the pertinent budgetary laws, rules
and regulations on compensation, honoraria and SECTION 22. Establishment. — The Corporation shall
allowances. (Amendment to R.A. No. 7875, Republic Act establish a Local Health Insurance Office, hereinafter
No. 9241, [February 10, 2004]) referred to as the Office, in every province or chartered
city, or wherever it is deemed practicable, to bring its
SECTION 19. The President of the Corporation. — services closer to members of the Program. However, one
a) Appointment and Tenure — The President of the office may serve the needs of more than one province or
Philippines shall appoint the President and CEO of the city when the merged operations will result in lower
Corporation, hereinafter referred to as the President, administrative cost and greater cross-subsidy between
upon the recommendation of the Board. The President rich and poor localities.
shall have a tenure of one (1) year in accordance with the Provinces and cities where prospective members are
provisions of Republic Act No. 10149. (National Health organized shall receive priority in the establishment of
Insurance Act of 2013, Republic Act No. 10606, [June 19, local health insurance offices.
2013])
SECTION 23. Functions. — Each Office shall have the
b) Duties and Functions — The President shall have the following powers and functions:
duty of advising the Board and carrying into effect its
policies and decisions. His functions are as follows: a) to consult and coordinate, as needed, with the local
government units within its jurisdiction in the
1) to act as the chief executive officer of the Corporation; implementation of the Program;
and
b) to recruit and register members of the Program from
2) to be responsible for the general conduct of the all areas within its jurisdiction;
operations and management functions of the
Corporation and for other duties assigned to him by the c) to collect and receive premiums and other payment
Board. contributions to the Program;
c) Qualifications — The President must a Filipino citizen d) to maintain and update the membership eligibility list
and must possess adequate and appropriate training and at community levels;
at least five (5) years experience in the field of health care e) to supervise the conduct of means testing which shall
financing and corporate management. be based on the criteria set by the Corporation and
undertaken by the Barangay Captain in coordination with



the social welfare officer and community-based health SECTION 25. Components of the National Health
care organizations to determine the economic status of Insurance Fund. — The National Health Insurance Fund
all households and individuals, including those who are shall have the following components:
indigent; a) The Basic Benefit Fund. — This Fund shall finance the
f) to issue health insurance ID cards to persons whose availment of the basic minimum benefit package by
premiums have been paid according to the requirements eligible beneficiaries. All liabilities associated with the
of the Office and the guidelines issued by the Board; extension of entitlement to the basic minimum benefit
g) to recommend to the Board premium schedules that package to the enrolled population shall be borne by the
provide for lower rates to be paid by members whose basic benefit fund. It shall be constituted and maintained
dependents include those with reduced probability of through the following process:
utilization, as in fully immunized children; 1) upon the determination of the amount of government
h) to recommend to the Board a contribution schedule subsidies and donations available for paying fully or
which specifies contribution levels by individuals and partially the premium of indigent beneficiaries, a basic
households, and a corresponding uniform package of minimum benefit package affordable for enrolling as
personal health service benefits which is at least equal to many of the indigent beneficiaries as possible shall be
the minimum package of such benefits prescribed by the defined. The government subsidies will then be
Board as applying to the nation; constituted as premium payments for enrolled indigents
and contributed into the basic benefit fund.
i) to grant or deny accreditation to health care providers
in their area of jurisdiction, subject to the rules and 2) for extending coverage of this same minimum benefit
regulations to be issued by the Board; package to non-indigents who are not members of
Medicare, premium prices for specific population shall be
j) to process, review and pay the claims of providers, actuarially determined based on variations in risk,
within a period not exceeding sixty (60) days whenever capacity to pay, and projected costs of services utilized.
applicable in accordance with the rules and guidelines of The amounts corresponding to the premium required,
the Corporation; including costs of direct benefit payments, all costs of
k) to pay fees, as necessary, for claims review and administration, and provision of adequate reserves, for
processing when such are conducted by the central extending the coverage of the basic minimum benefit
office of the Corporation or by any of its contractors; package for such population groups shall be contributed
into the basic benefit fund.
l) to establish referral systems and network arrangements
with other Offices, as may be necessary and following the 3) for the population enrolled through Medicare Program
guidelines set by the Corporation; I under SSS, the corresponding premium for the basic
minimum benefit package, including costs of direct
m) to establish mechanisms by which private and public benefit payments, all costs of administration, and
sector health facilities and human resources may be provision of adequate reserves, shall be charged to the
shared in the interest of optimizing the use of health health insurance fund of the SSS and paid into the basic
resources; benefit fund;
n) to support the management information system 4) for the population enrolled through Medicare Program
requirements of the Corporation; I under GSIS, the corresponding premium for the basic
o) to serve as the first level for appeals and grievance minimum benefit package, including costs of direct
cases; benefit payments, all costs of administration, and
provision of adequate reserves, shall be charged to the
p) to tap community-based volunteer health workers and health insurance fund of the GSIS and paid into the basic
barangay officials, if necessary, for member recruitment, benefit fund; and,
premium collection and similar activities, and to grant
such workers incentives according to the guidelines set 5) for groups enrolled through any of the existing or
by the Corporation and in accordance with applicable future health insurance schemes and plans, including
laws. However, the incentives for the barangay officials those created under Medicare Programs II and those
shall accrue to the barangay and not to the said officials. organized by local government units, national agencies,
cooperatives, and other similar organizations, the
q) to participate in information and education activities corresponding premium, including costs of direct benefit
that are consistent with the government's priority payments, all costs of administration, and provision of
programs on disease prevention and health promotion; adequate reserves, for extending the basic minimum
and benefit package to their respective enrollees will be
r) to prepare an annual report according to guidelines set charged to their respective funds and paid into the basic
by the Board and to submit the same to the central office benefit fund.
of the Corporation. b) Supplementary Benefit Funds. — These are separate
and distinct supplementary benefit funds created by the
ARTICLE VI The National Health Insurance Fund Corporation as eligible for use to provide supplementary
SECTION 24. Creation of the National Health Insurance coverage to various groups of the population enjoying the
Fund. — There is hereby created a National Health basic benefit coverage as are affordable by their
Insurance Fund, hereinafter referred to as the Fund, that respective funding sources. Each supplementary benefit
shall consist of: fund shall finance the extension and availment of
additional benefits not included in the basic minimum
(a) Contribution from Program members;
benefit package but approved by the Board. Such
(b) Other appropriations earmarked by the national and supplementary benefits shall be financed by whatever
local governments purposely for the implementation of amounts are available after deducting the costs of
the Program; providing the basic minimum benefit package, including
(c) Subsequent appropriations provided for under costs of direct benefit payments, all costs of
Sections 46 and 47 of this Act; administration, and provision of adequate reserves. All
liabilities associated with the extension of supplementary
(d) Donations and grants-in-aid; and benefits to the defined group of enrollees shall be borne
(e) All accruals thereof. exclusively by the respective supplementary benefit fund.
Upon the implementation of this Act, the following
(National Health Insurance Act of 2013, Republic Act No. supplementary benefit funds shall be established:
10606, [June 19, 2013])
1) supplementary benefit fund for SSS-Medicare
members and beneficiaries. After deducting the amount
corresponding to the premium of the basic minimum


benefit package, the balance of the SSS-Health Insurance prevailing rates of interest and shall be known as the
Fund (HIF) shall be constituted into a supplementary 'Investment Reserve Fund' which shall be invested in any
benefit fund to finance the extension of benefits in or all of the following:
addition to the minimum basic package to SSS members (a) In interest-bearing bonds, securities or other
and beneficiaries; and evidences of indebtedness of the Government of the
2) supplementary benefit fund for GSIS-Medicare Philippines, or in bonds, securities, promissory notes and
members and beneficiaries. After deducting the amount other evidences of indebtedness to which full faith and
corresponding to the premium for the basic minimum credit and unconditional guarantee of the Republic of the
benefit package, the balance of the GSIS-HIF plus the Philippines is pledged;
arrearages of the Government of the Philippines with the (b) In debt securities and corporate bonds issuances:
GSIS for the said HIF shall be constituted into a Provided, That such securities and bonds are rated triple
supplementary benefit fund to finance the extension of 'A' by authorized accredited domestic rating agencies:
benefits in addition to the minimum basic package to Provided, further, That the issuing or assuming entity or
GSIS members and beneficiaries. its predecessor shall not have defaulted in the payment of
In accordance with the principles of equity and social interest on any of its securities and that during each of
solidarity, as enunciated in Section 2 of this Act, the above any three (3) including last two (2) of the five (5) fiscal
supplementary benefit funds shall be maintained for not years next preceding the date of acquisition by the
more than five (5) years, after which, such funds shall be Corporation of such bonds, securities or other evidences
merged into the basic benefit fund. of indebtedness, the net earnings of the issuing or
SECTION 26. Financial Management. — The use, assuming institution available for its recurring expenses,
disposition, investment, disbursement, administration such as amortization of debt discount and rentals for
and management of the National Health Insurance Fund, leased properties, including interest on funded and
including any subsidy, grant or donation received for unfunded debt, shall have been not less than one and
program operations shall be governed by applicable laws one quarter (1 1/4) times the total of the recurring
and in the absence thereof, existing resolutions of the expenses for such year: Provided, further, That such
Board of Directors of the Corporation, subject to the investment shall not exceed fifteen percent (15%) of the
following limitations: investment reserve fund;
(a) All funds under the management and control of the (c) In interest-bearing deposits and loans to or securities
Corporation shall be subject to all rules and regulations in any domestic bank doing business in the Philippines:
applicable to public funds. Provided, That in the case of such deposits, this shall not
exceed at any time the unimpaired capital and surplus or
(b) The Corporation is authorized to charge to the various total private deposits of the depository bank, whichever is
funds under its control the costs of administering the smaller: Provided, further, That said bank shall first have
Program. Such costs may include administration, been designated as a depository for this purpose by the
monitoring, marketing and promotion, research and Monetary Board of the Bangko Sentral ng Pilipinas;
development, audit and evaluation, information services,
and other necessary activities for the effective (d) In preferred stocks of any solvent corporation or
management of the Program. The total annual costs for institution created or existing under the laws of the
these shall not exceed the sum total of the following: Philippines: Provided, That the issuing, assuming, or
guaranteeing entity or its predecessor has paid regular
(1) Four percent (4%) of the total premium contributions dividends upon its preferred or guaranteed stocks for a
collected during the immediately preceding year; period of at least three (3) years immediately preceding
(2) Four percent (4%) of the total reimbursements or total the date of investment in such preferred or guaranteed
cost of health services paid by the Corporation in the stocks: Provided, further, That if the stocks are guaranteed
immediately preceding year; and the amount of stocks so guaranteed is not in excess of
fifty percent (50%) of the amount of the preferred
(3) Five percent (5%) of the investment earnings common stocks as the case may be of the issuing
generated during the immediately preceding year. corporation: Provided, furthermore, That if the
The period for implementation of the cost ceiling corporation or institution has not paid dividends upon its
provided under this section shall not be later than five (5) preferred stocks, the corporation or institution has
years from the effectivity of this Act during which period, sufficient retained earnings to declare dividends for at
the total annual cost shall not exceed the sum total of the least two (2) years on such preferred stocks and in
following: common stocks of any solvent corporation or institution
created or existing under the laws of the Philippines in
(i) Five percent (5%) of the total contributions; the stock exchange with proven track record of
(ii) Five percent (5%) of the total reimbursements; and profitability and payment of dividends over the last three
(iii) Five percent (5%) of the investment earnings (3) years; and
generated during the immediately preceding year. (e) In bonds, securities, promissory notes or other
(National Health Insurance Act of 2013, Republic Act No. evidences of indebtedness of accredited and financially
10606, [June 19, 2013]) sound medical institutions exclusively to finance the
construction, improvement and maintenance of hospitals
SECTION 27. Reserve Fund. — The Corporation shall set and other medical facilities: Provided, That such securities
aside a portion of its accumulated revenues not needed and instruments are backed up by the guarantee of the
to meet the cost of the current year's expenditures as Republic of the Philippines or the issuing medical
reserve funds:Provided, That the total amount of reserves institution and the issued securities and bonds are both
shall not exceed a ceiling equivalent to the amount rated triple 'A' by authorized accredited domestic rating
actuarially estimated for two (2) years' projected Program agencies: Provided, further, That said investments shall
expenditures: Provided, further, That whenever actual not exceed ten percent (10%) of the total investment
reserves exceed the required ceiling at the end of the reserve fund.
Corporation's fiscal year, the excess of the Corporation's
reserve fund shall be used to increase the Program's As part of its investments operations, the Corporation
benefits, decrease the member's contributions, and may hire institutions with valid trust licenses as its
augment the health facilities enhancement program of external local fund managers to manage the investment
the DOH. reserve fund, as it may deem appropriate, through public
bidding. The fund managers shall submit annual reports
The remaining portion of the reserve fund that are not on investment performance to the Corporation.
needed to meet the current expenditure obligations or
used for the abovementioned programs shall be placed The Corporation shall set up the following funds:
in investments to earn an average annual income at


(1) A fund to secure benefit payouts to members prior to SECTION 29. Payment for Indigent Contributions. —
their becoming lifetime members; Premium contributions for indigent members as
(2) A fund to secure payouts to lifetime members; and identified by the DSWD through a means test or any
other appropriate statistical method shall be fully
(3) A fund for any optional supplemental benefits that are subsidized by the national government. The amount
subject to additional contributions. necessary shall be included in the appropriations for the
A portion of each of the above funds shall be identified as DOH under the annual General Appropriations Act.
current and kept in liquid instruments. In no case shall (Amendment to R.A. No. 7875, Republic Act No. 9241,
said portion be considered part of invested assets. [February 10, 2004], as further amended by National
Health Insurance Act of 2013, Republic Act No. 10606,
Another portion of the said funds shall be allocated for [June 19, 2013])
lifetime members within six (6) months after the
effectivity of this Act. Said amount shall be determined by SECTION 29-A. Payment for Sponsored Members'
an actuary or pre-calculated based on the most recent Contributions. —
valuation of liabilities. (a) The premium contributions of orphans, abandoned
The Corporation shall allocate a portion of all and abused minors, out-of-school youths, street children,
contributions to the fund for lifetime members based on PWDs, senior citizens and battered women under the
an allocation to be determined by the PHIC actuary care of the DSWD, or any of its accredited institutions run
based on a pre-determined percentage using the current by NGOs or any nonprofit private organizations, shall be
average age of members and the current life expectancy paid by the DSWD and the funds necessary for their
and morbidity curve of Filipinos. inclusion in the Program shall be included in the annual
budget of the DSWD.
The Corporation shall manage the supplemental benefits
and the lifetime members' fund in an actuarially sound (b) The needed premium contributions of all barangay
manner. health workers, nutrition scholars and other barangay
workers and volunteers shall be fully borne by the LGUs
The Corporation shall manage the supplemental benefits concerned.
fund to the minimum required to ensure that the
supplemental benefit payments are secure. (c) The annual premium contributions of househelpers
shall be fully paid by their employers, in accordance with
(National Health Insurance Act of 2013, Republic Act No. the provisions of Republic Act No. 10361 or the
10606, [June 19, 2013]) 'Kasambahay Law'.
ARTICLE VII Financing (National Health Insurance Act of 2013, Republic Act No.

10606, [June 19, 2013])
SECTION 28. Contributions. — All members who can
afford to pay shall contribute to the Fund, in accordance SECTION 29-B. Coverage of Women About to Give Birth.
with a reasonable, equitable and progressive contribution — The annual required premium for the coverage of
schedule to be determined by the Corporation on the unenrolled women who are about to give birth shall be
basis of applicable actuarial studies and in accordance fully borne by the national government and/or LGUs
with the following guidelines: and/or legislative sponsor which shall be determined
through the means testing protocol recognized by the
(a) Members in the formal economy and their employers DSWD. (National Health Insurance Act of 2013, Republic
shall continue paying the same monthly contributions as Act No. 10606, [June 19, 2013])
provided for by law until such time that the Corporation
shall have determined a new contribution schedule: ARTICLE VIII Health Care Providers
Provided, That their monthly contributions shall not
exceed five percent (5%) of their respective monthly SECTION 30. Free Choice of Health Facility, Medical or
salaries. AcEIHC Dental Practitioner. — Beneficiaries requiring treatment
or confinement shall be free to choose from accredited
It shall be mandatory for all government agencies to health care providers. Such choice shall, however, be
include the payment of premium contribution in their subject to limitations based on the area of jurisdiction of
respective annual appropriations: Provided, further, That the concerned Office and on the appropriateness of
any increase in the premium contribution of the national treatment in the facility chosen or by the desired provider.
government as employer shall only become effective
upon inclusion of said amount in the annual General SECTION 31. Authority to Grant Accreditation. — The
Appropriations Act. Corporation shall have the authority to grant to health
care providers accreditation which confers the privilege of
(b)Contributions from members in the informal economy participating in the Program.
shall be based primarily on household earnings and
assets. Those from the lowest income segment who do SECTION 32. Accreditation Eligibility. — All health care
not qualify for full subsidy under the means test rule of providers, as enumerated in Section 4(o) hereof and
the DSWD shall be entirely subsidized by the LGUs or operating for at least three (3) years may apply for
through cost sharing mechanisms between/among LGUs accreditation: Provided, That a health care provider which
and/or legislative sponsors and/or other sponsors and/or has not operated for at least three (3) years may likewise
the member, including the national government: apply and qualify for accreditation if it complies with all
Provided, That the identification of beneficiaries who the other accreditation requirements of and further
shall receive subsidy from LGUs shall be based on a list to meets any of the following conditions:
be provided by the DSWD through the same means test (a) Its managing health care professional has had a
rule or any other appropriate statistical method that may working experience in another accredited health care
be adopted for said purpose. institution for at least three (3) years;
(c) Contributions made in behalf of indigent members (b) It operates as a tertiary facility or its equivalent;
shall not exceed the minimum contributions for
employed members. (c) It operates in a LGU where the accredited health care
provider cannot adequately or fully service its population;
(d) The required number of monthly premium and
contributions to qualify as a lifetime member may be
increased by the Corporation to sustain the financial (d) Other conditions as may be determined by the
viability of the Program: Provided, That the increase shall Corporation.
be based on actuarial estimate and study A health care provider found guilty of any violation of this
(National Health Insurance Act of 2013, Republic Act No. Act shall not be eligible to apply for the renewal of
10606, [June 19, 2013]) accreditation.


(Amendment to R.A. No. 7875, Republic Act No. 9241, public providers shall be allowed to be retained by the
[February 10, 2004], further amended by National Health health facility in which services are rendered and be
Insurance Act of 2013, Republic Act No. 10606, [June 19, pooled and distributed among health personnel. Charges
2013]) paid to public facilities shall be allowed to be retained by
SECTION 33. Minimum Requirements for Accreditation. — the individual facility in which services were rendered and
The minimum accreditation requirements for health care for which payment was made. Such revenues shall be
providers are as follows: used to defray operating costs other than salaries, to
maintain or upgrade equipment, plant or facility, and to
a) human resource, equipment and physical structure in maintain or improve the quality of service in the public
conformity with the standards of the relevant facility, as sector.
determined by the Department of Health;
SECTION 36. Role of Local Government Units (LGUs). —
b) acceptance of formal program of quality assurance and Consistent with the mandates for each political
utilization review; subdivision under Republic Act No. 7160 or 'The Local
c) acceptance of the payment mechanisms specified in Government Code of 1991', LGUs shall provide basic health
the following section; care services.
d) adoption of referral protocols and health resources To augment their funds, LGUs shall invest the capitation
sharing arrangements; payments given to them by the Corporation on health
infrastructures or equipment, professional fees, drugs
e) recognition of the rights of patients; and and supplies, or information technology and database:
f) acceptance of information system requirements and Provided, That basic health care services, as defined by
regular transfer of information. the DOH and the Corporation, shall be ensured especially
with the end in view of improving maternal, infant and
SECTION 34. Provider Payment Mechanisms. — The child health: Provided, further, That the capitation
following mechanisms for public and private providers payments shall be segregated and placed into a special
shall he allowed in the Program: trust fund created by LGUs and be accessed for the use of
(a) Fee-for-service payments — payments made by the such mandated purpose.
Corporation for professional fees or hospital charges, or (National Health Insurance Act of 2013, Republic Act No.
both, based on arrangements with health care providers. 10606, [June 19, 2013])
This fee shall be based on a schedule to be established by
the Board which shall be reviewed periodically but hot SECTION 37. Quality Assurance. — Under the guidelines
less than every three (3) years; approved by the Corporation and in collaboration with
their respective Offices, health care providers shall take
(b) Capitation of health care professionals and facilities, or part in programs of quality assurance, utilization review,
networks of the same including HMOs, medical and technology assessment that have the following
cooperatives, and other legally formed health service objectives:
groups;
a) to ensure that the quality of personal health services
(c) Case-based payment; delivered, measured in terms of inputs, process, and
(d) Global budget; and outcomes, are of reasonable quality in the context of the
(e) Such other provider payment mechanisms that may Philippines over time;
be determined and adopted by the Corporation. b) to ensure that the health care standards are uniform
Subject to the approval of the Board, the Corporation may within the Office's jurisdiction and eventually throughout
adopt other payment mechanism that are most the nation; and
beneficial to the members and the Corporation. c) to see to it that the acquisition and use of scarce and
Each PhilHealth local office shall recommend the expensive medical technologies and equipment are
appropriate payment mechanism within its jurisdiction consistent with actual needs and standards of medical
for approval by the Corporation. Special consideration practice, and that:
shall be given to payment for services rendered by public 1) the performance of medical procedures and the
and private health care providers serving remote or administration of drugs are appropriate, necessary and
medically underserved areas. unquestionably consistent with accepted standards of
(National Health Insurance Act of 2013, Republic Act No. medical practice and ethics. Drugs for which payments
10606, [June 19, 2013]) will be made shall be those included in the Philippine
National Drug Formulary, unless explicit exception is
SECTION 34-A. Other Provider Payment Guidelines. — No granted by the Corporation.
other fee or expense shall be charged to the indigent
patient, subject to the guidelines issued by the 2) the performance of medical procedures and the
Corporation. administration of drugs are appropriate, consistent with
accepted standards of medical practice and ethics, and
All payments for professional services rendered by respectful of the local culture.
salaried public providers shall be allowed to be retained
by the health facility in which services are rendered and SECTION 38. Safeguards Against Over and Under
be pooled and distributed among health personnel. Utilization. — It is incumbent upon the Corporation to set
Charges paid to public facilities shall be retained by the up a monitoring mechanism to be operationalized
individual facility in which services were rendered and for through a contract with health care providers to ensure
which payment was made. Such revenues shall be used that there are safeguards against:
to primarily defray operating costs other than salaries, to a) over-utilization of services;
maintain or upgrade equipment, plant or facility, and to b) unnecessary diagnostic and therapeutic procedures
maintain or improve the quality of service in the public and intervention;
sector.
c) irrational medication and prescriptions;
10606, [June 19, 2013]) d) under-utilization of services; and
SECTION 35. Fee-for-service Payments and Payments in e) inappropriate referral practices.
General. — Fee-for-service payments may be made The Corporation may deny or reduce the payment for
separately for professional fees and hospital charges, or claims when such claims are attended by false or
both, based on arrangements with health care providers. incorrect information and when the claimants fails
This fee shall be based on a schedule to be established by without justifiable cause to comply with the pertinent
the Board which shall be reviewed every three (3) years. rules and regulations of this Act.
Fees paid for professional services rendered by salaried



After an answer is filed and the issues are joined, the
ARTICLE IX Grievance and Appeal Committee shall require the parties to submit, within ten
SECTION 39. Grievance System. — A system of grievance (10) days from receipt of the order, the affidavits of
is hereby established, wherein members, dependents, or witnesses and other evidence on the factual issues
health care providers of the Program who believe they defined therein, together with a brief statement of their
have been aggrieved by any decision of the positions setting forth the law and the facts relied upon
implementors of the Program, may seek redress of the by them. In the event the Committee finds, upon
grievance in accordance with the provisions of this Article. consideration of the pleadings, the affidavits and other
evidence, and position statements submitted by the
SECTION 40. Grounds for Grievances. — The following
parties, that a judgment may be rendered thereon
acts shall constitute valid grounds for grievance action:
without need of a formal hearing, it may proceed to
a) any violation of the rights of patients; render judgment not later than ten (10) days from the
b) a willful neglect of duties of Program implementors submission of the position statements of the parties.
that results in the loss or non-enjoyment of benefits by In cases where the Committee deems it necessary to hold
members or their dependents; a hearing to clarify specific factual matters before
c) unjustifiable delay in actions on claims; rendering judgment, it shall set the case for hearing for
the purpose. At such hearing, witnesses whose affidavits
d) delay in the processing of claims that extends beyond were previously submitted may be asked clarificatory
the period agreed upon; and questions by the proponent and by the Committee and
e) any other act or neglect that tends to undermine or may be cross-examined by the adverse party. The order
defeat the purposes of this Act. setting the case of hearing shall specify the witnesses
who will be called to testify, and the matters on which
SECTION 41. Grievance and Appeal Procedures. — A their examination will deal. The hearing shall be
member, a dependent, or a health care provider may file terminated within fifteen (15) days, and the case decided
a complaint for grievance based on any of the above by the Committee within fifteen (15) days from such
grounds, in accordance with the following procedures: termination.
(a) A complaint for grievance must be filed with the The decision of the Committee shall become final and
Corporation which shall refer such complaint to the executory fifteen (15) days after notice thereof: Provided,
Grievance and Appeal Review Committee. The Grievance however, That it is appealable to the Board by filing the
and Appeal Review Committee shall rule on the appellant's memorandum of appeal within fifteen (15)
complaint through a notice of resolution within sixty (60) days from receipt of the copy of the judgment appealed
calendar days from receipt thereof. from. The appellees shall be given fifteen (15) days from
(b) Appeals from the decision of the Grievance and notice to file the appellee's memorandum after which the
Appeal Review Committee must be filed with the Board Board shall decide the appeal within thirty (30) days from
within thirty (30) calendar days from receipt of the notice the submittal of the said pleadings.
of resolution. The decision of the Board shall also become final and
(National Health Insurance Act of 2013, Republic Act No. executory fifteen (15) days after notice thereof: Provided,
10606, [June 19, 2013]) however, That it is reviewable by the Supreme Court on
purely questions of law in accordance with the Rules of
c) The Offices shall have no jurisdiction over any issue
Court.
involving the suspension or revocation of accreditation,
the imposition of fines, or the imposition of charges on The Committee and the Board, in the exercise of their
members or their dependents in case of revocation of quasi-judicial function, as specified in Section 17 hereof,
their entitlement. can administer oaths, certify to official acts and issue
subpoena to compel the attendance and testimony of
d) All decisions by the Board as to entitlement to benefits
witnesses, and subpoena duces tecum or ad
of members or to payments of health care providers shall
testificandum to enjoin the production of books, papers
be considered final and executory.
and other records and to testify therein on any question
SECTION 42. Grievance and Appeal Review Committee. arising out of this Act. Any case of contumacy shall be
— The Board shall create a Grievance and Appeal Review dealt with in accordance with the provisions of the
Committee, composed of five (5) members, hereinafter Revised Administrative Code and the Rules of Court. The
referred to as the Committee, which, subject to the Board or the Committee, as the case may be, shall
procedures enumerated above, shall receive and prescribe the necessary administrative sanctions such as
recommend appropriate action on complaints from fines, warnings, suspension or revocation of the right to
members and health care providers relative to this Act participate in the Program.
and its implementing rules and regulations.
In all its proceedings, the Committee and the Board shall
The Committee shall have as one of its members a not be bound by the technical rules of evidence: Provided,
representative of any of the accredited health care however, That the Rules of Court shall apply with
providers as endorsed by the DOH. suppletory effect.
10606, [June 19, 2013]) ARTICLE X Penalties
SECTION 43. Hearing Procedures of the Committee. — SECTION 44. Penal Provisions. — Any violation of the
Upon the filing of the complaint, the Grievance and provisions of this Act, after due notice and hearing, shall
Appeal Review Committee, from a consideration of the suffer the following penalties:
allegations thereof, may dismiss the case outright due to (a) Violation by an Accredited Health Care Provider — Any
lack of verification, failure to state the cause of action, or accredited health care provider who commits a violation,
any other valid ground for the dismissal of the complaint abuse, unethical practice or fraudulent act which tends
after consultation with the Board; or require the to undermine or defeat the objectives of the Program
respondent to file a verified answer within five (5) days shall be punished with a fine of not less than Fifty
from service of summons. thousand pesos (P50,000.00) but not more than One
Should the defendant fail to answer the complaint within hundred thousand pesos (P100,000.00) or suspension of
the reglementary five-day period herein provided, the accreditation from three (3) months to the whole term of
Committee, motu proprio or upon motion of the accreditation, or both, at the discretion of the
complainant, shall render judgments as may be Corporation: Provided, That recidivists may no longer be
warranted by the facts alleged in the complainant and accredited as a participant of the Program;
limited to what is prayed for therein. (b) Violations of a Member — Any member who commits
any violation of this Act independently or in connivance


with the health care provider for purposes of wrongfully

claiming NHIP benefits or entitlement shall be punished ARTICLE XI Appropriations
with a fine of not less than Five thousand pesos SECTION 45. Initial Appropriation. — The unexpended
(P5,000.00) or suspension from availment of NHIP portion of the budget of the Philippine Medical Care
benefits for not less than three (3) months but not more Commission (PMCC) for the year during which this Act
than six (6) months, or both, at the discretion of the was approved shall be utilized for establishing the
Corporation. Corporation and initiating its operations, including the
(c) Violations of an Employer — formulation of the rules and regulations necessary for the
implementation of this Act. In addition, initial funding
(1) Failure/Refusal to Register/Deduct/Remit the shall come from any unappropriated but available fund of
Contributions — Any employer who fails or refuses to the Government.
register employees, regardless of their employment
status, or to deduct contributions from the employee's SECTION 46. Subsequent Appropriations. — Starting 1995
compensation or remit the same to the Corporation shall and thereafter, twenty-five percent (25%) of the
be punished with a fine of not less than Five thousand increment in total revenue collected under Republic Act
pesos (P5,000.00) multiplied by the total number of No. 7654 shall be appropriated in the General
employees of the firm. Appropriations Act solely for the National Health
Insurance Fund.
Any employer or any officer authorized to collect
contributions under this Act who, after collecting or In addition, starting 1996 and thereafter, twenty-five
deducting the monthly contributions from his percent (25%) of the incremental revenue from the
employee's compensation, fails to remit the said increase in the documentary stamp taxes under Republic
contributions to the Corporation within thirty (30) days Act No. 7660 shall likewise be appropriated solely for the
from the date they become due shall be presumed to said fund.
have misappropriated such contributions. SECTION 47. Additional Appropriations. — The
(2) Unlawful Deductions — Any employer or officer who Corporation may request Congress to appropriate
shall deduct directly or indirectly from the compensation supplemental funding to meet targeted milestones of the
of the covered employees or otherwise recover from Program in accordance with Section 10(d) of this Act.
them his own contribution on behalf of such employees
shall be punished with a fine of Five thousand pesos ARTICLE XII Transitory Provisions
(P5,000.00) multiplied by the total number of affected SECTION 48. Appointment of Board Members. — Within
employees. thirty (30) days from the date of effectivity of this Act, the
If the act or omission penalized by this Act be committed President of the Philippines shall appoint the members of
by an association, partnership, corporation or any other the Board and the President of the Corporation.
institution, its managing directors or partners or SECTION 49. Implementing Rules and Regulations. —
president or general manager, or other persons Within sixty (60) days from the effectivity of this Act, the
responsible for the commission of the said act shall be Corporation, in coordination with the DOH, shall issue the
liable for the penalties provided for in this Act. necessary rules and regulations for its effective
(3) Misappropriation of Funds by Employees of the implementation. (National Health Insurance Act of 2013,
Corporation — Any employee of the Corporation who Republic Act No. 10606, [June 19, 2013])
receives or keeps funds or property belonging, payable or SECTION 50. Promulgation. — Within one (1) year from its
deliverable to the Corporation, and who shall appropriate initial meeting, the Board shall promulgate the
the same, or shall take or misappropriate or shall consent, aforementioned rules and regulations in at least two (2)
or through abandonment or negligence shall permit any national newspapers of general circulation. But until such
other person to take such property or funds wholly or time that the Corporation shall have promulgated said
partially, shall likewise be liable for misappropriation of rules and regulations, the existing rules and regulations of
funds or property and shall be punished with a fine not the PMCC shall be followed. The present Medicare
less than Ten thousand pesos (P10,000.00) nor more than Program shall continue to be so administered, until the
Twenty thousand pesos (P20,000.00). Any shortage of the Corporation's Board deems the new system as ready for
funds or loss of the property upon audit shall be deemed implementation in accordance with the provisions of this
prima facie evidence of the offense. Act.
(d) Other Violations — Other violations of the provisions of SECTION 51. Merger. — Within sixty (60) days from the
this Act or of the rules and regulations promulgated by promulgation of the implementing rules and regulations,
the Corporation shall be punished with a fine of not less all functions and assets of the Philippine Medical Care
than Five thousand pesos (P5,000.00) but not more than Commission shall be merged with those of the
Twenty thousand pesos (P20,000.00). Corporation without need of conveyance, transfer or
All other violations involving funds of the Corporation assignment. The PMCC shall thereafter cease to exist.
shall be governed by the applicable provisions of the The liabilities of the PMCC shall be treated in accordance
Revised Penal Code or other laws, taking into with existing laws and pertinent rules and regulations.
consideration the rules on collection, remittances, and
investment of funds as may be promulgated by the To the greatest extent possible and in accordance with
Corporation. existing laws, all employees of the PMCC shall be
absorbed by the Corporation.
The Corporation may enumerate circumstances that will
mitigate or aggravate the liability of the offender or erring SECTION 52. Transfer of Health Insurance Funds of the
health care provider, member or employer. SSS and GSIS . — The Health Insurance Funds being
administered by the SSS and GSIS shall be transferred to
Despite the cessation of operation by a health care the Corporation within sixty (60) days from the
provider or termination of practice of an independent promulgation of the implementing rules and regulations.
health care professional while the complaint is being The SSS and GSIS shall, however, continue to perform
heard, the proceeding against them shall continue until Medicare functions under contract with the Corporation
the resolution of the case. until such time that such functions are assumed by the
The dispositive part of the decision requiring payment of Corporation, in accordance with the following Section.
fines, reimbursement of paid claim or denial of payment SECTION 53. Transfer of the Medicare Functions of the
shall be immediately executory. SSS and GSIS . — Within five (5) years from the
(National Health Insurance Act of 2013, Republic Act No. promulgation of the implementing rules and regulations,
10606, [June 19, 2013]) the functions, assets, equipment, records, operating
systems, and liabilities, if any, of the Medicare operations
of the SSS and GSIS shall be transferred to the



Corporation;Provided, however, That the SSS and GSIS (National Health Insurance Act of 1995, Republic Act No.
shall continue performing its Medicare functions beyond 7875, [February 14, 1995])
the stipulated five-year period if such extension will
benefit Program members, as determined by the
Corporation. RA No 9679 | Home Development Mutual
Personnel of the Medicare departments of the SSS and Fund Law of 2009
GSIS shall be given priority in the hiring of the otherwise known as Pag-IBIG (Pagtutulungan sa
Corporation's employees. kinabukasan: Ikaw, Bangko, Industriya at Gobyerno)
Fund
ARTICLE XIII Miscellaneous Provisions

SECTION 54. Oversight Provision. — There is hereby
created a Joint Congressional Oversight Committee to Rules and Regulations Implementing the HDMF Law
conduct a regular review of the NHIP which shall entail a
systematic evaluation of the Program's performance,
impact or accomplishments with respect to its objectives July 21, 2009
or goals. The Oversight Committee shall be composed of
five (5) members from the Senate and five (5) members AN ACT FURTHER STRENGTHENING THE HOME
from the House of Representatives to be appointed by DEVELOPMENT MUTUAL FUND, AND FOR OTHER
the Senate President and the Speaker of the House of PURPOSES
Representatives, respectively. The Oversight Committee SECTION 1. Title. — This Act shall be known as the
shall be jointly chaired by the Chairpersons of the Senate "Home Development Mutual Fund Law of 2009,
Committee on Health and Demography and the House of otherwise known as Pag-IBIG (Pagtutulungan sa
Representatives Committee on Health. kinabukasan: Ikaw, Bangko, Industriya at Gobyerno)
The National Economic and Development Authority, in Fund".
coordination with the National Statistics Office and the SECTION 2. Declaration of Policy. — It is the policy of
National Institutes of Health of the University of the the State to establish, develop, promote, and integrate a
Philippines shall undertake studies to validate the nationwide sound and viable tax-exempt mutual
accomplishments of the Program. Such validation studies provident savings system suitable to the needs of the
shall include an assessment of the enrollees' satisfaction employed and other earning groups, and to motivate
of the benefit package and services provided by the them to better plan and provide for their housing needs,
Corporation. These validation studies, as well as an annual by membership in the Home Development Mutual Fund,
report on the performance of the Corporation, shall be with mandatory contributory support of the employers in
submitted to the Congressional Oversight Committee. the spirit of social justice and the pursuit of national
The Corporation shall annually transfer 0.001% of its development.
income in the previous year for the purpose of SECTION 3. Statement of Objectives. — Towards this
conducting these studies. end, the State shall integrate all laws relating to the
(Amendment to R.A. No. 7875, Republic Act No. 9241, Home Development Mutual Fund to effectively achieve
[February 10, 2004], further amended by National Health the following objectives:
Insurance Act of 2013, Republic Act No. 10606, [June 19, (a) To improve the quality of life of its citizens by
2013]) providing them with sufficient shelter;
SECTION 55. Information Campaign. — There shall be (b) To provide for an integrated nationwide provident
provided a substantial period of time to undertake an savings system; and
intensive public information campaign prior to the
implementation of the rules and regulations of this Act. (c) To provide housing through mobilization of funds
for shelter finance.
SECTION 56. Requisites for Issuance or Renewal of
License or Permits. — Notwithstanding any law to the SECTION 4. Definition of Terms. — The following
contrary, all government agencies issuing professional or terms shall mean:
business license or permit, shall require all applicants to (a) "Board" — the duly constituted Board of Trustees
submit certificate or proof of payment of PhilHealth of the Home Development Mutual Fund.
premium contributions, prior to the issuance or renewal
of such license or permit. (National Health Insurance Act (b) "Compensation" — basic monthly salary plus
of 2013, Republic Act No. 10606, [June 19, 2013]) mandated cost of living allowance.
SECTION 57. Separability Clause. — In the event any (c) "Contributions" — the amount payable to the Fund
provision of this Act or the application of such provision to by the members and their employers, in accordance with
any person or circumstances is declared invalid, the this Act.
remainder of this Act or the application of said provisions (d) "Dependents" — refers to legal dependents of a
to other persons or circumstances shall not be affected by deceased member, as defined under the Family Code.
such declaration. (e) "Employee" — any person in the service of an
SECTION 58. Repealing Clause. — Executive Order 119, employer who receives compensation of such services.
Presidential Decree 1519 and other laws currently (f) "Employer" — any person, natural or juridical,
applying to the administration of Medicare are hereby domestic or foreign, who carries on in the Philippines, or
repealed. All other laws, executive orders, administrative outside of the Philippines, any trade, business, industry,
rules and regulations or parts thereof which are undertaking or activity of any kind, and uses the services
inconsistent with the provisions of this Act also hereby of another person who is under his order as regards such
amended, modified, or repealed accordingly. services; the government, its national and local offices,
SECTION 59. Government Guarantee. — The Government political subdivisions, branches, agencies, or
of the Philippines guarantees the financial viability of the instrumentalities, including corporations owned and/or
Program. controlled by the government, and the local government
SECTION 60. Effectivity. — This Act shall take effect fifteen units.
(15) days after its publication in at least three (3) national (g) "Employment" — any service performed by an
newspapers of general circulation. employee for his/her employer within the Philippines:
Approved: February 14, 1995 Provided, however, That any foreign government,
international organization or their wholly-owned
Published in the Philippine Times Journal, Malaya and instrumentality employing workers in the Philippines or
the Manila Times on February 18, 1995. employing Filipinos outside of the Philippines, may enter



into an agreement with the Fund for the inclusion of their Employees earning not more than One thousand five

employees as members of the Fund: Provided, further, hundred pesos (P1,500.00) per month — one percent (1%).
That the term of such agreement conform with the Employees earning more than One thousand five
provisions of this Act. hundred pesos (P1,500.00) per month — two percent (2%).
(h) "Fund" — the fund created under this Act which is All employers — two percent (2%) of the monthly
a government financial institution involved in mobilizing compensation of all covered employees.
provident funds primarily for shelter finance.
The maximum monthly compensation to be used in
(i) "GSIS" — the Government Service Insurance computing employee and employer contributions shall
System created under Commonwealth Act No. 186, as not be more than Five thousand pesos
amended. (P5,000.00):Provided, That this maximum may be fixed
(j) "Investible Funds" — shall mean funds available from time to time by the Board of Trustees through rules
after deducting cost of operations and expenses, and regulations adopted by it, taking into consideration
administrative and general expenses, reserves for benefit actuarial calculations and rates of benefits.
claims, provisions for a sinking fund for the return of the Notwithstanding any contract to the contrary, an
members' equity upon maturity and provision for reserve employer shall not deduct, directly or indirectly, from the
for loan repayments. compensation of its employees covered by the Fund, or
(k) "Member" — an employee coverable under this otherwise recover from them, the employer's
Act and pays the mandated contributions. contribution with respect to such employees.
(l) "Membership Term" — a period of twenty (20) years SECTION 8. Membership Term. — Membership in
commencing from the first day of the month to which the Fund shall be for a period of twenty (20) years, except
the member's initial contribution to the Fund applies: when earlier terminated by reason of retirement,
Provided, That he shall have contributed a total of two disability, insanity, death, departure from the country or
hundred forty (240) monthly contributions at the time of other causes as may be provided for by the Board of
maturity. Trustees: Provided, That those who become members of
(m) "Net Fund Asset" — the total assets of the Fund the Fund after the effectivity of this Act may withdraw the
less current liabilities. total accumulated value of their contributions to the
Fund after the fifteenth (15th) year of continuous
(n) "Permanent Total Disability" — loss or impairment membership: Provided, further, That said members have
of a physical and mental function resulting from injury or no outstanding housing loans with the Fund: Provided,
sickness which completely incapacitates a member to finally, That this option shall not prejudice the member's
perform any work or engage in any business or continuing membership in the Fund.
occupation as determined by the Fund.
Resignation, lay-off or suspension from employment
(o) "SSS" — the Social Security System created under may not necessarily constitute a ground for membership
Republic Act No. 1161, as amended. termination, except for suspension of contributions.
SECTION 5. Fund System. — To carry out the SECTION 9. Waiver or Suspension of Coverage. —
purposes of this Act, there is hereby created the Home Coverage of the Fund and/or the payment of monthly
Development Mutual Fund of 2009, also referred to contribution to the same may, by rules or resolutions of
herein as the Fund, a mutual provident savings system for the Board of Trustees, be waived or suspended by reasons
private and government employees and other earning of nature of employment, condition of business, ability to
groups, supported by matching mandatory contributions make contributions and other reasonable considerations.
of their respective employers with housing as the primary
investment. SECTION 10. Provident Character. — The Fund shall
be private in character, owned wholly by the members,
The Fund shall be a body corporate, with principal administered in trust and applied exclusively for their
office in Metro Manila, and shall replace the Home benefit. All the personal and employer contributions shall
Development Mutual Fund established under be fully credited to each member, accounted for
Presidential Decree No. 1752. individually and transferable in case of change of
SECTION 6. Fund Coverage. — Coverage in the Fund employment. They shall earn dividends as may be
shall be mandatory upon: (a) all employees covered by provided for in the implementing rules. The said amounts
the SSS and the GSIS, and their respective employers, shall constitute the provident fund of each member, to be
notwithstanding any waiver of coverage previously paid to him, his estate or beneficiaries upon termination
issued, including the uniformed members of the Armed of membership, or from which peripheral benefits for the
Forces of the Philippines, the Bureau of Fire Protection, member may be drawn.
the Bureau of Jail Management and Penology, and the SECTION 11. Housing Features. — A member of good
Philippine National Police; (b) Filipinos employed by standing shall be eligible to apply for housing loans,
foreign-based employers; and (c) spouses who devote under such terms and conditions as may be authorized
full-time to managing the household and family affairs, by the Board of Trustees, taking into account ability to
unless they also engage in another vocation or pay. The Board of Trustees shall institute policies to
employment which is subject to mandatory coverage, ensure that lower-income members obtain such housing
may be covered by the Fund on a voluntary basis loans.
adopting as a basis of contributions one-half (1/2) of the
monthly compensation income of the employed spouse. SECTION 12. Implementing Body. — The Home
Development Mutual Fund created under this Act, shall
Coverage may also be extended to other working implement the provisions hereof.
groups, with or without employer contributions, as may
be determined by the Board of Trustees. SECTION 13. Powers and Functions of the Fund. —
The Fund shall have the powers and functions specified
SECTION 7. Fund Generation and Contributions. — in this Act and the usual corporate powers:
The money of the Fund shall be generated by the
provident savings that the covered employees shall (a) To formulate, adopt, amend and/or rescind such
contribute for the purpose every month, and the equal rules and regulations as may be necessary to carry out
amounts that their respective employers shall the provisions and purposes of this Act, as well as the
mandatorily contribute. effective exercise of the powers and functions, and the
discharge of duties and responsibilities of the Fund, its
Covered employees and employers shall contribute to officers and employees;
the Fund based on the monthly compensation of covered
employees as follows: (b) To adopt or approve the annual and supplemental
budget of receipts and expenditures including salaries
and allowances of the Fund personnel, to authorize such



capital and operating expenditures and disbursements of actions or suits, criminal, civil, administrative, or
the Fund as may be necessary and proper for the otherwise, before the courts, tribunals, commissions,
effective management and operation of the Fund; boards or bodies of proper jurisdiction: Provided, however,
(c) To submit annually to the President of the That the Fund may compromise or release, in whole or in
Philippines not later than March 15, a report of its part, any interest, penalty or civil liability to the Fund in
activities and the state of the Fund during the preceding connection with the collection of contributions and the
year, including information and recommendations for the lending operations of the Fund, under such terms and
development and improvement thereof; conditions as prescribed by the Board of Trustees:
Provided, further, That the Board may, upon
(d) To invest not less than seventy percent (70%) of its recommendation of the Chief Executive Officer, deputize
investible funds to housing, in accordance with this Act; any member of the Fund's legal staff to act as special
(e) To acquire, utilize, or dispose of, in any manner sheriff in foreclosure cases, in the sale or attachment of
recognized by law, real or personal properties to carry out the debtor's properties, and in the enforcement of court
the purposes of this Act; writs and processes in cases involving the Fund. The
special sheriff of the Fund shall make a report to the
(f) To set up its own accounting and computer proper court after any action taken by him, which shall
systems; to conduct continuing actuarial and statistical treat such action as if it were an act of its own sheriffs in
studies and valuations to determine the financial viability all respects;
of the Fund and its project; to require reports,
compilations and analysis of statistical and economic (r) To design and implement other programs that will
data, as well as make such other studies and surveys as further promote and mobilize savings and provide
may be needed for the proper administration and additional resources for the mutual benefit of the
development of the Fund; members with appropriate returns on the
savings/investments. The program shall be so designed
(g) To have the power of succession; to sue and be as to spur socioeconomic take-off and maintain
sued; to adopt and use a corporate seal; continued growth;
(h) To enter into and carry out contracts of every kind (s) To conduct continuing actuarial and statistical
and description with any person, firm or association or studies and valuations to determine the financial
corporation, domestic or foreign; condition of the Fund and taking into consideration such
(i) To borrow funds from any source, private or studies and valuations and the limitations herein
government, foreign or domestic; provided, readjust the benefits, contributions, interest
rates of the allocation or reallocation of the funds to the
(j) To invest, own or otherwise participate in equity in contingencies covered; and
any establishment, firm or entity; to form, organize, invest
in or establish and maintain a subsidiary or subsidiaries in (t) To exercise such powers and perform such acts as
relation to any of its purposes; may be necessary, useful, incidental or auxiliary to carry
out the provisions of this Act.
(k) To approve appointments in the Fund except
appointments to positions which are policy determining, SECTION 14. Board of Trustees. — The corporate
primarily confidential or highly technical in nature powers and functions of the Fund shall be vested in and
according to the civil service rules and regulations: exercised by the Board of Trustees appointed by the
Provided, That all positions in the Fund shall be governed President of the Philippines, composed of the following:
by a compensation and position classification system and (a) The Chairperson of the Housing and Urban
qualification standards approved by the Fund's Board of Development and Coordinating Council, as the ex officio
Trustees based on a comprehensive job analysis, wage Chairman;
compensation study and audit of actual duties and
responsibilities: Provided, further, That the compensation (b) The Secretary of the Department of Finance, as
plan shall be comparable with prevailing compensation the ex officio Vice Chairman;
plans in the private sector and shall be subject to the (c) The Secretary of the Department of Labor and
periodic review of the Board no more than once every Employment or his/her duly designated undersecretary,
four (4) years without prejudice to yearly merit reviews or as ex officio member;
increases based on productivity and profitability. The
Fund shall, therefore, be exempt from any laws, rules and (d) The Secretary of the Department of Budget and
regulations on salaries and compensations; Management or his/her duly designated undersecretary,
as ex officio member;
(l) To maintain a provident fund, which shall consist of
contributions made by both the Fund and its officers and (e) The Secretary of the Department of Trade and
employees and their earnings, for the payment of Industry, or his/her duly designated undersecretary, as ex
benefits to such officials and employees or their heirs officio member;
under such terms and conditions as it may prescribe; (f) The Chief Executive Officer of the Fund, as
(m) To design and adopt an early retirement incentive member; and
plan (ERIP) for its own personnel; (g) Five (5) appointive members, two (2)
(n) To establish field offices and to conduct its representatives of private employees, two (2)
business and exercise its powers in these places; representatives of private employers and one (1)
representative of government employees.
(o) To approve restructuring proposal for the payment
of due but unremitted contributions and unpaid loan The four (4) private sector representatives shall each
amortizations under such terms and conditions as the be appointed by the President of the Philippines for a
Board of Trustees may prescribe; term of two (2) years: Provided, however, That of the first
to be appointed, one (1) representative of the employers
(p) To determine, fix and impose interest and shall have a term of only one (1) year. The representative of
penalties upon unpaid contributions due from employers the government employees shall be appointed by the
and employees; President of the Philippines for a term of two (2) years.
(q) To ensure the collection and recovery of all The Chairman, Vice Chairman and members of the
indebtedness, liabilities and/or accountabilities, including Board shall be entitled to a reasonable per diem for each
unpaid contributions in favor of the Fund arising from meeting actually attended at such amounts as may be
any cause or source or whatsoever, due from all obligors, fixed by the Board in accordance with existing laws, rules
whether public or private; to demand payment of the and regulations.
obligations referred to herein, and in the event of failure
or refusal of the obligor or debtor to comply with the SECTION 15. Powers of the Board. — The Board shall
demand, to initiate or institute the necessary or proper have the following powers:


(a) To formulate policies, rules and regulations to carry laws, rules and regulations, to the end that only
out effectively the functions of the Fund under this Act; competent personnel may be employed.
(b) To promulgate such rules and regulations as may SECTION 18. Money Investments. — All monies of
be necessary or proper for the effective exercise of the the Fund not needed to meet current administrative and
powers and functions, as well as the discharge of the operational requirements, shall be invested with due and
duties and responsibilities of the Fund, its officers and prudent regard for its safety, growth and liquidity needs.
employees; SECTION 19. Exemption from Tax, Legal Process
(c) To authorize expenditures of the Fund in the and Lien. — All laws to the contrary notwithstanding, the
interest of effective administration and operations; to Fund and all its assets and properties, all contributions
adopt from time to time the budgets for said purposes; collected and all accruals thereto and income or
(d) To approve the annual and supplemental budget investment earnings therefrom, as well as all supplies,
of receipts and expenditures including salaries and equipment, papers or documents shall be exempt from
allowances of the Fund personnel; to authorize such any tax, assessment, fee, charge, or customs or import
capital and operating expenditures and disbursements as duty; and all benefit payments made by the Pag-IBIG
may be necessary and proper for the effective Fund shall likewise be exempt from all kinds of taxes, fees
management and operation of the Fund; or charges, and shall not be liable to attachments,
garnishments, levy or seizure by or under any legal or
(e) To condone, in whole or in part, penalties imposed equitable process whatsoever, either before or after
on loans of members/borrowers who, for justifiable receipt by the person or persons entitled thereto, except
reasons prescribed by the Board, failed to pay on time any to pay any debt of the member to the Fund. No tax
obligation due to the Fund: Provided, That such exclusive measure of whatever nature enacted shall apply to the
power to condone shall likewise apply to penalties Fund, unless it expressly revokes the declared policy of
imposed on employers, who justifiably fail to remit when the State in Section 2 hereof granting tax exemption to
due the required contributions of their employees; the Fund. Any tax assessment against the Fund shall be
(f) To approve the Fund's organizational and null and void.
administrative structures and staffing pattern, and to SECTION 20. Government Guarantee. — The
establish, fix, review, revise and adjust the appropriate benefits prescribed in this Act shall not be diminished
compensation package for the officers and employees of and to guarantee said benefits, the government of the
the Fund in accordance with Section 13 (k) hereof; and Republic of the Philippines accepts general responsibility
(g) To exercise such powers as may be necessary to for the solvency of the Fund.
carry into effect the powers and accomplish the purposes SECTION 21. Administration Costs. — The Fund shall
for which the Fund is established. bear the costs of its administration and development, in
SECTION 16. Rule-Making Power. — The Board of such amounts and/or limits as the Board of Trustees may
Trustees is hereby authorized to make and change deem appropriate, but not exceeding two percent (2%) of
needful rules and regulations, which shall be published in the Net Fund Assets of the previous year, excluding
accordance with law or at least once in a newspaper of operating cost directly relating to the lending operations
general circulation in the Philippines, to provide for, but of the Fund.
not limited to, the following matters: SECTION 22. Audit. — The Chairman of the
(a) The effective administration, custody, Commission on Audit shall act as the ex officio auditor of
development, utilization and disposition of the Fund or the Fund and, accordingly, is empowered to appoint a
parts thereof, including payment of amounts credited to representative and other subordinate personnel to
members or to their beneficiaries or estates: perform and report on such audit duties, responsible to
and removable only by the Commission on Audit
(b) Grounds for and effects or termination of Chairman, without prejudice, however, to the power of
membership other than by completion of term: the Board of Trustees to contract for another mode of
(c) Fund earnings and their distribution, investment independent audit service, in addition to that provided by
and/or plowing back for the exclusive benefit of the the Commission on Audit as provided for under
members; Presidential Decree No. 1445, otherwise known as the
Government Auditing Code of the Philippines.
(d) Interim disbursements of accumulated values to
members of ameliorative and similar purposes; SECTION 23. Remittance of Contributions. — (a) It
shall be the duty of every employer, private or public, to
(e) Benefits, contributions including their rates, set aside and remit the contributions required under this
premium rates and interest rates; Act in accordance with a mechanism determined by the
(f) Housing and other loan assistance programs for Board of Trustees.
members; (b) Every employer required to set aside and remit
(g) Adjudication and settlement of claims and such contributions as prescribed under this Act shall be
disputes and the procedures for the same on any matters liable for their payment, and nonpayment shall further
involving the interests of members in the Fund; subject the employer to a penalty of three percent (3%)
(h) Optimize the effectiveness of the Fund's coverage; per month of the amounts payable from the date the
and contributions fall due until paid.
(i) Other matters that, by express or implied (c) It shall be mandatory and compulsory for all
provisions of this Act, shall require implementation by government instrumentalities, agencies, including
appropriate policies, rules and regulations. government-owned and -controlled corporations, to
provide the payment of contributions in their annual
SECTION 17. Powers and Duties of the Chief appropriations. Penal sanctions shall be imposed upon
Executive Officer. — The Chief Executive Officer of the these employers who fail to include the payment of
Fund shall execute and administer the policies and contributions on time, or delay the remittance of the
resolutions approved by the Board of Trustees, prepare its required contributions to the Fund. The heads of offices
agenda and direct and supervise the operations and and agencies shall be administratively liable for
management of the Fund. The Chief Executive Officer, non-remittance of the required contributions to the Fund.
subject to the approval of the Board in case of approval of
managerial positions and above, and the confirmation of (d) Failure or refusal of the employer to pay or to remit
the Board in below that of manager level, shall appoint the contributions herein prescribed shall not prejudice
the personnel of the Fund, remove, suspend or otherwise the right of the covered employee to the benefits under
discipline them for cause and prescribe their duties and this Act.
qualifications, in accordance with existing civil service


(e) The contributions under this Act, in cases where appropriate agencies of the government as may be
an employer refuses or neglects to pay the same, shall be designated and authorized by the President of the
collected by the Fund in the same manner as taxes are Philippines.
made collectible under the National Internal Revenue SECTION 28. Implementing Rules and Regulations.
Code, as amended. — The implementing rules and regulations to effectively
The right to institute the necessary action against the carry out the provisions of this Act shall be adopted by
employer may be commenced within twenty (20) years and promulgated by the Board of Trustees of the
from the time delinquency is known or the assessment is Pag-IBIG Fund not later than ninety (90) days after the
made by the Fund, or from the time the benefit accrues, approval of this Act which shall be published in at least
as the case may be. one (1) national newspaper of general circulation.
SECTION 24. Employment Records and Reports. — SECTION 29. Separability Clause. — If, for any
(a) Each employer shall immediately report to the Fund reason, any provision of this Act, or the application thereof
the names, ages, civil status, occupations, salaries and to any person or circumstances, is held invalid or
dependents of its covered employees. unconstitutional, the remaining provisions not affected
(b) Every employer shall keep true and accurate work thereby shall continue to be in full force and effect.
records for such period and containing such information SECTION 30. Repealing Clause. — Presidential
as the Fund may prescribe, in addition to the annual Decree No. 1530, as amended by Executive Order Nos. 527
register of new and separated employees which shall be (series of 1979) and 538 (series of 1979);Presidential Decree
secured from the Fund, when the employee shall enter No. 1752, as amended by Executive Order Nos. 35 (series of
on the first day of employment or on the effective date of 1986) and 90 (series of 1986); and Republic Act No. 8501
separation, the names of the persons employed or are hereby repealed. Section 6 of Republic Act No. 7742 is
separated from employment and such other data that hereby amended accordingly. All other laws, decrees,
the Fund may require and said annual register shall be executive orders, or rules and regulations, or parts thereof
submitted to the Fund in the month of January each year. inconsistent with or contrary to the provisions of this Act
Such record shall be open for inspection by the Fund or or its purposes are hereby amended or modified
its authorized representatives quarterly, or as often as the accordingly.
Fund may require. SECTION 31. Effectivity. — This Act shall take effect
SECTION 25. Penal Provisions. — Refusal or failure fifteen (15) days after the completion of its publication in
without lawful cause or with fraudulent intent to comply the Official Gazette or in at least two (2) national
with the provisions of this Act, as well as the newspapers of general circulation.
implementing rules and regulations adopted by the Approved: July 21, 2009
Board of Trustees, particularly with respect to registration
of employees, collection and remittance of (An Act Further Strengthening the Home
employee-savings as well as the employer counterparts, Development Mutual Fund, and for Other Purposes,
or the correct amount due, within the time set in the Republic Act No. 9679, [July 21, 2009])
implementing rules and regulations or specific call or
extension made by the Fund management shall
constitute an offense punishable by a fine of not less V. Labor Laws Related to
than, but not more than twice, the amount involved or
imprisonment of not more than six (6) years, or both such Labor Relations
fine and imprisonment, in the discretion of the court,
apart from the civil liabilities and/or obligations of the
offender or delinquent. When the offender is a
corporation, the penalty shall be imposed upon the DO No 140-14 Rules and Regulations Implementing
members of the governing board and the president or RA 10395 amending Article 275 of the Labor Code
general manager, without prejudice to the prosecution of otherwise known as the Tripartism Law
related offenses under the Revised Penal Code and other
laws, revocation and denial of operating rights and 2012 NLRC Sheriffs' Manual on Execution of
privileges in the Philippines, and deportation when the Judgment, NLRC En Banc Resolution No. 010-12,
offender is a foreigner. In case of government [November 15, 2012])
instrumentalities, agencies or corporations, the treasurer,
finance officer, cashier, disbursing officer, budget officer NCMB Manual of Procedures in the Settlement and
or other official or employee who fails to include in the Disposition of Conciliation and Preventive Mediation
annual budget the amount corresponding to the Cases
employers' contributions, or who fails or refuses or delays
by more than thirty (30) days from the time such amount NCMB Manual of Procedures for Conciliation and
becomes due and demandable or to deduct the monthly Preventive Mediation Cases, [January 31, 1992]
contributions of the employee shall, upon conviction by
final judgment, suffer the penalties of imprisonment of
The Rules of Procedure of the Single Entry Approach
not more than six (6) years, and a fine of not less than, but
(SEnA), [February 25, 2011]
not more than twice the amount involved.
SECTION 26. Existing Coverage. — Membership Revised Guidelines on Exemption from Wage Orders,
under the Fund established under Presidential Decree NWPC GUIDELINES NO. 001-96, [November 18, 1996]
No. 1752, together with amounts and benefits already
accrued to the members, including employers' Amended Rules of Procedure on Minimum Wage
counterparts, as well as covering records documents, Fixing, NWPC Circular No. 01-07, [June 19, 2007]
shall be transferred, continued and/or integrated into the
new Fund hereby established, subject henceforth to Rules of Procedure on Minimum Wage Fixing for
policies and rules adopted thereunder. Domestic Workers, NWPC Guidelines No. 01-14,
SECTION 27. Visitorial and Enforcement Powers. — [August 28, 2014]
(a) The Fund or its duly authorized representatives is
empowered to inspect the premises, books of accounts RA 10396 amending Art 228 of the Labor Code
and records of any person or entity covered by this Act; Rules and Regulations Implementing the Single
require it to submit its reports regularly; and act on Entry Approach
violations of any provisions of this Act.
(b) Particular aspects of the Fund's administration

may be subject to supervision, visitation or verification by



VI. Agrarian Law AN ACT INSTITUTING A COMPREHENSIVE

AGRARIAN REFORM PROGRAM TO
PROMOTE SOCIAL JUSTICE AND
Title Reference No Date
INDUSTRIALIZATION, PROVIDING THE
Revised Guidelines and DAR AO No 2008-09-25 MECHANISM FOR ITS IMPLEMENTATION,
Procedures Governing 08-08 AND FOR OTHER PURPOSES
the Substitution of
Beneficiaries of Lands
Representatives of the Philippines in Congress
within Landed Estates
assembled:
Acquired by the
Department of
CHAPTER I Preliminary Chapter
Agrarian Reform under
Republic Act No. 3844,
as Amended, and for Section 1. Title. — This Act shall be known as the
Other Purposes Comprehensive Agrarian Reform Law of 1988.
Section 2. Declaration of Principles and Policies. —
It is the policy of the State to pursue a Comprehensive
Rules and Regulations DAR AO No 2009-10-15
Agrarian Reform Program (CARP). The welfare of the
Implementing Section 04-09
landless farmers and farmworkers will receive the highest
19 of R.A. No. 9700
consideration to promote social justice and to move the
(Jurisdiction on and
nation toward sound rural development and
Referral of Agrarian
industrialization, and the establishment of owner
Dispute)
cultivatorship of economic-size farms as the basis of
Philippine agriculture.
Implementing Rules DAR AO No 2009-10-28 The State shall promote industrialization and full
and Regulations on 05-09 employment based on sound agricultural development
Support Services and agrarian reform, through industries that make full
Delivery Under and efficient use of human and natural resources, and
Republic Act No. 9700 which are competitive in both domestic and foreign
markets: Provided, That the conversion of agricultural
Guidelines on the DOJ 2010-06-07 lands into industrial, commercial or residential lands shall
Investigation and Department take into account, tillers' rights and national food security.
Referral of Cases to the Circular No. Further, the State shall protect Filipino enterprises
Department of 040-10 against unfair foreign competition and trade practices.
Agrarian Reform The State recognizes that there is not enough
Pursuant to Section 19 agricultural land to be divided and distributed to each
of Republic Act No. farmer and regular farmworker so that each one can own
9700 his/her economic-size family farm. This being the case, a
meaningful agrarian reform program to uplift the lives
Implementing Rules DAR AO No 2010-06-24 and economic status of the farmer and his/her children
and Regulations on the 03-10 can only be achieved through simultaneous
Provision of industrialization aimed at developing a self-reliant and
Agricultural Support to independent national economy effectively controlled by
and Liberalization of Filipinos.
Access to Credit by To this end, the State may, in the interest of national
Agrarian Reform welfare or defense, establish and operate vital industries.
Beneficiaries Under A more equitable distribution and ownership of land,
Republic Act No. 9700 with due regard to the rights of landowners to just
compensation, retention rights under Section 6 of
Revised Rules and DAR AO No 2011-17-19 Republic Act No. 6657, as amended, and to the ecological
Regulations 03-11 needs of the nation, shall be undertaken to provide
Implementing Section farmers and farmworkers with the opportunity to
19 of R.A. No. 9700 enhance their dignity and improve the quality of their
(Jurisdiction on and lives through greater productivity of agricultural lands.
Referral of Cases that The agrarian reform program is founded on the right
Are Agrarian in Nature) of farmers and regular farmworkers, who are landless, to
own directly or collectively the lands they till or, in the
Guidelines Governing DAR AO No 2016-08-26 case of other farmworkers, to receive a just share of the
the Completion of 08-16 fruits thereof. To this end, the State shall encourage and
Distribution and Titling undertake the just distribution of all agricultural lands,
of Landed Estates subject to the priorities and retention limits set forth in
under RA No. 3844, as this Act, taking into account ecological, developmental,
Amended, Turned-Over and equity considerations, and subject to the payment of
by the Land Bank of just compensation. The State shall respect the right of
the Philippines to the small landowners, and shall provide incentive for
Department of voluntary land-sharing.
Agrarian Reform As much as practicable, the implementation of the
program shall be community-based to assure, among
others, that the farmers shall have greater control of
RA No 6657 | Comprehensive Agrarian farmgate prices, and easier access to credit.
The State shall recognize the right of farmers,
Reform Law of 1988 farmworkers and landowners, as well as cooperatives and
As amended by RA Nos 7881, 8532, 9700 other independent farmers’ organizations, to participate
in the planning, organization, and management of the
program, and shall provide support to agriculture
June 10, 1988
through appropriate technology and research, and

adequate financial, production, marketing and other
support services.


The State shall recognize and enforce, consistent with agriculture, including disputes concerning farmworkers'

existing laws, the rights of rural women to own and associations or representation of persons in negotiating,
control land, taking into consideration the substantive fixing, maintaining, changing, or seeking to arrange
equality between men and women as qualified terms or conditions of such tenurial arrangements.
beneficiaries, to receive a just share of the fruits thereof, It includes any controversy relating to compensation
and to be represented in advisory or appropriate of lands acquired under this Act and other terms and
decision-making bodies. These rights shall be conditions of transfer of ownership from landowners to
independent of their male relatives and of their civil farmworkers, tenants and other agrarian reform
status. beneficiaries, whether the disputants stand in the
The State shall apply the principles of agrarian reform, proximate relation of farm operator and beneficiary,
or stewardship, whenever applicable, in accordance with landowner and tenant, or lessor and lessee.
law, in the disposition or utilization of other natural (e) Idle or Abandoned Land refers to any agricultural
resources, including lands of the public domain, under land not cultivated, tilled or developed to produce any
lease or concession, suitable to agriculture, subject to crop nor devoted to any specific economic purpose
prior rights, homestead rights of small settlers and the continuously for a period of three (3) years immediately
rights of indigenous communities to their ancestral lands. prior to the receipt of notice of acquisition by the
The State may resettle landless farmers and farm government as provided under this Act, but does not
workers in its own agricultural estates, which shall be include land that has become permanently or regularly
distributed to them in the manner provided by law. devoted to non-agricultural purposes.t does not include
By means of appropriate incentives, the State shall land which has become unproductive by reason of force
encourage the formation and maintenance of majeure or any other fortuitous event, provided that prior
economic-size family farms to be constituted by to such event, such land was previously used for
individual beneficiaries and small landowners. agricultural or other economic purpose.
The State shall protect the rights of subsistence (f) Farmer refers to a natural person whose primary
fishermen, especially of local communities, to the livelihood is cultivation of land or the production of
preferential use of communal marine and fishing agricultural crops, livestock and/or fisheries either by
resources, both inland and offshore. It shall provide himself/herself, or primarily with the assistance of his/her
support to such fishermen through appropriate immediate farm household, whether the land is owned
technology and research, adequate financial, production by him/her, or by another person under a leasehold or
and marketing assistance and other services. The State share tenancy agreement or arrangement with the
shall also protect, develop and conserve such resources. owner thereof.
The protection shall extend to offshore fishing grounds of (g) Farmworker is a natural person who renders
subsistence fishermen against foreign intrusion. service for value as an employee or laborer in an
Fishworkers shall receive a just share from their labor in agricultural enterprise or farm regardless of whether his
the utilization of marine and fishing resources. compensation is paid on a daily, weekly, monthly or
The State shall be guided by the principles that land "pakyaw" basis. The term includes an individual whose
has a social function and land ownership has a social work has ceased as a consequence of, or in connection
responsibility. Owners of agricultural land have the with, a pending agrarian dispute and who has not
obligation to cultivate directly or through labor obtained a substantially equivalent and regular farm
administration the lands they own and thereby make the employment.
land productive. (h) Regular Farmworker is a natural person who is
The State shall provide incentives to landowners to employed on a permanent basis by an agricultural
invest the proceeds of the agrarian reform program to enterprise or farm.
promote industrialization, employment and privatization (i) Seasonal Farmworker is a natural person who is
of public sector enterprises. Financial instruments used employed on a recurrent, periodic or intermittent basis by
as payment for lands shall contain features that shall an agricultural enterprise or farm, whether as a
enhance negotiability and acceptability in the permanent or a non-permanent laborer, such as
marketplace. "dumaan", "sacada", and the like.
The State may lease undeveloped lands of the public (j) Other Farmworker is a farmworker who does not
domain to qualified entities for the development of fall under paragraphs (g), (h) and (i).
capital-intensive farms, and traditional and pioneering (k) Cooperatives shall refer to organizations
crops especially those for exports subject to the prior composed primarily of small agricultural producers,
rights of the beneficiaries under this Act. farmers, farmworkers, or other agrarian reform
Section 3. Definitions. — For the purpose of this Act, beneficiaries who voluntarily organize themselves for the
unless the context indicates otherwise: purpose of pooling land, human, technological, financial
(a) Agrarian Reform means redistribution of lands, or other economic resources, and operated on the
regardless of crops or fruits produced, to farmers and principle of one member, one vote. A juridical person may
regular farmworkers who are landless, irrespective of be a member of a cooperative, with the same rights and
tenurial arrangement, to include the totality of factors duties as a natural person.
and support services designed to lift the economic status (l) Rural women refer to women who are engaged
of the beneficiaries and all other arrangements directly or indirectly in farming and/or fishing as their
alternative to the physical redistribution of lands, such as source of livelihood, whether paid or unpaid, regular or
production or profit-sharing, labor administration, and seasonal, or in food preparation, managing the
the distribution of shares of stocks, which will allow household, caring for the children, and other similar
beneficiaries to receive a just share of the fruits of the activities.
lands they work.
(b) Agriculture, Agricultural Enterprise or Agricultural CHAPTER II Coverage
Activity means the cultivation of the soil, planting of
crops, growing of fruit trees, including the harvesting of Section 4. Scope. — The Comprehensive Agrarian
such farm products, and other farm activities and Reform Law of 1988 shall cover, regardless of tenurial
practices performed by a farmer in conjunction with such arrangement and commodity produced, all public and
farming operations done by persons whether natural or private agricultural lands as provided in Proclamation No.
juridical. 131 and Executive Order No. 229, including other lands of
(c) Agricultural Land refers to land devoted to the public domain suitable for agriculture: Provided, That
agricultural activity as defined in this Act and not landholdings of landowners with a total area of five (5)
classified as mineral, forest, residential, commercial or hectares and below shall not be covered for acquisition
industrial land. and distribution to qualified beneficiaries.
(d) Agrarian Dispute refers to any controversy relating More specifically, the following lands are covered by
to tenurial arrangements, whether leasehold, tenancy, the CARP:
stewardship or otherwise, over lands devoted to



(a) All alienable and disposable lands of the public and exclusive public purposes, such as roads and bridges,
domain devoted to or suitable for agriculture. No public markets, school sites, resettlement sites, local
reclassification of forest or mineral lands to agricultural government facilities, public parks and barangay plazas
lands shall be undertaken after the approval of this Act or squares, consistent with the approved local
until Congress, taking into account ecological, comprehensive land use plan, shall not be subject to the
developmental and equity considerations, shall have five (5)-hectare retention limit under this Section and
determined by law, the specific limits of the public Sections 70 and 73(a) of Republic Act No. 6657, as
domain; amended: Provided, That lands subject to CARP shall first
(b) All lands of the public domain in excess of the undergo the land acquisition and distribution process of
specific limits as determined by Congress in the the program: Provided, further, That when these lands
preceding paragraph; have been subjected to expropriation, the agrarian reform
(c) All other lands owned by the Government devoted beneficiaries therein shall be paid just compensation.
to or suitable for agriculture; and Section 6-B. Review of Limits of Land Size. - Within
(d) All private lands devoted to or suitable for six (6) months from the effectivity of this Act, the DAR
agriculture regardless of the agricultural products raised shall submit a comprehensive study on the land size
or that can be raised thereon. appropriate for each type of crop to Congress for a
A comprehensive inventory system in consonance possible review of limits of land sizes provided in this Act.
with the national land use plan shall be instituted by the Section 7. Priorities. — The DAR, in coordination with
Department of Agrarian Reform (DAR), in accordance the Presidential Agrarian Reform Council (PARC) shall
with the Local Government Code, for the purpose of plan and program the final acquisition and distribution of
properly identifying and classifying farmlands within one all remaining unacquired and undistributed agricultural
(1)year from effectivity of this Act, without prejudice to the lands from the effectivity of this Act until June 30, 2014.
implementation of the land acquisition and distribution. Lands shall be acquired and distributed as follows:
Section 5. Schedule of Implementation. — The Phase One: During the five (5)-year extension period
distribution of all lands covered by this Act shall be hereafter all remaining lands above fifty (50) hectares
implemented immediately and completed within ten (10) shall be covered for purposes of agrarian reform upon the
years from the effectivity thereof. effectivity of this Act. All private agricultural lands of
Section 6. Retention Limits. — Except as otherwise landowners with aggregate landholdings in excess of fifty
provided in this Act, no person may own or retain, directly (50) hectares which have already been subjected to a
or indirectly, any public or private agricultural land, the notice of coverage issued on or before December 10,
size of which shall vary according to factors governing a 2008; rice and corn lands under Presidential Decree No.
viable family-size farm, such as commodity produced, 27; all idle or abandoned lands; all private lands voluntarily
terrain, infrastructure, and soil fertility as determined by offered by the owners for agrarian reform: Provided, That
the Presidential Agrarian Reform Council (PARC) created with respect to voluntary land transfer, only those
hereunder, but in no case shall retention by the submitted by June 30, 2009 shall be allowed Provided,
landowner exceed five (5) hectares. Three (3) hectares further, That after June 30, 2009, the modes of acquisition
may be awarded to each child of the landowner, subject shall be limited to voluntary offer to sell and compulsory
to the following qualifications: (1) that he is at least fifteen acquisition: Provided, furthermore, That all previously
(15) years of age; and (2) that he is actually tilling the land acquired lands wherein valuation is subject to challenge
or directly managing the farm: provided, that landowners by landowners shall be completed and finally resolved
whose lands have been covered by Presidential Decree pursuant to Section 17 of Republic Act No. 6657, as
No. 27 shall be allowed to keep the areas originally amended: Provided, finally, as mandated by the
retained by them thereunder: provided, further, that Constitution, Republic Act No. 6657, as amended, and
original homestead grantees or their direct compulsory Republic Act No. 3844,as amended, only farmers (tenants
heirs who still own the original homestead at the time of or lessees) and regular farmworkers actually tilling the
the approval of this Act shall retain the same areas as lands, as certified under oath by the Barangay Agrarian
long as they continue to cultivate said homestead. Reform Council (BARC) and attested under oath by the
The right to choose the area to be retained, which landowners, are the qualified beneficiaries. The intended
shall be compact or contiguous, shall pertain to the beneficiary shall state under oath before the judge of the
landowner: provided, however, that in case the area city or municipal court that he/she is willing to work on
selected for retention by the landowner is tenanted, the the land to make it productive and to assume the
tenant shall have the option to choose whether to remain obligation of paying the amortization for the
therein or be a beneficiary in the same or another compensation of the land and the land taxes thereon; all
agricultural land with similar or comparable features.n lands foreclosed by government financial institutions; all
case the tenant chooses to remain in the retained area, lands acquired by the Presidential Commission on Good
he shall be considered a leaseholder and shall lose his Government (PCGG); and all other lands owned by the
right to be a beneficiary under this Act.n case the tenant government devoted to or suitable for agriculture, which
chooses to be a beneficiary in another agricultural land, shall be acquired and distributed immediately upon the
he loses his right as a leaseholder to the land retained by effectivity of this Act, with the implementation to be
the landowner. The tenant must exercise this option completed by June 30, 2012;
within a period of one (1) year from the time the Phase Two: (a) Lands twenty-four (24) hectares up to
landowner manifests his choice of the area for retention. fifty (50) hectares shall likewise be covered for purposes of
In all cases, the security of tenure of the farmers or agrarian reform upon the effectivity of this Act. All
farmworkers on the land prior to the approval of this Act alienable and disposable public agricultural lands; all
shall be respected. arable public agricultural lands under agro-forest, pasture
Upon the effectivity of this Act, any sale, disposition, and agricultural leases already cultivated and planted to
lease, management, contract or transfer of possession of crops in accordance with Section 6, Article XIII of the
private lands executed by the original landowner in Constitution; all public agricultural lands which are to be
violation of the Act shall be null and void: provided, opened for new development and resettlement: and all
however, that those executed prior to this Act shall be private agricultural lands of landowners with aggregate
valid only when registered with the Register of Deeds landholdings above twenty-four (24) hectares up to fifty
within a period of three (3) months after the effectivity of (50) hectares which have already been subjected to a
this Act. Thereafter, all Registers of Deeds shall inform the notice of coverage issued on or before December 1O,
Department of Agrarian Reform (DAR) within thirty (30) 2008, to implement principally the rights of farmers and
days of any transaction involving agricultural lands in regular farmworkers, who are landless, to own directly or
excess of five (5) hectares. collectively the lands they till, which shall be distributed
Section 6-A. Exception to Retention Limits. - immediately upon the effectivity of this Act, with the
Provincial, city and municipal government ,units implementation to be completed by June 30, 2012; and
acquiring private agricultural lands by expropriation or (b) All remaining private agricultural lands of
other modes of acquisition to be used for actual, direct landowners with aggregate landholdings in excess of



twenty-four (24) hectares, regardless as to whether these enterprises, operated by multinational corporations and
have been subjected to notices of coverage or not, with associations, shall be programmed for acquisition and
the implementation to begin on July 1, 2012 and to be distribution immediately upon the effectivity of this Act,
completed by June 30, 2013; with the implementation to be completed within three
Phase Three: All other private agricultural lands (3) years.
commencing with large landholdings and proceeding to Lands covered by the paragraph immediately
medium and small landholdings under the following preceding, under lease, management, grower or service
schedule: contracts, and the like, shall be disposed of as follows:
(a) Lands of landowners with aggregate landholdings (a) Lease, management, grower or service contracts
above ten (10) hectares up to twenty- four (24)hectares, covering such lands covering an aggregate area in excess
insofar as the excess hectarage above ten (10) hectares is of 1,000 hectares, leased or held by foreign individuals in
concerned, to begin on July 1,2012 and to be completed excess of 500 hectares are deemed amended to conform
by June 30, 2013; and with the limits set forth in Section 3 of Article XII of the
(b) Lands of landowners with aggregate landholdings Constitution.
from the retention limit up to ten (10) hectares, to begin (b) Contracts covering areas not in excess of 1,000
on July 1, 2013 and to be completed by June 30, 2014; to hectares in the case of such corporations and
implement principally the right of farmers and regular associations, and 500 hectares, in the case of such
farmworkers who are landless, to own directly or individuals, shall be allowed to continue under their
collectively the lands they till. original terms and conditions but not beyond August 29,
The schedule of acquisition and redistribution of all 1992, or their valid termination, whichever comes sooner,
agricultural lands covered by this program shall be made after which, such agreements shall continue only when
in accordance with the above order o f priority, which confirmed by the appropriate government agency. Such
shall be provided in the implementing rules to be contracts shall likewise continue even after the lands has
prepared by the PARC, taking into consideration the been transferred to beneficiaries or awardees thereof,
following: the landholdings wherein the farmers are which transfer shall be immediately commenced and
organized and understand ,the meaning and obligations implemented and completed within the period of three
of farmland ownership; the distribution of lands to the (3) years mentioned in the first paragraph hereof.
tillers at the earliest practicable time; the enhancement (c) In no case will such leases and other agreements
of agricultural productivity; and the availability of funds now being implemented extend beyond August 29, 1992,
and resources to implement and support the program: when all lands subject hereof shall have been distributed
Provided, That the PARC shall design and conduct completely to qualified beneficiaries or awardees.
seminars, symposia, information campaigns, and other Such agreements can continue thereafter only under
similar programs for farmers who are not organized or a new contract between the government or qualified
not covered by any landholdings. Completion by these beneficiaries or awardees, on the one hand, and said
farmers of the aforementioned seminars, symposia, and enterprises, on the other.
other similar programs shall be encouraged in the Lands leased, held or possessed by multinational
implementation of this Act particularly the provisions of corporations, owned by private individuals and private
this Section. non-governmental corporations, associations, institutions
Land acquisition and distribution shall be completed and entities, citizens of the Philippines, shall be subject to
by June 30, 2014 on a province-by- province basis. In any immediate compulsory acquisition and distribution upon
case, the PARC or the PARC Executive Committee (PARC the expiration of the applicable lease, management,
EXCOM), upon recommendation by the Provincial grower or service contract in effect as of August 29, 1987,
Agrarian Reform Coordinating Committee (PARCCOM), or otherwise, upon its valid termination, whichever comes
may declare certain provinces as priority land reform sooner, but not later than after ten (10) years following the
areas, in which case the acquisition and distribution of effectivity of the Act. However during the said period of
private agricultural lands therein under advanced phases effectivity, the government shall take steps to acquire
may be implemented ahead of the above schedules on these lands for immediate distribution thereafter.
the condition that prior phases in these provinces have In general, lands shall be distributed directly to the
been completed: Provided, That notwithstanding the individual worker-beneficiaries.n case it is not
above schedules, phase three (b) shall not be economically feasible and sound to divide the land, then
implemented in a particular province until at least ninety they shall form a workers' cooperative or association
percent (90%) of the provincial balance of that particular which will deal with the corporation or business
province as of January 1, 2009 under Phase One, Phase association or any other proper party for the purpose of
Two (a), Phase Two (b),,and Phase Three (a), excluding entering into a lease or growers agreement and for all
lands under the jurisdiction of the Department of other legitimate purposes. Until a new agreement is
Environment and Natural Resources (DENR), have been entered into by and between the workers' cooperative or
successfully completed. association and the corporation or business association or
The PARC shall establish guidelines to implement the any other proper party, any agreement existing at the
above priorities and distribution scheme, including the time this Act takes effect between the former and the
determination of who are qualified beneficiaries: previous landowner shall be respected by both the
Provided, That an owner-tiller may be a beneficiary of the workers' cooperative or association and the corporation,
land he/she does not own but is actually cultivating to the business, association or such other proper party.n no case
extent of the difference between the area of the land shall the implementation or application of this Act justify
he/she owns and the award ceiling of three (3) hectares: or result in the reduction of status or diminution of any
Provided, further, That collective ownership by the farmer benefits received or enjoyed by the worker-beneficiaries,
beneficiaries shall be subject to Section 25 of Republic or in which they may have a vested right, at the time this
Act No. 6657, as amended: Provided, furthermore, That Act becomes effective.
rural women shall be given the opportunity t o The provisions of Section 32 of this Act, with regard to
participate in the development planning and production and income-sharing shall apply to farms
implementation of this Act: Provided, finally, That in no operated by multinational corporations.
case should the agrarian reform beneficiaries' sex, During the transition period, the new owners shall be
economic, religious, social, cultural and political attributes assisted in their efforts to learn modern technology in
adversely affect the distribution of lands. production. Enterprises which show a willingness and
Section 8. Multinational Corporations. — All lands commitment and good-faith efforts to impart voluntarily
of the public domain leased, held or possessed by such advanced technology will be given preferential
multinational corporations or associations, and other treatment where feasible.
lands owned by the government or by In no case shall a foreign corporation, association,
government-owned or controlled corporations, entity or individual enjoy any rights or privileges better
associations, institutions, or entities, devoted to existing than those enjoyed by a domestic corporation,
and operational agri-business or agro-industrial association, entity or individual.



Section 9. Ancestral Lands. — For purposes of this

Act, ancestral lands of each indigenous cultural CHAPTER III Improvement of Tenurial and
community shall include, but not be limited to, lands in Labor Relations
the actual, continuous and open possession and
occupation of the community and its members: provided, Section 12. Determination of Lease Rentals. — In
that the Torrens Systems shall be respected. order to protect and improve the tenurial and economic
The right of these communities to their ancestral status of the farmers in tenanted lands under the
lands shall be protected to ensure their economic, social retention limit and lands not yet acquired under this Act,
and cultural well-being.n line with the principles of the DAR is mandated to determine and fix immediately
self-determination and autonomy, the systems of land the lease rentals thereof in accordance with Section 34 of
ownership, land use, and the modes of settling land Republic Act No. 3844, as amended: provided, that the
disputes of all these communities must be recognized DAR shall immediately and periodically review and adjust
and respected. the rental structure for different crops, including rice and
Any provision of law to the contrary notwithstanding, corn, or different regions in order to improve progressively
the PARC may suspend the implementation of this Act the conditions of the farmer, tenant or lessee.
with respect to ancestral lands for the purpose of Section 13. Production-Sharing Plan. — Any
identifying and delineating such lands: provided, that in enterprise adopting the scheme provided for in Section
the autonomous regions, the respective legislatures may 32 or operating under a production venture, lease,
enact their own laws on ancestral domain subject to the management contract or other similar arrangement and
provisions of the Constitution and the principles any farm covered by Sections 8 and 11 hereof is hereby
enunciated in this Act and other national laws. mandated to execute within ninety (90) days from the
Section 10. Exemptions and Exclusions. — a) Lands effectivity of this Act, a production-sharing plan, under
actually, directly and exclusively used for parks, wildlife, guidelines prescribed by the appropriate government
forest reserves, reforestation, fish sanctuaries and agency.
breeding grounds, watersheds and mangroves shall be Nothing herein shall be construed to sanction the
exempt from the coverage of this Act. diminution of any benefits such as salaries, bonuses,
b) Private lands actually, directly and exclusively used leaves and working conditions granted to the
for prawn farms and fishponds shall be exempt from the employee-beneficiaries under existing laws, agreements,
coverage of this Act: Provided, That said prawn farms and and voluntary practice by the enterprise, nor shall the
fishponds have not been distributed and Certificate of enterprise and its employee-beneficiaries be prevented
Land Ownership Award (CLOA) issued to agrarian reform from entering into any agreement with terms more
beneficiaries under the Comprehensive Agrarian Reform favorable to the latter.
Program.
In cases where the fishponds or prawn farms have CHAPTER IV Registration
been subjected to the Comprehensive Agrarian Reform
Law by voluntary offer to sell, or commercial farms Section 14. Registration of Landowners. — Within
deferment or notices of compulsory acquisition, a simple one hundred eighty (180) days from the effectivity of this
and absolute majority of the actual regular workers or Act, all persons, natural or juridical, including government
tenants must consent to the exemption within one (1) entities, that own or claim to own agricultural lands,
year from the effectivity of this Act When the workers or whether in their names or in the name of others, except
tenants do not agree to this exemption the fishponds or those who have already registered pursuant to Executive
prawn farms shall be distributed collectively to the Order No. 229, who shall be entitled to such incentives as
worker-beneficiaries or tenants who shall form a may be provided for the PARC, shall file a sworn
cooperative or association to manage the same. statement in the proper assessor's office in the form to be
In cases where the fishponds or prawn farms have prescribed by the DAR, stating the following information:
not been subjected to the Comprehensive Agrarian (a) the description and area of the property;
Reform Law the consent of the farm workers shall no (b) the average gross income from the property for at
longer be necessary’ however, the provision of Section least three (3) years;
32-A hereof on incentives shall apply.” (c) the names of all tenants and farmworkers therein;
c) Lands actually, directly and exclusively used and (d) the crops planted in the property and the area
found to be necessary for national defense, school sites covered by each crop as of June 1, 1987;
and campuses, including experimental farm stations (e) the terms of mortgages, lease, and management
operated by public or private schools for educational contracts subsisting as of June 1, 1987, and
purposes, seeds and seedlings research and pilot (f) the latest declared market value of the land as
production center, church sites and convents determined by the city or provincial assessor.
appurtenant thereto, mosque sites and Islamic centers Section 15. Registration of Beneficiaries. — The DAR
appurtenant thereto, communal burial grounds and in coordination with the Barangay Agrarian Reform
cemeteries, penal colonies and penal farms actually Committee (BARC) as organized in this Act, shall register
worked by the inmates, government and private research all agricultural lessees, tenants and farmworkers who are
and quarantine centers and all lands with eighteen qualified to be beneficiaries of the CARP. These potential
percent (18%) slope and over, except those already beneficiaries with the assistance of the BARC and the
developed, shall be exempt from the coverage of this Act. DAR shall provide the following data:
Section 11. Commercial Farming. — Commercial (a) names and members of their immediate farm
farms, which are private agricultural lands devoted to household;
saltbeds, fruit farms, orchards, vegetable and cut-flower (b) owners or administrators of the lands they work
farms, and cacao, coffee and rubber plantations, shall be on and the length of tenurial relationship;
subject to immediate compulsory acquisition and (c) location and area of the land they work;
distribution after ten (10) years from the effectivity of this (d) crops planted; and
Act.In the case of new farms, the ten-year period shall (e) their share in the harvest or amount of rental paid
begin from the first year of commercial production and or wages received.
operation, as determined by the DAR.During the ten-year A copy of the registry or list of all potential CARP
period, the Government shall initiate steps necessary to beneficiaries in the barangay shall be posted in the
acquire these lands, upon payment of just compensation barangay hall, school or other public buildings in the
for the land and the improvements thereon, preferably in barangay where it shall be open to inspection by the
favor of organized cooperatives or associations which public at all reasonable hours.
shall thereafter manage the said lands for the
workers-beneficiaries.


(1) Cash payment, under the following terms and

CHAPTER V Land Acquisition conditions;
(a) For lands above fifty — Twenty-five percent (25%)
Section 16. Procedure for Acquisition and
(50) hectares, insofar cash, the balance to be
Distribution of Private Lands. — For purposes of
as the excess paid in government
acquisition of private lands, the following procedures shall
hectarage is financial instruments
be followed:
concerned. negotiable at any time.
(a) After having identified the land, the landowners
and the beneficiaries, the DAR shall send its notice to
acquire the land to the owners thereof, by personal (b) For lands above — Thirty percent (30%) cash,
delivery or registered mail, and post the same in a twenty-four (24) the balance to be paid in
conspicuous place in the municipal building and hectares and up to fifty government financial
barangay hall of the place where the property is located. (50) hectares. instruments negotiable
Said notice shall contain the offer of the DAR to pay a at any time.
corresponding value in accordance with the valuation set
forth in Sections 17, 18, and other pertinent provisions (c) For lands — Thirty-five percent (35%)
hereof. twenty-four (24) cash, the balance to be
(b) Within thirty (30) days from the date of receipt of hectares and below. paid in government
written notice by personal delivery or registered mail, the financial instruments
landowner, his administrator or representative shall negotiable at any time.
inform the DAR of his acceptance or rejection of the offer. (2) Shares of stock in government-owned or
(c) If the landowner accepts the offer of the DAR, the controlled corporations, LBP preferred shares, physical
Land Bank of the Philippines (LBP) shall pay the assets or other qualified investments in accordance with
landowner the purchase price of the land within thirty guidelines set by the PARC;
(30) days after he executes and delivers a deed of transfer (3) Tax credits which can be used against any tax
in favor of the government and surrenders the Certificate liability;
of Title and other muniments of title. (4) LBP bonds, which shall have the following
(d) In case of rejection or failure to reply, the DAR shall features:
conduct summary administrative proceedings to (a) Market interest rates aligned with 91-day treasury
determine the compensation for the land requiring the bill rates. Ten percent (10%) of the face value of the bonds
landowner, the LBP and other interested parties to shall mature every year from the date of issuance until
submit evidence as to the just compensation for the land, the tenth (10th) year: provided, that should the landowner
within fifteen (15) days from the receipt of the notice. choose to forego the cash portion, whether in full or in
After the expiration of the above period, the matter is part, he shall be paid correspondingly in LBP bonds;
deemed submitted for decision. The DAR shall decide the (b) Transferability and negotiability. Such LBP bonds
case within thirty (30) days after it is submitted for may be used by the landowner, his successors in interest
decision. or his assigns, up to the amount of their face value, for
(e) Upon receipt by the landowner of the any of the following:
corresponding payment or, in case of rejection or no (i) Acquisition of land or other real properties of the
response from the landowner, upon the deposit with an government, including assets under the Asset
accessible bank designated by the DAR of the Privatization Program and other assets foreclosed by
compensation in cash or in LBP bonds in accordance government financial institutions in the same province or
with this Act, the DAR shall take immediate possession of region where the lands for which the bonds were paid are
the land and shall request the proper Register of Deeds situated;
to issue a Transfer Certificate of Title (TCT) in the name of (ii) Acquisition of shares of stock of
the Republic of the Philippines. The DAR shall thereafter government-owned or -controlled corporations or shares
proceed with the redistribution of the land to the of stocks owned by the government in private
qualified beneficiaries. corporations;
(f) Any party who disagrees with the decision may (iii) Substitution for surety or bail bonds for the
bring the matter to the court of proper jurisdiction for provisional release of accused persons, or performance
final determination of just compensation. bonds;
(iv) Security for loans with any government financial
CHAPTER VI Compensation institution, provided the proceeds of the loans shall be
invested in an economic enterprise, preferably in a
Section 17. Determination of Just Compensation. — small-and medium-scale industry, in the same province
In determining just compensation, the cost of acquisition or region as the land for which the bonds are paid;
of the land, the value of the standing crop, the current: (v) Payment for various taxes and fees to government;
value of like properties, its nature, actual use and income, provided, that the use of these bonds for these purposes
the sworn valuation by the owner, the tax declarations, will be limited to a certain percentage of the outstanding
the assessment made by government assessors, and balance of the financial instruments: provided, further,
seventy percent (70%) of the zonal valuation of the that the PARC shall determine the percentage
Bureau of Internal Revenue (BIR), translated into a basic mentioned above;
formula by the DAR shall be considered, subject to the (vi) Payment for tuition fees of the immediate family
final decision of the proper court. The social and of the original bondholder in government universities,
economic benefits contributed by the farmers and the colleges, trade schools, and other institutions;
farmworkers and by the Government t o the property as (vii) Payment for fees of the immediate family of the
well as the nonpayment of taxes or loans secured from original bondholder in government hospitals; and
any government financing institution on the said land (viii) Such other uses as the PARC may from time to
shall be considered as additional factors to determine its time allow.
valuation. In case of extraordinary inflation, the PARC shall take
Section 18. Valuation and Mode of Compensation. appropriate measures to protect the economy.
— The LBP shall compensate the landowner in such Section 19. Incentives for Voluntary Offers for Sales.
amounts as may be agreed upon by the landowner and — Landowners, other than banks and other financial
the DAR and the LBP, in accordance with the criteria institutions, who voluntarily offer their lands for sale shall
provided for in Sections 16 and 17, and other pertinent be entitled to an additional five percent (5%) cash
provisions hereof, or as may be finally determined by the payment.
court, as the just compensation for the land. Section 20. Voluntary Land Transfer. — Landowners
The compensation shall be paid on one of the of agricultural lands subject to acquisition under this Act
following modes, at the option of the landowner: may enter into a voluntary arrangement for direct


transfer of their lands to qualified beneficiaries subject to of that same landholding up to a maximum of three (3)
the following guidelines: hectares each. Only when these beneficiaries have all
(a) All notices for voluntary land transfer must be received three (3) hectares each, shall the remaining
submitted to the DAR within the first year of the portion of the landholding, if any, be distributed to other
implementation of the CARP. Negotiations between the beneficiaries under Section 22, subparagraphs (c), (d), (e),
landowners and qualified beneficiaries covering any (f), and (g).
voluntary land transfer which remain unresolved after Section 23. Distribution Limit. — No qualified
one (1) year shall not be recognized and such land shall beneficiary may own more than three (3) hectares of
instead be acquired by the government and transferred agricultural land.
pursuant to this Act. Section 24. Award to Beneficiaries. — The rights
(b) The terms and conditions of such transfer shall not and responsibilities of the beneficiaries shall commence
be less favorable to the transferee than those of the from their receipt of a duly registered emancipation
government's standing offer to purchase from the patent or certificate of land ownership award and their
landowner and to resell to the beneficiaries, if such offers actual physical possession of the awarded land. Such
have been made and are fully known to both parties. award shall be completed in not more than one hundred
(c) The voluntary agreement shall include sanctions eighty (180) days from the date of registration of the title
for non-compliance by either party and shall be duly in the name of the Republic of the Philippines: Provided,
recorded and its implementation monitored by the DAR. That the emancipation patents, the certificates of land
Section 21. Payment of Compensation by ownership award, and other titles issued under any
Beneficiaries Under Voluntary Land Transfer. — Direct agrarian reform program shall be indefeasible and
payments in cash or in kind may be by the imprescriptible after one (1) year from its registration with
farmer-beneficiary to the landowner under terms to be the Office of the Registry of Deeds, subject to the
mutually agreed upon by both parties, which shall be conditions, limitations and qualifications of this Act, the
binding upon them, upon registration with the approval property registration decree, and other pertinent laws.
by the DAR. Said approval shall be considered given, The emancipation patents or the certificates of land
unless notice of disapproval is received by the ownership award being titles brought under the
farmer-beneficiary within thirty (30) days from the date of operation of the torrens system, are conferred with the
registration. same indefeasibility and security afforded to all titles
In the event they cannot agree on the price of land, under the said system, as provided for by Presidential
the procedure for compulsory acquisition as provided in Decree No. 1529, as amended by Republic Act No. 6732.
Section 16 shall apply. The LBP shall extend financing to It is the ministerial duty of the Registry of Deeds to
the beneficiaries for purposes of acquiring the land. register the title of the land in the name of the Republic
of the Philippines, after the Land Bank of the Philippines
CHAPTER VII Land Redistribution (LBP) has certified that the necessary deposit in the
name of the landowner constituting full payment in cash
Section 22. Qualified Beneficiaries. — The lands or in bond with due notice to the landowner and the
covered by the CARP shall be distributed as much as registration of the certificate of land ownership award
possible to landless residents of the same barangay, or in issued to the beneficiaries, and to cancel previous titles
the absence thereof, landless residents of the same pertaining thereto.
municipality in the following order of priority: Identified and qualified agrarian reform beneficiaries,
(a) agricultural lessees and share tenants; based on Section 22 of Republic Act No. 6657, as,
(b) regular farmworkers; amended, shall have usufructuary rights over the
(c) seasonal farmworkers; awarded land as soon as the DAR takes possession of
(d) other farmworkers; such land, and such right shall not be diminished even
(e) actual tillers or occupants of public lands; pending the awarding of the emancipation patent or the
(f) collectives or cooperatives of the above certificate of land ownership award.
beneficiaries; and All cases involving the cancellation of registered
(g) others directly working on the land. emancipation patents, certificates of land ownership
Provided, however, that the children of landowners award, and other titles issued under any agrarian reform
who are qualified under Section 6 of this Act shall be program are within the exclusive and original jurisdiction
given preference in the distribution of the land of their of the Secretary of the DAR.
parents: and provided, further, that actual tenant-tillers in Section 25. Award Ceilings for Beneficiaries. —
the landholdings shall not be ejected or removed Beneficiaries shall be awarded an area not exceeding
therefrom. three (3) hectares, which may cover a contiguous tract of
Beneficiaries under Presidential Decree No. 27 who land or several parcels of land cumulated up to the
have culpably sold, disposed of, or abandoned their land prescribed award limits. The determination of the size of
are disqualified to become beneficiaries under this the land for distribution shall consider crop type, ,soil
Program. type, weather patterns and other pertinent variables or
A basic qualification of a beneficiary shall be his factors which are deemed critical for the success of the
willingness, aptitude, and ability to cultivate and make beneficiaries.
the land as productive as possible. The DAR shall adopt a For purposes of this Act, a landless beneficiary is one
system of monitoring the record or performance of each who owns less than three (3) hectares of agricultural land.
beneficiary, so that any beneficiary guilty of negligence or Whenever appropriate, the DAR shall encourage the
misuse of the land or any support extended to him shall agrarian reform beneficiaries to form or join farmers'
forfeit his right to continue as such beneficiary. The DAR cooperatives for purposes of affiliating with existing
shall submit periodic reports on the performance of the cooperative banks in their respective provinces or
beneficiaries to the PARC. localities, as well as forming blocs of agrarian reform
If, due to the landowner's retention rights or to the beneficiaries, corporations, and partnerships and joining
number of tenants, lessees, or workers on the land, there other farmers' collective organizations, including
is not enough land to accommodate any or some of irrigators' associations: Provided, That the agrarian reform
them, they may be granted ownership of other lands beneficiaries shall be assured of corresponding shares in
available for distribution under this Act, at the option of the corporation, seats in the board of directors, and an
the beneficiaries. equitable share in the profit.
Farmers already in place and those not In general, the land awarded to a farmer- beneficiary
accommodated in the distribution of privately-owned should be in the form of an individual title, covering one
lands will be given preferential rights in the distribution of (1) contiguous tract or several parcels of land cumulated
lands from the public domain. up to a maximum of three (3) hectares.
Section 22-A. Order of Priority. - A landholding of a The beneficiaries may opt for collective ownership,
landowner shall be distributed first to qualified such as co-workers or farmers cooperative or some other
beneficiaries under Section 22, subparagraphs (a) and (b) form of collective organization and for the issuance of



collective ownership titles: Provided, That the total area shall subsequently award the forfeited landholding to
that may be awarded shall not exceed the total number other qualified beneficiaries. A beneficiary whose land, as
of co-owners or members of the cooperative or collective provided herein, has been foreclosed shall thereafter be
organization multiplied by the award limit above permanently disqualified from becoming a beneficiary
prescribed, except in meritorious cases as determined by under this Act.
the PARC. Section 27. Transferability of Awarded Lands. —
The conditions for the issuance of collective titles are Lands acquired by beneficiaries under this Act or other
as follows: agrarian reform laws shall not be sold, transferred or
(a) The current farm management system of the land conveyed except through hereditary succession, or to the
covered by CARP will not be appropriate for individual government, or to the LBP, or to other qualified
farming of farm parcels; beneficiaries through the DAR for a period of ten (10)
(b) The farm labor system is specialized, where the years: Provided, however, That the children or the spouse
farmworkers are organized by functions and not by of the transferor shall have a right to repurchase the land
specific parcels such as spraying, weeding, packing and from the government or LBP within a period of two (2)
other similar functions; years. Due notice of the availability of the land shall be
(c) The potential beneficiaries are currently not given by the LBP to the BARC of the barangay where the
farming individual parcels hut collectively work on large land is situated. The PARCCOM, as herein provided, shall,
contiguous areas; and in turn, be given due notice thereof by the BARC.
(d) The farm consists of multiple crops being farmed The title of the land awarded under the agrarian
in an integrated manner or includes non- crop reform must indicate that it is an emancipation patent or
production areas that are necessary for the viability of a certificate of land ownership award and the subsequent
farm operations, such as packing plants, storage areas, transfer title must also indicate that it is an emancipation
dikes, and other similar facilities that cannot be patent or a certificate of land ownership award.
subdivided or assigned to individual farmers. If the land has not yet been fully paid by the
For idle and abandoned lands or underdeveloped beneficiary, the rights to the land may be transferred or
agricultural lands to be covered by CARP, collective conveyed, with prior approval of the DAR, to any heir of
ownership shall be allowed only if the beneficiaries opt the beneficiary or to any other beneficiary who, as a
for it and there is a clear development plan that would condition for such transfer or conveyance, shall cultivate
require collective farming or integrated farm operations the land himself/herself. Failing compliance herewith, the
exhibiting the conditions described above. Otherwise, the land shall be transferred to the LBP which shall give due
land awarded to a farmer-beneficiary should be in the notice of the availability of the land in the manner
form of a n individual title, covering one (1) contiguous specified in the immediately preceding paragraph.
tract or several parcels of land cumulated up to a In the event of such transfer to the LBP, the latter
maximum of three (3) hectares. shall compensate the beneficiary in one lump sump for
In case of collective ownership, title to the property the amounts the latter has already paid, together with
shall be issued in the name of the co- owners or the the value of improvements he/she has made on the land.
cooperative or collective organization as the case may be. Section 28. Standing Crops at the Time of
If the certificates of land ownership award are given to Acquisition. — The landowner shall retain his share of any
cooperatives then the names of the beneficiaries must standing crops unharvested at the time the DAR shall
also be listed in the same certificate of land ownership take possession of the land under Section 16 of the Act,
award. and shall be given a reasonable time to harvest the same.
With regard to existing collective certificates of land
ownership award, the DAR should immediately CHAPTER VIII Corporate Farms
undertake the parcelization of said certificates of land
ownership award, particularly those that do not exhibit Section 29. Farms Owned or Operated by
the conditions for collective ownership outlined above. Corporations or Other Business Associations. — In the
The DAR shall conduct a review and redocumentation of case of farms owned or operated by corporations or other
all the collective certificates of land ownership award. The business associations, the following rules shall be
DAR shall prepare a prioritized list of certificates of land observed by the PARC:
ownership award to be parcelized. The parcelization shall In general, lands shall be distributed directly to the
commence immediately upon approval of this Act and individual worker-beneficiaries.
shall not exceed a period of three (3) years. Only those In case it is not economically feasible and sound to
existing certificates of land ownership award that are divide the land, then it shall be owned collectively by the
collectively farmed or are operated in an integrated workers' cooperative or association which will deal with
manner shall remain as collective. the corporation or business association. Until a new
Section 26. Payment by Beneficiaries. — Lands agreement is entered into by and between the workers'
awarded pursuant to this Act shall be paid for by the cooperative or association and the corporation or
beneficiaries to the LBP in thirty (30) annual business association, any agreement existing at the time
amortizations at six percent (6%) interest per annum. The this Act takes effect between the former and the previous
annual amortization shall start one (1) year from the date landowner shall be respected by both the workers'
of the certificate of land ownership award registration. cooperative or association and the corporation or
However, if the occupancy took place after the certificate business association.
of land ownership award registration, the amortization Section 30. Homelots and Farmlots for Members of
shall start one (1) year from actual occupancy. The Cooperatives. — The individual members of the
payments for the first three (3) years after the award shall cooperatives or corporations mentioned in the preceding
be at reduced amounts as established by the PARC: section shall be provided with homelots and small
Provided, That the first five (5) annual payments may not farmlots for their family use, to be taken from the land
be more than five percent (5%) of the value of the annual owned by the cooperative or corporation.
gross production as established by the DAR. Should the Section 31. Corporate Landowners. — Corporate
scheduled annual payments after the fifth (5th) year landowners may voluntarily transfer ownership over their
exceed ten percent (10%) of the annual gross production agricultural landholdings to the Republic of the
and the failure to produce accordingly is not due to the Philippines pursuant to Section 20 hereof or to qualified
beneficiary's fault, the LBP shall reduce the interest rate beneficiaries, under such terms and conditions,
and/or reduce the principal obligation to make the consistent with this Act, as they may agree upon, subject
repayment affordable. to confirmation by the DAR.
The LBP shall have a lien by way of mortgage on the Upon certification by the DAR, corporations owning
land awarded to the beneficiary; and this mortgage may agricultural lands may give their qualified beneficiaries
be foreclosed by the LBP for non-payment of an the right to purchase such proportion of the capital stock
aggregate of three (3) annual amortizations. The LBP of the corporation that the agricultural land, actually
shall advise the DAR of such proceedings and the latter devoted to agricultural activities, bears in relation to the



company's total assets, under such terms and conditions In order to safeguard the right of the regular fishpond

as may be agreed upon by them.n no case shall the or prawn farm workers under the incentive plan, the
compensation received by the workers at the time the books of the fishpond or prawn farm owners shall be
shares of stocks are distributed be reduced. The same subject to periodic audit or inspection by certified public
principle shall be applied to associations, with respect to accountants chosen by the workers.
their equity or participation. The foregoing provision shall not apply to agricultural
Corporations or associations which voluntarily divest lands subsequently converted to fishpond or prawn
a proportion of their capital stock, equity or participation farms provided the size of the land converted does not
in favor of their workers or other qualified beneficiaries exceed the retention limit of the landowner.
under this section shall be deemed to have complied Section 33. Payment of Shares of Cooperative or
with the provisions of the Act: provided, that the following Association. — Shares of a cooperative or association
conditions are complied with: acquired by farmers-beneficiaries or
a) In order to safeguard the right of beneficiaries who workers-beneficiaries shall be fully paid for in an amount
own shares of stocks to dividends and other financial corresponding to the valuation as determined in the
benefits, the books of the corporation or association shall immediately succeeding section. The landowner and the
be subject to periodic audit by certified public LBP shall assist the farmers-beneficiaries and
accountants chosen by the beneficiaries; workers-beneficiaries in the payment for said shares by
b) Irrespective of the value of their equity in the providing credit financing.
corporation or association, the beneficiaries shall be Section 34. Valuation of Lands. — A valuation
assured of at least one (1) representative in the board of scheme for the land shall be formulated by the PARC,
directors, or in a management or executive committee, if taking into account the factors enumerated in Section 17,
one exists, of the corporation or association; and in addition to the need to stimulate the growth of
c) Any shares acquired by such workers and cooperatives and the objective of fostering responsible
beneficiaries shall have the same rights and features as participation of the workers-beneficiaries in the creation
all other shares. of wealth.
d) Any transfer of shares of stocks by the original In the determination of price that is just not only to
beneficiaries shall be void ab initio unless said transaction the individuals but to society as well, the PARC shall
is in favor of a qualified and registered beneficiary within consult closely with the landowner and the
the same corporation. workers-beneficiaries.
If within two (2) years from the approval of this Act, In case of disagreement, the price as determined by
the land or stock transfer envisioned above is not made or the PARC, if accepted by the workers-beneficiaries, shall
realized or the plan for such stock distribution approved be followed, without prejudice to the landowner's right to
by the PARC within the same period, the agricultural land petition the Special Agrarian Court to resolve the issue of
of the corporate owners or corporation shall be subject to valuation.
the compulsory coverage of this Act.
Section 32. Production-Sharing. — Pending final CHAPTER IX Support Services
land transfer, individuals or entities owning, or operating
under lease or management contract, agricultural lands Section 35. Creation of Support Services Office. —
are hereby mandated to execute a production-sharing There is hereby created the Office of Support Services
plan with their farm workers or farmworkers' under the DAR to be headed by an Undersecretary.
reorganization, if any, whereby three percent (3%) of the The Office shall provide general support and
gross sales from the production of such lands are coordinative services in the implementation of the
distributed within sixty (60) days of the end of the fiscal program particularly in carrying out the provisions of the
year as compensation to regular and other farmworkers following services to farmer-beneficiaries and affected
in such lands over and above the compensation they landowners:
currently receive: provided, that these individuals or 1) Irrigation facilities, especially second crop or dry
entities realize gross sales in excess of five million pesos season irrigation facilities;
per annum unless the DAR, upon proper application, 2) Infrastructure development and public works
determines a lower ceiling. projects in areas and settlements that come under
In the event that the individual or entity realizes a agrarian reform, and for this purpose, the preparation of
profit, an additional ten percent (10%) of the net profit the physical development plan of such settlements
after tax shall be distributed to said regular and other providing suitable barangay sites, potable water and
farmworkers within ninety (90) days of the end of the power resources, irrigation systems and other facilities for
fiscal year. a sound agricultural development plan;
To forestall any disruption in the normal operation of 3) Government subsidies for the use of irrigation
lands to be turned over to the farmworker-beneficiaries facilities;
mentioned above, a transitory period, the length of which 4) Price support and guarantee for all agricultural
shall be determined by the DAR, shall be established. produce;
During this transitory period, at least one percent (1%) 5) Extending to small landowners, farmers'
of the gross sales of the entity shall be distributed to the organizations the necessary credit, like concessional and
managerial, supervisory and technical group in place at collateral-free loans, for agro-industrialization based on
the time of the effectivity of this Act, as compensation for social collaterals like the guarantees of farmers'
such transitory managerial and technical functions as it organization:
will perform, pursuant to an agreement that the 6) Promoting, developing and extending financial
farmworker-beneficiaries and the managerial, assistance to small-and medium-scale industries in
supervisory and technical group may conclude, subject to agrarian reform areas;
the approval of the DAR. 7) Assigning sufficient numbers of agricultural
Section 32-A. Incentives. – Individuals or entities extension workers to farmers' organizations;
owning or operating fishponds and prawn farms are 8) Undertake research, development and
hereby mandated to execute within six (6) months from dissemination of information on agrarian reform and
the effectivity of this Act an incentive plan with their low-cost and ecologically sound farm inputs and
regular fishpond or prawn farmworkers or fishpond or technologies to minimize reliance on expensive and
prawn farm workers’ organization, if any, whereby seven imported agricultural inputs;
point five percent (7.5%) of their net profit before tax from 9) Development of cooperative management skills
the operation of the fishpond or prawn farms are through intensive training;
distributed within sixty (60) days at the end of the fiscal 10) Assistance in the identification of ready markets
year as compensation to regular and other pond workers for agricultural produce and training in other various
in such ponds over and above the compensation they prospects of marketing; andtai
currently receive. 11) Administration operation management and
funding of support services, programs and projects



including pilot projects and models related to agrarian harvests: Provided, That loans obtained shall be
reform as developed by the DAR. used in the improvement or development of the
Section 36. Funding for Support Services. — In farm holding of the agrarian reform beneficiary or
order to cover the expenses and cost of support services, the establishment of facilities which shall
at least forty percent (40%) of all appropriations for enhance production or marketing of agricultural
agrarian reform during the five (5) year extension period products of increase farm income therefrom:
shall be immediately set aside and made available for this Provided, further, That of the remaining seventy
purpose: Provided, That the DAR shall pursue integrated percent (70%) for the support services, fifteen
land acquisition and distribution and support services percent (15%) shall be earmarked for farm inputs
strategy requiring a plan to be developed parallel to the as requested by the duly accredited agrarian
land acquisition and distribution process. The planning reform beneficiaries' organizations, such as, but
and implementation for land acquisition and distribution not limited to: (1) seeds, seedlings and/or planting
shall be hand-in-hand with support services delivery: materials; (2) organic fertilizers; (3) pesticides;
Provided, further, That for the next five (5) years, as far as (4)herbicides; and (5) farm animals,
practicable, a minimum of two (2) Agrarian Reform implements/'machineries; and five percent (5%)
Communities (ARCs) shall be established by the DAR, in for seminars, trainings and the like to help
coordination with the local government units, empower agrarian reform beneficiaries.
non-governmental organizations, 'community-based (c) Extension services by way of planting, cropping,
cooperatives and people's organizations in each production and post-harvest technology transfer, as well
legislative district with a predominant agricultural as marketing and management assistance and support
population: Provided, furthermore, That the areas in to cooperatives and farmers' organizations;
which the ARCS are to be established shall have been (d) Infrastructure such as, but not limited to, access
substantially covered under the provisions of this Act and trails, mini-dams, public utilities, marketing and storage
other agrarian or land reform laws: Provided, finally, That facilities;
a complementary support services delivery strategy for (e) Research, production and use of organic fertilizers
existing agrarian reform beneficiaries that are not in and other local substances necessary in farming and
barangays within the ARCs shall be adopted by the DAR. cultivation; and
For this purpose, an Agrarian Reform Community is (f) Direct and active DAR assistance in the education
composed and managed by agrarian reform beneficiaries and organization of actual and potential agrarian reform
who shall be willing to be organized and to undertake the beneficiaries, at the barangay, municipal, city, provincial,
integrated development of an area and/or their and national levels, towards helping them understand
organizations/ cooperatives. In each community, the DAR, their rights and responsibilities as owner-cultivators
together with the agencies and organizations developing farm- related trust relationships among
abovementioned, shall identify the farmers' association, themselves and their neighbors, and increasing farm
cooperative or their respective federations approved by production and profitability with the ultimate end of
the farmers- beneficiaries that shall take the lead in the empowering them to chart their own destiny. The
agricultural development of the area. In addition, the representatives of the agrarian reform beneficiaries to the
DAR, in close coordination with the congressional PARC shall be chosen from the 'nominees of the duly
oversight committee created herein, with due notice to accredited agrarian reform beneficiaries' organizations, or
the concerned representative of the legislative district in its absence, from organizations of actual and potential
prior to implementation shall be authorized to package agrarian reform beneficiaries as forwarded to and
proposals and receive grants, aids and other forms of processed by the PARC EXCOM.
financial assistance from any source. The PARC shall formulate policies to ensure that
Section 37. Support Services for the Agrarian support services for agrarian reform beneficiaries shall be
Reform Beneficiaries. - The State shall adopt the provided at all stages of the program implementation
integrated policy of support services delivery to agrarian with the concurrence of the concerned agrarian reform
reform beneficiaries. To this end, the DAR, the beneficiaries.
Department of Finance, and the Bangko Sentral ng The PARC shall likewise adopt, implement, and
Pilipinas (BSP) shall institute reforms to liberalize access monitor policies and programs to ensure the
to credit by agrarian reform beneficiaries. The PARC shall fundamental equality of women and men in the agrarian
ensure that support services for agrarian reform reform program as well as respect for the human rights,
beneficiaries are provided, such as: social protection, and decent working conditions of both
(a) Land surveys and titling; paid and unpaid men and women farmer-beneficiaries.
(b) Socialized terms on agricultural credit facilities; The Bagong Kilusang Kabuhayan sa Kaunlaran
Thirty percent (30%) of all appropriations for (BKKK) Secretariat shall be transferred and attached t o
support services referred to in Section 36 of the LBP, for its supervision including all its applicable and
Republic Act No. 6657, as amended, shall be existing funds, personnel, properties, equipment and
immediately set aside and made available for records.
agricultural credit facilities: Provided, That Misuse or diversion of the financial and support
one-third (1/3) of this segregated appropriation services herein provided shall result in sanctions against
shall be specifically allocated for subsidies to the beneficiary guilty thereof, including the forfeiture of
support the initial capitalization for agricultural the land transferred to him/her or lesser sanctions as may
production to new agrarian reform beneficiaries be provided by the PARC, without prejudice to criminal
upon the awarding of the emancipation patent or prosecution.
the certificate of land ownership award and the Section 37-A. Equal Support Services for Rural
remaining two-thirds (2/3) shall be allocated to Women. - Support services shall be extended equally to
provide access to socialized credit to existing women and men agrarian reform beneficiaries.
agrarian reform beneficiaries, including the The PARC shall ensure that these support services, as
leaseholders: Provided, further, the LBP and other provided for in this Act, integrate the specific needs and
concerned government financial institutions, well-being of women farmer- beneficiaries taking into
accredited savings and credit cooperatives, account the specific requirements of female family
financial service cooperatives and accredited members of farmer- beneficiaries.
cooperative banks shall provide the delivery The PARC shall also ensure that rural women will be
system for disbursement of the above financial able to participate in all community activities. To this
assistance to individual agrarian reform effect, rural women are entitled to self-organization in
beneficiaries, holders of collective titles and order to obtain equal access to economic opportunities
cooperatives. and to have access to agricultural credit and loans,
For this purpose, all financing institutions marketing facilities and technology, and other support
may accept as collateral for loans the purchase services, and equal treatment in land reform and
orders, marketing agreements or expected resettlement schemes.



The DAR shall establish and maintain a women's products of the forest other than timer within the logging

desk, which will be primarily responsible for formulating concessions.
and implementing programs and activities related to the (3) Sparsely Occupied Public Agricultural Lands. —
protection and promotion of women's rights, as well as Sparsely occupied agricultural lands of the public domain
providing an avenue where women can register their shall be surveyed, proclaimed and developed as farm
complaints and grievances principally related t o their settlements for qualified landless people based on an
rural activities. organized program to ensure their orderly and early
Section 38. Support Services for Landowners. — development.
The PARC, with the assistance of such other government Agricultural land allocations shall be made for ideal
agencies and instrumentalities as it may direct, shall family-size farms as determined by the PARC. Pioneers
provide landowners affected by the CARP and prior and other settlers shall be treated equally in every
agrarian reform programs with the following services: respect.
(a) Investment information, financial and counseling Subject to the prior rights of qualified beneficiaries,
assistance, particularly investment information on uncultivated lands of the public domain shall be made
government-owned and/or -controlled corporations and available on a lease basis to interested and qualified
disposable assets of the government in pursuit of parties. Parties who will engaged in the development of
national industrialization and economic independence: capital-intensive, traditional or pioneering crops shall be
(b) Facilities, programs and schemes for the given priority.
conversion or exchange of bonds issued for payment of The lease period, which shall not be more than a total
the lands acquired with stocks and bonds issued by the of fifty (50) years, shall be proportionate to the amount of
National Government, the BSP and other government investment and production goals of the lessee. A system
institutions and instrumentalities; of evaluation and audit shall be instituted.
(c) Marketing of agrarian reform bonds, as well as (4) Idle, Abandoned, Foreclosed and Sequestered
promoting the marketability of said bonds in traditional Lands. — Idle, abandoned, foreclosed and sequestered
and non-traditional financial markets and stock lands shall be planned for distribution as home lots and
exchanges: and/or family-size farmlots to actual occupants.f land area
(d) Other services designed t o utilize productively the permits, other landless families shall be accommodated
proceeds of the sale of such lands for rural in these lands.
industrialization. (5) Rural Women. — All qualified women members of
A landowner who invests in rural-based industries the agricultural labor force must be guaranteed and
shall be entitled to the incentives granted to a registered assured equal right to ownership of the land, equal shares
enterprise engaged in a pioneer or preferred area of of the farm's produce, and representation in advisory or
investment as provided for in the Omnibus Investment appropriate decision-making bodies.
Code of 1987,or to such other incentives as the PARC, the (6) Veterans and Retirees. — In accordance with
LBP, or other government financial institutions shall Section 7 of Article XVI of the Constitution, landless war
provide. veterans and veterans of military campaigns, their
The LBP shall redeem a landowner's agrarian reform surviving spouse and orphans, retirees of the Armed
bonds at face value as an incentive: Provided, That at least Forces of the Philippines (AFP) and the Integrated
fifty percent (50%) of the proceeds thereof shall be National Police (INP), returnees, surrenderees, and similar
invested in a Board of Investments (BOI)-registered beneficiaries shall be given due consideration in the
company or in any agri-business or agro-industrial disposition of agricultural lands of the public domain.
enterprise in the region where the CARP-covered (7) Agriculture Graduates. — Graduates of agricultural
landholding is located. An additional incentive of two schools who are landless shall be assisted by the
percent (2%) in cash shall be paid to a landowner who government, through the DAR, in their desire to own and
maintains his/her enterprise as a going concern for five till agricultural lands.
(5) years or keeps his/her investments in a BOI- registered
firm for the same period: Provided, further, That the rights CHAPTER XI Program Implementation
of the agrarian reform beneficiaries are not, in any way,
prejudiced or impaired thereby. Section 41. The Presidential Agrarian Reform
The DAR, the LBP and the Department of Trade and Council. — The Presidential Agrarian Reform Council
Industry shall jointly formulate the program to carry out (PARC) shall be composed of the President of the
these provisions under the supervision of the PARC: Philippines as Chairperson, the Secretary of Agrarian
Provided, That in no case shall the landowners' sex, Reform as Vice-Chairperson and the following as
economic, religious, social, cultural and political attributes members: Secretaries of the Departments of Agriculture;
exclude them from accessing these support services. Environment and Natural Resources; Budget and
Section 39. Land Consolidation. — The DAR shall Management; Interior and Local Government; Public
carry out land consolidation projects to promote equal Works and Highways; Trade and Industry; Finance; and
distribution of landholdings, to provide the needed Labor and Employment; Director-General of the National
infrastructures in agriculture, and to conserve soil fertility Economic and Development Authority; President, Land
and prevent erosion. Bank of the Philippines; Administrator, National Irrigation
Administration; Administrator, Land Registration
CHAPTER X Special Areas of Concern Authority; and six (6) representatives of affected
landowners to represent Luzon, Visayas and Mindanao; six
Section 40. Special Areas of Concern. — As an (6) representatives of agrarian reform beneficiaries, two
integral part of the Comprehensive Agrarian Reform (2) each from Luzon, Visayas and Mindanao: Provided,
Program, the following principles in these special areas of That at least one (1) of them shall be from the indigenous
concern shall be observed: peoples: Provided, further, That at least one (1)of them
(1) Subsistence Fishing. — Small fisherfolk, including shall come from a duly recognized national organization
seaweed farmers, shall be assured of greater access to the of rural women or a national organization of agrarian
utilization of water resources. reform beneficiaries with a substantial number of women
(2) Logging and Mining Concessions. — Subject to members: Provided, finally, That at least twenty percent
the requirement of a balanced ecology and conservation (20%) of the members of the PARC shall be women but in
of water resources, suitable areas, as determined by the no case shall they be less than two (Z).
Department of Environment and Natural Resources Section 42. Executive Committee. — There shall be
(DENR), in logging, mining and pasture areas, shall be an Executive Committee (EXCOM) of the PARC composed
opened up for agrarian settlements whose beneficiaries of the Secretary of the DAR as Chairman, and such other
shall be required to undertake reforestation and members as the President may designate, taking into
conservation production methods. Subject to existing account Article XIII, Section 5 of the Constitution. Unless
laws, rules and regulations, settlers and members of tribal otherwise directed by PARC, the EXCOM may meet and
communities shall be allowed to enjoy and exploit the decide on any and all matters in between meetings of the



PARC: provided, however, that its decisions must be dispute, it shall issue a certificate of its proceedings and
reported to the PARC immediately and not later than the shall furnish a copy thereof upon the parties within seven
next meeting. (7) days after the expiration of the thirty-day period.
Section 43. Secretariat. — A PARC Secretariat is Section 48. Legal Assistance. — The BARC or any
hereby established to provide general support and member thereof may, whenever necessary in the exercise
coordinative services such as inter-agency linkages; of any of its functions hereunder, seek the legal
program and project appraisal and evaluation and assistance of the DAR and the provincial, city, or
general operations monitoring for the PARC. municipal government.
The Secretariat shall be headed by the Secretary of Section 49. Rules and Regulations. — The PARC and
Agrarian Reform who shall be assisted by an the DAR shall have the power to issue rules and
Undersecretary and supported by a staff whose regulations, whether substantive or procedural, to carry
composition shall be determined by the PARC Executive out the objects and purposes of this Act. Said rules shall
Committee and whose compensation shall be chargeable take effect ten (10) days after publication in two (2)
against the Agrarian Reform Fund. All officers and national newspapers of general circulation.
employees of the Secretariat shall be appointed by the
Secretary of Agrarian Reform. CHAPTER XII Administrative Adjudication
Section 44. Provincial Agrarian Reform
Coordinating Committee (PARCCOM). — A Provincial Section 50. Quasi-Judicial Powers of the DAR. —
Agrarian Reform Coordinating Committee (PARCCOM) is The DAR is hereby vested with primary jurisdiction to
hereby created in each province, composed of a determine and adjudicate agrarian reform matters and
Chairman, who shall be appointed by the President upon shall have exclusive original jurisdiction over all matters
the recommendation of the EXCOM, the Provincial involving the implementation of agrarian reform, except
Agrarian Reform Officer as Executive Officer, and one those falling under the exclusive jurisdiction of the
representative each from the Departments of Agriculture, Department of Agriculture (DA) and the DENR.
and of Environment and Natural Resources and from the It shall not be bound by technical rules of procedure
LBP, one representative each from existing farmers' and evidence but shall proceed to hear and decide all
organizations, agricultural cooperatives and cases, disputes or controversies in a most expeditious
non-governmental organizations in the province; two manner, employing all reasonable means to ascertain the
representatives from landowners, at least one of whom facts of every case in accordance with justice and equity
shall be a producer representing the principal crop of the and the merits of the case. Toward this end, it shall adopt
province, and two representatives from farmer and a uniform rule of procedure to achieve a just, expeditious
farmworker-beneficiaries, at least one of whom shall be a and inexpensive determination of every action or
farmer or farmworker representing the principal crop of proceeding before it.
the province, as members: provided, that in areas where It shall have the power to summon witnesses,
there are cultural communities, the latter shall likewise administer oaths, take testimony, require submission of
have one representative. reports, compel the production of books and documents
The PARCCOM shall coordinate and monitor the and answers to interrogatories and issue subpoena, and
implementation of the CARP in the province.t shall subpoena duces tecum and to enforce its writs through
provide information on the provisions of the CARP, sheriffs or other duly deputized officers. It shall likewise
guidelines issued by the PARC and on the progress of the have the power to punish direct and indirect contempts
CARP in the province. in the same manner and subject to the same penalties as
Section 45. Province-by-Province Implementation. provided in the Rules of Court.
— The PARC shall provide the guidelines for a Responsible farmer leaders shall be allowed to
province-by-province implementation of the CARP. The represent themselves, their fellow farmers, or their
ten-year program of distribution of public and private organizations in any proceedings before the DAR
lands in each province shall be adjusted from year by the Provided, however, That when there are two or more
province's PARCCOM in accordance with the level of representatives for any individual or group, the
operations previously established by the PARC, in every representatives should choose only one among
case ensuring that support services are available or have themselves to represent such party or group before any
been programmed before actual distribution is effected. DAB proceedings.
Section 46. Barangay Agrarian Reform Committee Notwithstanding an appeal to the Court of Appeals,
(BARC). — Unless otherwise provided in this Act, the the decision of the DAR shall be immediately executory
provisions of Executive Order No. 229 regarding the except a decision or a portion thereof involving solely the
organization of the Barangay Agrarian Reform issue of just compensation.
Committee (BARC) shall be in effect. Section 50-A. Exclusive Jurisdiction on Agrarian
Section 47. Functions of the BARC. — In addition to Dispute. - No court or prosecutor's office shall take
those provided in Executive Order No. 229, the BARC shall cognizance of cases pertaining to the implementation of
have the following functions: the CARP except those provided under Section 57 of
(a) Mediate and conciliate between parties involved in Republic Act No. 6657, as amended. If there is an
an agrarian dispute including matters related to tenurial allegation from any of the parties that the case is agrarian
and financial arrangements; in nature and one of the parties is a farmer, farmworker,
(b) Assist in the identification of qualified or tenant, the case shall be automatically referred by the
beneficiaries and landowners within the barangay; judge or the prosecutor to the DAR which shall
(c) Attest to the accuracy of the initial parcellary determine and certify within fifteen (15) days from referral
mapping of the beneficiary's tillage; whether an agrarian dispute exists: Provided, That from
(d) Assist qualified beneficiaries in obtaining credit the determination of the DAR, an aggrieved party shall
from lending institutions; have judicial recourse. In cases referred by the municipal
(e) Assist in the initial determination of the value of trial court and the prosecutor's office, the appeal shall be
the land; with the proper regional trial court, and in cases referred
(f) Assist the DAR representatives in the preparation by the regional trial court, the appeal shall be to the Court
of periodic reports on the CARP implementation for of Appeals.
submission to the DAR; In cases where regular courts or quasi-judicial bodies
(g) Coordinate the delivery of support services to have competent jurisdiction, agrarian reform
beneficiaries; and beneficiaries or identified beneficiaries and/or their
(h) Perform such other functions as may be assigned associations shall have legal standing and interest to
by the DAR. intervene concerning their individual or collective rights
(2) The BARC shall endeavor to mediate, conciliate and/or interests under the CARP.
and settle agrarian disputes lodged before it within thirty The fact of non-registration of such associations with
(30) days from its taking cognizance thereof.f after the the Securities and Exchange Commission, or Cooperative
lapse of the thirty day period, it is unable to settle the Development Authority, or any concerned government



agency shall not be used against them to deny the properties, and to file a written report thereof with the
existence of their legal standing and interest in a case court.
filed before such courts and quasi-judicial bodies. Section 59. Orders of the Special Agrarian Courts.
Section 51. Finality of Determination. — Any case or — No order of the Special Agrarian Courts on any issue,
controversy before it shall be decided within thirty (30) question, matter or incident raised before them shall be
days after it is submitted for resolution. Only one (1) elevated to the appellate courts until the hearing shall
motion for reconsideration shall be allowed. Any order, have been terminated and the case decided on the
ruling or decision shall be final after the lapse of fifteen merits.
(15) days from receipt of a copy thereof. Section 60. Appeals. — An appeal may be taken
Section 52. Frivolous Appeals. — To discourage from the decision of the Special Agrarian Courts by filing
frivolous or dilatory appeals from the decisions or orders a petition for review with the Court of Appeals within
on the local or provincial levels, the DAR may impose fifteen (15) days receipt of notice of the decision;
reasonable penalties, including but not limited to fines or otherwise, the decision shall become final.
censures upon erring parties. An appeal from the decision of the Court of Appeals,
Section 53. Certification of the BARC. — The DAR or from any order, ruling or decision of the DAR, as the
shall not take cognizance of any agrarian dispute or case may be, shall be by a petition for review with the
controversy unless a certification from the BARC that the Supreme Court within a non-extendible period of fifteen
dispute has been submitted to it for mediation and (15) days from receipt of a copy of said decision.
conciliation without any success of settlement is Section 61. Procedure on Review. — Review by the
presented: provided, however, that if no certification is Court of Appeals or the Supreme Court, as the case may
issued by the BARC within thirty (30) days after a matter be, shall be governed by the Rules of Court. The Court of
or issue is submitted to it for mediation or conciliation the Appeals, however, may require the parties to file
case or dispute may be brought before the PARC. simultaneous memoranda within a period of fifteen (15)
days from notice, after which the case is deemed
CHAPTER XIII Judicial Review submitted for decision.
Section 62. Preferential Attention in Courts. — All
Section 54. Certiorari. — Any decision, order, award courts in the Philippines, both trial and appellate, shall
or ruling of the DAR on any agrarian dispute or on any give preferential attention to all cases arising from or in
matter pertaining to the application, implementation, connection with the implementation of the provisions of
enforcement, or interpretation of this Act and other this Act.
pertinent laws on agrarian reform may be brought to the All cases pending in court arising from or in
Court of Appeals by certiorari except as otherwise connection with the implementation of this Act shall
provided in this Act within fifteen (15) days from the continue to be heard, tried and decided into their finality,
receipt of a copy thereof. notwithstanding the expiration of the ten-year period
The findings of fact of the DAR shall be final and mentioned in Section 5 hereof.
conclusive if based on substantial evidence.
Section 55. No Restraining Order or Preliminary CHAPTER XIV Financing
Injunction. — Except for the Supreme Court, no court in
the Philippines shall have jurisdiction to issue any Section 63. Funding Source. — The amount needed
restraining order or writ of preliminary injunction against to further implement the CARP as provided in this Act,
the PARC, the DAR, or any of its duly authorized or until June 30, 2014, upon expiration of funding under
designated agencies in any case, dispute or controversy Republic Act No. 8532 and other pertinent laws, shall be
arising from, necessary to, or in connection with the funded from the Agrarian Reform Fund and other
application, implementation, enforcement, or funding sources in the amount of at least One hundred
interpretation of this Act and other pertinent laws on fifty billion pesos (P150,000,000,000.00).
agrarian reform. Additional amounts are hereby authorized to be
Section 56. Special Agrarian Court. — The Supreme appropriated as and when needed to augment the
Court shall designate at least one (1) branch of the Agrarian Reform Fund in order to fully implement the
Regional Trial Court (RTC) within each province to act as a provisions of this Act during the five (5)-year extension
Special Agrarian Court. period.
The Supreme Court may designate more branches to Sources of funding or appropriations shall include the
constitute such additional Special Agrarian Courts as may following:
be necessary to cope with the number of agrarian cases (a) Proceeds of the sales of the Privatization and
in each province.n the designation, the Supreme Court Management Office (PMO);
shall give preference to the Regional Trial Courts which (b) All receipts from assets recovered and from sales
have been assigned to handle agrarian cases or whose of ill-gotten wealth recovered through the PCGG
presiding judges were former judges of the defunct Court excluding the amount appropriated for compensation to
of Agrarian Relations. victims of human rights violations under the applicable
The Regional Trial Court (RTC) judges assigned to said law;
courts shall exercise said special jurisdiction in addition to (c) Proceeds of the disposition and development of
the regular jurisdiction of their respective courts. the properties of the Government in foreign countries, for
The Special Agrarian Courts shall have the powers the specific purposes of financing production credits,
and prerogatives inherent in or belonging to the Regional infrastructure and other support services required by this
Trial Courts. Act;
Section 57. Special Jurisdiction. — The Special (d) All income and, collections of whatever form and
Agrarian Courts shall have original and exclusive nature arising from the agrarian reform operations,
jurisdiction over all petitions for the determination of just projects and programs of the DAR and other CARP
compensation to landowners, and the prosecution of all implementing agencies;
criminal offenses under this Act. The Rules of Court shall (e) Portion of amounts accruing to the Philippines
apply to all proceedings before the Special Agrarian from all sources of official foreign. aid grants and
Courts, unless modified by this Act. concessional financing from all countries, to be used for
The Special Agrarian Courts shall decide all the specific purposes of financing productions, credits,
appropriate cases under their special jurisdiction within infrastructures, and other support services required by
thirty (30) days from submission of the case for decision. this Act:
Section 58. Appointment of Commissioners. — The (f) Yearly appropriations of no less than Five billion
Special Agrarian Courts, upon their own initiative or at the pesos (P5,000,000,000.00) from the General
instance of any of the parties, may appoint one or more Appropriations Act;
commissioners to examine, investigate and ascertain (g) Gratuitous financial assistance from legitimate
facts relevant to the dispute including the valuation of sources; and


(h) Other government funds not otherwise set of guidelines to be drawn up and promulgated by the
appropriated. DAR and the BFAR: Provided, furthermore, That
All funds appropriated to implement the provisions of small-farmer cooperatives and organizations shall be
this Act shall be considered continuing appropriations given preference in the award of the Fishpond Lease
during the period of its implementation: Provided, That if Agreements (FLAs).
the need arises, specific amounts for bond redemptions, No conversion of more than five (5) hectares of
interest payments and other existing obligations arising private lands to fishponds and prawn farms shall be
from the implementation of the program shall be allowed after the passage of this Act, except when the use
included in the annual General Appropriations Act: of the land is more economically feasible and sound for
Provided, further, That all just compensation payments to fishpond and/or prawn farm, as certified by the Bureau of
landowners, including execution of judgments therefore, Fisheries and Aquatic Resources (BFAR), and a simple
shall only be sourced from the Agrarian Reform Fund: and absolute majority of the regular farm workers or
Provided, however, That just compensation payments tenants agree to the conversion, the Department of
that cannot be covered within the approved annual Agrarian Reform, may approve applications for change in
budget of the program shall be chargeable against the the use of the land: Provided, finally, That no piecemeal
debt service program of the national government, or any conversion to circumvent the provisions of this Act shall
unprogrammed item in the General Appropriations Act: be allowed. In these cases where the change of use is
Provided, finally, That after the completion of the land approved, the provisions of Section 32-A hereof on
acquisition and distribution component of the CARP, the incentives shall apply.
yearly appropriation shall be allocated fully to support Section 65-B. Inventory. – Within one (1) year from
services, agrarian justice delivery and operational the effectivity of this Act, the BFAR shall undertake and
requirements of the DAR and the other CARP finish an inventory of all government and private
implementing agencies. fishponds and prawn farms, and undertake a program to
Section 64. Financial Intermediary for the CARP. — promote the sustainable management and utilization of
The Land Bank of the Philippines shall be the financial prawn farms and fishponds. No lease under Section 65-A
intermediary for the CARP, and shall insure that the social hereof may be granted until after the completion of the
justice objectives of the CARP shall enjoy a preference said inventory.
among its priorities. The sustainable management and utilization of
prawn farms and fishponds shall be in accordance with
CHAPTER XV General Provisions the effluent standards, pollution charges and other
pollution control measures such as, but not limited to, the
Section 65. Conversion of Lands. — After the lapse of quantity of fertilizers, pesticides and other chemicals
five (5) years from its award, when the land ceases to be used, that may be established by the Fertilizer and
economically feasible and sound for agricultural Pesticide Authority (FPA), the Environmental
purposes, or the locality has become urbanized and the Management Bureau(EMB),and other appropriate
land will have a greater economic value for residential, government regulatory bodies, and existing regulations
commercial or industrial purposes, the DAR, upon governing water utilization, primarily Presidential Decree
application of the beneficiary or the landowner with No. 1067, entitled “A Decree Instituting A Water Code,
respect only to his/her retained area which is tenanted, Thereby Revising and Consolidating the Laws Governing
with due notice to the affected parties, and subject to the Ownership, Appropriation, Utilization, Exploitation,
existing laws, may authorize the reclassification or Development, Conservation and Protection of Water
conversion of the land and its disposition: Provided, That if Resources.
the applicant is a beneficiary under agrarian laws and the Section 65-C. Protection of Mangrove Areas. – In
land sought to be converted is the land awarded to existing Fishpond Lease Agreements (FLAs) and those
him/her or any portion thereof, the applicant, after the that will be issued after the effectivity of this Act, a
conversion is granted, shall invest at least ten percent portion of the fishpond area fronting the sea, sufficient to
(10%)of the proceeds coming from the conversion in protect the environment, shall be established as a buffer
government securities: Provided, further, That the zone and be planted to specified mangrove species to be
applicant upon conversion shall fully pay the price of the determined in consultation with the regional office of the
land: Provided, furthermore, That irrigated and irrigable DENR. The Secretary of Environment and Natural
lands, shall not be subject to conversion: Provided, finally, Resources shall provide the penalties for any violation of
That the National Irrigation Administration shall submit a this undertaking as well as the rules for its
consolidated data on the location nationwide of all implementation.
irrigable lands within one (1)year from the effectivity of Section 65-D. Change of Crops. – The change of
this Act. crops to commercial crops or high value crops shall not
Failure to implement the conversion plan within five be considered as a conversion in the use or nature of the
(5) years from the approval of such conversion plan or any land. The change in crop should however, not prejudice
violation of the conditions of the conversion order due to the rights of tenants or leaseholders should there be any
the fault of the applicant shall cause the land to and the consent of a simple and absolute majority of the
automatically be covered by CARP. affected farm workers, if any, shall first be obtained.
Section 65-A. Conversion into Fishpond and Prawn Section 66. Exemptions from Taxes and Fees of
Farms. – No conversion of public agricultural lands into Land Transfers. — Transactions under this Act involving a
fishponds and prawn farms shall be made except in transfer of ownership, whether from natural or juridical
situations where the provincial government with the persons, shall be exempted from taxes arising from
concurrence of the Bureau of Fisheries and Aquatic capital gains. These transactions shall also be exempted
Resources (BFAR) declares a coastal zone as suitable for from the payment of registration fees, and all other taxes
fishpond development. In such case, the Department of and fees for the conveyance or transfer thereof; provided,
Environment and Natural Resources (DENR) shall allow that all arrearages in real property taxes, without penalty
the lease and development of such areas: Provided, That or interest, shall be deductible from the compensation to
the declaration shall not apply to environmentally critical which the owner may be entitled.
projects and areas as contained in title (A) sub-paragraph Section 67. Free Registration of Patents and Titles.
two, (B-5) and (C-1) and title (B), number eleven (11) of — All Registers of Deeds are hereby directed to register,
Proclamation No. 21-+6, entitled “Proclaiming Certain free from payment of all fees and other charges, patents,
Areas and Types of Projects as Environmentally Critical titles and documents required for the implementation of
and Within the Scope of the Environmental Impact the CARP.
Statement (EIS) System established under Presidential Section 68. Immunity of Government Agencies
Decree No. 1586,'” to ensure the protection of river from Undue Interference. — In cases falling within their
systems, aquifers and mangrove vegetations from jurisdiction, no injunction, restraining order, prohibition or
pollution and environmental degradation: Provided, mandamus shall be issued by the regional trial courts,
further. That the approval shall be in accordance with a municipal trial courts, municipal circuit trial courts, and



metropolitan trial courts against the DAR, the DA, the land he/she acquired by virtue of being a beneficiary, in
DENR, and the Department of Justice in their order to circumvent the provisions of this Act;
implementation of the program. (g) The unjustified, willful, and malicious act by a
Section 69. Assistance of Other Government responsible officer or officers of the government through
Entities. — The PARC, in the exercise of its functions, is the following:
hereby authorized to call upon the assistance and (1) The denial of notice and/or reply to
support of other government agencies, bureaus and landowners;
offices, including government-owned or -controlled (2) The deprivation of retention rights;
corporations. (3) The undue or inordinate delay in the
Section 70. Disposition of Private Agricultural preparation of claim folders; or
Lands. — The sale or disposition of agricultural lands (4) Any undue delay, refusal or failure in the
retained by a landowner as a consequence of Section 6 payment of just compensation;
hereof shall be valid as long as the total landholdings that (h) The undue delay or unjustified failure of the DAR,
shall be owned by the transferee thereof inclusive of the the LBP, the PARC, the PARCCOM, and any concerned
land to be acquired shall not exceed the landholding government agency or any government official or
ceilings provided for in this Act. employee to submit the required report, data and/or
Any sale or disposition of agricultural lands after the other official document involving the implementation of
effectivity of this Act found to be contrary to the the provisions of this Act, as required by the parties or the
provisions hereof shall be null and void. government, including the House of Representatives and
Transferees of agricultural lands shall furnish the the Senate of the Philippines as well as their respective
appropriate Register of Deeds and the BARC an affidavit committees, and the congressional oversight committee
attesting that his total landholdings as a result of the said created herein;
acquisition do not exceed the landholding ceiling. The (i) The undue delay in the compliance with the
Register of Deeds shall not register the transfer of any obligation to certify or attest and/or falsification of the
agricultural land without the submission of this sworn certification or attestation as required under Section 7 of
statement together with proof of service of a copy thereof Republic Act No. 6657, as amended; and
to the BARC. (j) Any other culpable neglect or willful violations of
Section 71. Bank Mortgages. — Banks and other the provisions of this Act.
financial institutions allowed by law to hold mortgage In the case of government officials and employees, a
rights or security interests in agricultural lands to secure conviction under this Act is without prejudice to any civil
loans and other obligations of borrowers, may acquire case and/or appropriate administrative proceedings
title to these mortgaged properties, regardless of area, under civil service law, rules and regulations. Any person
subject to existing laws on compulsory transfer of convicted under this Act shall not be entitled to any
foreclosed assets and acquisition as prescribed under benefit provided for in any agrarian reform law or
Section 13 of this Act. program.
Section 72. Lease, Management, Grower or Service Section 73-A. Exception. –The provisions of Section
Contracts, Mortgages and Other Claims. — Lands 73, paragraph (e), to the contrary notwithstanding, the
covered by this Act under lease, management, grower or sale and/or transfer of agricultural land in cases where
service contracts, and the like shall be disposed of as such sale, transfer or conveyance is made necessary as a
follows: result of a bank’s foreclosure of the mortgaged land is
(a) Lease, management, grower or service contracts hereby permitted.
covering private lands may continue under their original Section 74. Penalties. — Any person who knowingly
terms and conditions until the expiration of the same or willfully violates the provisions of this Act shall be
even if such land has, in the meantime, been transferred punished by imprisonment of not less than one (1) month
to qualified beneficiaries. to not more than three (3) years or a fine of not less than
(b) Mortgages and other claims registered with the One thousand pesos (P1,000.00) and not more than
Register of Deeds shall be assumed by the government Fifteen thousand pesos (P15,000.00), or both, at the
up to an amount equivalent to the landowner's discretion of the court: Provided, That the following
compensation value as provided in this Act. corresponding penalties shall be imposed for the specific
Section 73. Prohibited Acts and Omissions. — The violations hereunder:
following are prohibited: (a) Imprisonment of three (3) years and one (1)
(a) The ownership or possession, for the purpose of day to six (6) years or a fine of not less than Fifty
circumventing the provisions of this Act, of agricultural thousand pesos (P50,000.00)and not more than
lands in excess of the total retention limits or award One hundred fifty thousand pesos (P150,000.00),
ceilings by any person, natural or juridical, except those or both, at the discretion of the court upon any
under collective ownership by farmer-beneficiaries; person who violates Section 73, subparagraphs
(b) The forcible entry or illegal detainer by persons (a), (b), (f), (g), and (h) of Republic Act No. 6657, as
who are not qualified beneficiaries under this Act to avail amended; and
themselves of the rights and benefits of the Agrarian (b) Imprisonment of six (6) years and one (1)
Reform Program: day to twelve (12) years or a fine of not less than
(c) Any conversion by , any landowner of his/her Two hundred thousand pesos (P200,000.00) and
agricultural' land into any non-agricultural use with intent not more than One million pesos (P1,000,000.00),
to avoid the application of this Act to his/her landholdings or both, at the discretion of the court upon any
and to dispossess his/her bonafide tenant farmers: person who violates Section 73, subparagraphs
(d) The malicious and willful prevention or (c), (d), (e), and (i) of Republic Act No. 6657, as
obstruction by any person, association or entity of the amended.
implementation of the CARP; If the offender is a corporation or association, the
(e) The sale, transfer, conveyance or change of the officer responsible therefor shall be criminally liable.
nature of lands outside of urban centers and city limits Section 75. Suppletory Application of Existing
either in whole or in part after the effectivity of this Act, Legislation. — The provisions of Republic Act No. 3844 as
except after final completion of the appropriate amended, Presidential Decree Nos. 27 and 266 as
conversion under Section 65 of Republic Act No. 6657, as amended, Executive Order Nos. 228 and 229, both Series
amended. The date of the registration of the deed of of 1987; and other laws not inconsistent with this Act shall
conveyance in the Register of Deeds with respect to titled have suppletory effect.
lands and the date of the issuance of the tax declaration Section 76. Repealing Clause. — Section 35 of
to the transferee of the property with respect to Republic Act No. 3834, Presidential Decree No. 316, the
unregistered lands, as the case may be, shall be last two paragraphs of Section 12 of Presidential Decree
conclusive for the purpose of this Act; No. 946, Presidential Decree No. 1038, and all other laws,
(f) The sale, transfer or conveyance by a beneficiary of decrees executive orders, rules and regulations, issuances
the right to use or any other usufructuary right over the



or parts thereof inconsistent with this Act are hereby (k) Exercise all the powers necessary and incidental to
repealed or amended accordingly. attain the purposes for which it is created.
Section 77. Separability Clause. — If, for any reason, Section 28. Periodic Reports. - The COCAR shall
any section or provision of this Act is declared null and submit to the Speaker of the House of Representatives
void, no other section, provision, or part thereof shall be and to the President of the Senate of the Philippines
affected and the same shall remain in full force and effect. periodic reports on its findings and recommendations on
Section 78. Effectivity Clause. — This Act shall take actions to be undertaken by both Houses of Congress, the
effect immediately after publication in at least two (2) DAR, and the PARC.
national newspapers of general circulation. Section 29. Access to Information. -
Notwithstanding the provisions of Republic Act No. 1405
➔ Provisions under RA No 9700, August 7, and other pertinent laws, information on the amount of
2009 just compensation paid to any landowner under Republic
Act No. 6657, as amended, and other agrarian reform laws
Section 26. Congressional Oversight Committee. - A shall be deemed public information.
Congressional Oversight Committee on Agrarian Reform Section 30. Resolution of Case. - Any case and/or
(COCAR) is hereby created to oversee and monitor the proceeding involving the implementation of the
implementation of this Act. It shall be composed of the provisions of Republic Act No. 6657, as amended, which
Chairpersons of the Committee on Agrarian Reform of may remain pending on June 30, 2014 shall be allowed to
both Houses of Congress, three (3) Members of the House proceed to its finality and be executed even beyond such
of Representatives, and three (3) Members of the Senate date.

of the Philippines, to be designated respectively by the
Speaker of the House of Representatives and the
President of the Senate of the Philippines. RA No 3844 | Code of Agrarian Reforms
The Chairpersons of the Committees on Agrarian Previously, the Agricultural Land Reform Code, as
Reform of the House of Representatives and of the amended by PD Nos 239, 251, 444, 1039, and 1817, RA
Senate of the Philippines shall be the Chairpersons of the Nos 4366, 4886, 5984, 6389, 6657, 7907, 9700, 10374,
COCAR. The Members shall receive no compensation; 10874, and 10878
however, traveling and other necessary expenses shall be
allowed. August 8, 1963
In order to carry out the objectives of this Act, the
COCAR shall be provided with the necessary AN ACT TO ORDAIN THE AGRICULTURAL
appropriations for its operation. An initial amount of LAND REFORM CODE AND TO INSTITUTE
Twenty-five million pesos (P25,000,000.00) is hereby
appropriated for the COCAR for the first year of its LAND REFORMS IN THE PHILIPPINES,
operation and the same amount shall be appropriated INCLUDING THE ABOLITION OF TENANCY
every year thereafter. AND THE CHANNELING OF CAPITAL INTO
The term of the COCAR shall end six (6) months after
the expiration of the extended period of five (5) years. INDUSTRY, PROVIDE FOR THE
Section 27. Powers and Functions of the COCAR. - NECESSARY IMPLEMENTING AGENCIES,
The COCAR shall have the following powers and
functions:
APPROPRIATE FUNDS THEREFOR AND
(a) Prescribe and adopt guidelines which shall govern FOR OTHER PURPOSES
its work;
(b) Hold hearings and consultations, receive
testimonies and reports pertinent to its specified
concerns;
(c) Secure from any department, bureau, office or
instrumentality of the government such assistance as PRELIMINARY CHAPTER
may be needed, including technical information, TITLE
preparation and production of reports and submission of
recommendations or plans as it may require, particularly DECLARATION OF POLICY AND COMPOSITION OF
a yearly report of the record or performance of each CODE
agrarian reform beneficiary as provided under Section 22 Section 1. Title. — This Act shall be known as the Code of
of Republic Act No. 6657, as amended; Agrarian Reforms of the Philippines.
(d) Secure from the DAR or the LBP information on Section 2. Declaration of Policy. — It is the policy of the
the amount of just compensation determined to be paid State:
or which has been paid to any landowner;
(e) Secure from the DAR or the LBP quarterly reports (1) To establish cooperative-cultivatorship among those
on the disbursement of funds for the agrarian reform who live and work on the land as tillers,
program; owner-cultivatorship and the economic family-size farm
(f) Oversee and monitor, in such a manner as it may as the basis of Philippine agriculture and, as a
deem necessary, the actual implementation of the consequence, divert landlord capital in agriculture to
program and projects by the DAR; industrial development;
(g) Summon by subpoena any public or private (2) To achieve a dignified existence for the small farmers
citizen to testify before it, or require by subpoena duces free from pernicious institutional restraints and practices;
tecumto produce before it such records, reports, or other
documents as may be necessary in the performance of its (3) To create a truly viable social and economic structure
functions; in agriculture conducive to greater productivity and
(h) Engage the services of resource persons from the higher farm income through a cooperative system of
public and private sectors as well as civil society including production, processing, marketing, distribution, credit
the various agrarian reform groups or organizations in the and services;
different regions of the country as may be needed; (4) To apply all labor laws equally and without
(i) Approve the budget for the work of the Committee discrimination to both industrial and agricultural wage
and all disbursements therefrom, including earners;
compensation of all personnel;
(j) Organize its staff and hire and appoint such (5) To provide a more vigorous and systematic land
employees and personnel whether temporary, resettlement program and public land distribution;
contractual or on constancy subject to applicable rules;
and


(6) To make the small farmers more independent, period not exceeding five years and at a price agreed
self-reliant and responsible citizens, and a source of upon by the parties: Provided, however, That the tenant
genuine strength in our democratic society; shall pay in advance ten per cent of the price agreed
(7) To give first priority to measures for the adequate and upon.
timely financing of the Agrarian Reform Program Existing share tenancy contracts may continue in force
pursuant to House Joint Resolution Numbered Two, and effect in any region or locality, to be governed in the
otherwise known as the Magna Carta of Social Justice meantime by the pertinent provisions of Republic Act
and Economic Freedom; existing laws; executive and Numbered Eleven hundred and ninety-nine, as amended,
administrative orders; and rules and regulations to the until the end of the agricultural year when the President
contrary notwithstanding; of the Philippines shall have organized by executive order
(8) To involve local governments in the implementation of the Department of Agrarian Reform in accordance with
the Agrarian Reform Program; and the provisions of this amendatory Act, unless such
contracts provide for a shorter period or the tenant
(9) To evolve a system of land use and classification. sooner exercises his option to elect the leasehold system:
Section 3. Composition of Code. — In pursuance of the Provided, That in order not to jeopardize international
policy enunciated in Section two, the following are commitments, lands devoted to crops covered by
established under this Code: marketing allotments shall be made the subject of a
separate proclamation by the President upon
(1) An agricultural leasehold system to replace all existing recommendation of the department head that adequate
share tenancy systems in agriculture; provisions, such as the organization of cooperatives,
(2) A system of crediting rental as amortization payment marketing agreement, or other similar workable
on purchase price; arrangements, have been made to insure efficient
management on all matters requiring synchronization of
(3) A declaration of rights for agricultural labor; the agricultural with the processing phases of such crops.
(4) A machinery for the acquisition and equitable In case some agricultural share tenants do not want to
distribution of agricultural land; become agricultural lessees of their respective
(5) An institution to finance the acquisition and landholding, they shall, with the assistance of the Bureau
distribution of agricultural land; of Agrarian Legal Assistance, notify in writing the
(6) A machinery to extend credit and similar assistance to landowners concerned. In such a case, they shall have
agricultural lessees, amortizing owners-cultivator, one agricultural year from the date of the notice to
owners-cultivator and cooperatives; accept leasehold relationship, otherwise the landowner
may proceed to their ejectment. (Amendments to RA No.
(7) A machinery to provide marketing, management, and 3844 (Agricultural Land Reform Code), Republic Act No.
other technical assistance and/or services to agricultural 6389, [September 10, 1971])
lessees, amortizing owners-cultivator, owners-cultivator,
and cooperatives; Section 5. Establishment of Agricultural Leasehold
Relation - The agricultural leasehold relation shall be
(8) A machinery for cooperative development; established by operation of law in accordance with
(9) A department for formulating and implementing Section four of this Code and, in other cases, either orally
projects of agrarian reform; or in writing, expressly or impliedly.
(10) An expanded program of land capability survey, Section 6. Parties to Agricultural Leasehold Relation -
classification, and registration; The agricultural leasehold relation shall be limited to the
person who furnishes the landholding, either as owner,
(11) A judicial system to decide issues arising under this civil law lessee, usufructuary, or legal possessor, and the
Code and other related laws and regulations; and person who personally cultivates the same.
(12) A machinery to provide legal assistance to agricultural Section 7. Tenure of Agricultural Leasehold Relation -
lessees, amortizing owners-cultivator, and The agricultural leasehold relation once established shall
owners-cultivator. confer upon the agricultural lessee the right to continue
working on the landholding until such leasehold relation
is extinguished. The agricultural lessee shall be entitled to
CHAPTER I AGRICULTURAL LEASEHOLD security of tenure on his landholding and cannot be
SYSTEM ejected therefrom unless authorized by the Court for
causes herein provided.
Section 4. Automatic Conversion to Agricultural
Leasehold. — Agricultural share tenancy throughout the Section 8. Extinguishment of Agricultural Leasehold
country, as herein defined, is hereby declared contrary to Relation - The agricultural leasehold relation established
public policy and shall be automatically converted to under this Code shall be extinguished by:
agricultural leasehold upon the effectivity of this section. (1) Abandonment of the landholding without the
The credit assistance traditionally extended by a knowledge of the agricultural lessor;
land-owner and a local lender to a tenant under the share (2) Voluntary surrender of the landholding by the
tenancy systems in agriculture for production loans and agricultural lessee, written notice of which shall be served
loans for the purchase of work animals, tillage three months in advance; or
equipment, seeds, fertilizers, poultry, livestock feed and
(3) Absence of the persons under Section nine to succeed
other similar items, and advances for the subsistence of a
to the lessee, in the event of death or permanent
lessee and his family, may be continued by said
incapacity of the lessee.
landowner and local lender: Provided, That the total
charges on these loans, including interest and service, Section 9. Agricultural Leasehold Relation Not
inspection and issuance fees, shall not exceed fourteen Extinguished by Death or Incapacity of the Parties - In
per cent per calendar year and the principal thereof shall case of death or permanent incapacity of the agricultural
not be subject to upward adjustment even in case of lessee to work his landholding, the leasehold shall
extraordinary inflation and/or devaluation: Provided, continue between the agricultural lessor and the person
further, That on all loans or advances other than money, who can cultivate the landholding personally, chosen by
the interest shall be computed on the basis of the current the agricultural lessor within one month from such death
price of the goods at the time when the loans or or permanent incapacity, from among the following: (a)
advances were made. the surviving spouse; (b) the eldest direct descendant by
consanguinity; or (c) the next eldest descendant or
Any work animal and tillage equipment in the possession
descendants in the order of their age: Provided, That in
of a share tenant but owned by a landowner shall
case the death or permanent incapacity of the
automatically be sold to said tenant on installment for a



agricultural lessee occurs during the agricultural year, redemption. The redemption price shall be the
such choice shall be exercised at the end of that reasonable price of the land at the time of the sale.
agricultural year: Provided, further, That in the event the Upon the filing of the corresponding petition or request
agricultural lessor fails to exercise his choice within the with the department or corresponding case in court by
periods herein provided, the priority shall be in the agricultural lessee or lessees, the said period of one
accordance with the order herein established. hundred and eighty days shall cease to run.
In case of death or permanent incapacity of the Any petition or request for redemption shall be resolved
agricultural lessor, the leasehold shall bind his legal heirs. within sixty days from the filing thereof; otherwise, the
Section 10. Agricultural Leasehold Relation Not said period shall start to run again.
Extinguished by Expiration of Period, etc. - The The Department of Agrarian Reform shall initiate, while
agricultural leasehold relation under this Code shall not the Land Bank shall finance, said redemption as in the
be extinguished by mere expiration of the term or period case of pre-emption. (Amendments to RA No. 3844
in a leasehold contract nor by the sale, alienation or (Agricultural Land Reform Code), Republic Act No. 6389,
transfer of the legal possession of the landholding. In case [September 10, 1971])
the agricultural lessor sells, alienates or transfers the legal
possession of the landholding, the purchaser or Section 13. Affidavit Required in Sale of Land Subject to
transferee thereof shall be subrogated to the rights and Right of Pre-emption - No deed of sale of agricultural
substituted to the obligations of the agricultural lessor. land under cultivation by an agricultural lessee or lessees
shall be recorded in the Registry of Property unless
Section 11. Lessee's Right of Pre-emption. — In case the accompanied by an affidavit of the vendor that he has
agricultural lessor decides to sell the landholding, the given the written notice required in Section eleven of this
agricultural lessee shall have the preferential right to buy Chapter or that the land is not worked by an agricultural
the same under reasonable terms and conditions: lessee.
Provided, That the entire landholding offered for sale
must be pre-empted by the Department of Agrarian Section 14. Right of Pre-emption and Redemption Not
Reform upon petition of the lessee or any of them: Applicable to Land to be Converted into Residential,
Provided, further, That where there are two or more Industrial and Similar Purposes - (Amendments to RA No.
agricultural lessees, each shall be entitled to said 3844 (Agricultural Land Reform Code), Republic Act No.
preferential right only to the extent of the area actually 6389, [September 10, 1971])
cultivated by him. The right of pre-emption under this Section 15. Agricultural Leasehold Contract in General -
Section may be exercised within one hundred eighty days The agricultural lessor and the agricultural lessee shall be
from notice in writing, which shall be served by the free to enter into any kind of terms, conditions or
owner on all lessees affected and the Department of stipulations in a leasehold contract, as long as they are
Agrarian Reform. not contrary to law, morals or public policy. A term,
If the agricultural lessee agrees with the terms and condition or stipulation in an agricultural leasehold
conditions of the sale, he must give notice in writing to contract is considered contrary to law, morals or public
the agricultural lessor of his intention to exercise his right policy:
of pre-emption within the balance of one hundred eighty (1) If the agricultural lessee is required to pay a rental in
day's period still available to him, but in any case not less excess of that which is hereinafter provided for in this
than thirty days. He must either tender payment of, or Chapter;
present a certificate from the land bank that it shall make
payment pursuant to section eighty of this Code on, the (2) If the agricultural lessee is required to pay a
price of the landholding to the agricultural lessor. If the consideration in excess of the fair rental value as defined
latter refuses to accept such tender or presentment, he herein, for the use of work animals and/or farm
may consign it with the court. implements belonging to the agricultural lessor or to any
other person; or
Any dispute as to the reasonableness of the terms and
conditions may be brought by the lessee or by the (3) If it is imposed as a condition in the agricultural
Department of Agrarian Reform to the proper Court of leasehold contract: (a) that the agricultural lessee is
Agrarian Relations which shall decide the same within required to rent work animals or to hire farm implements
sixty days from the date of the filing thereof: Provided, from the agricultural lessor or a third person, or to make
That upon finality of the decision of the Court of Agrarian use of any store or services operated by the agricultural
Relations, the Land Bank shall pay to the agricultural lessor or a third person; or (b) that the agricultural lessee
lessor the price fixed by the court within one hundred is required to perform any work or render any service
twenty days: Provided, further, That in case the Land other than his duties and obligations provided in this
Bank fails to pay within that period, the principal shall Chapter with or without compensation; or (c) that the
earn an interest equivalent to the prime bank rate agricultural lessee is required to answer for any fine,
existing at the time. deductions and/or assessments.
Upon the filing of the corresponding petition or request Any contract by which the agricultural lessee is required
with the department or corresponding case in court by to accept a loan or to make payment therefor in kind shall
the agricultural lessee or lessees, the said period of one also be contrary to law, morals or public policy.
hundred and eighty days shall cease to run. Section 16. Nature and Continuity of Conditions of
Any petition or request for pre-emption shall be resolved Leasehold Contract - In the absence of any agreement as
within sixty days from the filing thereof; otherwise, the to the period, the terms and conditions of a leasehold
said period shall start to run again. contract shall continue until modified by the parties:
Provided, That in no case shall any modification of its
Section 12. Lessee's Right of Redemption. — In case the terms and conditions prejudice the right of the
landholding is sold to a third person without the agricultural lessee to the security of his tenure on the
knowledge of the agricultural lessee, the latter shall have landholding: Provided, further, That in case of a contract
the right to redeem the same at a reasonable price and with a period an agricultural lessor may not, upon the
consideration: Provided, That where there are two or expiration of the period increase the rental except in
more agricultural lessees, each shall be entitled to said accordance with the provisions of Section thirty-four.
right of redemption only to the extent of the area actually
cultivated by him. The right of the redemption under this Section 17. Form and Registration of Contract - Should
Section may be exercised within one hundred eighty days the parties decide to reduce their agreement into writing,
from notice in writing which shall be served by the the agricultural leasehold contract shall be drawn in
vendee on all lessees affected and the Department of quadruplicate in a language or dialect known to the
Agrarian Reform upon the registration of the sale, and agricultural lessee and signed or thumb-marked both by
shall have priority over any other right of legal the agricultural lessee personally and by the agricultural


lessor or his authorized representative, before two (4) To deal with millers and processors and attend to the
witnesses, to be chosen by each party. If the agricultural issuance of quedans and warehouse receipts for the
lessee does not know how to read, the contents of the produce due him.
document shall be read and explained to him by his Section 24. Right to a Home Lot - The agricultural lessee
witness. The contracting parties shall acknowledge the shall have the right to continue in the exclusive
execution of the contract before the justice of the peace possession and enjoyment of any home lot he may have
of the municipality where the land is situated. No fees or occupied upon the effectivity of this Code, which shall be
stamps of any kind shall be required in the preparation considered as included in the leasehold.
and acknowledgment of the instrument. Each of the
contracting parties shall retain a copy of the contract. The Section 25. Right to be Indemnified for Labor - The
justice of the peace shall cause the third copy to be agricultural lessee shall have the right to be indemnified
delivered to the municipal treasurer of the municipality for the cost and expenses incurred in the cultivation,
where the land is located and the fourth copy to the planting or harvesting and other expenses incidental to
Office of the Agrarian Counsel. the improvement of his crop in case he surrenders or
abandons his landholding for just cause or is ejected
Except in case of mistake, violence, intimidation, undue therefrom. In addition, he has the right to be indemnified
influence, or fraud, an agricultural contract reduced in for one-half of the necessary and useful improvements
writing and registered as hereinafter provided, shall be made by him on the landholding: Provided, That these
conclusive between the contracting parties, if not improvements are tangible and have not yet lost their
denounced or impugned within thirty days after its utility at the time of surrender and/or abandonment of
registration. the landholding, at which time their value shall be
Section 18. Registration of Leasehold Contract - The determined for the purpose of the indemnity for
municipal treasurer shall, upon receipt of his copy of the improvements.
contract, require the agricultural lessee and agricultural Section 26. Obligations of the Lessee - It shall be the
lessor to present their respective copies of the contract, obligation of the agricultural lessee:
and shall cause to be annotated thereon the date, time
and place of registration as well as its entry or registration (1) To cultivate and take care of the farm, growing crops,
number. and other improvements on the landholding as a good
father of a family and perform all the work therein in
Section 19. Registry of Agricultural Leasehold Contracts - accordance with proven farm practices;
The Municipal Treasurer of the municipality wherein the
land is situated shall keep a record of all such contracts (2) To inform the agricultural lessor within a reasonable
drawn and executed within his jurisdiction, to be known time of any trespass committed by third persons upon
as "Registry of Agricultural Leasehold Contracts". He shall the farm, without prejudice to his direct action against
keep this registry together with a copy of each contract the trespasser;
entered therein, and make annotations on said registry of (3) To take reasonable care of the work animals and farm
all subsequent acts relative to each contract, such as its implements delivered to him by the agricultural lessor
renewal, novation, cancellation, etc. No registration fees and see that they are not used for purposes other than
or documentary stamps shall be required in the those intended or used by another without the
registration of said contracts or of any subsequent acts knowledge and consent of the agricultural lessor:
relative thereto. Provided, however, That if said work animals get lost or
Section 20. Memorandum of Loans - No obligation to pay die, or said farm implements get lost or are destroyed,
money on account of loans including interest thereon through the negligence of the agricultural lessee, he shall
obtained by the agricultural lessee from the agricultural be held responsible and made answerable therefor to the
lessor or his representative shall be enforceable unless extent of the value of the work animals and/or farm
the same or a memorandum thereof be in writing in a implements at the time of the loss, death or destruction;
language or dialect known to the agricultural lessee, and (4) To keep his farm and growing crops attended to
signed or thumb-marked by him, or by his agent. during the work season. In case of unjustified
Section 21. Exemption from Lien and/or Execution - The abandonment or neglect of his farm, any or all of his
following shall be exempt from lien and/or execution expected produce may, upon order of the Court, be
against the agricultural lessee: forfeited in favor of the agricultural lessor to the extent of
the damage caused thereby;
(1) Twenty-five per centum of the entire produce of the
land under cultivation; and (5) To notify the agricultural lessor at least three days
before the date of harvesting or, whenever applicable, of
(2) Work animals and farm implements belonging to the threshing; and
agricultural lessee: Provided, That their value does not
exceed one thousand pesos. But no article or species of (6) To pay the lease rental to the agricultural lessor when
property mentioned in this Section shall be exempt from it falls due.
execution issued upon a judgment recovered for its price Section 27. Prohibitions to Agricultural Lessee - It shall be
or upon a judgment of foreclosure of a mortgage unlawful for the agricultural lessee:
thereon.
(1) To contract to work additional landholdings belonging
Section 22. Use of Accepted Standards of Weights and to a different agricultural lessor or to acquire and
Measures - In all transactions entered into between the personally cultivate an economic family-size farm,
agricultural lessee and the agricultural lessor concerning without the knowledge and consent of the agricultural
agricultural products the official or, upon agreement of lessor with whom he had entered first into household, if
the parties, the accepted standards of weights and the first landholding is of sufficient size to make him and
measures shall be used. the members of his immediate farm household fully
Section 23. Rights of Agricultural Lessee in General - It occupied in its cultivation; or
shall be the right of the agricultural lessee: (2) To employ a sub-lessee on his landholding: Provided,
(1) To have possession and peaceful enjoyment of the however, That in case of illness or temporary incapacity
land; he may employ laborers whose services on his
landholding shall be on his account.
(2) To manage and work on the land in a manner and
method of cultivation and harvest which conform to Section 28. Termination of Leasehold by Agricultural
proven farm practices; Lessee During Agricultural Year - The agricultural lessee
may terminate the leasehold during the agricultural year
(3) To mechanize all or any phase of his farm work; and for any of the following causes:
(1) Cruel, inhuman or offensive, treatment of the
agricultural lessee or any member of his immediate farm



household by the agricultural lessor or his representative (5) To discourage, directly or indirectly, the formation,
with the knowledge and consent of the lessor; maintenance or growth of unions or organizations of
(2) Non-compliance on the part of the agricultural lessor agricultural lessees in his landholding, or to initiate,
with any of the obligations imposed upon him by the dominate, assist or interfere in the formation or
provisions of this Code or by his contact with the administration of any such union or organization.
agricultural lessee; Section 32. Cost of Irrigation System - The cost of
(3) Compulsion of the agricultural lessee or any member construction of a permanent irrigation system, including
of his immediate farm household by the agricultural distributary canals, may be borne exclusively by the
lessor to do any work or render any service not in any way agricultural lessor who shall be entitled to an increase in
connected with farm work or even without compulsion if rental proportionate to the resultant increase in
no compensation is paid; production: Provided, That if the agricultural lessor
refuses to bear the expenses of construction the
(4) Commission of a crime by the agricultural lessor or his agricultural lessee/or lessees may shoulder the same, in
representative against the agricultural lessee or any which case the former shall not be entitled to an increase
member of his immediate farm household; or in rental and shall, upon the termination of the
(5) Voluntary surrender due to circumstances more relationship, pay the lessee or his heir the reasonable
advantageous to him and his family. value of the improvement at the time of the termination:
Provided, further, That if the irrigation system constructed
Section 29. Rights of the Agricultural Lessor - It shall be does not work, it shall not be considered as an
the right of the agricultural lessor: improvement within the meaning of this Section:
(1) To inspect and observe the extent of compliance with Provided, furthermore, That the lessees, either as
the terms and conditions of their contract and the individuals or as groups, shall undertake the
provisions of this Chapter; management and control of irrigation systems within
their respective jurisdiction. However, those constructed
(2) To propose a change in the use of the landholding to and operated by the government may be given to the
other agricultural purposes, or in the kind of crops to be lessees either as individuals or as groups at their option
planted: Provided, That in case of disagreement as to the with the right to maintain, manage and operate such
proposed change, the same shall be settled by the Court irrigation systems and to collect and receive rentals
according to the best interest of the parties concerned: therefrom: Provided, still further, That the lessees, either
Provided, further, That in no case shall an agricultural as individuals or as groups, shall allocate not more than
lessee be ejected as a consequence of the conversion of twenty-five per cent of their collection for rentals to the
the land to some other agricultural purpose or because of government if the irrigation system has obligations to
a change in the crop to be planted; meet until paid, otherwise such irrigation system will be
(3) To require the agricultural lessee, taking into maintained, managed and operated solely by the lessees
consideration his financial capacity and the credit either as individuals or as groups, subject to such rules on
facilities available to him, to adopt in his farm proven farm water rights and water use promulgated by the National
practices necessary to the conservation of the land, Irrigation Administration or such other government
improvement of its fertility and increase of its agencies authorized by law: Provided, finally, That if the
productivity: Provided, That in case of disagreement as to irrigation system is installed and/or constructed at the
what proven farm practice the lessee shall adopt, the expense of the landowner or agricultural lessor, the
same shall be settled by the Court according to the best Department of Agrarian Reform shall initiate, while the
interest of the parties concerned; and Land Bank shall finance, the acquisition of such irrigation
(4) To mortgage expected rentals. system at its current fair market value so that the
ownership thereof may be vested in the lessees as
Section 30. Obligations of the Agricultural Lessor - It shall individuals or groups. (Amendments to RA No. 3844
be the obligation of the agricultural lessor: (Agricultural Land Reform Code), Republic Act No. 6389,
(1) To keep the agricultural lessee in peaceful possession [September 10, 1971])
and cultivation of his landholding; and Section 33. Manner, Time and Place of Rental Payment -
(2) To keep intact such permanent useful improvements The consideration for the lease of the land shall be paid in
existing on the landholding at the start of the leasehold an amount certain in money or in produce, or both,
relation as irrigation and drainage system and marketing payable at the place agreed upon by the parties
allotments, which in the case of sugar quotas shall refer immediately after threshing or processing if the
both to domestic and export quotas, provisions of existing consideration is in kind, or within a reasonable time
laws to the contrary notwithstanding. thereafter, if not in kind.
Section 31. Prohibitions to the Agricultural Lessor - It shall In no case shall the agricultural lessor require the
be unlawful for the agricultural lessor: agricultural lessee to file a bond, make a deposit or pay
the rental in advance, in money or in kind or in both, but a
(1) To dispossess the agricultural lessee of his landholding special and preferential lien is hereby created in favor of
except upon authorization by the Court under Section the agricultural lessor over such portion of the gross
thirty-six. Should the agricultural lessee be dispossessed harvest necessary for the payment of the rental due in his
of his landholding without authorization from the Court, favor.
the agricultural lessor shall be liable for damages suffered
by the agricultural lessee in addition to the fine or Section 34. Consideration for the Lease of Riceland and
imprisonment prescribed in this Code for unauthorized Lands Devoted to Other Crops - The consideration for the
dispossession; lease of riceland and lands devoted to other crops shall
not be more than the equivalent of twenty-five per
(2) To require the agricultural lessee to assume, directly or centum of the average normal harvest or if there have
indirectly, the payment of the taxes or part thereof levied been no normal harvests, then the estimated normal
by the government on the landholding; harvest during the three agricultural years immediately
(3) To require the agricultural lessee to assume, directly or preceding the date the leasehold was established after
indirectly, any part of the rent, "canon" or other deducting the amount used for seeds and the cost of
consideration which the agricultural lessor is under harvesting, threshing, loading, hauling and processing,
obligation to pay to third persons for the use of the land; whichever are applicable: Provided, That if the land has
been cultivated for a period of less than three years, the
(4) To deal with millers or processors without written initial consideration shall be based on the average normal
authorization of the lessee in cases where the crop has to harvest or if there have been no normal harvests, then the
be sold in processed form before payment of the rental; estimated normal harvest during the preceding years
or when the land was actually cultivated, or on the harvest
of the first year in the case of newly cultivated lands, if



that harvest is normal harvests, the final consideration in such amount as may be necessary to be determined by

shall be based on the average normal harvest during its Board of Trustees.
these three preceding agricultural years. In case of default in the payment of three consecutive
In the absence of any agreement between the parties as installments on the loan, the lender shall immediately
to the rental, the Court of Agrarian Relations shall notify, among others, the Land Bank and the department
summarily determine a provisional rental in pursuance of of such default, and thereafter, these agencies shall take
existing laws, rules and regulations and production the appropriate steps either:
records available in the different field units of the (1) To answer for the default in case the reason therefor is
department, taking into account the extent of the due to fortuitous event, or
development of the land at the time of the conversion
into leasehold and the participation of the lessee in the (2) In any other case, to take over the ownership and
development thereof. This provisional rental shall administration of said property.
continue in force and effect until a fixed rental is finally In the latter case mentioned under the preceding
determined. The court shall determine the fixed rental paragraph, the government shall endeavor to substitute
within thirty days after the petition is submitted for the defaulting amortizing owner with a new one who
decision. does not own any land and who shall be subrogated to
If capital improvements are introduced on the farm not the rights, and shall assume the obligations, of the former
by the lessee to increase its productivity, the rental shall amortizing owner.
be increased proportionately to the consequent increase The rules prescribed in the two immediately preceding
in production due to said improvements. In case of paragraphs shall apply in case the lessee defaults in the
disagreement, the Court shall determine the reasonable payment of at least three consecutive rental
increase in rental. (Amendments to RA No. 3844 amortizations, with the former landowner giving the
(Agricultural Land Reform Code), Republic Act No. 6389, required notice in proper cases.
[September 10, 1971])
In all instances where default is due to fortuitous events
Section 34-A. Rental credited as amortization payment the Land Bank shall be answerable for such default and
on purchase price. — The rental paid under the preceding the farmers shall be released from the obligations to pay
section after the approval of this amendatory Act shall be such installment or installments due together with
credited as amortization payment on the purchase price interest thereon. (Amendments to RA No. 3844
of the landholding tilled by the lessee in any of the (Agricultural Land Reform Code), Republic Act No. 6389,
following instances: [September 10, 1971])
(1) When the landholding is expropriated by the Section 35. Exemption from Leasehold of Other Kinds of
government for the lessee; and Lands - Notwithstanding the provisions of the preceding
(2) When it is redeemed. Sections, in the case of fishponds, saltbeds, and lands
principally planted to citrus, coconuts, cacao, coffee,
The purchase price of the landholding shall be durian, and other similar permanent trees at the time of
determined by the parties or the government agencies the approval of this Code, the consideration, as well as the
concerned on the same basis prescribed under section tenancy system prevailing, shall be governed by the
fifty-six of this Code: Provided, That whatever balance provisions of Republic Act Numbered Eleven hundred
remains after crediting as amortization the rental paid, and ninety-nine, as amended.
the same may be financed by the Land Bank in the same
ratio and mode of payment as provided under section Section 36. Possession of Landholding; Exceptions -
eighty of this Code. Notwithstanding any agreement as to the period or
future surrender, of the land, an agricultural lessee shall
The provisions of Act Numbered Four hundred ninety-six, continue in the enjoyment and possession of his
as amended, and other laws to the contrary landholding except when his dispossession has been
notwithstanding, the Land Registration Commission is authorized by the Court in a judgment that is final and
hereby authorized concurrently with the Bureau of Lands executory if after due hearing it is shown that:
to approve survey plans of lands intended for original
registration and to issue transfer certificate of title in favor (1) The landholding is declared by the department head
of the new amortizing-owner-beneficiaries under this upon recommendation of the National Planning
section and the Registries of Deeds to register the same. Commission to be suited for residential, commercial,
For this purpose, the Land Registration Commissioner industrial or some other urban purposes: Provided, That
shall issue the necessary rules and regulations for the the agricultural lessee shall be entitled to disturbance
implementation of this provision. (Withdrawing the compensation equivalent to five times the average of the
Authority of the Land Registration Commission to gross harvests on his landholding during the last five
Approve Original Survey Plans, Presidential Decree No. preceding calendar years; (Amendments to RA No. 3844
239, [July 9, 1973]) (Agricultural Land Reform Code), Republic Act No. 6389,
[September 10, 1971])
The Department and/or the Bank, in appropriate cases,
shall facilitate the immediate issuance of the (2) The agricultural lessee failed to substantially comply
corresponding transfer certificate of title of the with any of the terms and conditions of the contract or
landholding to the new amortizing owner with the any of the provisions of this Code unless his failure is
encumbrance thereof duly annotated. caused by fortuitous event or force majeure;
Provisions of existing laws, rules and regulations to the (3) The agricultural lessee planted crops or used the
contrary notwithstanding, any amortizing owner may use landholding for a purpose other than what had been
this transfer certificate of title to obtain a loan from any previously agreed upon;
public or private lending institution and he shall be (4) The agricultural lessee failed to adopt proven farm
entitled to borrow therefor an amount not less than sixty practices as determined under paragraph 3 of Section
per centum of the fair market value of the twenty-nine;
property:Provided, That the proceeds of such loan shall be
applied as follows: fifty per centum as partial payment of (5) The land or other substantial permanent improvement
any unpaid balance on the landholding and the thereon is substantially damaged or destroyed or has
remaining fifty per centum for the capital improvement unreasonably deteriorated through the fault or
of the land and operating capital for farm operations of negligence of the agricultural lessee;
the amortizing owner. (6) The agricultural lessee does not pay the lease rental
The payment of all loans obtained pursuant to the when it falls due: Provided, That if the non-payment of
provisions of this section shall be guaranteed by the Land the rental shall be due to crop failure to the extent of
Bank and for this purpose, it shall set aside a sinking fund seventy-five per centum as a result of a fortuitous event,
the non-payment shall not be a ground for dispossession,



although the obligation to pay the rental due that in order to avoid a serious loss which the farm employer
particular crop is not thereby extinguished; or or manager would otherwise suffer, or some other just
(7) The lessee employed a sub-lessee on his landholding cause of a similar nature, but in all such cases the farm
in violation of the terms of paragraph 2 of Section workers shall be entitled to receive compensation for the
twenty-seven. overtime work performed at the same rate as their
regular wages, plus at least twenty-five per centum
Section 37. Burden of Proof - The burden of proof to show additional, based on their daily wages.
the existence of a lawful cause for the ejectment of an
agricultural lessee shall rest upon the agricultural lessor. No farm employer or manager shall compel a farm
worker to work during Sundays and legal holidays:
Section 38. Statute of Limitations - An action to enforce Provided, however, That should the farm worker agree to
any cause of action under this Code shall be barred if not work on said days, he shall be paid an additional sum of
commenced within three years after such cause of action at least twenty-five per centum of his regular
accrued. compensation; Provided, further, That the farm employer
or manager shall not be held liable for any claim for
CHAPTER II BILL OF RIGHTS FOR AGRICULTURAL overtime work which he had not previously authorized,
LABOR except if the work rendered was to avoid damages to
crops, produce, work animals or implements, buildings or
Section 39. Rights for Agricultural Labor - To enable the
the like.
farm workers to enjoy the same rights and opportunities
in life as industrial workers, they shall enjoy the following: Any agreement or contract between the farm employer
or manager and the farm worker contrary to the
(1) Right to self-organization;
provisions of this Section shall be null and void.
(2) Right to engage in concerted activities as defined
Section 44. Right of Action for Damages -
under Republic Act Numbered Eight hundred and
Notwithstanding the provisions of existing laws to the
seventy-five. (Amendments to RA No. 3844 (Agricultural
contrary, Act Numbered Eighteen hundred and
Land Reform Code), Republic Act No. 6389, [September
seventy-four, as amended, entitled "An Act to extend and
10, 1971])
regulate the responsibility of employers for personal
(3) Right to minimum wage; injuries and death suffered by their employees while at
(4) Right to work for not more than eight hours; work", shall apply to farm workers insofar as it may be
applicable.
(5) Right to claim for damages for death or injuries
sustained while at work; Section 45. Right to Compensation for Personal Injuries,
Death, or Illness - Notwithstanding the provisions of
(6) Right to compensation for personal injuries, death or existing laws to the contrary, Act Numbered Thirty-four
illness; and hundred and twenty-eight, as amended, entitled "An Act
(7) Right against suspension or lay-off. prescribing the compensation to be received by
employees for personal injuries, death or illness
Section 40. Right to Self-Organization - The farm workers contracted in the performance of their duties", shall apply
shall have the right to self-organization and to form, join to farm workers insofar as it may be applicable.
or assist farm workers' organizations of their own
choosing for the purpose of collective bargaining through Section 46. Right Against Suspension of Lay-off - The
representatives of their own choosing: Provided, That this landowner, farm employer or farm manager shall not
right shall be exercised in a manner as will not unduly suspend, lay-off or dismiss any farm worker without just
interfere with the normal farm operations. Individuals cause from the time a farm workers' organization or
employed as supervisors shall not be eligible for group of farm workers has presented to the landowner a
membership in farm workers' organizations under their petition or complaint regarding any matter likely to cause
supervision but may form separate organizations of their a strike or lockout and a copy thereof furnished with the
own. Department of Labor, or while an agricultural dispute is
pending before the Court of Agrarian Relations. If it is
Section 41. Right to Engage in Concerted Activities - The proved during the said period that a worker has been
farm workers shall also have the right to engage in suspended or dismissed without just cause, the Court
concerted activities for the purpose of collective may direct the reinstatement and the payment of his
bargaining and other mutual aid or protection. wage during the time of his suspension or dismissal or of
For the purpose of this and the preceding Section, it shall any sum he should have received had he not been
be the duty of the farm employer or manager to allow the suspended or dismissed, without prejudice to any
farm workers, labor leaders, organizers, advisers and criminal liability of the landowner, farm employer or farm
helpers complete freedom to enter and leave the farm, manager as prescribed by Section twenty-four of
plantation or compound at the portion of the same Commonwealth Act Numbered One hundred and three,
where said farm workers live or stay permanently or as amended.
temporarily. Section 47. Other Applicable Provisions - All other
Section 42. Right to Minimum Wage - Notwithstanding existing laws applicable to non-agricultural workers in
any provision of law or contract to the contrary, farm private enterprises which are not inconsistent with this
workers in farm enterprises shall be entitled to at least Code shall likewise apply to farm workers, farm labor
P3.50 a day for eight hours' work: Provided, That this wage organizations and agrarian disputes as defined in this
may, however, be increased by the Minimum Wage Board Code, as well as to relations between farm management
as provided for in Republic Act Numbered Six hundred and farm labor and the functions of the Department of
and two. Labor and other agencies.
Section 43. Right to Eight Hours' Work - Notwithstanding Section 48. Exceptions to Preceding Section - The
the provision of existing laws to the contrary, farm preceding Sections of this Chapter, except Sections forty,
workers shall not be required to work for more than eight forty-one, forty-two and forty-three shall not apply to farm
hours daily. When the work is not continuous, the time enterprises comprising not more than twelve hectares.
during which the farm worker is not working and can
leave his working place and can rest completely shall not CHAPTER III DEPARTMENT OF AGRARIAN REFORM
be counted.
Work may be performed beyond eight hours a day in ARTICLE I Organization and Functions of the
case of actual or impending emergencies caused by Department of Agrarian Reform
serious accidents, fire, flood, typhoon, epidemic, or other Section 49. Creation of the Department of Agrarian
disaster or calamity, or in case of urgent work to be Reform. — For the purpose of carrying out the policy of
performed on farm machines, equipment or installations establishing owner-cultivatorship and the economic



family size farm as the basis of Philippine agriculture and shall be organized and shall perform the functions as
other policies enunciated in this Code, there is hereby follows:
created a Department of Agrarian Reform, hereinafter (1) Planning Service
referred to as Department, which shall be directly under
the control and supervision of the President of the The Planning Service shall be responsible for providing
Philippines. It shall have authority and responsibility for the department with economical, efficient, and effective
implementing the policies of the state on agrarian services relating to planning, programming and project
reforms as provided in this Code and such other existing development.
laws as are pertinent thereto. (2) Financial and Management Service
The Department shall be headed by a Secretary who shall The Financial and Management Service shall be
be appointed by the President with the consent of the responsible for providing the department with staff
Commission on Appointments. advice and assistance on budgetary, financial, and
He shall be assisted by one Undersecretary who shall be management improvement matters.
appointed by the President with the consent of the (3) Administrative Service
Commission on Appointments.
The Administrative Service shall be responsible for
Section 50. Qualifications and Compensations of providing the department with economical, efficient, and
Secretary and Undersecretary. — No person shall be effective services relating to personnel, legal assistance,
appointed Secretary or Undersecretary of the information, records, supplies, equipment, collection,
Department unless he is a natural born citizen of the disbursements, security, and custodial work.
Philippines, with proven executive ability and adequate
background and experience in land reform here and/or Section 50-F. Creation of Bureaus; Functions. — There
elsewhere for at least five (5) years, and at least thirty-five shall be under the department the following bureaus
years of age: Provided, however, That the Undersecretary each to be headed by a Director who shall be assisted by
shall be a career administrator and, at the time of his an Assistant Director, charged with the direct
appointment, shall not be more than fifty-seven (57) years implementation of the programs and policies of the
of age, unless the President has determined that he Department:
possesses special qualifications and his services are (1) The Bureau of Farm Management which shall be
needed. responsible for the development and implementation of
The Secretary and the Undersecretary shall have, among programs on increased productivity, home improvement,
other qualifications, demonstrated interest in, and and rural youth development;
concern for, the needs and problems of the rural and (2) The Bureau of Land Acquisition, distribution and
farm populations and the solutions thereto: Provided, development which shall be responsible for the
That no person who owns any farmholding shall be distribution of lands to bona fide farmers, for conducting
appointed as Secretary or Undersecretary unless such land capability survey and classification, and for the
farmholding is under the leasehold system or the system improvement of lands acquired by the Department;
of agricultural land ownership transfer direct to the tiller.
(3) The Bureau of Resettlement which shall be
The Secretary shall receive an annual compensation responsible for the resettlement of displaced farmers,
equivalent to any other executive department secretary; landless families, and urban workers in the settlement
the Undersecretary shall receive an annual compensation projects of the Department, the construction of houses,
equivalent to any other executive department roads and other facilities, and the taking of a census of all
undersecretary. (Amendments to RA No. 3844 proclaimed and unproclaimed resettlements; and
(Agricultural Land Reform Code), Republic Act No. 6389,
[September 10, 1971]) (4) The Bureau of Agrarian Legal Assistance which shall
be responsible for extending legal assistance to farmers
Section 50-A. Powers and functions of the Secretary. — including those provided under Republic Act Numbered
In addition to the powers and functions specified in this Forty-eight hundred and eighty-six, the execution of
Code, the Secretary shall exercise such powers and leasehold contracts and apprising the farmers with their
perform such functions and duties as are required of any rights and duties under the law.
executive department secretary under existing laws.
Each of these bureaus may establish such divisions as are
Section 50-B. Powers and functions of the necessary for the economical, efficient and effective
Undersecretary. — In addition to the powers and performance of its functions.
functions specified in this Code, the Undersecretary shall
exercise such powers and perform such functions and Section 50-G. Appointment, Qualifications and
duties as are required of any executive Department Compensations of Directors and the Assistant Directors;
Undersecretary under existing laws. Appointment of Personnel. — The Director of a Bureau
and his assistant shall each receive the equivalent
Section 50-C. Vacancy in office or incapacity. — In case compensation and shall be appointed in the same
of vacancy in the office of Secretary or inability of the manner as any other director or assistant director of a
Secretary to exercise his powers and perform his bureau.
functions and duties due to his illness, absence or any
other cause, the Undersecretary shall temporarily No person shall be appointed director or assistant
perform the functions of the said office. director of a bureau unless he is a natural-born citizen of
the Philippines, with proven executive ability and
Section 50-D. Office of the Secretary; Appointment of adequate background and experience in land reform
Personnel. — The office of the Secretary shall be here and/or elsewhere for at least three (3) years, and at
composed of the Secretary, the Undersecretary, the chiefs least twenty-five years of age; Provided, That the Director
of the staff services or units directly under the or Assistant Director shall be a career administrator and;
department proper, together with the personnel thereof. at the time of his appointment, shall not be more than
All personnel of the department proper shall be fifty-seven (57) years of age, unless the President has
appointed by the Secretary in accordance with applicable determined that he possesses special qualifications and
civil service law and rules. his services are needed: Provided, further, That the
Director or Assistant Director shall have, among other
Section 50-E. Creation of Staff Services; Functions. — qualifications, demonstrated interest in, and concern for,
There shall be created in the department a planning the needs and problems of the rural and farm population
service, a financial and management service, an and the solutions thereto: Provided, finally, That no
administrative service, and such other staff services as the person who owns any farmholding shall be appointed as
Secretary may deem necessary to establish in accordance Director or Assistant Director unless such farmholding is
with this section, each to be headed by a chief, which


under the leasehold system or the system of agricultural i. Region No. 9 is called the Central Mindanao Region, and
land ownership-transfer direct to the tiller. comprises the provinces of Camiguin, Misamis Oriental,
All personnel of the Bureaus shall be appointed by the Bukidnon, Cotabato, and South Cotabato, and the cities of
Secretary, upon recommendation of their respective Cagayan de Oro, Cotabato, General Santos, and Gingoog,
Director, in accordance with applicable civil service law with the regional center at Cagayan de Oro City;
and rules. j. Region No. 10 is called the Eastern Mindanao Region,
Section 50-H. Functions of Directors and Assistant and comprises the provinces of Surigao del Norte, Surigao
Director. — The Director or in his absence, the Assistant del Sur, Agusan del Norte, Agusan del Sur, Davao del
Director, shall exercise such powers and perform such Norte, Davao Oriental, and Davao del Sur, and the cities of
functions and duties as are provided for under existing Butuan, Davao, and Surigao, with the regional center at
laws, in addition to the powers and functions provided for Davao City;
in this Code. (2) The Department shall organize an integrated and
Section 50-I. Regional and Field Offices. — The department-wide field services as the exigencies of the
Department may have regional and other field offices, Agrarian Reform Program may require:Provided, That the
the number, location and organization of which shall be Department shall establish in every regional or other field
determined by the Department in conformity with the office organized, a consultative and coordinating body
area pattern prescribed hereunder: which shall include in its membership a tiller-lessee
representing the agricultural lessees and a representative
(1) The Department, in the establishment of regional and from the local governments of the area where said office
other field offices, shall follow the field service area is operating.
pattern authorized below. There are established ten
regions, each with definite regional centers within the (3) The regional office shall be headed by a Regional
region as follows: Director who may be assisted, whenever necessary, by an
Assistant Regional Director. The Regional Director and
a. Region No. 1 is called the Ilocos Region, and comprises Assistant Director, if any, shall be appointed by the
the provinces of Batanes, Ilocos Norte, Ilocos Sur, Abra, La Secretary in accordance with applicable civil service law
Union, Benguet, and Mountain Province and the cities of and rules; Provided, however, That the Regional Director
Baguio, and Laoag, with the regional center at San and Assistant Regional Director shall have the same
Fernando, La Union; qualifications as Bureau Director and Assistant Director,
b. Region No. 2 is called the Cagayan Valley Region, and respectively.
comprises the provinces of Cagayan, Isabela, Nueva All personnel of the Regional and other offices shall be
Vizcaya, Quirino (Sub-province), Ifugao, and appointed by the Secretary upon recommendation of
Kalinga-Apayao, with the regional center at Tuguegarao, their respective regional director, in accordance with
Cagayan; applicable civil service law and rules: Provided, That
c. Region No. 3 is called the Central Luzon Region, and applicants from the region, who possess the required
comprises the provinces of Pangasinan, Tarlac, Nueva qualifications, shall be appointed to vacant positions in
Ecija, Pampanga, Zambales, Bulacan, Bataan, and the the said region, unless nobody among the said applicants
cities of Angeles, Cabanatuan, Dagupan, Olongapo, is qualified; in which case, applicants from other regions
Palayan, San Carlos (Pangasinan) and San Jose (Nueva may be considered.
Ecija), with the regional center at San Fernando, (4) The Regional Director shall be responsible in carrying
Pampanga; out the policies and implementing the plans and
d. Region No. 4 is called the Southern Tagalog Region, programs of the Department in the regional area under
and comprises the provinces of Rizal, Cavite, Laguna, his jurisdiction: Provided, however, That when the
Batangas, Quezon, Marinduque, Oriental Mindoro, department's function or activity transcends regional
Occidental Mindoro, Romblon, Aurora (Sub-province), and boundaries and requires central and/or inter-regional
Palawan, and the cities of Batangas, Caloocan, Cavite, action, said functions may be performed under the direct
Lipa, Lucena, Manila, Pasay, Puerto Princesa, Quezon, San supervision and control of the department.
Pablo, Tagaytay, and Trece Martires with the regional (5) The Regional offices shall have units on agricultural
center at greater Manila; extension, credit and legal assistance, as well as
e. Region No. 5 is called the Bicol Region, and comprises cooperative development; or personnel in which the
the provinces of Camarines Norte, Camarines Sur, Albay, functional areas of the department may be represented.
Catanduanes, Masbate, and Sorsogon, and the cities of There shall be in these regional units as much
Iriga, Legazpi and Naga, with the regional center at combination of related functions as possible.
Legazpi City; (6) The functions of a regional office shall be as follows:
f. Region No. 6 is called the Western Visayas Region, and a. Implement laws, policies, plans, programs, rules and
comprises the provinces of Negros Occidental, Iloilo, regulations of the Department in the regional areas;
Guimaras (Sub-province), Antique, Aklan and Capiz, and
the cities of Bacolod, Bago, Cadiz, Iloilo, La Carlota, Roxas, b. Provide economical, efficient, and effective service to
San Carlos (Negros Occidental) and Silay, with regional the people in the area;
center at Iloilo City; c. Coordinate with regional offices of other departments,
g. Region No. 7 is called the Central and Eastern Visayas bureaus, agencies in the area;
Region, and comprises the provinces of Negros Oriental, d. Coordinate with local government units in the area;
Siquijor (Sub-province), Cebu, Bohol, Northern Samar, and
Eastern Samar, Western Samar, Leyte, Southern Leyte, e. Perform such related functions as may be provided by
and Biliran (Sub-province) and the cities of Bais, Calbayog, other existing laws. (Amendments to RA No. 3844
Canlaon, Catbalogan, Cebu, Danao, Dumaguete, (Agricultural Land Reform Code), Republic Act No. 6389,
Lapu-Lapu, Ormoc, Mandawe, Tacloban, Tagbilaran, and [September 10, 1971])
Toledo, with the regional center at Cebu City;
Section 51. Powers and Functions - It shall be the
h. Region No. 8 is called the Western Mindanao Region, responsibility of the Department:
and comprises the provinces of Misamis Occidental,
Lanao del Norte, Lanao del Sur, Zamboanga del Norte, (1) to initiate and prosecute expropriation proceedings for
Zamboanga del Sur, and Sulu, and the cities of Basilan, the acquisition of private agricultural lands as defined in
Dapitan, Dipolog, Iligan, Marawi, Oroquieta, Ozamis, Section one hundred sixty-six of Chapter XI of this Code
Pagadian, Tangub, and Zamboanga with the regional for the purpose of subdivision into economic family-size
center at Zamboanga City; farm units and resale of said farm units to bona fide
tenants, occupants and qualified farmers:Provided, That
the powers herein granted shall apply only to private



agricultural lands subject to the terms and conditions the preservation and conservation of public national and
and order of priority hereinbelow specified. municipal forests, parks and watersheds:Provided, further,
a. all idle or abandoned private agricultural lands, except That said authority shall not be construed to exclude the
those held or purchased within one year from the other modes of disposition of public agricultural lands
approval of this Code by private individuals or under the public land Act or to contravene the authority
corporations for the purpose of resale and subdivision granted by law to the Department of Agriculture and
into economic family-size farm units of not more than six Natural Resources over all public agricultural lands not
(6) hectares each in accordance with the policies covered by the Agrarian Reform Program: Provided,
enunciated in this Code: Provided, That the subdivision finally, That the Secretary of the Department of
and resale shall be substantially carried out within one Agriculture and Natural Resources shall within a period of
year from the approval of this Code; ten years from the approval of this Amendatory Act,
release to the Department of Agrarian Reform for
b. all private agricultural lands suitable for subdivision into resettlement and sale all lands of the public domain
economic family-size farm units of not more than six (6) reserved for agricultural resettlement and sale except
hectares owned by private individuals or corporation public agricultural lands which are reserved as
worked by lessees, no substantial portion of whose settlements for the national cultural minorities under the
landholding in relation to the area sought to be administration of the Commission on National
expropriated, is planted to permanent crops under labor Integration;
administration, in excess of twenty-four hectares except
all private agricultural lands under labor administration: (4) To develop plans and initiate actions for the systematic
Provided, That private agricultural lands occupied and opening of alienable and disposable lands of the public
cultivated continuously for not less than ten years by domain for speedy distribution to and development by
tillers or their ascendants who are not farm laborers or deserving and qualified persons who do not own any
lessees may be subject to expropriation under this Code: land in sizes of not more than six hectares;
Provided, further, That any court action filed for the (5) To recommend to the President, from time to time
ejectment of the tiller shall not interrupt the running of after previous consultation with the Secretary of
the ten-year period unless such action is filed within Agriculture and Natural Resources, what portion of the
three years from the date of occupancy: Provided, finally, alienable, or disposable public lands shall be reserved for
That if the final decision rendered in the court action is resettlement or disposition under this Chapter;
favorable to the tiller, the ten-year period shall be (6) To give economic family-size farms of not more than
considered as continuous and uninterrupted; and six hectares to landless citizens of the Philippines who
c. in expropriating private agricultural lands declared by need, deserve, and are capable of cultivating the land
the Department of Agrarian Reform to be necessary for personally, through organized resettlement, under the
the implementation of the provisions of this Code, the terms and conditions the Department may prescribe,
following order of priority shall be considered; giving priority to qualified and deserving farmers in the
1. idle or abandoned lands; province where such lands are located;
2. those whose area exceeds 1,024 hectares; (7) To reclaim swamps and marshes for agricultural
purposes only, obtain titles thereto whenever feasible and
3. those whose area exceeds 500 hectares but is not more subdivide them into economic family-size farms of not
than 1,024 hectares; more than six hectares for distribution to deserving and
4. those whose area exceeds 144 hectares but is not more qualified farmers;
than 500 hectares; (8) To undertake measures which will insure the early
5. those whose area exceeds 75 hectares but is not more issuance of titles to persons or corporations who have
than 144 hectares; and actually settled and cultivated disposable alienable lands
of the public domain;
6. those whose area exceeds 24 hectares but is not more
than 75 hectares. (9) To survey, subdivide and set aside lands or areas of
land-holdings under its custody and administration for
(2) To acquire private agricultural lands regardless of area economic family-size farms, large-scale farm operations,
through negotiated purchase subject to approval of the town sites, roads, parks, government centers and other
court as to price for distribution and sale at cost to their civic improvements as circumstances may warrant:
actual occupants who are tillers of the land in lots of not Provided, That the Bureau of Lands and the Land
more than six hectares: Provided, That where there are Registration Commission, as the case may be, shall verify
several groups or individuals of such tillers petitioning for the said surveys or subdivisions, and after such
the acquisition of their respective occupancy, priority shall verifications, approve or disapprove the same; and issue,
be given to the group with a greater number of tillers in case of approval of said surveys or subdivisions, the
who first filed the petition over a group with a lesser corresponding patents and titles thereto;
number of tillers, and the latter over individual tillers:
Provided, further, That the group or individual who has (10) To inform the Agricultural Productivity Commission
continuously tilled the land longest shall have the first and the Department of Agriculture and Natural
priority; Resources of the problems of settlers and farmers on
lands under its administration and in land reform areas:
(3) To help bona fide farmers without lands or agricultural Provided, That it is mandatory for the said Commission
owner-cultivators of uneconomic size farms to acquire and Department to provide field agricultural extension
and own economic family-size farm units of not more service to these areas upon being informed of the
than six hectares each; problems obtaining: Provided, further, That settlement
(4) To administer and dispose of agricultural lands of the projects and land reform areas, especially private
public domain under the custody and administration of agricultural lands acquired by the government, shall be
the National Resettlement and Rehabilitation given first priority in the diffusion of useful and practical
Administration and the Economic Development Corps of information, knowledge and skills on agriculture, soil
the Armed Forces of the Philippines prior to the approval conservation, livestock, fisheries, forest conservation,
of this Amendatory Act and such other public agricultural public lands and natural resources laws, home economics
lands as may hereafter be reserved by the President of and rural life, in order to encourage their application
the Philippines or by law for resettlement and sale, in through field demonstrations, lectures and conferences,
accordance with such terms and conditions as are set publications and other means of imparting information,
forth under this chapter: Provided, That the exercise of stimulation, promotion and organization of agricultural
the authority granted herein, as well as the preceding cooperatives and encouragement in the formation and
subparagraph, shall not contravene public policy on the growth of private associations, study clubs, committees
permanency of forest reserves or other laws intended for


and other groups of farmers and members of their family subdivision thereof, allow the Land Bank to have the title
that will enhance their social and economic conditions; thereto for the purpose of paying the owner the just
(11) To acquire for agricultural lessees exercising their right compensation therefor.
to pre-emption and redemption under Chapter I of this Section 58. Issuance of Certificates of Title for Parcel or
Code, any land-holdings mentioned thereunder; Lot - After the payment of just compensation on the land
(12) To conduct land capability survey and classification of expropriated the Land Bank shall cause the issuance of
the entire country and print maps; separate certificates of titles for each parcel or lot in
accordance with the subdivision survey made under
(13) To make such arrangements with the Land Bank with Section fifty-five.
respect to titles of agricultural lands of the public domain
under its administration as will be necessary to carry out Section 59. Prohibition Against Alienation and
the objectives of this Code; Ejectment - Upon the filing of the petition referred to in
Section fifty-three the landowner may not alienate any
(14) To expropriate home lots occupied by agricultural portion of the land covered by such petition except in
lessees outside their landholdings for resale at cost to pursuance of the provisions of this Code, or enter into any
said agricultural lessees; form of contract to defeat the purposes of this Code, and
(15) To see to it that all agricultural lands, either public or no ejectment proceedings against any lessee or occupant
private, distributed by the government to the of the land covered by the petition shall be instituted or
beneficiaries of the Agrarian Reform Program shall be prosecuted until it becomes certain that the land shall
sold only by the said beneficiaries to the government; and not be acquired by the Authority.
(16) To submit to the President of the Philippines and to Section 60. Disposition of Expropriated Land - After
both Houses of Congress through their presiding officers, separate certificates of titles have been issued in
to the Secretary of Finance and to the Auditor General accordance with Section fifty-eight, the Department of
within sixty days of the close of the fiscal year, an annual Agrarian Reform, on behalf of the Republic of the
report showing its Accomplishments during the year; the Philippines and in representation of the Land Bank as the
expropriation proceedings it has undertaken; the financing agency, shall allot and sell each parcel or lot to a
expenditures it has incurred and other financial qualified beneficiary selected under Section fifty-five of
transactions undertaken with respect thereto; this Code, subject to uniform terms and conditions
(Amendments to RA No. 3844 (Agricultural Land Reform imposed by the Land Bank: Provided, That the resale shall
Code), Republic Act No. 6389, [September 10, 1971]) be at cost which shall mean the purchase price not more
than six per centum per annum, which shall cover
Section 52. Appointment of Subordinate Officials and administrative expenses, and actual expenses for
Employees - The Governor shall organize the personnel in subdivision, surveying, and registration: Provided, further,
such departments, divisions and sections of the Authority That such cost shall be paid on the basis of an
as will insure their maximum efficiency. He shall appoint, amortization plan not exceeding twenty-five years at the
subject to civil service rules and regulations, fix the option of the beneficiary.
compensation, subject to WAPCO rules and regulations,
and determine the duties of subordinate officials and In case some agricultural lessees working portions of
employees as the exigencies of the service may require. agricultural lands acquired by the government under this
Code prefer to remain as lessees thereof, which
ARTICLE II Expropriation of Private preference shall be expressed in writing and attested by a
representative of the Office of Agrarian Counsel, the
Agricultural Lands
resale and redistribution to them shall be deferred until
Section 53. Compulsory Purchase of Agricultural Lands - such time that such lessees are ready and willing to
(Repealed by Republic Act No. 9700, [August 7, 2009]) assume the obligations and responsibilities of
Section 54. Possession of the Land; Procedure - The independent owners, which shall be manifested by a
Authority, after commencing the expropriation suit, may written notice to this effect by the lessees and which shall
take immediate possession of the land upon deposit with oblige the Department of Agrarian Reform forthwith to
the Court that has acquired jurisdiction over the allot and sell such portions to such lessees under the
expropriation proceedings in accordance with the Rules same uniform terms and conditions. Pending the sale,
of Court, of money, and bonds of the Land Bank, in such lessees shall continue to work on their landholdings
accordance with the proportions provided for under and receive the produce thereof, subject, however, to the
Section eighty of this Code, equal to the value as requirement that they pay the Land Bank the allowable
determined by the Court in accordance with the rental established in Section thirty-four. The Land Bank
provisions of Section fifty-six hereof. shall apply the rental to the six percent added to the
acquisition price and credit the balance to the acquisition
Section 55. Expeditious Survey and Subdivision - cost in the name of the lessee as partial payment for the
Immediately after the Authority takes possession of lands land.
to be acquired by it under this Code, it shall undertake a
subdivision survey of the land into economic family-size The Department of Agrarian Reform shall administer said
farms which shall be immediately assigned to parcels of land during the period they are under lease.
beneficiaries selected in accordance with Section one Competent management and adequate production
hundred and twenty-eight subject to such rules and credit shall be provided in accordance with the program
regulations as it may prescribe. developed by the Land Reform Project Team for such
area.
Section 56. Just Compensation - In determining the just
compensation of the land to be expropriated pursuant to Section 61. Organization of Cooperative Associations -
this Chapter, the Court shall consider as basis, the fair For the purpose of more efficient management, adoption
market value, without prejudice to considering the of modern farm methods and techniques, and spreading
assessed value and other pertinent factors. risk, either through diversification of farm projects or
mutual assumption of risks the farmer beneficiaries may
The owner of the land expropriated shall be paid in organize themselves into cooperative associations with
accordance with Section eighty of this Code by the Land the advice or assistance of the Agricultural Productivity
Bank and pursuant to an arrangement herein authorized. Commission and in accordance with the guidelines
(Amendments to RA No. 3844 (Agricultural Land Reform established by said Commission for such associations.
Code), Republic Act No. 6389, [September 10, 1971])
Section 62. Limitation on Land Rights - Except in
Section 57. Duty of Court in Expropriation Proceedings - hereditary succession by one heir, landholding acquired
In expropriation proceedings, it shall be the duty of the under this Code shall not be sold or transferred except in
Court to include in its resolution or order of expropriation favor of the Government, valued at its acquisition cost
a provision that the Department of Agrarian Reform shall, plus cost of improvements. Said landholding may be
after taking possession of the land and after the mortgaged or encumbered in favor of any financing or



banking institution up to the original cost of acquisition as strategic location of the settlement with respect to
thereof to be guaranteed by the Samahang Nayon or national security.
duly recognized farmers cooperative where the farmer is Section 68. Assistance to Settlers in Transporting
a full-pledged member: Provided, That in case of default, Themselves and Their Belongings - The Authority may, in
the loan becomes immediately due and demandable and certain projects, assist settlers in transporting themselves,
the mortgagor is given a grace period of one year within their belongings, work animals and farm equipment, if
which to settle his obligation: Provided, Further, That in any, from the communities from which they are
case of non-payment within one year grace period, the migrating to the settlement areas reserved for the
landholding shall be disposed of only in favor of the purpose and for subsistence necessary until credit can be
Government which shall endeavor to substitute the provided by government financing agencies, or by any
defaulting farmer-beneficiary preferable with a new one other credit institution by loaning to them the full
who does not own any land duly certified by the Ministry amount required for such purposes. These loans from the
of Agrarian Reform and who shall be subrogated to the Department of Agrarian Reform shall be non-interest
rights and shall assume the obligations of the replaced bearing, shall constitute a lien upon the land, and shall be
farmer-beneficiary, subject, however, to the preferential amortized over a period of ten years, payable annually
right of first refusal of the other heirs of the latter: beginning with the end of the third year, after the date of
Provided, Further, That a purchaser who acquired his arrival in the settlement areas, subject to the right of the
landholding under a contract to sell from Land Bank, or borrower to pay in the full at any time prior to the
has been issued an Order of Award, may also secure a maturity of the loan.
loan from any financing or banking institution in an
amount not exceeding his equity on said landholding. Section 69. Assistance to Settlers in Securing Equipment
(Amending Section 62 of R.A. No. 3844 (Code of Agrarian - The Authority may assist the settlers in securing
Reforms of the Philippines), Presidential Decree No. 1817, equipment, supplies and materials needed; or assist the
[January 16, 1981]) cooperative associations of the new settlers in securing
the most advantageous prices or terms on farm
Section 63. Inscription of Specific Prohibition Against implements and supplies needed.
Resale and Subdivision of Landholding - Certificates of
titles of landholdings acquired by the Department of Section 70. Providing Housing and Accommodations to
Agrarian Reform and resold to purchasers shall contain Settlers - The Authority may help provide housing and
therein a specific inscription prohibiting further other accommodations for the new settlers upon their
subdivision and the resale, transfer or encumbrance of arrival in the settlement areas by the stationing them in
said landholdings except as provided in the preceding properly surveyed and subdivided lots reserved for the
Section. purpose: help them organize community activities; and
cooperate with the Bureau of Health, the Bureau of
Section 64. Exemption from Attachment - Lands Public Schools and other pertinent agencies of the
acquired under the provisions of this Chapter shall be Government, in providing services necessary for the
exempt from execution and attachment, except when proper establishment of community facilities.
the land itself is the property mortgaged, in accordance
with Section sixty-two of this Code. Section 71. Power of the Department of Agrarian Reform
to sell to Holders of Bonds Issued to Former Landowners
Section 65. Precedence of Expropriation Cases - whose Land have been Purchased for Redistribution. —
Expropriation cases filed by the Authority under The Department of Agrarian Reform shall sell, for a price
provisions of this Chapter shall take precedence over all not less than the appraised value, any portion not
other civil cases pending before the Court and shall be exceeding one hundred forty-four hectares in the case of
terminated within a period not exceeding six months individuals of the public agricultural lands transferred to
from the date of filing. the Land Bank which is suitable for large-scale farm
operations to any holder, who is qualified to acquire
ARTICLE III Distribution of Agricultural Lands agricultural lands through purchase, of bonds issued to
of the Public Domain former landowners whose lands have been purchased for
Section 66. Title to Public Agricultural Land - Upon redistribution under this Code, subject to the condition
reservation by the President of the Philippines of public that the purchaser shall, within two years after
agricultural land available for disposition by the acquisition, place under cultivation at least thirty per
Department of Agrarian Reform, such land shall be centum of entire area under plantation administration
surveyed, titled and transferred to the Land Bank, which and the remaining seventy per centum within five years
shall reduce said title into individual titles for specific from the date of acquisition. The Secretary shall issue the
parcels or lots in accordance with the subdivision survey title of said land upon showing that the purchaser has
conducted by the Department of Agrarian Reform under developed and cultivated at least one-fourth of his land
paragraph 9 of Section fifty-one: Provided, however, That under plantation administration.
existing laws governing the acquisition of public lands Any public agricultural land sold as hereinabove specified
shall have been complied with. shall not be the object of any expropriation as long as the
The Department of Agrarian Reform shall thereupon same is developed and cultivated for large-scale
distribute in accordance with the provisions of this Code, production under farm labor management: Provided,
each parcel or lot, subject to the terms and conditions of however, That after the capital invested therein for
the Land Bank, to a beneficiary selected pursuant to development, plus a reasonable margin of profit shall
Section seventy-one or in accordance with paragraph 3 of have been fully recovered, or after the lapse of twenty-five
Section fifty-one, to a beneficiary selected pursuant to years from the date of acquisition, whichever comes
paragraph 3 of Section one hundred twenty-eight. earlier, said land shall become expropriable.
Section 67. Census of Settlements - The Authority shall The selling price of the portion of the public agricultural
take a census of all settlements already made or started land sold under this Section shall be credited to the Land
by farmers on their own initiative on public agricultural Bank. As payment for the land sold under this Section,
lands, forest lands, and on private titled lands which had the Land Bank shall accept as sole instruments of
been cleared, occupied and cultivated wholly or partially payment the bonds issued pursuant to Section
by them, with or without legal sanction. The census shall seventy-six. Issued bonds accepted as payment for the
include, among other things, the bona fide character of land sold shall be cancelled to the extent of the amount
the settlements, the character of the settlers or farmers, paid.
the exact status of the lands settled, the feasibility of
enlarging the settlements, particularly in connection with All sales under this Code shall be subject to the rules and
the resources of the land occupied and the neighboring regulations which the Department of Agrarian Reform in
areas, actual and potential accessibility to markets, as well consultation with the Land Bank, shall prescribe insofar
as they are not inconsistent with the provisions of this


Code. (Amendments to RA No. 3844 (Agricultural Land (c) Nonagricultural cooperatives (credit and
Reform Code), Republic Act No. 6389, [September 10, multipurpose);
1971])
(d) Cooperative banks;
Section 72. Duplicate Records to be Furnished the
Bureau of Lands - The Department of Agrarian Reform (e) Rural banks;
shall furnish the Bureau of Lands with the duplicate
(f) Thrift banks;
records of proceedings on applications for the sale or
other disposition of public agricultural lands under its (g) Agri-business firms or anchor firms providing
administration. credit support to ARBs, and small farmers and fisherfolk;
Section 73. Transfer of Appropriations, Powers, Functions, and
etc - The National Resettlement and Rehabilitation (h) Duly accredited microfinance nongovernment
Administration and the Land Tenure administration are organizations by the Microfinance NGO Regulatory
hereby abolished and their powers and functions not Council.
inconsistent with this Code, balances of all appropriations,
funds, equipment, records and supplies, as well as Loans under this special socialized credit facility
agricultural lands, public and private, under their shall have an interest rate equivalent to not more than
administration, are hereby transferred to the Authority: seventy-five percent (75%) of the Bank's prevailing rates
Provided, That the function of the Land Tenure for loans to cooperatives: Provided, That these conduits
Administration with respect to the expropriation of urban shall have an interest spread of not more than five (5)
lands as provided by existing laws is hereby transferred to percentage points. The interest spread shall exclude crop
and all hereafter be undertaken by the People's Homesite insurance premiums and guarantee fees: Provided,
and housing Corporation. further, That a conduit cannot lend to another conduit.
In addition to the appropriations herein transferred there Criteria for eligibility under this special socialized
is hereby appropriated from the general funds in the credit facility shall be determined by the Bank and shall
National Treasury not otherwise appropriated the sum of be reflected in the implementing rules and regulations.
five million pesos, or so much thereof as may be (Amending R.A. No. 3844 As Amended (Code of Agrarian
necessary, to carry out the purposes of this Code. Reform), Presidential Decree No. 251, [July 21, 1973], further
To carry out the land capability survey and classification amended by Republic Act No. 10374, [March 5, 2013], and
mentioned in paragraph 12 of Section fifty-one and Republic Act No. 10878, [July 17, 2016])
Section one hundred thirty-two of this Code, there is Section 75. Powers in General - The bank shall have the
hereby appropriated out of the unappropriated funds of power.
the National Treasury the amount of ten million pesos.
1. To prescribe, repeal and alter its own by-laws to
CHAPTER IV LAND BANK determine its operating policies, and to issue such rules
and regulations as may be necessary;
Section 74. Creation - To finance the acquisition by the
Government of landed estates for division and resale to 2. To adopt, alter and use a corporate seal;
small landholders, as well as the purchase of the 3. To hold, purchase, acquire and own real and
landholding by the agricultural lessee from the personal property, introduce necessary improvements
landowner, there is hereby established a body corporate thereon to enhance and develop their social and
to be known as the 'Land Bank of the Philippines', economic values, and to sell, mortgage or otherwise
hereinafter called the 'Bank', which shall have its principal dispose of the same;
place of business in Manila. The legal existence of the 4. To sue and be sued, make contracts, negotiate
Bank is extended for a period of fifty (50) years from the and secure loans from both local and foreign sources.
expiration of its original term on 08 August 2013, Before undertaking any such credit operation, the Bank,
renewable for another fifty (50) years. The Bank shall be through the Secretary of Finance, shall request the
subject to such rules and regulations as the Bangko opinion, in writing, of the Monetary Board on the
Sentral ng Pilipinas may from time to time promulgate. monetary implications of the contemplated action. All
The Bank shall allocate five percent (5%) of its loans from foreign sources shall be subject to approval by
regular loan portfolio (net of loans to the Bangko Sentral the President of the Philippines and shall be fully
ng Pilipinas, interbank loans and availments from guaranteed by the Philippine Government;
domestic bills purchase line), for socialized credit to 5. To grant short, medium and long term loans
qualified small farmers, fisherfolk and agrarian reform and advances against security of real estate and/or other
beneficiaries (ARBs). This facility shall solely finance acceptable assets for the establishment, development or
agricultural projects pursuant to the provisions of Section expansion of agricultural, industrial, home building or
4 of Republic Act No. 10000, otherwise known as 'The home financing projects and other productive
Agri-Agra Reform Credit Act of 2009'. enterprises;
Credits extended to the beneficiaries named 6. To grant loans to farmers' cooperatives/
therein under this facility shall be based on the feasibility associations to facilitate production, marketing of crops
of the project and their paying capacity, their estimated and acquisition of essential commodities;
production, and/or securities they can provide as well as 7. To finance and/or guarantee the acquisition,
assets as may be acquired by them from the proceeds of under Presidential Decree No. 85 dated December 25,
the loan. 1972, of farm lots transferred to tenant-farmers pursuant
This facility will be funded through the operations to Presidential Decree No. 27 dated October 21, 1972;
of the Bank itself and will not require additional 8. To underwrite, hold, own, purchase, acquire,
government funding. sell, mortgage, dispose or otherwise invest or reinvest in
All loans extended through this special socialized stocks, bonds, debentures, securities and other evidences
credit facility shall qualify as part of the Bank's of indebtedness of other corporations and of the
compliance with the Agri-Agra Law. government or its instrumentalities which are issued for
or in connection with any project or enterprise;
Credit under this special socialized credit facility 9. The provision of any law to the contrary
shall be extended through the following conduits: notwithstanding, to guarantee acceptance(s), credits,
(a) Farmers' and fisherfolk's cooperatives; loans, transactions or obligations of any person,
co-partnership, association or corporation in favor of any
(b) Farmers' and fisherfolk's organizations or financing or banking institution, whether foreign or
associations; domestic: Provided, That the proceeds of such



acceptances, credits, loans, transactions or obligations are thereof. These instruments of indebtedness shall be

utilized or earmarked for the development and/or negotiable and may be mortgaged in accordance with
expansion of agriculture and industry; established banking procedures and practices with the
10. To borrow from, or rediscount notes, bills of government institutions, their existing charters and/or
exchange and other commercial papers with, the Central laws to the contrary notwithstanding, to enable the
Bank. The rate of interest to be charged and the holders of such bonds to make use of them in
conditions on such obligations or borrowings shall be investments in productive enterprises. The Board of
subject to the rules and regulations of the Monetary Directors shall have the power to prescribe rules and
Board; regulations for the issuance, reissuance, servicing,
placement and redemption of the bonds herein
11. To act as trustee, or administer any trust or authorized to be issued as well as the registration of such
hold property in trust in accordance with the provisions of bonds at the request of the holders thereof.
law governing trust corporations; (Amendments to RA No. 3844 (Agricultural Land Reform
12. To act as an official government depository Code), Republic Act No. 6389, [September 10, 1971], further
with full authority to maintain deposits of the amended by Presidential Decree No. 251, [July 21, 1973])
government, its branches, subdivisions and Section 77. Issuance of Preferred Shares of Stock to
instrumentalities, and of government-owned or Finance Acquisition of Farm Lots and Other Assets - The
-controlled corporations which deposits shall be subject Bank shall issue, from time to time, preferred shares of
to liquidity floor and/or reserve requirements as may be stock in such quantities as may be necessary to pay the
imposed by the Monetary Board upon other commercial landowners in accordance with Section eighty and
banks; eighty-one of this Code, and for acquisition of other assets
13. For the strengthening of the capital base of should the seller elect to accept such payment. The
the bank, to establish a national marketing umbrella for amount of shares that the Bank may issue shall not
farmers and fisheries cooperatives to attract massive exceed the aggregate amount needed to pay the
capital formation from savings deposits of the landowners in the proportion prescribed in said Section
cooperative members nationwide. (Amendment to R.A. eighty of this Code. The Board of Directors shall include as
No. 3844 (Code of Agrarian Reform in the Philippines), a necessary part of the by-laws that it shall issue under
Republic Act No. 7907, [February 23, 1995]) Section seventy-five of this Code, such formula as it
deems adequate for determining the net asset value of
14. To exercise the general powers mentioned in its holdings as a guide and basis for the issuance of
the Corporation Law and the General Banking Act, as preferred shares. The shares of stock issued under the
amended, insofar as they are not inconsistent or authority of this provision shall be guaranteed a rate of
incompatible with this Decree. (Amending R.A. No. 3844 return of at least six per annum. In the event that the
As Amended (Code of Agrarian Reform), Presidential earnings of the Bank for any single fiscal year are not
Decree No. 251, [July 21, 1973]) sufficient to enable the Bank, after making reasonable
15. To offer and issue common and preferred allowance for administration, contingencies and growth,
shares of stocks to ARBs, small farmers and fisherfolk to declare dividends at the guaranteed rate, the amount
through their organizations, cooperatives, federations equivalent to the difference between the Bank's earnings
and cooperative banks; development partners and available for dividends and that necessary to pay the
strategic investors such as multilateral and bilateral guaranteed rate shall be paid by the Bank out of its own
institutions; rural banks and their associations, in assets but the government shall, on the same day that
quantities to be determined by the Board of Directors the Bank make such payment, reimburse the latter in full,
and in accordance with applicable laws, rules and for which purpose such amounts as may be necessary to
regulations: Provided, however, That the National enable the Government to make such reimbursements
Government shall maintain, at all times, at least are hereby appropriated out of any moneys in the
two-thirds (2/3) ownership of the total outstanding National Treasury not otherwise appropriated. The Bank
common shares of the Bank. shall give sufficient notice to the Budget Commissioner
and the Secretary of Finance in the event that it is not
Preferred shares of stock shall be non-voting. able to pay the guaranteed rate of return on any fiscal
Other features of preferred shares shall be determined by period. The guaranteed rate of return on these shares
the Board of Directors in accordance with applicable laws shall not preclude the holders thereof from participating
and regulations. (Direct Credit Support of Land Bank to at a percentage higher than six per centum should the
Agrarian Reform Beneficiaries, Small Farmers and earnings of the Bank for the corresponding fiscal period
Fisherfolk, Republic Act No. 10878, [July 17, 2016]) exceed the guaranteed rate of return. The Board of
Section 76. Issuance of Bonds - The bank shall, upon Directors shall declare and distribute dividends within
recommendation of the Secretary of Finance and after three months after the close of each fiscal year at the
consultation with the National Economic and guaranteed rate unless a higher rate of return is justified
Development Authority and the Monetary Board, and by the Bank's earnings after making reasonable
with the approval of the President of the Philippines, allowance for administration, contingencies and growth,
issue bonds, debentures, securities, collaterals and other in which case, dividends shall be declared and distributed
evidences of indebtedness and/or the renewal or at a higher rate. The capital gains derived from the sale or
refunding thereof, at such terms, rates and conditions as transfer of such shares and all income derived therefrom
the Bank may determine, up to an aggregate amount not in the form of dividends shall be fully tax-exempt.
exceeding, at any one time, ten times its paid-in capital (Amending R.A. No. 3844 As Amended (Code of Agrarian
and surplus. These bonds and other obligations shall be Reform), Presidential Decree No. 251, [July 21, 1973])
redeemable at the option of the Bank at or before Section 77-A. The provisions of their respective charters
maturity and in such manner as may be stipulated to the contrary notwithstanding, all government-owned
therein and shall bear such rate of interest as may be or controlled corporations, including government
fixed by the Bank. Such obligations shall be secured by financial institutions, are authorized to invest in preferred
the assets of the Bank including the stocks, bonds, shares of the Land Bank and/or accept those shares in
debentures, and other securities underwritten, purchased exchange for any of their assets or properties under such
or held by it under the provisions of this Decree. Such terms and conditions as shall be agreed upon between
obligations may be issued in payment and/or the corporations or institutions concerned and the Land
replacement of certain assets transferred to the Bank Bank. (Amendments to R.A. No. 3844 (Code of Agrarian
and/or offered for sale at such price or prices as the Bank Reform), Presidential Decree No. 444, [May 4, 1974])
may determine, and shall be exempt from taxation both
as to principal and interest, and shall be fully guaranteed Section 78. Special Guaranty Fund - In the event that the
by the Government of the Republic of the Philippines, Bank shall be unable to pay the bonds, debentures and
and such guarantee shall be expressed on the face other obligations issued by it, a fixed amount thereof


shall be paid from a special guaranty fund to be set up by 6. Such other modes of settlement as may be
the Government, to guarantee the obligation of the Bank, further adopted by the Board of Directors and approved
and established in accordance with this Section and, by the President of the Philippines.
thereupon, to the extent of the amounts so paid, the 7. At least sixty percent (60%) of the proceeds of
Government of the Republic of the Philippines shall the sale of the stocks, securities and other assets of the
succeed to all rights of the holders of such bonds, government now under administration by the Assets
debentures or other obligations: Provided, however, That Privatization Trust (APT) shall be transferred to the Land
the Government shall pay into the guaranty fund the sum Bank of the Philippines for use in the payment of
of five million pesos each year until the cumulative total agricultural lands acquired pursuant to Presidential
of such guaranty fund is no less than twenty per cent of Decree No. 27 and Republic Act No. 6657. (Amendment to
the outstanding net obligation of the Bank at the end of R.A. No. 3844 (Code of Agrarian Reform in the
any calendar year. Philippines), Republic Act No. 7907, [February 23, 1995])
The special guaranty fund shall be administered by the
In the event there is existing lien or encumbrance
Central Bank of the Philippines in the manner most
consistent with its charter. For the purpose of such funds, on the land in favor of any Government lending
the sum of five million pesos is hereby appropriated institution at the time of acquisition by the Bank, the
annually out of any moneys in the National Treasury not landowner shall be paid the net value of the land (i.e., the
otherwise appropriated, until the total amount of one value of the land determined under Proclamation No. 27
hundred million pesos shall have been attained minus the outstanding balance/s of the obligation/s
therefrom. (Amending R.A. No. 3844 As Amended (Code secured by the lien/s or encumbrance/s), and the
of Agrarian Reform), Presidential Decree No. 251, [July 21, outstanding balance/s of the obligations to the lending
1973]) institution/s shall be paid by the Land Bank in Land Bank
bonds or other securities; existing charters of those
Apart from the foregoing which pertains to the institutions to the contrary notwithstanding. A similar
twenty-five years bonds previously issued by the bank settlement may be negotiated by the Land Bank in the
and pursuant to its role as the financial intermediary of case of obligations secured by liens or encumbrances in
the Comprehensive Agrarian Reform Program, mandated favor of private parties or institutions.
under Republic Act No. 6657, the National Government
through the Presidential Agrarian Reform Council (PARC), Whenever the Bank pays the whole or a portion of the
shall provide and/or allocate from the existing Agrarian total cost of farm lots, the Bank shall be subrogated by
Reform Fund or other unappropriated funds of the reason thereof, to the right of the landowner to collect
National Treasury an amount sufficient to pay all and receive the yearly amortizations on farm lots or the
maturing bonds, debentures and all other obligations amount paid including interest thereon, from
together with interest due thereon issued and/or incurred tenant/farmers in whose favor said farm lots had been
by the bank as compensation to the landowners transferred pursuant to Presidential Decree No. 27, dated
including expenses related thereto. In the apportionment October 21, 1972.
and distribution of funds from the Agrarian Reform Fund, The profits accruing from payment shall be exempt from
the PARC shall give priority and preference to the tax on capital gains.(Amendments to RA No. 3844
payment of landowner compensation in the (Agricultural Land Reform Code), Republic Act No. 6389,
chronological sequence or order at which the voluntary [September 10, 1971], further amended by Presidential
offers of sale were made by the landowners. (Amendment Decree No. 251, [July 21, 1973])
to R.A. No. 3844 (Code of Agrarian Reform in the Section 81. Capital - The authorized capital stock of the
Philippines), Republic Act No. 7907, [February 23, 1995]) Bank shall be nine billion pesos, divided into seven
Section 79. Receipts of Deposits - The Bank, subject to hundred and eighty million common shares with a par
the provisions of the General Banking Act, as amended, is value of ten pesos each, which shall be fully subscribed by
authorized to receive demand, savings and time deposits. the Government, and one hundred and twenty million
The Secretary of Finance, the National Treasurer and his preferred shares with a par value of ten pesos each, which
authorized representatives, city and municipal treasurers shall be issued in accordance with the provisions of
as well as custodians of funds or those belonging to Sections seventy-seven and eighty-three of this Code.
government-owned or controlled corporations, may be These preferred shares shall be non-voting. The Board,
authorized by the Monetary Board to make and actually upon the recommendation of the Secretary of Finance
maintain deposits of any government or corporate funds and with the approval of the President of the Philippines,
with the Land Bank. may increase the capitalization of the Bank up to such an
amount as may be necessary to attain the objectives of
Section 79-A. Administration of Agricultural Guarantee this Act. The total capital stock subscribed by the
Funds. — All agricultural guarantee funds shall be Government shall be paid by the Agrarian Reform Fund
converted into a trust fund to be administered by the Commission created under Presidential Decree No. 85,
Bank. (Amending R.A. No. 3844 As Amended (Code of hereinafter referred to as the "Commission," as follows:
Agrarian Reform), Presidential Decree No. 251, [July 21, four hundred million pesos within sixty (60) days from the
1973]) approval of this Decree, and at least one hundred million
Section 80. Modes of Payment - The Bank shall finance pesos every year thereafter until the total subscription of
the acquisition of farm lots under any of the following the Government is fully paid: Provided, That the common
modes of settlement: and preferred shares of the Bank which have been issued,
including those already subscribed, shall form part of the
1. Cash payment of 10% and balance in 25-year increased capitalization of the Bank: Provided, further,
tax-free 6% Land Bank bonds; That the additional common shares subscribed by the
2. Payment of 30% in preferred shares of stock Government shall be paid by the bank through its
issued by the Bank and balance in 25-year tax-free 6% banking operations in an amount equivalent to at least
Land Bank bonds; ten percent (10%) of its annual net income or any form of
retained earnings until fully paid: Provided, finally, That
3. Full guarantee on the payment of the fifteen the dividends due the Government shall first be paid.
(15) equal annual amortizations to be made by the (Amending R.A. No. 3844 As Amended (Code of Agrarian
tenant/farmer; Reform), Presidential Decree No. 251, [July 21, 1973], further
4. Payment through the establishment of amended by Republic Act No. 7907, [February 23, 1995])
annuities or pensions with insurance; Section 82. Government Shares - All shares of stock in
5. Exchange arrangement for government stocks the Bank subscribed or owned by the government shall
in government-owned or controlled corporations or not be entitled to participate in the income earned by the
private corporations where the government has holdings; Bank from its investment and other operations, whether
in the form of cash or stock dividends or otherwise.



Amounts expended for the administration of the Bank Section 86. Board of Directors; Membership; Per Diem. —
shall not be deemed as a participation of the government The affairs and business of the Bank shall be directed and
in income: Provided, That the Bank may declare all its its property managed and preserved by a Board of
earnings accumulated prior to the issuance of preferred Directors consisting of nine (9) members to be composed
shares as stock dividends to the government as the sole of the Secretary of Finance, as Chairman, the President of
shareholder of the Bank or in lieu of dividends, set aside the Bank as Vice-Chairman, the Secretary of Agrarian
said earnings as contributed surplus to serve as fund for Reform, the Secretary of Labor, and the Secretary of
the guaranteed dividend to preferred shareholders. The Agriculture as ex officio members. The President of the
manner of distributing the surplus shall be determined Philippines shall appoint two (2) members of the Board
by the Board of Directors. (Amendments to R.A. No. 3844 who shall represent the agrarian reform beneficiaries and
(Code of Agrarian Reform), Presidential Decree No. 444, two (2) members who shall represent the private sector.
[May 4, 1974]) The two (2) remaining members shall be elected from the
Section 83. Preferred Shares - All preferred shares or shareholders coming from the public sector to the extent
stock issued under Section seventy-seven of this Code that they may be entitled to two (2) seats in proportion to
shall be entitled to the income earned by the Bank on its the outstanding capital stock.
investments and other operations: Provided, That the Annually, on the first Tuesday after the first Monday in
holders of such preferred shares of stock shall not bring December, the stockholders shall meet to take up,
derivative suits against the Bank. Such preferred shares among others, the election of two (2) members of the
shall be fully transferable: Provided, further, That upon the Board of Directors for the succeeding year. Each
liquidation of the Bank, the redemption of such preferred shareholder or proxy shall be entitled to as many votes as
shares shall be given priority. (Amending R.A. No. 3844 As he may have shares of stock registered in his name of the
Amended (Code of Agrarian Reform), Presidential Decree 31st day of October last preceding and held by him at the
No. 251, [July 21, 1973]) time of the election. The two (2) members of the Board of
Section 84. Voting of Shares - The voting power of all the Directors shall be elected preferably from the holders of
common shares of stock of the Bank owned and the preferred shares on the basis of the outstanding
controlled by the Government shall be vested in the amount of shares as follows:
President of the Philippines or in any ex-officio member (a) Not exceeding P100.0 M — one member
of the Board of Directors of the Bank as he may (b) Exceeding P100.0 M — two members
designate. (Amending R.A. No. 3844 As Amended (Code
of Agrarian Reform), Presidential Decree No. 251, [July 21, The appointive members of the Board shall hold a term of
1973]) office for one (1) year and shall continue to hold office
until their successor shall have been appointed and
Section 85. Use of Bonds - The bonds issued by the Bank qualified. The Board shall convene as often as necessary
may be used by the holder thereof and shall be accepted to discharge its responsibilities properly, but shall meet at
for any of the following: least once every two (2) weeks. The Board may be
1. Payment for agricultural lands or other real convoked either by the Chairman or in his absence, the
properties purchased from the Government. Vice-Chairman.
2. Payment for the purchase of shares of stock or The majority of the board members shall constitute a
assets or government-owned or controlled corporations. quorum. All decisions of the Board shall require the
Upon offer by the bondholders, the corporation concurrence of at least a majority.
owned or controlled by the Government shall, through its No person shall be elected or appointed director of the
Board of Directors, negotiate with such bondholder with Bank unless he is natural born citizen of the Philippines,
respect to the price and other terms and conditions of not less than thirty-five (35) years of age, of good moral
the sale. In case there are various bondholders making character, and has attained proficiency, expertise and
the offer, the one willing to purchase under terms and recognized competence in one or more of the following:
conditions most favorable to the corporation shall be banking, finance, economics, law, agriculture, agrarian
preferred. If no price is acceptable to the corporation, the reform, business management: Provided, further, That no
same shall be determined by the Committee of director, shareholder or employee of any other bank shall
Appraisers composed of three members, one to be be eligible for election or appointment as member of the
appointed by the corporation, another by the bondholder Board of Directors of the Bank.
making the highest or only offer, and the third by the two The Chairman and the members of the Board shall
members, so chosen. The expense of appraisal shall be receive a per diem of One thousand five hundred pesos
borne equally by the corporation and the successful (P1,500) for each session of the Board attended but in no
purchaser. case not to exceed Seven thousand five hundred pesos
Should the Government offer for sale to the (P7,500) a month. (Amendments to R.A. No. 3844 (Code of
public any or all the shares of stock or the assets of any of Agrarian Reform), Presidential Decree No. 444, [May 4,
the Government-owned or controlled corporations, the 1974], further amended by Presidential Decree No. 1039,
bidder who offers to pay in bonds of the Land Bank shall [October 21, 1976], and Republic Act No. 7907, [February
be preferred, provided that the various bids be equal in 23, 1995])
every respect except in the medium of payment. Section 86-A. Powers and Responsibilities of the Board.
3. Surety, bail bonds for the provisional release of — The Board of Directors shall have, among others, the
accused person or performance bonds in all cases where following specific powers and responsibilities:
the Government may require or accept real property as 1. Formulate policies, rules and regulations for the
bonds. effective operation of the Bank;
4. Security for loans applied with the Philippine 2. Take decisions concerning loans as well as fix
National Bank, Development Bank of the Philippines, the rates of interest thereon, guarantees, investments,
Government Service Insurance System, Social Security borrowing by the Bank, furnishing of technical assistance
System, and other government financial institutions, and other operations of the Bank;
existing charters of these institutions to the contrary
notwithstanding. 3. Establish such branches and agencies as may
be deemed necessary and convenient;
5. Payment for reparations goods the provisions
of Republic Act Nos. 1789 as amended, to the contrary 4. Provide for the appointment and removal and
notwithstanding. (Amendments to RA No. 3844 fix the reasonable compensation of such personnel as
(Agricultural Land Reform Code), Republic Act No. 6389, may be necessary for the expeditious conduct of the
[September 10, 1971], further amended by Presidential business of the Bank; and
Decree No. 251, [July 21, 1973])


5. Approve the budget of the Bank. (Amending periodically to the Board of Directors the main facts
R.A. No. 3844 As Amended (Code of Agrarian Reform), concerning the operations of the Bank, and recommend
Presidential Decree No. 251, [July 21, 1973]) changes of policies which may to him seem best. He shall
6. To compromise or release, in whole or in part, furnish, upon request of the President of the Philippines,
any claim or liability whatsoever for or against the bank, any information in his possession regarding the
including interest, penalties, fees and/or other charges, operations of the bank. (Amending R.A. No. 3844 As
under such terms and conditions as the board may find Amended (Code of Agrarian Reform), Presidential Decree
acceptable and practicable subject to their best business No. 251, [July 21, 1973])
judgment and to the best interest of the corporation in Section 88. Qualifications of Executive Officers - No
accord with standard banking practices. (Amendment to person shall be appointed to any executive position in the
R.A. No. 3844 (Code of Agrarian Reform in the Bank mentioned in the preceding section unless he be of
Philippines), Republic Act No. 7907, [February 23, 1995]) good moral character and of unquestionable integrity
Section 86-B. Foreclosure Of Collaterals And Disposal Of and responsibility, and who is of recognized competence
Bank Acquired Properties — in the field of economics, agriculture, industry, law,
1. Foreclosure of Mortgage Collaterals — Foreclosure of banking and/or finance, and possessed of demonstrated
mortgage collaterals to loans may be made either administrative skill and ability. (Amending R.A. No. 3844
judicially or extrajudicially. As Amended (Code of Agrarian Reform), Presidential
2. Deputization of Legal Staff — The bank may, with the Decree No. 251, [July 21, 1973], further amended by
approval of the court, deputize any member of its legal Republic Act No. 7907, [February 23, 1995])
staff to act as special sheriff in foreclosure cases, in the Section 89. Withdrawal of Person Having Personal
sale or attachment of debtor's properties and in the Interest - Whenever any member attending a meeting of
enforcement of court writs and processes in cases the Board has a personal interest of any sort in the
involving the bank. The special Sheriff of the bank shall discussion or resolution of any given matter, or any of his
make a report to the proper court after any action has relatives within the fourth degree of consanguinity or
been taken by him, which court shall treat such actions as second degree of affinity has such an interest, shall not
if it were an act of its own sheriffs in all respect. participate in the discussion or resolution of the matter
3. Disposal of Real Estate and Other Properties in the and must retire from the meeting during the
Collection of Debt — Real estate and other properties deliberations thereon. The subject matter, when resolved,
acquired by the bank in the collection of debts or and the fact available to the public. The minutes of the
investment by way of foreclosure or other means shall be meeting shall note the withdrawal of the member
sold or disposed of in accordance with law, within five (5) concerned. (Amending R.A. No. 3844 As Amended (Code
years after date of acquisition. The sale or disposal shall be of Agrarian Reform), Presidential Decree No. 251, [July 21,
effected through public bidding, in accordance with law. 1973])
4. Exemption from Attachment — The provisions of any Section 90. Personnel. - The Board of Directors shall
law to the contrary notwithstanding, securities on loans provide for an organization and staff of officers and
and/or other credit accommodations granted by the bank employees of the Bank and upon recommendation of the
shall not be subject to attachment, execution to any other President of the Bank, appoint and fix their
court process, nor shall they be included in the property remunerations and other emoluments, and remove such
of insolvent persons or institutions, unless all debts and officers and employees: Provided, That the Board shall
obligations of the debtors to the bank have been paid, have exclusive and final authority to promote, transfer,
including accrued interest, penalties, collection expenses, assign or reassign personnel of the Bank, any provisions
and other charges. of existing law to the contrary notwithstanding.
5. Right of Redemption of Foreclosed Property; Right of
Possession during Redemption Period — Within one (1) All positions in the Bank shall be governed by a
year from the registration of the foreclosure sale of real compensation, position classification system and
estate, the mortgagor shall have the right to redeem the qualification standards approved by the Bank's Board of
property by paying all claims of the bank against him on Directors based on a comprehensive job analysis and
the date of the sale including all the cost and other audit of actual duties and responsibilities. The
expenses incurred by reason of the foreclosure sale and compensation plan shall be comparable with the
custody of the property, as well as charges and accrued prevailing compensation plans in the private sector and
interest. That bank may take possession of the foreclosed shall be subject to periodic review by the Board no more
property during the redemption period. The bank shall be than once every two (2) years without prejudice to yearly
eligible to post a bond for the purpose of such possession. merit reviews or increases based on productivity and
(Amendment to R.A. No. 3844 (Code of Agrarian Reform profitability. The Bank shall therefore be exempt from
in the Philippines), Republic Act No. 7907, [February 23, existing laws, rules and regulations on compensation,
1995]) position classification and qualification standards. It shall
however endeavor to make its system conform as closely
Section 87. Executive Officers; Compensation - The Chief as possible with the principles under Republic Act No.
Executive of the Bank shall be the President, who shall be 6758.
chosen and may be removed by the Board of Directors
with the advice and consent of the President of the The Bank officers and employees, including all members
Philippines. His salary shall be fixed by the Board of of the Board, shall not engage directly or indirectly in
Directors with the approval of the President of the partisan activities or take part in any election except to
Philippines. The President shall be assisted by vote.
Vice-Presidents as may be required, whose appointments No officer or employee of the Bank subject to the Civil
and removal shall be approved and whose salaries shall Service Law and Regulations shall be removed or
be fixed in accordance with Section 90 hereof by the suspended except for cause as provided by law.
Board of Directors upon recommendation of the (Amending R.A. No. 3844 As Amended (Code of Agrarian
President of the Bank. (Amendment to R.A. No. 3844 Reform), Presidential Decree No. 251, [July 21, 1973], further
(Code of Agrarian Reform in the Philippines), Republic amended by Republic Act No. 7907, [February 23, 1995])
Act No. 7907, [February 23, 1995])
Section 91. Legal counsel - Any provision of existing law
Section 87-A. Duties and Powers of the President. — The or executive order to the contrary notwithstanding, the
President of the Bank shall, among others, execute the Bank shall have its own Legal Department, the chief and
policies, measures, orders and resolutions promulgated members of which shall be appointed by the Board of
by the Board of Directors and supervise and administer Directors. (Amending R.A. No. 3844 As Amended (Code of
the operation of the Bank. He shall be the legal Agrarian Reform), Presidential Decree No. 251, [July 21,
representative of the Bank and shall make all contracts, 1973])
enter into all necessary obligations on behalf of the bank
required or permitted by this Decree. He shall report



Section 92. Auditor - The Chairman of the Commission on R.A. No. 3844 As Amended (Code of Agrarian Reform),
Audit shall act as the ex-officio Auditor of the Bank and, Presidential Decree No. 251, [July 21, 1973])
as such, he is empowered and authorized to appoint a Section 99. Reorganization of the Bank - The Bank shall
representative who shall be the auditor in charge of the be reorganized within ninety (90) days from the date this
auditing office of the Bank and, in accordance with law, Decree take effect. The present personnel complement of
fix his salary, and to appoint and fix the salaries and the Bank shall in the interim continue to discharge their
number of personnel to assist said representative in his respective functions. Officials and personnel whose
work, but in all cases subject to the approval of the Board services may be dispensed with as a result of this
of Directors. The salaries and all other expenses of reorganization shall be paid the usual gratuities to which
maintaining the auditor's office shall be paid by the Bank. they may be entitled under existing law. (Amending R.A.
The Auditor of the Bank and personnel under him may be No. 3844 As Amended (Code of Agrarian Reform),
removed only by the Commission on Audit. (Amending Presidential Decree No. 251, [July 21, 1973])
R.A. No. 3844 As Amended (Code of Agrarian Reform),
Presidential Decree No. 251, [July 21, 1973]) Section 100. Penalty for Violation of the Provisions of this
Chapter - Any director, officer, employee or agent of the
Section 93. Report on Condition of Bank - The Bank who violates or permits the violation of any of the
representative of the Commission on Audit shall make a provisions of this Chapter or any person aiding or
quarterly report on the condition of the Bank to the abetting the violation of any of the provisions of this
President of the Philippines, to the Secretary of Finance, Chapter, shall be punished by a fine of not to exceed ten
to the Chairman of the Commission on Audit, and to the thousand pesos or by imprisonment of not more than
Board of Directors of the Bank. The report shall contain, five years, or both, such fine and imprisonment at the
among other things, a statement of the resources and discretion of the Court. (Amending R.A. No. 3844 As
liabilities, including earnings and expenses, the amount Amended (Code of Agrarian Reform), Presidential Decree
of capital stock, surplus, reserve and profits, as well as No. 251, [July 21, 1973])
losses, bad debts, and suspended and overdue paper
carried in the books and assets of the Bank. (Amending
CHAPTER V AGRICULTURAL CREDIT
R.A. No. 3844 As Amended (Code of Agrarian Reform),
Presidential Decree No. 251, [July 21, 1973]) ADMINISTRATION
Section 94. Auditing Rules and Regulations - The Auditor Section 101. Reorganization of ACA to Align Its Activities -
General shall, with respect to the Bank, formulate The administrative machinery of the Agricultural Credit
improved and progressive auditing rules and regulations Administration, shall be reorganized to enable it to align
designed to expedite the operations of the Bank and its activities with the requirements and objectives of this
prevent the occurrence of delays and bottlenecks in its Code: Provided, That the Board of Governors established
work. by Republic Act Numbered Eight hundred and
twenty-one, as amended, shall be composed of a
Section 95. Removal of Members - (Repealed by chairman and four (4) members, three (3) of whom shall
Presidential Decree No. 251, [July 21, 1973]) be the Undersecretary of Agrarian Reform who shall be
Section 96. Transfer of Claims and Liabilities - The assets the Chairman ex-officio, the Administrator of the
of the former Land Tenure Administration and the Agricultural Credit Administration who shall be the
National Resettlement and Rehabilitation Administration Vice-Chairman ex-officio and the Vice-President in
in the form of claims and receivables arising from the sale charge of agricultural loans of the Philippine National
or transfer of private and public lands, agricultural Bank, who shall be ex-officio member thereof. The two
equipment, machinery, tools and work animals, but other members shall be appointed by the President of
excluding advances made for subsistence, to small the Philippines with the consent of the Commission on
landholders shall, after an exhaustive evaluation to Appointments for a term of three years, one of whom
determine their true asset value, be irrevocably shall represent the farmers-beneficiary of the Agrarian
transferred to the Bank under such arrangements as the Reform Program and shall be appointed upon
Department of Agrarian Reform and the Bank shall agree recommendation of either or both the farmers and/or
upon. Thereafter, the Bank shall have authority and cooperatives movement, federation or league existing at
jurisdiction to administer the claims, to collect and make the time such recommendation is submitted, and the
adjustments on the same and, generally, to do all other other to represent the political party receiving the second
acts properly pertaining to the administration of claims highest number of votes in the immediately preceding
held by a financial institution. The Department of presidential elections: Provided, however, That the term of
Agrarian Reform, upon request of the Bank, shall assist the farmers' representative shall ipso facto terminate
the latter in the collection of such claims. The when such member cease to be in the farmers and/or
Department of Agrarian Reform shall be entitled to cooperatives movement, federation or league, and that of
collect from the Bank no more than the actual cost of the minority party at the pleasure of the nominating
such collection services as it may extend. The claims political party.
transferred under this Section shall not be considered as The Administrator shall be the Chief Executive of the
part of the Government's subscription to the capital of Administration and shall serve for a term of six years
the Bank. unless he resigns or is removed for cause. The
Section 97. Central Bank Supervision - The Bank shall be compensation of the Administrator shall be fixed by the
under the supervision and regulation of the Central Bank President but shall not be less than twenty-four thousand
of the Philippines. (Amending R.A. No. 3844 As Amended pesos per annum. The members of the Board shall
(Code of Agrarian Reform), Presidential Decree No. 251, receive per diems of not more than fifty pesos for each
[July 21, 1973]) session of the Board that they attend: Provided, however,
That the total per diems, including all other
Section 98. Tax Exemption - The Land Bank shall be remunerations, shall not exceed six hundred pesos a
exempt from all national, provincial, municipal, and city month.
taxes and assessment now enforced or hereinafter
established. No person shall be appointed as Administrator unless he
is a natural-born citizen of the Philippines, with proven
The exemption authorized in the preceding paragraph of executive ability and experience in the field of agricultural
this section shall apply to all property of the Bank, to the cooperatives and/or banking and finance, adequate
resources, receipts, expenditures, profits and income of background and experience in land reform here and/or
the Bank, as well as to all contracts, deeds, documents elsewhere for at least five (5) years, and at least thirty-five
and transactions related to the conduct of the business of years of age: Provided, however, That he shall have,
the Bank, Provided, That said exemptions shall apply only among other qualifications, demonstrated interest in,
to such taxes and assessments payable by persons or and concern for, the needs and problems of the rural
other entities doing business with the Bank. (Amending population and/or peasantry and the solutions thereto:


Provided, further, That no person who owns any Section 107. Security for Loans - The production of the
farmholding shall be appointed as Administrator unless borrower, after deducting the lease rental and/or liens
such farmholding is under the leasehold system or the thereon, shall be accepted as security for loans: Provided,
system of agricultural land ownership-transfer direct to That said production is pledged to the Agricultural Credit
the tiller. (Amendments to RA No. 3844 (Agricultural Administration with appropriate safeguards to insure
Land Reform Code), Republic Act No. 6389, [September against its unauthorized disposition: Provided, further,
10, 1971]) That the amount of loan shall not exceed sixty per
Section 102. Financing - To finance the additional credit centum of the value of the estimated production.
functions of the Agricultural Credit Administration as a Section 108. Loans to Cooperatives - The Agricultural
result of the land reform program laid down in this Code, Credit Administration is hereby authorized to extend such
there is hereby appropriated the sum of one hundred fifty types of loans as it may deem necessary for the effective
million pesos out of funds in the National Treasury not implementation of this Code to eligible farmers'
otherwise appropriated in addition to existing cooperatives as herein defined, under such terms and
appropriations for the Agricultural Credit and Cooperative conditions as it may impose and with such securities as it
Financing Administration. may require: Provided: That the said Administration is
Section 103. Privilege of Rediscounting - The Agricultural hereby authorized to extend production loans to
Credit Administration is hereby granted the privilege of cooperatives at not more than eight per cent interest per
rediscounting with the Central Bank of the Philippines, calendar year and directly to the farmers at not more
the Development Bank of the Philippines and the than twelve per cent per calendar year: Provided, further,
Philippine National Bank eligible evidence of That cooperatives are hereby authorized to extend loans
indebtedness acquired by it in carrying on its authorized directly to their members at not more than twelve per
activities, at an interest rate equal to the lowest charged cent per calendar year. A farmers' cooperative that has
by the above financing institution on any private person been registered with the Agricultural Credit
or entity. Administration shall be eligible for loans if, in the
judgment of the latter, its organization, management and
Section 104. Power to Obtain Additional Funds - Nothing business policies are of such character as will insure the
in this Section shall limit the power of the Agricultural safety and effective use of such loans. (Amendments to
Credit Administration to obtain from the Central Bank of RA No. 3844 (Agricultural Land Reform Code), Republic
the Philippines, the Development Bank of the Philippines, Act No. 6389, [September 10, 1971])
the Philippine National Bank and other financing
institutions, such additional funds as may be necessary Section 109. Loans for Construction or Acquisition by
for the effective implementation of this Act: Provided, Purchase of Facilities - Loans for the construction or
That such additional funds are to be utilized as loans to acquisition by purchase of facilities of farmers'
farmers and/or farmers' cooperatives. cooperatives may be granted by the Agricultural Credit
Administration.
Section 105. Loaning Activities - Loaning activities of the
Agricultural Credit Administration shall be directed to Section 110. Total Charge on Loans - The total charges
stimulate the development and operation of farmers' including interest, insurance fees and inspection,
cooperatives. The term "Farmers Cooperatives" shall be notarization and other service charges on all kinds of
taken to include all cooperatives relating to the loans shall not be more than twelve per centum per
production and marketing of agricultural products and calendar year: Provided, That if an impairment of the
these formed to manage and/or own, on a cooperative capitalization of the Agricultural Credit Administration is
basis, agricultural farmlands, services and facilities, such imminent by reason of the limitation of the interest
as irrigation and transport systems, established to herein provided, there is automatically appropriated out
support production and/or marketing of agricultural of the unappropriated funds in the National Treasury
products. such amounts as is necessary to cover the losses of the
Agricultural Credit Administration, but not exceeding six
Under such rules and regulations in accordance with million pesos for any one year. (Amendments to RA No.
generally accepted banking practices and procedures as 3844 (Agricultural Land Reform Code), Republic Act No.
may be promulgated by the Agricultural Credit 6389, [September 10, 1971])
Administration, Rural Banks, Cooperative Banks, and
Development Banks may, in their respective localities, be Section 111. Institution of Supervised Credit - To provide
designated to act as agents of the Agricultural Credit for the effective use of credit by farmers, the Agricultural
Administration in regard to its loaning activities. Credit Administration may institute a program of
supervised credit in cooperation with the Agricultural
Section 106. Credit to Small Farmers and/or Tillers of the Productivity Commission.
Land. — Production loans and loans for the purchase of
work animals, tillage equipment, seeds, fertilizers, poultry, Section 112. Registration of and guidance to
livestock, feed and other similar items, may be extended Cooperatives, Associations and Organizations. — The
to small farmers as defined in Republic Act Numbered Agricultural Credit Administration shall have the power to
Eight hundred twenty-one and/or tillers of the land, register, finance and supervise all agricultural
based upon their paying capacity and such securities as cooperatives, including multi-purpose cooperatives, and
they can provide, and under such terms and conditions as farm associations or organizations; and provide credit
the Agricultural Credit Administration may impose, guidance or assistance to all agricultural, irrigation, and
provided the amount thereof does not exceed two other cooperative associations, multi-purpose
thousand pesos, or such amount as may be fixed by the cooperatives, farm organizations or fund corporations:
President at any given agricultural year: Provided, That his Provided, That all cooperatives, associations or
total outstanding obligations shall not exceed five organizations registered under this Section shall have
thousand pesos, but in no case shall the amount of loan juridical personality. (Amendments to RA No. 3844
exceed eighty per centum of the value of the collateral (Agricultural Land Reform Code), Republic Act No. 6389,
pledged. In instance where credit is extended for items [September 10, 1971])
which are not consumed in their use, such items may be Section 113. Auditing of Operations - For the effective
pledged as security therefor. The Agricultural Credit supervision of farmers' cooperatives, the head of the
Administration shall promulgate such rules and Agricultural Credit Administration shall have the power to
regulations as may be necessary in the extension of the audit their operations, records and books of account and
loans herein authorized so as to assure their to issue subpoena and subpoena duces tecum to compel
repayment:Provided, That such rules and regulations shall the attendance of witnesses and the production of books,
follow and be in accordance with generally accepted documents and records in the conduct of such audit or of
financing practices and procedures. (Amendments to RA any inquiry into their affairs. Any person who, without
No. 3844 (Agricultural Land Reform Code), Republic Act lawful cause, fails to obey such subpoena or subpoena
No. 6389, [September 10, 1971]) duces tecum shall, upon application of the head of



Agricultural Credit Administration with the proper court, Section 122. Division on Cooperatives - In addition to the
be liable to punishment for contempt in the manner existing divisions of the Bureau of Agriculture Extension,
provided by law and if he is an officer of the association, herein renamed as Agricultural Productivity Commission,
to suspension or removal from office. there shall be a Division of Cooperatives and such other
Section 114. Prosecution of Officials - The Agricultural divisions and sections as the Agricultural Productivity
Credit Administration, through the appropriate provincial Commissioner may deem necessary to organize in order
or city fiscal, shall have the power to file and prosecute to carry out the promotional and educational activities of
any and all actions which it may have against any and all the Commission.
officials or employees of farmers' cooperatives arising Section 123. Recruitment, Selection and Training of
from misfeasance or malfeasance in office. Extension Workers - The extension workers shall be
Section 115. Free Notarial Services - Any justice of the recruited and selected from graduates of agricultural
peace, in his capacity as notary ex-officio, shall render college with adequate practical experience and training
service free of charge to any person applying for a loan in actual crop, tree, poultry and livestock farming:
under this Code either in administering the oath or in the Provided, however, That in the event there are no
acknowledgment of instruments relating to such loan. graduates of agricultural colleges available, graduates of
agricultural high schools may be temporarily employed.
Section 116. Free Registration of Deeds - Any register of Training of extension workers shall be done in
deeds shall accept for registration, free of charge any conjunction with research institutions to insure their
instrument relative to a loan made under this Code. maximum efficiency.
Section 117. Writing-off Unsecured and Outstanding Section 124. Functions of Extension Workers - In addition
Loans - Subject to the approval of the President upon to their functions under Republic Act Numbered six
recommendation of the Auditor General, the Agricultural hundred eighty, it shall be the duty of extension workers:
Credit Administration may write-off from its books,
unsecured and outstanding loans and accounts (1) To reside in the locality where they are
receivable which may become uncollectible by reason of assigned, to disseminate technical information to farm
the death or disappearance of the debtor, should there be families, and to demonstrate improved farm and home
no visible means of collecting the same in the foreseeable management practices and techniques;
future, or where the debtor has been verified to have no (2) To work with individual farmers in farm
income or property whatsoever with which to effect planning and budgeting, guide them in the proper
payment. In all cases, the writing-off shall be after five conduct of farm business and work out schedules of
years from the date the debtor defaults. re-payment of loans obtained by farmers;
Section 118. Exemption from Duties, Taxes and Levies - (3) To assist farmers in securing the services or
The Agricultural Credit Administration is hereby assistance of other agencies, or their personnel, having to
exempted from the payment of all duties, taxes, levies, do relevant activities and problems of farmers;
and fees, including docket and sheriff's fees, of whatever (4) To visit newly-established independent farm
nature or kind, in the performance of its functions and in operators either singly or collectively at least once a
the exercise of its powers hereunder. month;
CHAPTER VI AGRICULTURAL PRODUCTIVITY (5) To promote and stimulate the growth and
COMMISSION development of the youth towards improved farm and
home management practices and techniques, as well as
Section 119. Creation of the Agricultural Productivity the development of their skills for small-scale industries
Commission - For the purpose of accelerating progressive and the like;
improvement in the productivity of farms, the
advancement of farmers and the strengthening of (6) To encourage the formation and growth of
existing agricultural extension services through the private associations, study clubs, committees and other
consolidation of all/promotional, educational and organized groups of farmers, familiarize them with
informational activities pertaining to agriculture, the modern methods of farming and interest them to actively
present Bureau of Agricultural Extension of the participate, collaborate or take the initiative in agricultural
Department of Agriculture and Natural Resources is research, experimentation and implementation of
hereby placed directly under the executive supervision projects in cooperation with the Agricultural Productivity
and control of the President and hereinafter renamed Commission and other agencies; and
Agricultural Productivity Commission. (7) To promote, stimulate and assist in the
Upon the effectivity of this Code, the Agricultural Tenancy organization of farmers' cooperatives, including
Commission of the Department of Justice, together with multi-purpose cooperatives. (Amendments to RA No.
its powers, duties, responsibilities, files, records supplies, 3844 (Agricultural Land Reform Code), Republic Act No.
equipment, personnel and unexpended balance of 6389, [September 10, 1971])
appropriations, is hereby placed under the Agricultural Section 125. Appropriation - In addition to the funds
Productivity Commission as a separate office thereof. herein transferred, there is hereby appropriated from the
Section 120. Commissioner of the Agricultural general funds in the National Treasury not otherwise
Productivity Commission - The Agricultural Productivity appropriated the sum of five million pesos, or so much
Commission shall be administered by an Agricultural thereof as may be necessary to carry out the purposes of
Productivity Commissioner who shall be appointed by the this Chapter.
President with the consent of the Commission on
Appointments and who shall have a compensation of CHAPTER VII DEPARTMENT OF AGRARIAN
sixteen thousand pesos per annum. No person shall be REFORM ADMINISTRATION
appointed as a Agricultural Productivity Commissioner Section 126. Creation of National Land Reform Council -
unless he be a holder of at least a Bachelor of Science
degree in Agricultural from a reputable school or college Section 127. Meetings; Resolutions - (Amendments to RA
of agriculture and shall have practiced agriculture for at No. 3844 (Agricultural Land Reform Code), Republic Act
least five years, and who is of recognized competence in No. 6389, [September 10, 1971])
agricultural economics or any of its equivalents. Section 128. Functions of Department of Agrarian
Section 121. Powers and Duties - The Agricultural Reform - It shall be the responsibility of the Council:
Productivity Commissioner shall exercise the same (1) To construct the general program of land reform
powers and duties vested in the Director of the Bureau of contemplated by this Code;
Agricultural Extension.


(2) To establish guidelines, plans and policies for its (4) The minimum fixed capital outlay required to develop
member-agencies relative to any particular land reform the area;
project; (5) The proximity of the area to resettlement projects; and
(3) To formulate such rules and regulations as may be (6) The number of farmers that cultivate uneconomic-size
necessary to carry out the provisions of this Code for (a) farms, the ability and readiness of such farmers to be
the selection of agricultural land to be acquired and resettled, and the availability of idle or abandoned lands
distributed under this Code; (b) the determination of sizes that may be acquired or expropriated as well as of other
of family farms as defined in Section one hundred resettlement facilities.
sixty-six; and (c) the selection of beneficiaries to family
farms available for distribution: Provided, That priority Section 130. Regional Land Reform Committee - For the
shall be given in the following order: First, to members of purpose of implementing the program and policies of the
the immediate family of the former owner of the land Council on the local level, the Council shall establish in
within the first degree of consanguinity who will cultivate each region of the Philippines a Regional Land Reform
the land personally with the aid of labor available within Committee which shall be composed of the
his farm household; Second, to the actual occupants representatives of the agencies composing the
personally cultivating the land either as agricultural Department of Agrarian Reform and shall be under the
lessees or otherwise with respect to the area under their chairmanship of the representative of the Department of
cultivation; Third, to farmers falling under the preceding Agrarian Reform. The committee shall recommend to the
category who are cultivating uneconomic-size farms with Council such plans for projects of land reform in its
respect to idle or abandoned lands; Fourth, to jurisdiction as it may deem appropriate. The Committee
owner-operators of uneconomic-size farms; and Fifth, to shall conduct public hearings, gather and analyze data,
such other categories as may be fixed by virtue of this estimate the essentials of such plans for projects or
Code, taking into consideration the needs and programs and consolidate its findings in a report to be
qualifications of the applicants: submitted to the Council for its consideration. The
decision of the Council upon such projects or programs
(4) To revise, approve, or reject any land reform proposal shall be returned to the Committee, within thirty days
or project; and from the submission thereof, for early implementation or
(5) To proclaim in accordance with the provisions of this execution by said Committee and the agencies
Code, which proclamation shall be considered as having represented therein.
been promulgated immediately after three successive Section 131. Land Reform Project Team - The Regional
weekly publications in at least two newspapers of general Land Reform Committee shall direct and assign a Land
circulation in the region or locality affected by the Reform Project Team for any project or projects within
proclamation, preference being given to local the region, to be composed of an appropriate number of
newspapers, if any, that all the government machineries personnel from the member-agencies. The team shall be
and agencies in any region or locality relating to headed by a representative of the Department of
leasehold envisioned in this Code are operating: Provided, Agrarian Reform designated by the Committee, but each
That the conversion to leasehold in the proclaimed area agency shall, in every case, be duly represented by at least
shall become effective at the beginning of the next one member in the Team. On the basis of national,
succeeding agricultural year after such promulgation: regional, and local policies and programs formulated and
Provided, further, That the proclamation shall be made approved by the Council through the Committee, the
after having considered factors affecting feasibility and Team shall determine (a) the suitability of any area for
fund requirements and the other factors embodied in redistribution into economic family-size farms; (b) the
Sections one hundred twenty-nine, one hundred thirty economic size of farm units; (c) the feasibility of acquiring
and one hundred thirty-one. and distributing the area; (d) the willingness of the
Section 128-A. Participation of Local Governments. — lessees to assume the responsibilities of ownership; and
The Department of Agrarian Reform shall, in every way (e) the financial and other requirements of the project.
possible to insure the successful implementation of the For this purpose, it shall gather data, obtain opinions,
Agrarian Reform Program, involve local governments and conduct surveys, pursue investigations, and incorporate
secure their participation in the various aspects of the any information thus established in a development
program, such as the leasehold system, the acquisition program for the area concerned to be submitted in the
and distribution of private and public agricultural lands, form of a consolidated report to the Committee.
the development of cooperatives and small-scale
industries and the like, and the other corollary operational CHAPTER VIII LAND CAPABILITY SURVEY AND
activities that should be carried out through barrio, CLASSIFICATION
municipal, provincial and city governments.
Section 132. Land Survey to Conform to Legal
In pursuing this approach, however, the Department shall Requirements - To provide the necessary basis for the
formulate the policies and programs necessary in the implementation of the land reform program formulated
implementation of this Code. under this Code, the Department of Agrarian Reform is
The Department shall also render technical assistance to hereby authorized to undertake a land capability survey
local governments necessary to carry out the objective of and classification in cooperation with the relevant
agrarian reforms. (Amendments to RA No. 3844 agencies that will be directly benefited by such survey
(Agricultural Land Reform Code), Republic Act No. 6389, and classification. The survey shall be made to conform to
[September 10, 1971]) the requirements of the Department of Agriculture and
Natural Resources for implementation of Agricultural
Section 129. Creation of Land Reform Districts - The programs and forestry inventory, of the Board of
Council shall exercise the functions enumerated in the Technical Surveys and Maps, and of the National
preceding Section for particular areas which the Council Economic Council and other agencies for agricultural
shall select and designate as land reform districts. A planning and other purposes.
district shall constitute one or more reform projects, each
project to comprise either a large landed estate or several Section 133. Cadastral Survey - To resolve the rights of
areas within small estates. In the selection of a district, landholders holding unregistered property, the Bureau of
the Council shall consider factors affecting the feasibility Lands is directed to undertake an expanded cadastral
of acquiring for redistribution the areas within the district, survey and land registration program commencing
including: within three months from the passage of this Code.
(1) The productivity of the area; Section 134. Costs of Fees and Charges -
Notwithstanding any provisions of law to the contrary, the
(2) Its suitability for economic family-size farms; following rules shall apply with respect to the costs, fees
(3) The tenancy rate in the area; and charges in the survey, monumenting, and


registration of lands of whatever description and nature Chapter, all provisions of law covering the survey and
had in relation to cadastral proceedings undertaken by registration of land shall remain in full force and effect.
the National Government, either alone through its offices, Section 139. Revolving Fund - All amounts collected by
agencies and instrumentalities, or in conjunction with the Bureau of Lands or its duly authorized representatives
provincial and municipal governments. from the owners of the various lots as costs of
Section 135. Apportionment of Cost of Survey - One-half proceedings, survey, and monumenting in relation to the
of the cost of survey and monumenting and registration cadastral survey program herein described shall be paid
proceedings shall be fully assessed and collected against into a Special Cadastral Program Revolving Fund to
each and all of the lots included in cadastral proceedings finance the cadastral land survey and registration of
and shall be apportioned in accordance with the area other unregistered lands.
thereof, but in no case shall less than ten pesos be Section 140. Appropriation - To finance and support the
charged against each lot, the other half being chargeable expanded cadastral land survey and registration program
to the National Government. The amounts taxed against set forth herein, the amount of one hundred million
each of the lots or parcels of land shall be considered as a pesos is hereby appropriated out of funds in the National
special assessment of taxes against the respective Treasury not otherwise appropriated, which amount shall
parcels, shall constitute a first lien upon the land and shall be paid into a "Special Cadastral Program Revolving
be collected by the Director of Lands or his duly Fund", to finance the cadastral land survey and
authorized representatives in equal installments within a registration of other unregistered areas.
period of three years, bearing interest at the rate of six per
centum per annum. The first installment shall become
CHAPTER IX COURTS OF AGRARIAN RELATIONS
due and payable at the same time as the general land
taxes for the year next succeeding the year in which the Section 141. Creation - Courts of Agrarian Relations are
assessment of the cost shall be received by the Provincial hereby organized and established throughout the
Treasurer, and shall be collected in the same manner as Philippines in conformity with the provisions of this
such general taxes. Each succeeding installment shall Chapter.
become due and payable at the same time as the general Section 142. Regional Districts - Regional districts for the
land taxes for the corresponding current year and shall be Courts of Agrarian Relations in the Philippines are
collected in the same manner. The Director of Lands shall constituted as follows:
for this purpose send to the officer in charge of such
collection a copy of said assessment of costs: Provided, The first Regional District shall consist of the provinces of
however, That the amounts representing the proportional Cagayan, Batanes, Isabela and Nueva Vizcaya, with seat in
shares of the costs taxed against lots surveyed at the Tuguegarao, Cagayan for Branch I and in Ilagan, Isabela
request and expense of their owner and for which a plan for Branch II;
other than the cadastral plan has been made by a duly The second Regional District, of the provinces of Ilocos
authorized surveyor prior to the decision in the cadastral Norte, Ilocos Sur, Abra, Mountain Province, La Union and
proceeding, or which have been registered in accordance the City of Baguio, with seat in Laoag, Ilocos Norte for
with the provisions of Act Numbered Four hundred Branch I and in San Fernando, La Union for Branch II;
ninety-six, entitled "The Land Registration Act", or
surveyed, patented, or leased under the Public Land and The third Regional District of the provinces of Pangasinan
Mining Laws, prior to the decision in the cadastral and Zambales, and the City of Dagupan, with seat in
proceeding, or have been declared to the public lands by Lingayen, Pangasinan for Branch I, in Tayug, Pangasinan
the Court, shall not constitute a lien against said lot nor for Branch II and in Iba, Zambales for Branch III;
shall be collected from the owner thereof: Provided, The fourth Regional District, of the provinces of Nueva
further, That the owner of any lot may, if he so desires, pay Ecija and Tarlac, and Cabanatuan City, with seat in
any installment of the costs taxed against his lot at any Cabanatuan City for Branch I, in Guimba, Nueva Ecija for
time before the same becomes due. Branch II, in Tarlac, Tarlac for Branch III and in Moncada,
Section 136. Payment of Costs of Land in Its Entirety in Tarlac for Branch IV;
Case of Transfer of Land - In case of the sale, transfer, or The fifth Regional District, of the provinces of Pampanga,
conveyance, for a pecuniary consideration, of any Bataan and Bulacan, with seat in Malolos, Bulacan for
property, or part thereof, registered by virtue of a decree Branch I, in San Fernando, Pampanga for Branch II, in
issued in a cadastral proceeding, prior to the payment of Angeles, Pampanga for Branch III and in Balanga, Bataan
the total amount of the costs taxed against such property for Branch IV;
in accordance with the preceding Section endorsed as an
The sixth Regional District, of the City of Manila, Quezon
encumbrance or lien upon each cadastral certificate of
City, Pasay City, the province of Rizal, the City of Cavite,
title, the vendor or his legal representative shall pay such
the province of Cavite, the City of Tagaytay, Trece Martires
costs in their entirety in case the order apportioning the
City, and the province of Palawan, with seat in Manila for
costs has already been issued in the cadastral proceeding
Branch I (Executive Judge), in Cavite City for Branch II and
in which the property being sold, transferred, or conveyed
in Pasig, Rizal for Branch III; The seventh Regional District,
is included, and the register of deeds concerned shall
of the province of Laguna, the City of San Pablo, the
demand of the vendor, before registering the deed for
province of Batangas, the City of Lipa, and the provinces
such sale, transfer, or conveyance of said property, that he
of Oriental Mindoro and Occidental Mindoro, with seat in
exhibit a receipt signed by the Director of Lands or his
Los Baños, Laguna for Branch I, in Batangas, Batangas for
duly authorized representative showing that such
Branch II and in Mamburao, Mindoro Occidental for
encumbrance or lien has been paid.
Branch III;
Section 137. Costs of Registration Proceedings - The costs
The eight Regional District, of the province of Quezon, the
of the registration proceedings under the provisions of
subprovince of Aurora, the City of Lucena, and the
this Code shall consist of a sum equivalent to ten per
province of Camarines Norte, with seat in the City of
centum of the costs of the survey and monumenting of
Lucena for Branch I and in Daet, Camarines Norte for
the land. The amount of the costs of the proceeding so
Branch II;
taxed shall be for all services rendered by the Land
Registration Commission and the clerk or his deputies in The ninth Regional District, of the province of Camarines
each cadastral proceeding, and the expense of Sur, Naga City, Legaspi City and the provinces of Albay,
publication, mailing, and posting notice, as well as the Catanduanes, Sorsogon and Masbate, with seat in Naga
notices of the decision and the order apportioning the City for Branch I, in Legaspi City for Branch II and in
cost shall be borne by the Land Registration Commission. Sorsogon, Sorsogon for Branch III;
Section 138. Laws Covering Survey and Registration of The tenth Regional District, of the province of Capiz,
Land in Forces - Unless otherwise provided in this Roxas City, the provinces of Aklan, Romblon, Marinduque
and Iloilo, the City of Iloilo, and the province of Antique,



with seat in the City of Iloilo for Branch I and in Roxas City annual compensation of one thousand pesos less than
for Branch II; that of the Executive Judge.
The eleventh Regional District, of the province of Section 145. Leave Privileges; Traveling Expenses -
Occidental Negros, the Cities of Bacolod and Silay, the Judges of the Courts of Agrarian Relations shall be
province of Oriental Negros, Dumaguete City, and the entitled to same retirement and leave privileges now
subprovince of Siquijor, with seat in Bacolod City for granted or may hereafter be granted to judges of the
Branch I, in Dumaguete City for Branch II and in San court of First Instance. They shall be entitled to traveling
Carlos City for Branch III; expenses when performing their duties outside official
The twelfth Regional District, of the province of Samar, stations.
the City of Calbayog, the province of Leyte, and the Cities Section 146. Vacation of Courts of Agrarian Relations -
of Ormoc and Tacloban, with seat in Catbalogan, Samar The yearly vacation of Courts of Agrarian Relations shall
for Branch I and in Ormoc City for Branch II; begin with the first of April and close with the first of
The thirteenth Regional District, of the province of Cebu, June each year.
the City of Cebu, and the province of Bohol, with seat in Section 147. Assignment of Judges to Vacation Duty -
the City of Cebu for Branch I and in Tagbilaran, Bohol for During the month of January of each year the Executive
Branch II; Judge shall issue an order naming the judges who are to
The fourteenth Regional District, of the provinces of remain on duty during the court vacation of that year;
Surigao and Agusan, Butuan City, the province of Oriental and, consistently with the requirements of the judicial
Misamis, Cagayan de Oro City, the provinces of Bukidnon, service, the assignment shall be so made that no judge
Lanao del Sur and Lanao del Norte, and the Cities of Iligan shall be assigned to vacation duty, unless upon his own
and Marawi, with seat in Cagayan de Oro City for Branch I request, with greater frequency than once in two years.
and in Iligan City for Branch II; Such order shall specify, in the case of each judge
The fifteenth Regional District, of the province of Davao assigned to vacation duty, the territory over which in
the City of Davao, the provinces of Cotabato and addition to his own district his authority as vacation judge
Occidental Misamis, Ozamiz City, the provinces of shall extend.
Zamboanga del Norte and Zamboanga del Sur, The Executive Judge may from time to time modify his
Zamboanga City, Basilan City and the province of Sulu, order assigning the judges to vacation duty as newly
with seat in the City of Davao for Branch I, Cotabato City arising conditions or emergencies may require.
for Branch II and Ozamiz City for Branch III. A judge assigned to vacation duty shall not ordinarily be
Section 143. Judges of Agrarian Relations - The judicial required to hold court during such vacation; but the
function of the Courts of Agrarian Relations shall be Executive Judge may, when in his judgment the
vested in an Executive Judge and the Regional District emergency shall require, direct any judge assigned to
Judges, who shall be appointed from time to time, vacation duty to hold during the vacation a special term
depending on the need for their services, by the of court in any district.
President of the Philippines with the consent of the Section 148. Judges of Regional Districts - Four judges
Commission on Appointments: Provided, however, That shall be commissioned for each of the fourth and fifth
the Executive Judge and the eight Associate Judges, at Regional Districts; three judges shall be commissioned
the time of the approval of this Code, of the Court of for each of the third, sixth, seventh, ninth, eleventh and
Agrarian Relations established and organized under fifteenth Regional Districts; and two judges for each of
Republic Act Numbered Twelve hundred and sixty-seven, the other Regional Districts.
shall continue as Agrarian Judges without need of new
appointments by the President of the Philippines and Section 149. Oath of Office - Before entering upon the
new confirmation of the Commission on Appointments: discharge of the duties of their office, the judges shall
Provided, further, That upon the approval of this Code, the take and subscribe to an oath of office in accordance with
said Executive Judge shall continue as such with the provisions of Section twenty-three of the Revised
authority to exercise the usual administrative functions Administrative Code.
over the Court of Agrarian Relations not incompatible Section 150. Division of Business Between Branches - All
with the provisions of this Chapter and shall have his business appertaining to the Courts of Agrarian Relations
office in Manila without prejudice to his holding court in of each Regional District shall be equitably distributed
any district where the requirements of the service so among the judges of the branches in such manner as
warrant, and the eight Associate Judges shall be assigned shall be agreed upon by the judges themselves. Should
as Regional District Judges by the Executive Judge to any the judges fail to agree on the distribution of business,
of the regional districts as constituted in the preceding then the Executive Judge shall make the distribution.
Section.
Section 151. Judges' Certification as to Work Completed -
Section 144. Qualifications of Judges; Tenure of Office; The judges of the Courts of Agrarian Relations shall certify
Compensation - No person shall be appointed as at the end of each month that all petitions and motions
Executive Judge or Regional District Judge unless he has in all cases pending decision or resolution for a period of
been a citizen of the Philippines for ten years and has thirty days from submission by the parties have been
practiced law in the Philippines for a period of not less determined and decided before the date of the making
than ten years or has held during a like period, within the of the certificate. No leave shall be granted and no salary
Philippines, an office requiring admission to the practice shall be paid without such certificate.
of law in the Philippines as an indispensable requisite.
Section 152. Official Station of Regional District Judges -
Regional District Judges shall be appointed to serve Within thirty days after the approval of this Code, the
during good behavior, until they reach the age of seventy Executive Judge shall issue an order designating the
years or become incapacitated to discharge the duties of official station of the judges of the branches of each of
their office, unless sooner removed in accordance with the Regional Districts.
law.
Section 153. Time and Place of Holding Court - Sessions
The judges may be suspended or removed in the same of the Court shall be convened on all working days when
manner and upon the same grounds as judges of the there are cases ready for trial or other court business to
Court of First Instance: be dispatched. The hours for the daily session of the Court
The Executive Judge shall receive an annual shall be from nine to twelve in the morning, and from
compensation which shall be equal to that allowed or three to five in the afternoon, except on Saturdays, when
may hereafter be allowed for judges of the Court of First a morning session only shall be required: but the judge
Instance and the Regional District Judges shall receive an may extend the hours of session whenever in his
judgment it is proper to do so. The judge, in his discretion,


may order that but one session per day shall be held The rights and duties of the parties to the proceedings,
instead of two, at such hours as he may deem expedient the functions and responsibilities of the Court, and the
for the convenience both of the Court and of the public; binding effect of awards, orders and processes of the
but the number of hours that the Court shall be in session Court shall be covered by Section six to twenty-four of
per day shall be not less than five. Commonwealth Act Numbered One hundred three.
Sessions of the Court shall be held at the places of the Where the litigant is an agricultural tenant, tiller or lessee,
official station of the respective judges: Provided, he shall be entitled to the rights of a pauper-litigant
however, That whenever necessary in the interest of under the rules of Court and the privileges of an indigent
speedy and inexpensive justice and litigation, a judge litigant under Republic Act Numbered Sixty hundred and
shall hold court in the municipality where the subject thirty-five, without further proof thereof. (Amendments to
matter of the dispute is located, utilizing the sala of the RA No. 3844 (Agricultural Land Reform Code), Republic
local justice of the peace court for this purpose. Act No. 6389, [September 10, 1971])
A brief monthly report which shall be submitted within Section 156. Appeals - Appeals from an order or decision
the first five days of the succeeding month showing the of the Courts of Agrarian Relations may be taken to the
number and nature of the cases tried in his sala, the place Court of Appeals on questions of fact and of fact and law
of hearing in each case, the progress of the litigation with or to the Supreme Court on pure questions of law, as the
corresponding dates and the disposition made thereon case may be, in accordance with rules governing appeals
shall be rendered by every judge under his signature and from the Court of First Instance as provided in the Rules
copies thereof shall be furnished the Executive Judge, of Court.
who shall compile and report in an appropriate form the Section 157. Detail of Judges to Another District -
decisions promulgated in important cases. A judge who Whenever any judge in any of the Court shall certify to
fails or neglects to make his report shall, upon first the Executive Judge that the condition of the docket in
offense, be liable to warning by the Executive Judge, and his Court is such as to require the assistance of an
upon repeated failure or neglect may be suspended or additional judge, or when there is any vacancy in any
removed from office. Court, the Executive Judge may, in the interest of justice,
Section 154. Jurisdiction of the Court - The Court shall with the approval of the Supreme Court, assign any judge
have original and exclusive jurisdiction over: of the Court of Agrarian Relations whose docket permits
(1) All cases or actions involving matters, controversies, his temporary absence from said Court, to hold session in
disputes, or money claims arising from agrarian relations: the Court needing such assistance or where such vacancy
Provided, however, That all cases still pending in the exists.
Court of Agrarian Relations, established under Republic Whenever a judge appointed or assigned in any branch
Act Numbered Twelve hundred and sixty-seven, at the of the Court shall leave his district by transfer or
time of the effectivity of this Code, shall be transferred to assignment to another Court of equal jurisdiction without
and continued in the respective Courts of Agrarian having decided a case totally heard by him and which
Relations within whose district the sites of the cases are was duly argued or opportunity given for argument to the
located; parties of their counsel, it shall be lawful for him to
(2) All cases or actions involving violations of Chapters I prepare and sign his decision in said case anywhere
and II of this Code and Republic Act Number Eight within the Philippines and send the same by registered
hundred and nine; and mail to the clerk of court to be filed in the Court as of the
date when the same was received by the clerk, in the
(3) Expropriations to be instituted by the Department of same manner as if the judge had been present in the
Agrarian Reform: Provided, however, That expropriation Court to direct the filing of the judgment: Provided,
proceedings instituted by the Land Tenure however, That if a case has been heard only in part, the
Administration pending in the Court of First Instance at Supreme Court, upon petition of any of the interested
the time of the effectivity of this Code shall be transferred parties to the case and the recommendation of the
to and continued in the respective Courts of Agrarian respective district judge, may also authorize the judge
Relations within whose district the subject matter or who has partly heard the case to continue hearing and to
property is located. decide said case notwithstanding his transfer or
Section 155. Powers of the Court; Rules and Procedures - appointment to another court of equal jurisdiction.
The Courts of Agrarian Relations shall have all the powers Section 158. Personnel of the Courts of Agrarian
and prerogatives inherent in or belonging to the Court of Relations -
First Instance.
(1) Court Commissioners; Qualifications and
The Courts of Agrarian Relations shall be governed by the Compensation - There shall be twenty-four Court
Rules of Court: Provided, That in the hearing, investigation Commissioners who shall receive an annual
and determination of any question or controversy compensation of nine thousand pesos each and shall be
pending before them, the Courts without impairing appointed by the President with the consent of the
substantial rights, shall not be bound strictly by the Commission on Appointments. A Court Commissioner
technical rules of evidence and procedure, except in shall be a member of the Philippine Bar and must have
expropriation cases: Provided, further, That in case the been engaged in the practice of law for five years or must
persons referred to under Section one hundred have held a position in the government requiring the
sixty-three hereof, are not represented by a lawyer of their qualifications of a lawyer for the same period. A Court
own choice, the duly authorized leaders of duly registered Commissioner may be assigned by the Executive Judge
farmers organizations may enter their appearances as to assist in the hearing and investigation of cases. Subject
counsel for their respective member and/or organization to the latter's direction and supervision, he may hear
before the Court of Agrarian Relations, if the Court is fully evidence for the Court on any disputed point or issue in
convinced that the said leader could competently protect any given case or cases and shall after said hearing
the interest of his client subject to the basic duties and submit a report of all the cases heard by him together
obligations as officers of the Court. with the records thereof within the period prescribed by
The Court of Agrarian Relations is hereby authorized to the Court. During the hearing he may rule upon
conduct compulsory arbitration between agricultural questions of pleading and procedure but not on the
labor and agricultural management, agricultural share merits of the case.
tenants and agricultural landlords, and agricultural (2) Clerks of Court; Qualifications, Duties, Compensation
lessees and agricultural lessors in conflicts arising out of, and Bond - There shall be as many Clerks of Court as
and in connection with, their agrarian relations upon there are judges, who shall be appointed by the President
certification by the Secretary of Justice. of the Philippines with the consent of the Commission on
Appointments. Deputy Clerks of Court and such other
employees as may be required shall be appointed by the



Executive Judge, subject to Civil Service law, rules and corresponding to solicitors of the Office of the Solicitor
regulations. General and the compensation of subordinate officials
No person shall be eligible for appointment as Clerk of and employees shall be based on equivalent positions in
Court unless he is duly authorized to practice law in the the office of the Courts of Agrarian Relations: Provided,
Philippines. finally, That the compensation of employees whose
positions do not have equivalence in the office of the
Before entering upon the discharge of the duties of his Courts of Agrarian Relations shall be increased by thirty
office, he shall file a bond in the amount of ten thousand per cent of their salaries. (Amending Section 162 of R.A.
pesos in the same manner and form as required of the No. 3844 (Agricultural Land Reform Code), Republic Act
Clerk of the Supreme Court, such bond to be approved No. 5984, [August 4, 1969])
by, and filed with, the Treasurer of the Philippines and
shall be subject to inspection by interested parties. The The Agrarian Counsel shall have the power to organize
Clerk of Court shall require his deputy to give an such divisions and sections as will insure maximum
adequate bond as security against loss by reason of his efficiency of the Office.
wrong-doing or gross negligence. Section 163. Functions of the Office of Agrarian Counsel -
The Clerks of Court shall each receive an annual It shall be the responsibility of the Office of the Agrarian
compensation of not less than seven thousand two Counsel upon proper notification by the party concerned
hundred pesos. They shall exercise the same powers and or by the association or organization to which he belongs,
perform the same duties on all matters within the to represent tenants, agricultural lessees, agricultural
jurisdiction of the Courts as those exercised by the Clerks farm workers and agricultural owner-cultivators or the
of Court of the Courts of First Instance. (Amendment to members of their immediate farm household referred to
R.A. No. 3844 (Agricultural Land Reform Code), Republic in this Code who cannot engage the services of
Act No. 4366, [June 19, 1965]) competent private counsel in cases before the Court of
Agrarian Relations. This responsibility shall include
Clerks of Courts and other subordinate employees of the representation before courts, including appellate, in cases
Courts of Agrarian Relations shall, for administrative civil or criminal, instituted by or against said tenant,
purposes, belong to the Department of Justice; but in the agricultural lessees, farm workers or owners-cultivator or
performance of their duties, they shall be subject to the the members of their immediate farm household, where
supervision of the judges of the Court to which they the cases arise from or are connected with, or results or
respectively pertain. effects of an agrarian dispute. The decision of the Office
The Commissioners, otherwise known as Hearing Officers of the Agrarian Counsel to provide legal assistance shall
of the Court of Agrarian Relations, as well as the Clerks of be final. (Amending Section 163 of R.A. No. 3844
Court at the time of the approval of this Code, shall (Agricultural Land Reform Code), Republic Act No. 4886,
continue as such without the need of new appointment [June 17, 1967], further amended by Republic Act No.
by the President of the Philippines and new confirmation 6389, [September 10, 1971])
by the Commission on Appointments. Section 164. Authority to Administer Oath and
Section 159. Appropriation - There is hereby appropriated Acknowledgment - The Agrarian Counsel, the Deputy
the sum of three million five hundred thousand pesos, or Agrarian Counsel and the Special Attorneys of the Office
so much thereof as may be necessary, out of the of the Agrarian Counsel are hereby authorized to
unappropriated funds in the Philippine Treasury for administer oaths and acknowledgment free of charge.
expenses for courtrooms and court offices, including (Amendments to RA No. 3844 (Agricultural Land Reform
equipment for the Courts and their personnel, for salaries, Code), Republic Act No. 6389, [September 10, 1971])
and for other necessary expenses that may be incurred in Section 165. Appropriations - There is hereby
carrying out the provisions of this Chapter. The amount appropriated, in addition to the appropriation of the
appropriated shall be carried in succeeding Tenancy Mediation Commission for Fiscal Year 1964, the
appropriations for the Courts of Agrarian Relations. sum of three million pesos, or so much thereof as may be
necessary, out of the unappropriated funds in the
CHAPTER X OFFICE OF AGRARIAN COUNSEL National Treasury, for salaries, wages, purchase of motor
Section 160. Creation of Office of Agrarian Counsel - To vehicles, supplies, equipment, and other sundry
strengthen the legal assistance to agricultural lessees and expenses. The amount appropriated herein shall be
agricultural owner-cultivators referred to in this Code, the carried in the appropriations for the Office of the Agrarian
Tenancy Mediation Commission is hereby expanded and Counsel in the General Appropriations Acts for
shall hereafter be known as the Office of the Agrarian succeeding fiscal years.
Counsel. The head of the Office shall hereafter be known
as Agrarian Counsel and shall have the rank, CHAPTER XI GENERAL PROVISIONS
qualifications and salary of First Assistant Solicitor Section 166. Definition of Terms - As used in Chapter I of
General. He shall be assisted by a Deputy Agrarian this Code:
Counsel, who shall have the rank, qualifications and
salary of Assistant Solicitor General. The Agrarian Counsel (1) "Agricultural Land" means land devoted to any growth,
and Deputy Agrarian Counsel shall be appointed by the including but not limited to crop lands, salt beds, fish
President with the consent of the Commission on ponds, idle land and abandoned land as defined in
Appointments of Congress and shall be under the direct paragraphs 18 and 19 of this Section, respectively.
supervision of the Secretary of Justice. (2) "Agricultural lessee" means a person who, by himself
Section 161. Special Attorneys - There is hereby created in and with the aid available from within his immediate
the Office of the Agrarian Counsel eighty additional farm household, cultivates the land belonging to, or
positions of Special Attorneys, who shall be appointed by possessed by, another with the latter's consent for
the President upon recommendation of the Secretary of purposes of production, for a price certain in money or in
Justice and with the consent of the Commission on produce or both. It is distinguished from civil lessee as
Appointments. They shall have the rank, qualifications understood in the Civil Code of the Philippines.
and salary provided by law for a solicitor in the Office of (3) "Agricultural lessor" means a person, natural or
the Solicitor General with the lowest rank. juridical, who, either as owner, civil law lessee,
Section 162. Appointment of Subordinate Officials - The usufructuary, or legal possessor, lets or grants to another
Agrarian Counsel shall appoint the subordinate officials the cultivation and use of his land for a price certain.
and employees of the Office of the Agrarian Counsel, (4) "Agricultural year" means the period of time required
subject to Civil Service rules and regulations, fix their for raising a particular agricultural product, including the
compensation and prescribe their duties. The preparation of the land, sowing, planting and harvesting
compensation of special attorneys transferred to the of crops and, whenever applicable, threshing of said
Office of Agrarian Counsel shall be fixed on salary scales crops: Provided, however, That in case of crops yielding



more than one harvest from planting, "agricultural year" contiguous to land devoted directly to any crop and does
shall be the period from the preparation of the land to not include land devoted permanently or regularly to
the first harvest and thereafter from harvest to harvest. In other essential and more productive purpose.
both cases, the period may be shorter or longer than a (19) "Abandoned lands" means lands devoted to any crop
calendar year. at least one year prior to the notice of expropriation, but
(5) "Court" means the Court of Agrarian Relations. which was not utilized by the owner for his benefit for the
(6) Fair rental value" means the value not in excess of past five years prior to such notice of expropriation.
allowable depreciation plus six per cent interest per (20) "Economic family-sized farm units" means an area of
annum on the investment computed at its market value: farm land that permits efficient use of labor and capital
Provided, That the fair rental value for work animal or resources of the farm family and will produce an income
animals and farm implements used to produce the crop sufficient to provide a modest standard of living to meet
shall not exceed five per cent of the gross harvest for the a farm family's needs for food, clothing, shelter, and
work animal or animals and five per cent for implements. education with possible allowance for payment of yearly
(7) "Farm implements" means hand tools or machines installments on the land, and reasonable reserves to
ordinarily employed in a farm enterprise. absorb yearly fluctuations in income.
(8) "Immediate farm household" means the members of (21) "Suitably for economic family-size farm" refers to
the family of the lessee or lessor and other persons who situations where a parcel of land whose characteristics,
are dependent upon him for support and who usually such as climate, soil, topography, availability of water and
help him in his activities. location, will support a farm family if operated in
economic family-size farm units and does not include
(9) "Incapacity" means any cause or circumstance which those where large-scale operations will result in greater
prevents the lessee from fulfilling his contractual and production and more efficient use of land.
other obligations under this Code.
(22) "Agricultural owner-cultivator" means any person
(10) "Inspect" means to enter, examine and observe. who, providing capital and management, personally
Under no circumstance, however, shall such entrance, cultivates his own land with the aid of his immediate
examination and observation be utilized to commit any family and household.
act of intimidation or coercion nor shall it be utilized to
impair the civil rights of the individuals affected. (23) "Owner-manager" means the owner of a parcel of
land devoted to agricultural production who provides the
(11) "Proven farm practices" means sound farming capital and management in the farm enterprise.
practices generally accepted through usage or officially
recommended by the Agricultural Productivity (24) "Labor administration" means cases where farm
Commission for a particular type of farm. workers are employed wholly in the agricultural
production.
(12) "Work animals" means animals ordinarily employed in
a farm enterprise, such as carabaos, horses, bullocks, etc. (25) "Share tenancy" as used in this Code means the
relationship which exists whenever two persons agree on
(13) "Personal cultivation" means cultivation by the lessee a joint undertaking for agricultural production wherein
or lessor in person and/or with the aid of labor from one party furnishes the land and the other his labor, with
within his immediate household. either or both contributing any one or several of the items
As used in Chapter II: of production, the tenant cultivating the land personally
with the aid of labor available from members of his
(14) "Farm employer" includes any person acting directly immediate farm household, and the produce thereof to
or indirectly in the interest of a farm employer whether be divided between the landholder and the tenant.
for profit or not, as well as a labor contractor, but shall not
include any labor organization (otherwise than when (26) "Tax free" in reference to bonds and shares of stock
acting as a farm employer) or anyone acting in the issued by the Land Bank as payment for acquired private
capacity of an officer or agent of such labor organization. agricultural land shall mean all government taxes, except
gift tax and inheritance tax.
(15) "Farm worker" includes any agricultural wage, salary
or piece but is not limited to a farm worker of a particular Section 167. Penal Provisions -
farm employer unless this Code explicitly states otherwise (1) Violation of the provisions of Section thirteen and
and any individual whose work has ceased as a twenty-seven and paragraph 1 of Section thirty-one of this
consequence of, or in connection with, a current agrarian Code shall be punished by a fine not exceeding one
dispute or an unfair labor practice and who has not thousand pesos or imprisonment not exceeding one year
obtained a substantially equivalent and regular or both in the discretion of the court. In case of juridical
employment. persons, the manager or the person who has charge of
Whenever the term "farm worker" is used in this Code, it the management or administration of the property or, in
shall be understood to include farm laborer and/or farm his default, the person acting in his stead, shall be liable
employee. under this Section.
(16) "Farm workers' organization" includes any union or (2) Any person, natural or juridical, who induces another,
association of farm workers which exists, in whole or in as tenant, to execute or enter into a share tenancy
part, for the purpose of collective bargaining or dealing contract with himself or with another in violation of this
with farm employers concerning terms and conditions of Code shall be punished by a fine not exceeding five
employment. thousand pesos with subsidiary imprisonment in
accordance with the Revised Penal Code: Provided, That
(17) "Agrarian dispute" means any controversy relating to the execution of a share tenancy contract shall be
terms, tenure or conditions of employment, or considered prima facie evidence of such inducement as
concerning an association or representation of persons in to the owner, civil law lessee, usufructuary or legal
negotiating, fixing, maintaining, changing, or seeking to possessor. In case of juridical persons, the manager or the
arrange terms or conditions of employment, regardless of person who has charge of the management or
whether the disputants stand in the proximate relation of administration of the property or, in his default, the
farm employers and employees. person acting in his stead, shall be liable under this
As used in Chapter III of this Code: Section.
(18) "Idle lands" means land not devoted directly to any (3) Any person who executes an affidavit as required by
crop or to any definite economic purpose for at least one Section thirteen of Chapter I, knowing the contents
year prior to the notice of expropriation except for reasons thereof to be false, shall be punished by a fine not
other than force majeure or any other fortuitous event exceeding one thousand pesos or imprisonment of not
but used to be devoted or is suitable to such crop or is more than one year, or both, in the discretion of the court.


(4) Any person who wilfully violates the provisions of operating expenditures of the Agricultural Credit
Sections forty and forty-one of this Code shall be Administration shall not exceed three per centum of its
punished by a fine of not less than one hundred pesos total capitalization in addition to the allowance for losses
nor more than one thousand pesos or by imprisonment under Section one hundred ten: Provided, furthermore,
of not less than one month nor more than one year, or That all unexpended balances of all appropriations
both such fine and imprisonment, in the discretion of the provided in this Code for operating expenditures shall
court. If any violation of Sections forty and forty-one of revert to the National Treasury at the end of the fiscal
this Code is committed by a corporation, partnership or year in conformity with the provisions of Section
association, the manager or, in his default, the person twenty-three of Republic Act Numbered Nine hundred
acting as such when the violation took place shall be ninety-two: And provided, finally, That all the financial
criminally responsible. requirements of the various agencies established in this
(5) Any person who wilfully violates the provisions of Code for their operation except the Land Bank and the
Section forty-two of this Code shall, upon conviction Agricultural Credit Administration shall be proposed in
thereof, be subject to a fine of not more than two the President's budget in order that such appropriation
thousand pesos, or upon second conviction, to as may be necessary therefor may be provided in the
imprisonment of not more than one year or both such General Appropriation Acts for the succeeding fiscal
fine and imprisonment, in the discretion of the court. If years.
any violation of the provisions of Section forty-two of this Section 171. Separability of Provisions - If, for any reason,
Code is committed by a corporation, partnership or any section or provision of this Code shall be questioned
association, the manager or, in his default, the person in any court, and shall be held to the unconstitutional or
acting as such when the violation took place shall be invalid, no other section or provision of this Code shall be
criminally responsible. affected thereby.
(6) Any collusion between an agricultural lessee and an Section 172. Prior Inconsistent Laws - All laws or parts of
agricultural lessor and between a vendor and a vendee any law inconsistent with the provisions of this Code are
on installment sales to simulate agricultural contracts, hereby repealed.
agricultural loans, or any application for benefits under Section 173. Effective Date - This Code shall take effect
the Agrarian Reform Program shall be punishable by upon its approval.
imprisonment of not more than five years and a fine not
exceeding five thousand pesos. Approved: August 8, 1963
The period for filing the corresponding criminal action for
any criminal violation falling under the foregoing
provisions of this section shall cease to run, whenever a VII. Social Legislation

case is filed before the Court of Agrarian Relations for the
determination of a prejudicial question in relation to the
criminal action, until said determination has become RA No 6977 | Magna Carta for Micro,
final. (Amendments to RA No. 3844 (Agricultural Land Small and Medium Enterprises (MSMEs)
Reform Code), Republic Act No. 6389, [September 10, Previously, the Magna Carta for Small Enterprises, as
1971]) amended by RA Nos 8289, and 9501
Section 168. Pending Application for Mechanization -
Any provision of this Code to the contrary
notwithstanding, any application for mechanization Rules and Regulations Implementing the Magna
where corresponding certifications for suitability for Carta for MSMEs
mechanization and for availability for resettlement by the

Agricultural Tenancy Commission and the National
Resettlement and Rehabilitation Administration, January 24, 1991
respectively, have been issued and proper notices served AN ACT TO PROMOTE, DEVELOP AND ASSIST
on the tenants at least two months prior to the approval SMALL AND MEDIUM SCALE ENTERPRISES THROUGH
of this Code shall be given due course and decided in THE CREATION OF A SMALL AND MEDIUM ENTERPRISE
accordance with the pertinent provisions and DEVELOPMENT (SMED) COUNCIL, AND THE
requirements of Republic Act Numbered Eleven hundred RATIONALIZATION OF GOVERNMENT ASSISTANCE
and ninety-nine, as amended. PROGRAMS AND AGENCIES CONCERNED WITH THE
Section 169. Personnel of Reorganized or Abolished DEVELOPMENT OF SMALL AND MEDIUM ENTERPRISES,
Agencies - Permanent officials and employees of all AND FOR OTHER PURPOSES
existing government agencies which are abolished or Be it enacted by the Senate and House of
reorganized under this Code, subject to Civil Service Rules Representatives of the Philippines in Congress
and regulations, shall be absorbed and shall not be assembled::
divested of their positions except presidential appointees:
Provided, That those presidential appointees who cannot CHAPTER I
be absorbed and such officials and employees who prefer
to be laid-off shall be given gratuity equivalent to one Section 1. Title. — This Act shall be known as the
month salary for every year of service but in no case more "Magna Carta for Micro, Small and Medium Enterprises
than twenty-four month's salary, in addition to all benefits (MSMEs)." (as amended by RA No 9501)
to which they are entitled under existing laws and Section 2. Declaration of Policy. — Recognizing that
regulations. MSMEs have the potential for more employment
To carry out the provisions of this Section, there is hereby generation and economic growth and therefore can help
appropriated the sum of five hundred thousand pesos provide a self-sufficient industrial foundation for the
out of the unappropriated funds in the National Treasury. country, it is hereby declared the policy of the State to
promote, support,, strengthen and encourage the growth
Section 170. Budgeting and Disbursing of Appropriated and development of MSMEs in all productive sectors of
Funds - Any provision of this Code or of any existing law to the economy particularly rural/agri-based enterprises. To
the contrary notwithstanding, not more than sixty per this end, the State shall recognize the specific needs of
centum of the specific appropriations provided in this the MSMEs and shall recognize the specific needs of the
Code for operating expenditures shall be used for MSMEs and shall undertake to promote
personnel services: Provided, That in the case of the entrepreneurship, support entrepreneurs, encourage the
appropriations for the Agricultural Productivity establishments of MSMEs and ensure their continuing
Commission not more than twenty per centum shall be viability and growth and thereby attain countryside
spent for office personnel and other administrative industrialization by:
expenses thereof: Provided, further, That the total



a) intersifying and expanding programs for training in sixty percent (60%) of its capital or outstanding stock
entrepreneurship and for skills development for labor; must be owned by Filipino citizens;
b) facilitating their access to sources of funds; c) a business activity within the major sectors of the
c) assuring to them access to a fair share of economy, namely; industry, trade, services, including the
governments contracts and related incentives and practice of one's profession, the operation of
preferences; tourism-related establishments, and agri-business, which
for purposes of this Act refers to any business activity
d) complementing and supplementing financing involving the manufacturing, processing, and/or
programs for MSMEs and doing away with stringent and production of agricultural produce; and
burdensome collateral requirements that small
entrepreneurs invariably find extreme difficulty d) it must not be a branch, subsidiary or division of a
complying with; large scale enterprise.
e) instituting safeguards for the protection and However, this requirement shall not preclude MSMEs
stability of the credit delivery system; from accepting subcontracts and entering into franchise
partnership with large enterprises or from joining in
f) raising government efficiency and effectiveness in cooperative activities with other MSMEs.
providing assistance to MSMEs throughout the country,
at the least cost; Program of the Small Business Corporation (SB
Corporation) as provided in subsequent provisions of this
g) promoting linkages between large and small Act shall be exclusively delivered and directed to bonafide
enterprises, and by encouraging the establishments of MSMEs.
common service facilities;
Any MSME, its directors, officers or agents, found to
h) making the private sector a partner in the task of have committed fraud or misrepresentation for the
building up MSMEs through the promotion and purpose of availing the benefits under this Act shall be
participation of private voluntary organizations viable immediately disqualified as a beneficiary, without
industry associations, and cooperatives; and prejudice to any administrative, criminal or civil liability
i) assuring a balance and sustainable development under existing laws.
through the establishment of a feedback and evaluation Eligible MSMEs shall be entitled to a share of at least
mechanism that will monitor the economic contributions ten percent (10%) of total procurement value of goods
as well as bottlenecks and environmental effects of the and services supplied to the Government, its bureaus,
development of MSMEs. (as amended by RA No 9501) offices and agencies annually.
Section 3. Micro, Small and Medium Enterprises as The Department of Budget and Management shall
Beneficiaries. — MSMEs shall be defined as any business monitor the compliance of government agencies on the
activity or enterprise engaged in industry, agribusiness required procurement for MSMEs and submit its report to
and/or services, whether single proprietorship, the MSMED Council on a semestral basis and to the
cooperative, partnership or corporation whose total Congress of the Philippines, through its appropriate
assets, inclusive of those arising from loans but exclusive committees on a yearly basis. (as amended by RA No
of the land on which the particular business entity's 8289, 9501)
office, plant and equipment are situated, must have value
falling under the following categories: Section 5. Guiding Principles. — To set the pace for
MSME development, the State shall be guided by the
Micro not more than P3,000,000 following principles:
(a) Minimal set of rules and simplification of
procedures and requirements. - All government agencies
Small P3,000,001 - P15,000,000
having to do with small enterprises shall pursue stability
of rules and to encourage entrepreneurial spirit among
Medium P15,000,001 - P1,000,000,000 the citizenry. The agencies shall see to it that procedural
rules and requirements, within their respective offices in
coordination with other agencies, are minimized in the
The above definitions shall be subject to review and act of registration, availment of financing and accessing
adjustments by the Micro, Small and Medium Enterprises other government services and assistance.
Development (MSMED) Council under Section 6 of this (b) Role of the private sector. - In order to hasten
Act or upon recommendation of sectoral organizations growth and expansion of small and medium enterprises,
concerned, taking into account inflation and other the private sector throughout the country shall be
economic indicators. The Council may use other variables encouraged to assist in the effective implementation of
such as number of employees, equity capital and assets this Act by participating in government programs for
size. small and medium enterprises strictly in accordance with
The Council shall ensure that notwithstanding the the law, and consistent with the attainment of the
plans and programs set for MSMEs as a whole, there shall purposes hereof. To encourage private sector
be set and implemented other plans and programs participation, the Council, in consultation with the
varied and distinct from each other, according to the concerned sector, may recommend simplified procedure
specific needs of each sector, encouraging MSMEs to and localized incentives to small enterprises. The
graduate from one category to the next or even higher Government shall encourage the organization and
category. (as amended by RA No 8289, 9501) establishment of small and medium enterprise industry
Section 4. Eligibility for Government Assistance. — associations at the local and regional levels preferably
To qualify for assistance, counseling, incentives and unified under a national federation/association.
promotion under this Act, businesses falling under the (c) Coordination of government efforts. - Coordination
above definition must be: of government efforts. Government efforts shall be
a) duly registered with the appropriate agencies as coordinated to achieve coherence in objectives. All
presently provided by law: Provided, That in the case of appropriate offices, particularly those under the
micro enterprises as defined herein, registration with the Departments of Trade and Industry, Finance, Budget and
office of the municipal or city treasurer shall be deemed Management, Agriculture, Agrarian Reform, Environment
sufficient compliance with this requirement; and Natural Resources, Labor and Employment,
Transportation and Communications, Public Works and
b) one hundred percent (100%) owned, capitalized by Highways, Science and Technology, Interior and Local
Filipino citizens, whether single proprietorship or Government and Tourism as well as the National
partnership. If the enterprise is a juridical entity, at least Economic and Development Authority, Philippine
Information Agency and the Bangko Sentral ng Pilipinas,



through their national, regional and provincial offices three (3) years. The person so appointed to replace a
shall, to the best of their efforts and in coordination with member who has resigned, died, or been removed for
local government units, provide the necessary support cause shall serve only for the unexpired portion of the
and assistance to MSMEs. (as amended by RA No 9501) term.
(d) Decentralization. - The State shall accelerate the The private sector members of the Council shall
decentralization process by establishing regional and receive per diem of Two thousand pesos (P2,000) per
provincial offices in order to enhance and attain greater meeting, for a maximum of twenty-four (24) meetings per
efficiency in the provision of services to the countryside year, which per diem may be adjusted by the MSMED
and the implementation of this Act, in coordination with Council as appropriate.
local government units. To this end, the government The Council may call upon the participation of any
agencies shall effect a substantial delegation of authority national or local government agency, association of local
to their regional and provincial offices to make decisions, government officials or private sector organization in its
particularly in the registration of beneficiaries of this law, deliberations especially when such agency or private
qualification for availment of benefits, accreditation of sector or organization in its deliberations especially when
private voluntary organizations, industry associations and such agency or private sector organizations directly or
cooperatives, and to resolve complaints for violation of indirectly concerned with and/or affecting the growth
applicable laws. (as amended by RA No 8289) and development of MSMEs in any particular area or
Section 6. Micro, Small and Medium Enterprises manner.
Development Plan (MSMEDP). - The President shall The Council may create an Executive Committee of
approve a six-year micro, small and medium enterprises five (5) members elected by the Council from among
development plan prepared by the Department of Trade themselves or their designated permanent
and Industry (DTI) which shall form part of the Medium representatives, with at least two (2) members
Term Philippine Development Plan (MTPDP). It shall be representing the private sector, and with authority to act
formulated in consultation with the private sector, for and on behalf of the Council during intervals of
validated and updated semestrally. Such plan shall council meetings, and within the specific authority
include a component on a micro credit financing granted by the Council.
scheme. (as created by RA No 9501)
(7a) (as amended by RA No 8289, 9501)
CHAPTER II Section 7-B. Powers and Functions. — The MSMED
Section 7. Creation of a Small and Medium Council shall have the following powers, duties and
Enterprise Development Council. — The existing Small functions:
and Medium Enterprise Development Council, which was a) To help establish the needed environment and
created by Republic Act No. 6977, as amended by opportunities conducive to the growth and development
Republic Act No. 6977, as amended by Republic Act No. of the MSME sector;
8289, shall be strengthened to effectively spur the growth
and development of MSMEs throughout the country, and b) To recommend to the President and the Congress
to carry out the policy declared in this Act and shall now all policy matters affecting MSMEs;
be known as the Micro, Small and Medium Enterprise c) To coordinate and integrate various government
development (MSMED) Council. The Council shall be and private sector activities relating to MSME
attached to the Department of Trade and Industry and development;
shall be constituted within sixty (60) days after the
d) To review existing policies of government agencies
approval of this Act. (as amended by RA No 9501)
that would affect the growth and development of MSMEs
The Council shall be the primary agency responsible and recommend changes to the President and Congress
for the promotion, growth and development of small and through the Committee on Economic Affairs of the
medium enterprises in the country by way of facilitating Senate and the Committee on Small Business and
and closely coordinating national efforts to promote the Entrepreneurship Development of the House of
viability and growth of small and medium enterprises, Representatives. whenever deemed necessary. This shall
including assisting relevant agencies in the tapping of include efforts to simplify rules and regulations, as well as
local and foreign funds for small and medium enterprise review of the applicability in the registration, financing,
development, as well as promoting the use of existing and other activities relevant to MSMEs the result shall be
programs, as well as seeking ways to maximize the use of included in the annual report to be submitted to
our labor resources. (6a) (as amended by RA No 8289, Congress;
renumbered by RA No 9501)
e) To monitor and determine the progress of various
Section 7-A. Composition. — The Council shall be agencies geared towards the development of the sector.
headed by the Secretary of Trade and Industry as This shall include overseeing, in coordination with local
Chairman, and may elect from among themselves a government units and the Department of Interior and
Vice-chairman to preside over the Council meetings in Local Government as well as private sector
the absence of the Chairman. The members shall be the groups/association, the development among MSMEs;
following:
g) To provide the appropriate policy and coordinative
a) Secretary of Agriculture; framework in assisting relevant government agencies, in
b) Secretary of the Interior and Local Government; coordination with the NEDA and the Coordinating
Council for the Philippine Assistance Program, as may be
c) Secretary of Science and Technology; necessary, in the tapping of local and foreign fund's for
d) Secretary of Tourism; MSME development;
e) Chairman of Small Business Corporation; h) To promote the productivity and viability of MSMEs
by way of directing and/or assisting relevant government
f) Three (3) representatives from the MSME sector to agencies and institutional at the national, regional and
represent Luzon, Visayas and Mindanao; provincial level towards the:
g) One representative from the labor sector, to be 1) Provision of business training courses, technical
nominated by accredited labor groups; and training for technicians and skilled laborers and
h) A representative from the private banking sector; continuing skills upgrading programs;
to serve alternately among the Chamber of Thrift Banks; 2) Provision of labor-management guidance,
the Rural Bankers' Association of the Philippines (RBAP); assistance and improvement of the working
and the Bankersâ€™ Association of the Philippines (BAP). conditions of employees in MSMEs;
All members of the Council so appointed, except
from the ex officio members, shall serve for a term of



3) Provision of guidance and assistance regarding i. Accept and act on all registration
product quality/product development and product application of MSMEs;
diversification; ii. Streamline registration process and
4) Provision of guidance and assistance for the facilitate speedy registration for the
adoption of improved production technique and establishment of business enterprises in
commercialization of appropriate technologies for the country;
the product development and for increased iii. Provide all information and referral services
utilization of indigenous raw materials; it shall deem necessary or essential to the
5) Provision of assistance in marketing and development and promotion of MSMEs;
distribution of products of MSMEs through local iv. Conduct other programs and development
supply-demand information, industry and provincial programs, training, advice, consultation
profiles, overseas marketing promotion, domestic on business conceptualization and
market linkaging and the establishment of common feasibility, financing, management,
service facilities such as common and/or cooperative capacity building, human resources,
bonded warehouse, grains storage, agro-processing marketing, and such other services to
and drying facilities, ice plants, refrigerated storage, support the needs of MSMEs;
cooperative trucking facilities, etc;
v. Provide courses and development
6) Intensification of assistance and guidance to programs, training, advice, consultation
enable greater access to credit through a simplified on business conceptualization and
multi-agency financing program; to encourage feasibility, financing, management, and
development of other modes of financing such as such other services to support the needs
leasing and venture capital activities; to provide of MSMEs;
effective credit guarantee systems, and encourage
the formation of credit guarantee associations, g) To submit to the President and the Congress
including setting up credit records and information through the OVERSIGHT Committee as
systems and to decentralize loan approval defined under this Act, a yearly report on
mechanism; the status of MSMEs in the country,
including the progress and impact of all
7) Provision of concessional interest rates, lower relevant government policies, programs
financing fees, which may include incentives for and legislation as well as private sector
prompt credit payments, arrangements tying activities;
amortizations to business cash flows, effective
substitution of government guarantee cover on loans h) To coordinate, monitor and assess the
for the borrower's lack of collateral; implementation of the MSMEDP, and when
necessary, institute appropriate
8) Provision of bankruptcy preventive measures adjustments thereon in the light of
through the setting up of a mutual relief system for changing conditions in both domestic and
distressed enterprises, and the establishment of international environment; and
measures such as insurance against extraordinary
disasters; i) Generally, to exercise all powers and functions
necessary for the objectives and purposes
9) Intensification of information dissemination of this Act.
campaigns and entrepreneurship education
activities; (8a) (as amended by RA No 9501)
10) Availment of and easier access to tax credits Section 8. Designation of the Bureau of Micro,
and other tax and duty incentives as provided by the Small and Medium Enterprise Development as Council
Omnibus Investment Code and other laws; Secretariat. — The Bureau of Small and Medium
Business Development (BSMBD) hereinafter referred to
11) Provision of support for product as the Bureau of Micro, Small and Medium Enterprise
experimentation and research and development Development (BMSMED) is hereby designated to act as
activities as well as access to information on the Council Secretariat and shall have the following
commercialized technologies; and duties and functions: (as amended by RA No 9501)
12) Through appropriate government agencies: (1) to prepare, in coordination with local government
a) Provide more infrastructure facilities and units and/or associations of local government officials,
public utilities to support operations of and recommend annual as well as medium-term small
MSMEs; and medium enterprises development plans for approval
b) Establish, operate, and administer a small of the Council;
business incubation program in (2) to coordinate the preparation of position papers
coordination with academic institutions, and background materials for discussion or approval
Department of Science and Technology during Council meetings;
and other appropriate government entities (3) to assist the Council in coordinating and
that will provide space for start-up and monitoring small and medium enterprise policies and
expanding firms, shared use of equipment programs and activities of all government agencies with
and work areas, daily management support respect to small and medium enterprises;
services essential to high-quality
commercial operations, technical (4) to prepare, collate and integrate all inputs to the
assistance and other services to develop Council's yearly report on the status of small and medium
innovative and deserving MSMEs; enterprises in the country;
d) Provide local and international network and (5) to submit periodic reports to the Council on the
linkages for MSME development; progress and accomplishment of its work programs; and
e) Compile and integrate statistical databank (6) to perform ad hoc functions as authorized by the
on Philippine MSMEs; Council. (9a) (as amended by RA No 8289)
f) Set-up new MSME centers and revitalize Section 9. Appropriations. - To finance its activities
already established MSME centers to and operational expenses, the Council shall have a
provide MSMEs in the regions easier access separate annual appropriation approved by the
to services such as, but not limited to, the Department of Trade and Industry (DTI) which shall be
following: provided in the General Appropriation Act starting in the
fiscal year immediately following the approval of this Act.



The Council may also accept contributions from the Section 11-B Corporate Structure and Powers. - The
private sector. (as created by RA No 9501) SB Corporation shall:
a) be administratively attached to the Department of
CHAPTER III Trade and Industry and shall be under the policy and
Section 10. Rationalization of Existing MSME program supervision of the MSMED Council;
Programs and Agencies. — The MSMED Council shall b) have its principal offices in Metro Manila and
conduct continuing review of government programs for whenever necessary, establish branch office in the
MSMEs and submit to Congress and the President a provinces; and
report thereon together with its policy recommendation.
(as amended by RA No 8289, 9501) c) exercise all the general powers expressly conferred
by law upon corporations under the Corporation Code,
Section 11. Creation of Small Business Guarantee including those powers that are incidental or necessary to
and Finance Corporation. — There is hereby created a the attainment of the objective of this Act.
body corporate to be known as the Small Business
Guarantee and Finance Corporation, hereinafter referred For this purpose, the SB Corporation subject to
to as the Small Business Corporation (SB Corporation), compliance with the rules and regulations to be issued by
which shall be charged with the primary responsibility of the Bangko Sentral ng Pilipinas (BSP) and the Securities
implementing comprehensive policies and programs to and Exchange Commission, shall have the following
assist MSMEs in all areas, including but not limited to functions and duties:
finance and information services, training and marketing. a) Source and adopt development initiatives for
(as amended by RA No 8289, 9501) globally competitive MSMEs in finance and business
Section 11-A. Composition of the Board of Directors technologies;
and its Powers. - The SB Corporation corporate powers b) To extend all forms of financial assistance to
shall be vested on a Board of Directors composed of eligible MSMEs. SB Corporation may also engage in
eleven (11) members which shall include the following: wholesale lending. The SB Corporation shall be given two
a) The Secretary of Trade and Industry; (2) years from the effectivity of this Act to comply with
this requirement;
b) The Secretary of Finance;
c) Guarantee loans obtained by qualified MSMEs
c) A private sector representative to be appointed by under such terms and conditions adopted by the SB
the President upon the recommendation of the MSMED Corporation Board of Directors;
Council;
d) Hold, purchase, lease or otherwise acquire and own
d) Seven (7) representatives of the SB Corporation real and personal property, introduce necessary
common stock shareholders who shall be elected based improvements thereon and to sell, mortgage, encumber
on proportional distribution, in accordance with Section or otherwise dispose of the same as may be necessary in
24 of the Corporation Code; and the normal course of business;
e) The president of the SB Corporation as ex-officio e) Formulate means and methods of accepting
member and to serve as vice chairman of the Board. alternative collaterals and implementing alternative loan
The President shall appoint the chairman of the evaluation models;
Board from among its members. f) Apply for, receive and accept grants and donations
All members of the Board so appointed, except for from sources within and outside the country; and
the ex-officio members, shall serve for a term of three (3) g) Hold, own, purchase, acquire, sell, mortgage,
without reappointment. The person so appointed to dispose or otherwise invest or reinvest in stocks, bonds,
replace a member who has resigned, died, or been treasury bills, debentures, securities and similar forms of
removed for cause shall serve only for the unexpired indebtedness of the government, its agencies and
portion of the term. instrumentalities or any government financial institution.
The Board of Directors shall have, among others, the (as created by RA No 9501)
following specific powers and authorities: Section 12. Capitalization and Funding of the SB
a) Formulate policies necessary to carry out effectively Corporation. — The SB Corporation shall have an
the provisions of this charter and to prescribe, amend and authorized capital stock of Ten billion pesos
repeal by-laws, rules and regulations for the effective (P10,000,000,000.00). The initial capital of One billion
operations of the small business corporation; pesos (10,000,000,000.00) shall be established from a
pool of funds to be contributed in the form of equity
b) Establish such branches, agencies and subsidiaries
investment in common stock by the Land Bank of the
as may be deemed necessary and convenient;
Philippines (LBP), the Development Bank of the
c) Compromise or release, in whole or in part, any Philippines (DBP), in the amount of Two hundred million
claim or liability whatsoever for or against the SB pesos (P200,000,000.00) each. the Social Security System
Corporation, including interest, penalties, fees and/or (SSS) and the Government Service Insurance System
charges in accordance to its own by-laws and Bangko (GSIS) shall also set aside Two hundred million pesos
Sentral ng Pilipinas rules; (P200,000,000.00) each for the SB Corporation.
d) Fix the features on non-voting preferred shares Authorized capital stock of the small business corporation
which shall be printed on the stock certificates shall be divided into 80,000,000 common shares and
evidencing the same; 20,000,000 preferred shares with a par value of One
hundred pesos (P100.00) per share: Provided, That
e) Exercise all such other powers as may be necessary common shares, which have been issued, including those
or incidental to carry out the SB Corporation's purposes; issued against assets of the KKK Guaranty Fund
and consolidated under the small business corporation by
f) Notwithstanding the provisions of Republic Act No. virtue of Executive Order No. 233, Series of 2000 and
6758 and Compensation Circular No, 10, Series of 1989 Executive Order No. 19, Series of 2001 and including those
issued by the Department of Budget and Management, already subscribed, shall form part of the capitalization of
the Board shall have the authority to provide for the the corporation: Provided, further, That holders of
organizational structure and staffing pattern of SB preferred shares issued under Republic Act No. 6977, as
Corporation and to extend to the employees and personal amended, shall have the option to convert the same into
thereof salaries, allowances and fringe benefits similar to common shares. Additional equity shall come from trust
those extended to and currently enjoyed by employees placements of excess and unused funds of existing
and personal of other financial institutions. (as created government agencies, bilateral and multilateral official
by RA No 9501) development assistance funds, subscriptions from


government owned or controlled corporations, and extra-judicial foreclosure, as well as avail of receivership,
investments of private financial institutions and enforcement and other proceedings, solely upon default
corporations: Provided, finally, That any investment from of a borrower, and for a period not exceeding five (5) years
the private sector shall only be in the form of preferred from actual possession: Provided, That in no event shall
shares. title to the property be transferred to such lending
To allow for capital build-up, SB Corporation shall be institution. If the lending institution is the winning bidder,
given a five (5) year grace period on dividend it may, during said five (5) year period, transfer its rights to
commitments beginning on the date of effectivity of this a qualified Philippine national, without prejudice to a
amendment. Thereafter, it may only declare as dividend borrower's right under applicable laws. (13a) (as
not more than thirty percent (30%) of its net income and amended by RA No 8289, 9501)
the rest withheld as retained earnings. (as amended by Section 16. Micro, Small, and Medium Enterprise
RA No 9501) Week. - In order to institute continuing awareness of the
Section 13. The SB Corporation shall be subject to the primacy of small business in nation-building and in
supervision and examination of the Bangko Sentral ng people empowerment, and to celebrate and espouse the
Pilipinas taking into consideration its development firm commitment of the State in the promotion, growth
objectives. (as created by RA No 9501) and development of small business, the second week of
July of every year shall be declared as the "Micro, Small,
Section 14. Venture Capitial and Micro Finance and Medium Enterprise Development Week". the MSMED
Trust Fund. - The SB Corporation may set aside an Council, the Department of Trade and Industry, and the
amount of money to encourage the setting up of a SB Corporation shall be jointly responsible in organizing
venture capital and micro finance trust fund for the activities for the event. (as created by RA No 9501)
purpose of promoting business opportunities available of
MSME sector. The Venture Capital Fund shall be used Section 17. Presidential Awards for Outstanding
mainly for venture capital finance especially in MSME. - Presidential awards for outstanding MSMEs and
technology-oriented industries. The micro finance trust good MSME practices, consisting of rewards in cash or in
fund shall be used to provide collateral-free fixed and kind shall be granted to one hundred percent (1005)
working capital loans to micro and small enterprises run Filipino-owned companies and development partners
by those emerging out of poverty. (as created by RA No during the MSME development week. (as created by RA
9501) No 9501)
Section 15. Mandatory Allocation of Credit Section 18. Congressional Oversight Committee. -
Resource to Micro, Small and Medium Enterprises. — To monitor and oversee the implementation of this Act,
For the period of ten (10) years from the date of the there shall be a Congressional Oversight Committee on
effectivity of this amendatory Act, all lending institutions Micro, Small and Medium Enterprise Development
as defined under Bangko Sentral ng Pilipinas rules, (COC-MSMED) composed of the chairpersons of the
whether public or private, shall set aside at least eight Senate Committee on Economic Affairs and the House
percent (8%) for micro and small enterprises of their total Committee on Small Business and Entrepreneurship
loan portfolio based on their balance sheet as of the end Development as chairperson and co-chairperson,
of the previous quarter, and make it available for MSME respectively; five (5) members of each of the Senate and
credit as herein contemplated. House of Representatives to include the chairpersons of
the Senate committees on Trade and Commerce; and
Compliance of this provision shall be: Banks, Financial Institutions and Currencies; and the
a) actual extension of loans to eligible MSMEs; or chairpersons of the House of committees on Trade and
Industry, Banks and Financial Intermediaries, and
b) actual subscription of preferred shares of shares of Appropriations: Provided, That two (2) of the five Senators
stock of the SB Corporation; or and two (2) of the five House members shall be
c) wholesale lending to Participating Financial nominated by the respective minority leaders of the
Institutions (PFIS) for on-lending to MSMEs; or Senate and the House of Representatives.
d) purchase/discount of MSMEs receivables; or The COC-MSMED shall set the guidelines and overall
framework for the monitoring of the implementation of
e) loans granted to export, import, and domestic this Act and shall adopt its internal rules of procedure.
traders subject to compliance with Section 3 of this Act; The Secretariat of the COC-MSMED shall be drawn from
or the existing personnel of the Senate and House of
f) subscribed/purchase of liability instruments as may Representatives committees compromising the
be offered by the SB Corporation. COC-MSMED. (as created by RA No 9501)
The Bangko Sentral ng Pilipinas shall formulate rules Section 19. Penal Clause. — The Bangko Sentral ng
for the effective implementation of this provision: Pilipinas shall impose administrative sanctions and other
Provided, That the purchase of government notes, penalties on the lending institutions for non-compliance
securities and other negotiable instruments shall not be with provision of this Act including a fine of not less than
deemed compliance with the foregoing provisions: Five hundred thousand pesos (P500,000).
Provided, further, That the Bangko Sentral ng Pilipinas Penalties on non-compliance shall be directed to the
shall establish an incentive program to encourage development of the MSME sector. Ninety percent (90%) of
lending to micro, small and medium industries beyond the penalties collected should go to the MSMED Council
the mandatory credit allocation to said enterprises, such Fund, while the remaining ten percent (10%) should be
as possible reduction in bank's reserve requirement. given to the BSP to cover for administrative expenses.
The MSMED Council shall set up the appropriate (14a) (as amended by RA No 8289, 9501)
systems to monitor all loan applications of MSMSEs in Section 20. Implementing Rules and Regulations. -
order to account for the absorptive capacity of the MSME The Department of Trade and Industry, through the
sector. Bureau of Micro, Small and Medium Business
The Bangko Sentral ng Pilipinas shall furnish to the Development in consultation with other concerned
MSMED Council on a quarterly basis comprehensive government agencies, non-government organizations
reports on the banks' compliance, noncompliance and and private sector involved in the promotion of MSMEs,
penalties of the above provisions on the mandatory credit shall formulate the implementing Rules and Regulations
allocation for MSMEs. (IRR) necessary to implement the provisions of this Act
Lending institutions which are not qualified to within ninety (90) days from the approval of this Act. The
acquire or hold lands of the public domain in the IRR issued pursuant to this Section shall take effect thirty
Philippines shall be permitted to bid and take part in (30) days after publication in a national newspaper of
sales of mortgaged real property in case of judicial r general circulation. (as created by RA No 9501)


established under Section 33 of this Act, shall prepare a

CHAPTER IV uniform career and personnel development plan
Section 21. Separability Clause. — The provisions of applicable to all public health personnel. Such career and
this Act are hereby declared to be separable. If any personnel development plan shall include provisions on
provisions of this Act shall be held unconstitutional, the merit promotion, performance evaluation, in-service
remainder of the Act not otherwise affected shall remain training grants, job rotation, suggestions and incentive
in full force and effect. (15a) award system.
Section 22. Repealing Clause. — All laws, executive The performance evaluation plan shall consider
orders, rules and regulations, or parts thereof, foremost the improvement of individual employee
inconsistent herewith are hereby repealed or modified efficiency and organizational effectiveness: Provided, That
accordingly. (16a) each employee shall be informed regularly by his/her
supervisor of his/her performance evaluation.
Section 23. Effectivity. — This Act shall take effect
upon its approval. (17a) The merit promotion plan shall be in consonance
with the rules of the Civil Service Commission.
Approved: January 24, 1991
SECTION 6. Transfer of Geographical Reassignment
of Public Health Workers. —
RA No 7305 | The Magna Carta of Public a) a transfer is a movement from one position to
Health Workers another which is of equivalent rank, level or salary
without break in service;
b) a geographical reassignment, hereinafter referred
to as "reassignment" is a movement from one
Revised Rules and Regulations Implementing the geographical location to another; and
Magna Carta of Public Health Workers
c) a public health worker shall not be transferred
and/or reassigned, except when made in the interest of
March 26, 1992 public service, in which case, the employee concerned
THE MAGNA CARTA OF PUBLIC HEALTH WORKERS shall be informed of the reasons therefore in writing. If
the public health worker believes that there is no
SECTION 1. Title. — This Act shall be known as the justification for the transfer and/or reassignment, he/she
"Magna Carta of Public Health Workers" may appeal his/her case to the Civil Service Commission,
SECTION 2. Declaration of Policy and Objective. — which shall cause his/her transfer and/or reassignment to
The State shall instill health consciousness among our be held in abeyance: Provided, That no transfer and/or
people to effectively carry out the health programs and reassignment whatsoever shall be made three (3) months
projects of the government essential for the growth and before any local or national elections:Provided, further,
health of the nation. Towards this end, this Act aims: (a) to That the necessary expenses of the transfer and/or
promote and improve the social and economic reassignment of the public health worker and his/her
well-being of the health workers, their living and working immediate family shall be paid for by the Government.
conditions and terms of employment; (b) to develop their SECTION 7. Married Public Health Workers. —
skills and capabilities in order that they will be more Whenever possible, the proper authorities shall take steps
responsive and better equipped to deliver health projects to enable married couples, both of whom are public
and programs; and (c) to encourage those with proper health workers, to be employed or assigned in the same
qualifications and excellent abilities to join and remain in municipality, but not in the same office.
government service.
SECTION 8. Security of Tenure. — In case of regular
SECTION 3. Definition. — For purposes of this Act, employment of public health workers, their services shall
"health workers" shall mean all persons who are engaged not be terminated except for cause provided by law and
in health and health-related work, and all persons after due process: Provided, That if a public health worker
employed in all hospitals, sanitaria, health infirmaries, is found by the Civil Service Commission to be unjustly
health centers, rural health units, barangay health dismissed from work, he/she shall be entitled to
stations, clinics and other health-related establishments reinstatement without loss of seniority rights and to
owned and operated by the government or its political his/her back wages with twelve percent (12%) interest
subdivisions with original charters and shall include computed from the time his/her compensation was
medical, allied health professional, administrative and withheld from his/her up to the time of reinstatement.
support personnel employed regardless of their
employment status. SECTION 9. Discrimination Prohibited. — A public
health worker shall not be discriminated against with
SECTION 4. Recruitment and Qualification. — regard to gender, civil status, creed, religious or political
Recruitment policy and minimum requirements with beliefs and ethnic groupings in the exercise of his/her
respect to the selection and appointment of a public profession.
health worker shall be developed and implemented by
the appropriate government agencies concerned in SECTION 10. No Understaffing/Overloading of
accordance with policies and standards of the Civil Health Staff . — There shall be no understaffing or
Service Commission: Provided, That in the absence of overloading of public health workers. The ratio of health
appropriate eligibles and it becomes necessary in the staff to patient load shall be such as to reasonably effect a
public interest to fill a vacancy, a temporary appointment sustained delivery of quality health care at all times
shall be issued to the person who meets all the without overworking the public health workers and over
requirements for the position to which he/she is being extending his/her duty and service. Health students and
appointed except the appropriate civil service eligibility: apprentices shall be allowed only for purposes of training
Provided, further, That such temporary appointment shall and education.
not exceed twelve (12) months nor be less than three (3) In line with the above policy, substitute officers or
months renewable thereafter but that the appointee may employees shall be provided in place of officers or
be replaced sooner if (a) a qualified civil service eligible employees who are on leave for over three (3) months.
becomes available, or (b) the appointee is found wanting Likewise, the Secretary of Health or the proper
in performance or conduct befitting a government government official shall assign a medico-legal officer in
employee. every province.
SECTION 5. Performance Evaluation and Merit In places where there is no such medico-legal officer,
Promotion. — The Secretary of Health, upon consultation rural physicians who are required to render medico-legal
with the proper government agency concerned and the
Management-Health Workers' Consultative Councils, as



services shall be entitled to additional honorarium and additional compensation in accordance with existing
allowances. laws and prevailing practices.
SECTION 11. Administrative Charges. — SECTION 17. Work During Rest Day. — a) Where a
Administrative charges against a public health workers public health worker is made to work on his/her
shall be heard by a committee composed of the scheduled rest day, he/she shall be paid an additional
provincial health officer of the province where the public compensation in accordance with existing laws.
health worker belongs, as chairperson, a representative of
any existing national or provincial public health workers'
organization or in its absence its local counterpart and a b) Where a public health worker is made to work on
supervisor of the district, the last two (2) to be designated any special holiday he/she shall be paid an additional
by the provincial health officer mentioned above. The compensation in accordance with existing laws. Where
committee shall submit its findings and such holiday work falls on the worker's scheduled rest
recommendations to the Secretary of Health within thirty day, he/she shall be entitled to an additional
(30) days from the termination of the hearings. Where the compensation as may be provided by existing laws.
provincial health officer is an interested party, all the SECTION 18. Night-Shift Differential. — a) Every
members of the committee shall be appointed by the public health worker shall be paid a night-shift differential
Secretary of Health. of ten percent (10%) of his/her regular wage for each hour
SECTION 12. Safeguards in Disciplinary Procedures. of work performed during the night-shifts customarily
— In every disciplinary proceeding, the public health adopted by hospitals.
worker shall have: b) Every health worker required to work on the
a) the right to be informed, in writing, of the charges; period covered after his/her regular schedule shall be
entitled to his/her regular wage plus the regular overtime
b) the right to full access to the evidence in the case; rate and an additional amount of ten percent (10%) of
c) the right to defend himself/herself and to be such overtime rate for each hour of work performed
defended by a representative of his/her choice and/or by between ten (10) o'clock in the evening to six (6) o'clock in
his/her organization, adequate time being given to the the morning.
public health worker for the preparation of his/her SECTION 19. Salaries. — In the determination of the
defense; salary scale of public health workers, the provisions of
d) the right to confront witnesses presented against Republic Act No. 6758 shall govern, except that the
him/her and summon witnesses in his/her behalf; benchmark for Rural Health Physicians shall be upgraded
e) the right to appeal to designated authorities; to Grade 24.
f) the right to reimbursement of reasonable expenses a) Salary Scale — Salary scales of public health
incurred in his/her defense in case of exoneration or workers shall be provided progression: Provided, That the
dismissal of the charges; and progression from the minimum to maximum of the
salary scale shall not extend over a period of ten (10) years:
g) such other rights as will ensure fairness and Provided, further, That the efficiency rating of the public
impartiality during proceedings. health worker concerned is at least satisfactory.
SECTION 13. Duties and Obligations. — The public b) Equality in Salary Scale — The salary scales of
health workers shall: public health workers whose salaries are appropriated by
a) discharge his/her duty humanely with conscience a city, municipality, district, or provincial government shall
and dignity; not be less than those provided for public health workers
of the national government: Provided, That the national
b) perform his/her duty with utmost respect for life; government shall subsidize the amount necessary to pay
and the difference between that received by nationality-paid
c) exercise his/her functions without consideration to and locally-paid health workers of equivalent positions.
race, gender, religion, nationality, party politics, social c) Salaries to be Paid in Legal Tender — Salaries of
standing or capacity to pay. public health workers shall be paid in legal tender of the
SECTION 14. Code of Conduct. — Within six (6) Philippines or the equivalent in checks or treasury
months from the approval of this Act, the Secretary of warrants: Provided, however, That such checks or treasury
Health, upon consultation with other appropriate warrants shall be convertible to cash in any national,
agencies, professional and health worker's organization, provincial, city or municipal treasurers' office or any
shall formulate and prepare a Code of Conduct for Public banking institution operating under the laws of the
Health Workers, which shall be disseminated as widely as Republic of the Philippines.
possible. d) Deductions Prohibited — No person shall make
SECTION 15. Normal Hours of Work. — The normal any deduction whatsoever from the salaries of public
hours of work of any public health worker shall not health workers except under specific provision of law
exceed eight (8) hours a day or forty (40) hours a week. authorizing such deductions: Provided, however, That
upon written authority executed by the public health
Hours worked shall include: a) all the time during worker concerned, a) lawful dues or fees owing to any
which a public health worker is required to be on active organization/association where such public health worker
duty or to be at a prescribed workplace; and b) all the is an officer or member; and b) premiums properly due all
time during which a public health worker is suffered or insurance policies, retirement and medicare shall be
permitted to work; Provided, That, the time when a public considered deductible. cdt
health worker is placed on "On Call" status shall not be
considered as hours worked but shall entitle the public SECTION 20. Additional Compensation. —
health worker to an "On Call" pay equivalent to fifty Notwithstanding Section 12 of Republic Act No. 6758,
percent (50%) of his/her regular wage. "On Call" status public health workers shall receive the following
refers to a condition when public health workers are allowances: hazard allowance, subsistence allowance,
called upon to respond to urgent or immediate need for longevity pay, laundry allowance and remote assignment
health/medical assistance or relief work during allowance.
emergencies such that he/shall devote the time for SECTION 21. Hazard Allowance. — Public health
his/her own use. workers in hospitals, sanitaria, rural health units, main
SECTION 16. Overtime Work. — Where the exigencies health centers, health infirmaries, barangay health
of the service so require, any public health worker may be stations, clinics and other health-related establishments
required to render service beyond the normal eight (8) located in difficult areas, strife-torn or embattled areas,
hours a day. In such a case, the workers shall be paid an distressed or isolated stations, prison camps, mental


hospitals, radiation-exposed clinics, laboratories or public health workers in coordination with appropriate
disease-infested areas or in areas declared under state of government agencies.
calamity or emergency for the duration thereof which SECTION 27. Medical Examination. — Compulsory
expose them to great danger, contagion, radiation, medical examination shall be provided free of charge to
volcanic activity/eruption, occupational risks or perils to all public health workers before entering the service in
life as determined by the Secretary of Health or the Head the Government or its subdivisions and shall be repeated
of the unit with the approval of the Secretary of Health, once a year during the tenure of employment of all public
shall be compensated hazard allowances equivalent to at health workers: Provided, That where medical
least twenty-five percent (25%) of the monthly basic examination shows that medical treatment and/or
salary of health workers receiving salary grade 19 and hospitalization is necessary for those already in
below, and five percent (5%) for health workers with salary government service, the treatment and/or hospitalization
grade 20 and above. including medicines shall be provided free either in a
SECTION 22. Subsistence Allowance. — Public health government or a private hospital by the government
workers who are required to render service within the entity paying the salary of the public health
premises of hospitals, sanitaria, health infirmaries, main worker:Provided, further, That the cost of such medical
health centers, rural health units and barangay health examination and treatment shall be included as
stations, or clinics, and other health-related automatic appropriation in said entity's annual budget.
establishments in order to make their services available at SECTION 28. Compensation for Injuries. — Public
any and all times, shall be entitled to full subsistence health workers shall be protected against the
allowance of three (3) meals which may be computed in consequences of employment injuries in accordance with
accordance with prevailing circumstances as determined existing laws. Injuries incurred while doing overtime work
by the Secretary of Health in consultation with the shall be presumed work-connected.
Management-Health Worker's Consultative Councils, as
established under Section 33 of this Act:Provided, That SECTION 29. Leave Benefits for Public Health
representation and travel allowance shall be given to rural Workers. — Public health workers are entitled to such
health physicians as enjoyed by municipal agriculturists, vacation and sick leaves as provided by existing laws and
municipal planning and development officers and prevailing practices: Provided, That in addition to the
budget officers. leave privilege now enjoyed by public health workers,
women health workers are entitled to such maternity
SECTION 23. Longevity Pay. — A monthly longevity leaves provided by existing laws and prevailing practices:
pay equivalent to five percent (5%) of the monthly basic Provided, further, That upon separation of the public
pay shall be paid to a health worker for every five (5) years health workers from service, they shall be entitled to all
of continuous, efficient and meritorious services rendered accumulated leave credits with pay.
as certified by the chief of office concerned, commencing
with the service after the approval of this Act. SECTION 30. Highest Basic Salary Upon Retirement.
— Three (3) months prior to the compulsory retirement,
SECTION 24. Laundry Allowance. — All public health the public health worker shall automatically be granted
workers who are required to wear uniforms regularly shall one (1) salary range or grade higher than his/her basic
be entitled to laundry allowance equivalent to One salary and his/her retirement benefit thereafter,
hundred twenty-five pesos (P125.00) per month: Provided, computed on the basis of his/her highest salary:Provided,
That this rate shall be reviewed periodically and increased That he/she has reached the age and fulfilled service
accordingly by the Secretary of Health in consultation requirements under existing laws.
with the appropriate government agencies concerned
taking into account existing laws and prevailing practices. SECTION 31. Right to Self-Organization. — Public
health workers shall have the right to freely form, join or
SECTION 25. Remote Assignment Allowance. — assist organizations or unions for purposes not contrary to
Doctors, dentists, nurses, and midwives who accept law in order to defend and protect their mutual interests
assignments as such in remote areas or isolated stations, and to obtain redress of their grievances through
which for reasons of far distance or hard accessibility, peaceful concerted activities.
such positions had not been filled for the last two (2)
years prior to the approval of this Act, shall be entitled to However, while the State recognizes the right of
an incentive bonus in the form of remote assignment public health workers to organize or join such
allowance equivalent to fifty percent (50%) of their basic organizations, public health workers on-duty cannot
pay, and shall be entitled to reimbursement of the cost of declare, stage or join any strike or cessation of their
reasonable transportation to and from such remote post service to patients in the interest of public health, safety
or station, upon assuming or leaving such position and or survival of patients.
during official trips. SECTION 32. Freedom from Interference or
In addition to the above, such doctors, dentists, Coercion. — It shall be unlawful for any person to commit
nurses, and midwives mentioned in the preceding any of the following acts of interference or coercion:
paragraph shall be given priority in promotion or a) to require as a condition of employment that a
assignment to better areas. Their tour of duties in the public health worker shall not join a health workers'
remote areas shall not exceed two (2) years, except when organization or union or shall relinquish membership
there are no positions for their transfer or they prefer to therein;
stay in such posts in excess of two (2) years.
b) to discriminate in regard to hiring or tenure of
SECTION 26. Housing. — All public health workers employment or any item or condition of employment in
who are on tour of duty and those who, because of order to encourage or discourage membership in any
unavoidable circumstances are forced to stay in the health workers' organization or union;
hospital, sanitaria or health infirmary premises, shall be
entitled to free living quarters within the hospital, c) to prevent a health worker from carrying out duties
sanitarium or health infirmary or if such quarters are not laid upon him/her by his/her position in the organization
available, shall receive quarters allowance as may be or union, or to penalize him/her for the action undertaken
determined by the Secretary of Health and other in such capacity:
appropriate government agencies concerned: Provided, d) to harass or interfere with the discharge of the
That this rate shall be reviewed periodically and increased functions of the health worker when these are calculated
accordingly by the Secretary of Health in consultation to intimidate or to prevent the performance of his/her
with the appropriate government agencies concerned. duties and responsibilities; and
For purposes of this Section, the Department of e) to otherwise interfere in the establishment,
Health is authorized to develop housing projects in its functioning, or administration of health worker's
own lands, not otherwise devoted for other uses, for organizations or unions through acts designed to place


such organizations or unions under the control of eliminate or in any way diminish benefits being enjoyed
government authority. by public health workers at the time of the effectivity of
SECTION 33. Consultation With Health Workers' this Act.
Organizations. — In the formulation of national policies SECTION 38. Budgetary Estimates. — The Secretary
governing the social security of public health workers, of Health shall submit annually the necessary budgetary
professional and health workers' organizations or unions estimates to implement the provisions of this Act in
as well as other appropriate government agencies staggered basis of implementation of the proposed
concerned shall be consulted by the Secretary of Health. benefits until the total of Nine hundred forty-six million
For this purpose, management-health workers' six hundred sixty-four thousand pesos (P946,664,000.00)
consultative councils for national, regional and other is attained within five (5) years.
appropriate levels shall be established and Budgetary estimates for the succeeding years should
operationalized. be reviewed and increased accordingly by the Secretary
SECTION 34. Health Human Resource of Health in consultation with the Department of Budget
Development/Management Study. — The Department and Management and the Congressional Commission on
of Health shall conduct a periodic health human resource Health (HEALTHCOM).
development/management study into, among others, the SECTION 39. Penal Provision. — Any person who
following areas: shall willfully interfere with, restrain or coerce any public
a) adequacy of facilities and supplies to render quality health worker in the exercise of his/her rights or shall in
health care to patients and other client population: any manner commit any act in violation of any of the
b) opportunity for health workers to grow and provisions of this Act, upon conviction, shall be punished
develop their potentials and experience a sense of worth by a fine of not less than Twenty thousand pesos
and dignity in their work. Public health workers who (P20,000.00) but not more than Forty thousand pesos
undertake postgraduate studies in a degree course shall (P40,000.00) or imprisonment of not more than one (1)
be entitled to an upgrading in their position or raise in year or both at the discretion of the court.
pay: Provided, That it shall not be more often than every If the offender is a public official, the court, in addition
two (2) years; to the penalties provided in the preceding paragraph,
c) mechanisms for democratic consultation in may impose the additional penalty of disqualification
government health institutions; from office.
d) staffing patterns and standards of health care to SECTION 40. Separability Clause. — If any provision
ensure that the people receive quality care. Existing of this Act is declared invalid, the remainder of this Act or
recommendations on staffing and standards of health any provision not affected thereby shall remain in force
care shall be immediately and strictly enforced; and effect.
e) ways and means of enabling the rank-and-file SECTION 41. Repealing Clause. — All laws,
workers to avail of educational opportunities for personal presidential decrees, executive orders and their
growth and development; implementing rules and regulations inconsistent with the
provisions of this Act are hereby repealed, amended or
f) upgrading of working conditions, reclassification of modified accordingly.
positions and salaries of public health workers to correct
disparity vis-a-vis other professions such that positions SECTION 42. Effectivity. — This Act shall take effect
requiring longer study be upgraded and given fifteen (15) days after its publication in at least two (2)
corresponding pay scale; and national newspapers of general circulation.
g) assessment of the national policy on exportation of Approved: March 26, 1992

skilled health human resource to focus on how these Published in the Philippine Times Journal and
resources could instead be utilized productively for the Malaya on April 2, 1992. Published in the Official Gazette,
country's needs. Vol. 88 No. 19 page 2769 on May 11, 1992.
There is hereby created a Congressional Commission (The Magna Carta of Public Health Workers, Republic
on Health (HEALTHCOM) to review and assess health Act No. 7305, [March 26, 1992])
human resource development, particularly on continuing
professional education and training and the other areas
described above. The Commission shall be composed of RA No 7607 | The Magna Carta of Small
five (5) members of the House of Representatives and five
(5) members of the Senate. It shall be co-chaired by the Farmers
chairpersons of the Committee on Health of both houses.
It shall render a report and recommendation to Congress
which shall be the basis for policy legislation in the field of June 4, 1992
health. Such a congressional review shall be undertaken AN ACT PROVIDING A MAGNA CARTA OF SMALL
once every five (5) years. FARMERS
SECTION 35. Rules and Regulations. — The Secretary SECTION 1. Title. — This Act shall be known as the
of Health after consultation with appropriate agencies of "Magna Carta of Small Farmers."
the government as well as professional and health
workers' organizations or unions, shall formulate and CHAPTER I General Provisions
prepare the necessary rules and regulations to
implement the provisions of this Act. Rules and SECTION 2. Declaration of Policy. — It is the declared
regulations issued pursuant to this Section shall take policy of the State to give the highest priority to the
effect thirty (30) days after publication in a newspaper of development of agriculture such that equitable
general circulation. distribution of benefits and opportunities is realized
through the empowerment of small farmers. While the
SECTION 36. Prohibition Against Double Recovery of State recognizes the fact that the welfare and
Benefits. — Whenever other laws provide for the same development of the small farmers is their primordial
benefits covered by this Act, the public health worker responsibility, the State shall provide the necessary
shall have the option to choose which benefits will be support mechanism towards the attainment of their
paid to him/her. However, in the event that the benefits socioeconomic endeavors.
chosen are less than that provided under this Act, the
worker shall be paid only the difference. Recognizing that rural development based on growth
and equity requires full integration of women and youth
SECTION 37. Prohibition Against Elimination and/or in the mainstream of development, the State shall ensure
Diminution. — Nothing in this law shall be construed to that these sectors are provided ample opportunity to



develop their skills, acquire productive employment and (8) "Transportation infrastructure" includes roads,
contribute to their communities to the fullest of their bridges, ports, airports, and the different modes of
capabilities. transportation using these infrastructure;
To ensure the efficient use and sustainability of land, (9) "Pre-harvest facilities" include, but are not limited
water and other productive resources, the State shall to, plows, harrows, tractors, rotavators and sprayers;
ensure that ecological balance and environmental (10) "Postharvest facilities" include, but are not limited
protection are maintained and observed in its pursuit of to, threshers, moisture meters, dryers, weighing scales,
rural development goals. milling equipment, storage facilities, buying stations,
In pursuance of this policy, the State shall recognize market infrastructure and transportation facilities;
the right of small farmers and farmworkers, as well as (11) "Market infrastructure" refers to facilities such as
cooperatives and independent farmers' organizations, to market buildings, slaughterhouses, holding pens and
participate in the planning, organization, management cold storage used by the farmers in marketing their
and implementation of agricultural programs and produce;
projects especially through the bayanihan spirit. It shall
support agriculture through appropriate policies, (12) "Input subsidy" refers to assistance extended by
research, technology and training, and adequate the Government to the farmers in terms of discounted
financial, production, marketing and other support prices of farm inputs such as fertilizer, pesticide and seed;
services to enhance agricultural productivity. In addition, (13) "Agrarian reform credit" includes production or
it shall provide incentives and reward systems to small other types of loans used for the acquisition of work
farmers so as to accelerate agricultural productivity and animals, farm equipment and machinery, seeds,
to promote self-sufficiency and full development of fertilizers, poultry and livestock feeds and other similar
agricultural potentials. items; acquisition of lands authorized under the
SECTION 3. Scope of Application. — This Act shall Comprehensive Agrarian Reform Law (CARL);
cover all small farmers and, to the extent herein provided, construction or acquisition of facilities for the production
the departments, offices, agencies, subdivisions or and effective merchandising of agricultural commodities;
instrumentalities of the National Government. (14) "Price subsidy" refers to the payment of
SECTION 4. Definition of Terms. — For purposes of Government of an additional amount for every unit of
this Act, the term: output sold by the farmers in the open market;
(1) "Small farmer" refers to natural persons dependent (15) "Farmworker" is a natural person who renders
on small-scale subsistence farming as their primary service value as an employee or laborer in an agricultural
source of income and whose sale, barter or exchange of enterprise or farm regardless of whether his
agricultural products do not exceed a gross value of One compensation is paid on a daily, weekly, monthly or
hundred eighty thousand pesos (P180,000) per annum pakyaw basis;
based on 1992 constant prices. An inter-agency (16) "Upland farming" refers to planting of upland
committee composed of the Department of Agrarian crops which usually require less water than other crops,
Reform, the Department of Trade and Industry, the as in non-irrigated and elevated farm areas;
Department of Finance and the National Economic and
Development Authority and headed by the Department (17) "Rural bank" refers to banks duly organized under
of Agriculture may conduct periodic review and Republic Act Numbered Seven hundred twenty with
adjustments of the income level to take into account the authority to operate under existing laws;
effects of changes in inflation, devaluation and consumer (18) "Cooperative bank" refers to banks whose owners
price index; are farmer's associations or cooperatives;
(2) "Farmers' organization" refers to farmers' (19) "Private development bank" refers to the banks
cooperatives, associations, or corporations duly registered duly organized under Republic Act Numbered Four
with appropriate government agencies and which are thousand ninety-three with authority to operate under
composed primarily of small agricultural producers, existing laws;
farmers, farmworkers, and other agrarian reform
beneficiaries who voluntarily join together to form (20) "Banks" collectively used, means the rural banks,
business enterprises which they themselves own, control cooperative banks, and private development banks as
and patronize; defined in paragraphs 17, 18 and 19, Section 3 of this Act;
(3) "Small agricultural producer" refers to any (21) "Irrigated lands" are agricultural lands which are
self-employed individual who, by himself or with his supported by irrigation services;
family, provides the primary labor requirement of his (22) "Non-irrigated lands" are agricultural lands which
business enterprise or one who earns at least fifty percent lack irrigation systems and are usually rainfed;
(50%) of his gross income from the payment, proceeds or (23) "Certified seed" refers to seeds that passed the
income of the labor he provides; seed certification standards of the Bureau of Plant
(4) "Production infrastructure" refers to Industry and which are the progeny of foundation,
farm-to-market roads, irrigation, rural electrification, registered or certified seeds that are so handled as to
ports, drying areas, public sites, warehouses and other maintain satisfactory genetic identity and varietal purity;
physical facilities used for productivity enhancing (24) "Good seed" refers to seeds that are the progeny
services, extension management assistance, training, of certified seeds so handled as to maintain a minimum
research and development; acceptable level of genetic purity and identity and which
(5) "Pre-harvest activities" include, but are not limited is selected at the farm level;
to, seedbed and land preparation, planting, weeding, pest (25) "Cooperative" refers to a duly registered
and disease control, fertilizer application, water association of persons, with a common bond of interest,
management and harvesting; who have voluntarily joined together to achieve a lawful
(6) "Postharvest activities" include, but are not limited common social economic end, making equitable
to, threshing drying, milling, storing and handling of contributions to the capital required and accepting a fair
produce and such other activities as shelling, stripping, share of the risks and benefits of the undertaking in
winnowing, chipping and washing; accordance with universally accepted cooperative
(7) "Extension services" refers to the technology principles;
transfer provided by the Government and (26) "Integrated Pest Management (IPM)" refers to a
nongovernment organizations to the agricultural sector pest management system which utilizes all suitable
such as training of farmers, credit assistance and the like; methods and techniques in as compatible a manner as
possible to maintain the pest population at a level below



that causing economically unacceptable damage or loss (9) Pursue any appropriate education and skills
without endangering the environment; and development towards the improvement of the quality of
(27) "Locally available materials" refers to form life;
lumber, gravel and sand, nipa, sawali, old G.I. sheets and (10) Eventually assume certain processing and
other low-cost, indigenous or used materials that could marketing functions of government agencies; and
be used as inputs in small infrastructure projects. (11) Avail of technical assistance from the appropriate
government agency in the preparation of project
CHAPTER II Farmer's Organization feasibility studies in availing loans and other forms of
SECTION 5. Right to Organize. — The State government economic assistance.
recognizes the right of farmers to organize themselves to SECTION 9. Farmers' Obligations. — The farmers
promote their welfare and advance or safeguard their shall:
interests. Towards these end, the Government shall assist
small farmers in establishing such self-help organizations (1) Make use of their farmers' organizations preferably
such as farmers' cooperatives and associations. cooperatives in order to enhance their capabilities in
production, processing, marketing and financing towards
In particular, the Government shall encourage the self-reliance;
formation of existing cooperatives among farmers in
order to enable them to purchase inputs at lower cost (2) Aim for increased productivity through the use of
and obtain fair prices for their produce. recommended farm practices and quality inputs;
SECTION 6. Farmer's Representation in (3) Comply with the terms and conditions stipulated
Government. — After voluntarily organizing themselves in the availment of any form of assistance from the
on the barangay, municipal, provincial and regional levels, Government, financial institutions and nongovernment
the farmers who have been elected through all levels organizations to enable others to equally benefit from
shall elect from among themselves their national officials such assistance;
who, notwithstanding existing laws to the contrary, shall (4) Adopt production and marketing strategies to
occupy a seat in the boards of concerned government avail of economies of scale, soil and climatic conditions,
agencies such as, but not limited to, the Philippine idle farm labor and innovative agricultural technology
Coconut Authority, the National Food Authority, the through crop zonification, diversification, home and
Philippine Crop Insurance Corporation, the National backyard industries, farming systems and similar
Irrigation Administration and others. activities;
On all other levels, the farmer representatives shall (5) Through their cooperative, share with the
serve as members of planning and implementing units of consuming public the benefits derived from economies
the local governments and shall act as the official of scale, integration of processing and marketing
representatives of the farmers with whom the activities and the application of better technology in the
Government shall coordinate with: Provided, That all form of reasonable prices and superior quality of
farmer representatives are members of primary farmers' products;
organizations preferably cooperatives and have been
elected in all preceding levels. (6) Share in the delivery of public services by
contributing available labor and material resources to
CHAPTER III Empowerment of the Small Farmers activities such as the maintenance of irrigation canals, the
construction of small water impounding projects, the
SECTION 7. General Provisions. — Empowerment of establishment of buying stations and public markets, and
small farmers refers to provision of opportunities whereby the establishment of plant nurseries and seedbanks;
farmers can have access to ownership or management of
production resources. To achieve this, small farmers' (7) Exert efforts to meet local demand requirements
rights and obligations that specifically promote such to avert any shortage that may necessitate importation;
empowerment are hereby given a legislative mantle. (8) Participate in the conservation, protection and
Through these provisions, the farmers' rights to development of the national patrimony;
participate in the charting of their political, economic and (9) Promptly pay all applicable fees, license fees and
social development are made inviolable. Likewise, the taxes to the appropriate government agencies;
corresponding obligations of the farmers to initiate, or
undertake patriotic and nationalistic endeavors must be (10) Participate in and contribute to government
fulfilled. insurance and social security programs; and
SECTION 8. Farmers' Rights. — The farmers have the (11) Undertake self-help community development
right to: projects such as cottage industries, backyard farming and
other economic-enhancement projects.
(1) Conduct their activities in an atmosphere
guaranteed by a support price program for certain
CHAPTER IV Infrastructure and Farm Inputs
agricultural commodities such as rice and corn;
SECTION 10. Provision of Infrastructure Support
(2) Participate in a market free from monopoly, cartel
Inputs and Services. — Consistent with the country's
or any other situation which may suppress prices to their
thrust for social entity and increased agricultural
disadvantage;
productivity, the Government shall provide infrastructure
(3) Be covered by social security to serve as protection support, access to farm inputs and services to the
from event such as calamities, death, sickness and agriculture sector, particularly to small farmers based on
disability; their absorptive capacity. In the construction and
(4) Avail of credit at minimal interest rates and with a maintenance of infrastructure projects, the Government
minimum of collateral requirements for their farm and shall undertake this with the farmers' organizations for
basic household needs; the purpose of utilizing locally available manpower and
materials.
(5) Avail of and distribute farm inputs and services;
Every farmer shall be assisted in gaining access to,
(6) Be heard and represented in the Government; obtaining, owning or opening facilities necessary for pre-
(7) Be regularly informed of such vital information as and post-harvest activities, for support services, and for
market prices, government agricultural policies, market procurement and distribution of inputs through their
demands and farming practices; farmers' organizations. Each city or municipality which is
predominantly agriculture-based shall ensure that
(8) Benefit from our country's natural resources appropriate linkages with component barangays,
under existing laws; nongovernment organizations and concerned


government agencies are established to ensure that such and upland areas. Farmers' organizations shall coordinate

assistance is made available to local farmers. with the field offices of the Department of Agriculture
SECTION 11. Transportation Infrastructure. — The and other concerned government agencies in ensuring
Government shall provide farm-to-market roads, feeder that seeds and the means necessary to engage in the
roads and bridges which will link the farms to the market. production and marketing of seeds suited to prevailing
Priority shall be given to areas predominantly populated conditions in their respective communities are made
by small farmers and where agricultural productivity is available to small farmers.
relatively low. To ensure the constant availability of appropriate and
To ensure accessibility of markets to farmers and affordable seeds of recommended varieties, the
thereby minimize product wastage, the Government shall Department of Agriculture, through the Bureau of Plant
also provide for the construction of additional piers or Industry, and in cooperation with the private seed
wharves and airports and the improvement of such producers' associations, the farmers' organizations, the
existing facilities especially in areas having surplus Institute of Plant Breeding of the University of the
agricultural production and in other strategic areas in the Philippines at Los Baños, and other state universities,
country. It shall devise schemes to allow farmers to colleges, and other institutions, shall extend all the
operate and eventually obtain their own transport necessary support needed to give the farmers the
equipment. capability to undertake seed production and distribution
services.
The Department of Public Works and Highways shall,
in coordination with other agencies or subdivisions of the The Department of Agriculture shall conduct
National Government, implement the provisions of this information campaigns and accelerate dissemination of
section. Farmers' organizations shall participate in site technology on the use, production and storage of quality
identification, preparation, actual execution and seeds. It shall also provide seed quality control services to
maintenance of infrastructure projects especially in discourage the use of inferior seeds and other varieties.
tapping available local manpower and materials. SECTION 17. Use of Fertilizers and Pesticides. — The
SECTION 12. Communications Infrastructure. — To Government together with the small farmers shall
facilitate farmers' access to vital information, the encourage the use of fertilizers and pesticides which have
Government shall make available at least one (1) an acceptable level of deleterious effects on the health
communication facility in each municipality for this and the environment. They shall also promote the use of
purpose. This facility is to be operated by the Department organic fertilizer and Integrated Pest Management (IPM).
of Agriculture or by a designated viable farmers' In addition, they shall promote efficient and proper usage
organization. of fertilizer and pesticide taking into consideration the
characteristics of the soil and crop and thereby eliminate
SECTION 13. Postharvest Facilities/Services. — Every losses due to wasteful and improper application. The
barangay which is predominantly agriculture-based shall Government shall support farmers' organizations in the
be entitled to at least one (1) storage facility and a trading of fertilizers and pesticides.
multipurpose pavement/plaza which can be used for
various purposes including drying of agricultural produce. The Department of Agriculture shall formulate
policies and implement programs regulating the use of
These shall be located in the chosen barangay site or fertilizers and pesticides. It shall conduct an extensive
in any area to be approved by the sangguniang information campaign on the nature and consequences
barangay in consultation with the small farmers and of using highly toxic pesticides. It shall monitor and
farmers' organizations who shall provide the labor and regulate the sale of pesticides to ensure that banned
other locally available materials for the construction and pesticides are not sold in the market. It shall conduct
maintenance of the facilities. Priority shall be given to thorough evaluation to check the data submitted by
areas where no such facilities are available and pesticide companies.
predominantly populated by small farmers. The selected
site shall, as much as practicable, be accessible by The Department of Agriculture shall likewise ensure
transportation and communication facilities and must be adequate supply of fertilizers at reasonable prices. To
near the center of the barangay. eliminate added cost passed on by traders to the farmers,
farmers' organizations shall be encouraged to undertake
The farmers' organizations may collect reasonable the distribution of fertilizers to their members.
fees for services rendered in connection with the use of
such facilities; Provided, That the collections therefrom CHAPTER V Farm Machinery and Equipment
shall be used only for the maintenance, improvement
and expansion of these facilities: Provided, further, That SECTION 18. Availability of Farm Machinery and
an amount representing rental fees for the land shall be Equipment. — The Department of Agriculture, through
remitted to the barangay, where applicable. the barangay or municipal governments and farmers'
organizations, shall support activities to ensure the
SECTION 14. Postharvest Facilities. — The National availability of farm machinery and equipment for the use
Food Authority (NFA) shall establish the necessary of small farmers in both pre- and postharvest operations.
postharvest facilities such as rice mills, dryers, threshers, For purposes of monitoring, all farm machinery and
warehouses, cold storage and other facilities which are equipment must be registered with the municipal
needed in the area. Such postharvest facilities shall be government. The Department shall devise a program to
leased to farmers' organizations. Viable cooperatives shall increase the population of draft animals in the area. Local
have the option to buy such facilities from the NFA. agricultural officers shall, in coordination with farmers'
Underutilized or non-operational postharvest facilities of organizations, devise schemes in the sharing, pooling,
the Government shall be made available to farmers' leasing or acquiring draft animals, equipment or
organizations through lease or sale. machinery needed by the farmers.
SECTION 15. Market Infrastructure. — To assure The Government shall support the farmers in
farmers of markets for their produce, the Government acquiring their inventory of farm equipment. With the
shall assist farmers' organizations in establishing and use of grants-in-aid, as well as other domestic and foreign
operating market infrastructure, facilities and equipment. funds, the Government shall acquire and distribute to
SECTION 16. Use of Good Seeds and Planting farmers' organizations farm equipment and machinery so
Materials. — The State shall ensure that every farmer has as to increase their productive capabilities. The funding
the equal opportunity to avail of, to produce and to requirement for this undertaking shall be included in the
market good seeds and planting materials annual budget of the Department of Agriculture.
recommended by the Department of Agriculture as
capable of producing high-yielding, pest-and-disease
resistant, and widely-adapted crops for irrigated, rainfed


diesel-powered deep well irrigation systems in barangays

CHAPTER VI Water Management and or communities where water is scarce.
Irrigation Facilities
SECTION 19. Water Management. — The CHAPTER VII Agricultural Credit
Government shall provide adequate support services that SECTION 21. Rural Credit Delivery System. — An
will address the development, management and efficient credit delivery system guided by a sound rural
conservation of water resources. The Department of credit policy geared towards the needs of small farmers
Public Works and Highways, through the National shall be established. The features of the credit delivery
Irrigation Administration and the Department of system for small farmers shall include, among others, a
Agriculture, and with the participation of farmers' maximum rate of interest not to exceed seventy-five
organizations, shall undertake the implementation of percent (75%) of commercial rate per annum inclusive of
small water impounding projects which can provide all service, penalty and other charges. It shall also include
supplemental irrigation and additional income from fish minimum collateral requirements, accessibility,
and duck raising, and at the same time minimize soil reasonable repayment terms, expeditious loan
erosion, siltation and flooding. Training programs for documentation and processing procedures. Services shall
small farmers on these subjects shall be provided. be expanded to include not only loans for procurement of
Focus shall also be made on small irrigation systems production inputs but also for other needs and purposes
which are more efficient, cost-effective and cheaper to of small farmers such as education and health needs.
establish. The design and construction of irrigation The Department of Agriculture, through the
systems shall be based not only on economic rate of Agricultural Credit Policy Council (ACPC) and other
return but also on the sustainable use of these systems. concerned agencies, shall give subsidies for the
Inefficient and underutilized irrigation systems shall be education and training of small farmers on credit
rehabilitated, improved and maintained. awareness, loan acquisition and loan repayment. It shall
To enhance the compatibility of environmental conduct an intensive information drive that will promote
protection with sustained agricultural productivity, the the establishment of strong and viable farmers'
Department of Environment and Natural Resources shall organizations such as cooperatives, credit unions,
adopt measures to promote conservation practices such rotating savings, and credit associations and
as reforestation, watershed management, antipollution non-government organizations (NGOs) which play a
programs and other similar measures. In addition, the major role in increasing small farmers' access to credit.
Department of Agriculture shall implement specific Likewise, the Government shall also set up a system
measures to ensure that farming practices are not which will provide information on the credit worthiness of
detrimental to the environment. potential borrowers.
To ensure the protection of watersheds and In order to reduce the risks and administrative costs
availability of irrigation services in rainfed and upland of lending institutions, the Government shall expand its
farms, the Department of Environment and Natural loan guarantee coverage under the Comprehensive
Resources shall, in collaboration with local government Agricultural Loan Fund to be administered by the ACPC
units, strictly enforce conservation measures and provide and crop insurance programs to cover not only rice and
for the restoration of the protective forest cover and corn but other crops, livestock, poultry, fishery, and
stability of the country's critical watersheds. agroforestry as well. The ACPC shall conduct special
Farmer-beneficiaries shall be organized into irrigators' projects to promote innovative financing schemes for
associations which shall be tapped by the Department of small farmers. Payments under such insurance program
Environment and Natural Resources to implement its shall be prompt and any delay without just cause shall
community-based reforestation projects, particularly the entitle the beneficiary to reasonable interest rate on the
development and management of watershed of the amount due.
irrigation projects. To ensure the integration of irrigation In addition, the Government shall promote the
delivery systems with other agriculture support services, development of farmers' organizations. Toward this end,
there shall be close coordination among the National the Government, through the ACPC and other concerned
Irrigation Administration, the Department of Agriculture, agencies, shall subsidize costs of information
and the Department of Environment and Natural dissemination, monitoring, training and registration. The
Resources through the local development councils. farmers' organizations may serve as conduits of rural
The Bureau of Soils and Water Management shall banks, private development banks and other banks for
prepare for each barangay, municipality or city which is effective agricultural credit delivery. An amount shall be
predominantly agriculture-based parcellary maps earmarked for lending exclusively farmers' cooperatives at
identifying agricultural lands which can be reached by subsidized interest rates.
irrigation systems. In order to ensure the availability of All agricultural lending programs of the Government
irrigation services in areas with production potential, the are hereby consolidated and placed under the
Government shall implement irrigation pump administration of the Land Bank of the Philippines. The
distribution programs particularly in areas predominantly funds shall be augmented by annual budgetary
populated by small farmers. allocations which shall be managed as a self-sustaining
SECTION 20. Access to Irrigation Services. — While fund base by the Land Bank of the Philippines in
the Government, through the National Irrigation coordination with the ACPC.
Administration (NIA) and other concerned offices, A portion of all loanable agricultural funds shall be
continues to provide irrigation services, farmers' utilized for direct lending to small farmers for their
organizations shall be encouraged to spearhead the production, processing, postharvest and marketing
construction of irrigation systems. Towards this end, the requirements.
Government shall encourage small farmers to join or form
irrigators' associations. In addition, it shall promote To be able to generate funds that will be used to
participation of farmers to develop their capabilities to cover for the administrative costs of the agricultural funds
eventually assume the operation and maintenance of being handled by the Land Bank of the Philippines, all
irrigation systems and the responsibility of collecting fees government agencies that are involved in the
from the individual members and remitting an amount development of the small farmers shall be allowed the
to the NIA. option to deposit their funds in the Land Bank of the
Philippines.
The NIA shall undertake the development and
institutionalization of second-crop irrigation facilities in SECTION 22. Cooperative Banks. — Small farmers
support of multi-crop farming. It shall also devise shall have access to reasonable credit/loan package. The
schemes for small farmers to avail of electric pumps or Government shall promote the establishment of


cooperative banks and promote the growth of networks establish a price support system for certain agricultural
of cooperative banks. products, especially rice and corn, taking into
consideration the need to increase the real income of
CHAPTER VIII Wage, Incentives and Price small farmers: Provided, however, That the price support
Support established shall not result in the increase of the retail
prices of such products beyond the paying capacity of the
SECTION 23. Incentives. — Small farmers, including average consumer: Provided, further, That the
agricultural share tenants and lessees, regular and Government shall also endeavor to set farmgate prices
seasonal farmworkers and beneficiaries under the that respond to the changing economic conditions.
Comprehensive Agrarian Reform Law (CARL), shall be
entitled to the following privileges or incentives: In addition, the Government shall minimize
importation of farm inputs which are being developed
(1) Financial and technical assistance shall be locally, such as fertilizers and seeds, except at times of
awarded to deserving farmers' organizations calamities or emergencies.
implementing livelihood projects. Concerned national
offices or agencies shall assist them in locating markets SECTION 26. Minimum Wage. — Rural workers
for their produce and by providing other support services including regular farm workers shall be entitled to wage
necessary for the success of their projects; levels prescribed by the Regional Tripartite Wages and
Productivity Board pursuant to Republic Act Numbered
(2) Barangay, municipal or provincial officials shall Sixty-seven hundred and twenty-seven. Contract workers
assist their respective communities to make the or seasonal farmworkers shall also be entitled to
necessary representations before the appropriate minimum wages unless they receive higher wages under
government agencies in seeking assistance for the terms of their contracts.
agro-based projects. They shall be encouraged to support
farmers to set up site specific agro-based projects that SECTION 27. Procurement of Agricultural Produce.
shall be operated in a business-like manner; — The National Food Authority or any other appropriate
agency of the Department of Agriculture which
(3) The Department of Agriculture and other implements the government price support for
concerned agencies shall promote investment and agricultural produce, especially rice and corn, shall only
financing programs designed to channel financial procure and purchase palay, corn or other agricultural
resources to livelihood projects in the countryside; produce directly from small farmers or farmers'
(4) Preferential tariff terms shall be extended on farm organizations. Such agency shall devise an effective
inputs and spare parts, farm machinery and equipment procurement scheme to ensure that small farmers can
imported by farmers' organizations provided that these avail of this benefit.
are specifically for their projects; Any official or employee of such agency who allows,
(5) The Government shall give incentives and consorts or connives with any trader or non-farmer in the
recognition to farmers and farmers' organizations purchase of rice, corn or other agricultural produce or
adopting more efficient farm technologies or equipment inputs subject to price support or any other government
resulting in increased productivity and income; subsidy which is intended exclusively to benefit small
farmers, shall be punished by a fine of not less than Ten
(6) The Government shall widen the scope of the
thousand pesos (P10,000.00) or by imprisonment for a
existing crop and livestock insurance programs by
term of not less than two (2) years but not more than four
providing an insurance scheme that can accommodate
(4) years, or both at the discretion of the court, without
major crops, livestock and other produce of small farmers;
prejudice to administrative sanctions imposed by the
(7) Study tours of short duration, local or overseas, subject agency with perpetual disqualification to hold
shall be provided to deserving small farmers to improve public office. The Probation Law shall not apply to
their technological competence and knowledge; penalties imposed under this Act.
(8) A system of certification of farm skills shall be Authentic copies of any evidence of procurement or
instituted by the Department of Agriculture through duly purchase of palay, corn and other agricultural produce
authorized institutions to upgrade the skills of farmers enjoying price support as provided in this section shall,
and farmworkers; within thirty (30) days from the issuance thereof, be
(9) Farmers' insurance coverage by the Social Security furnished the Bureau of Internal Revenue by the National
System subject to its charter shall be extended to small Food Authority or any other agency of the Government
farmers and farmworkers; and implementing price support therefor, subject to the
penalties provided in the preceding paragraph for
(10) Importations shall not be allowed on agricultural violation thereof.
products that are produced locally in sufficient quantity.
Importation policies should include the protection of new The penalties provided under this section shall
and developing crops such as soybean, ramie, sorghum likewise apply to any official or employee of the National
and wheat. Importation policies shall be reviewed Food Authority or to any such similar agency of the
periodically by the Government in consultation with Government who consorts or connives with any trader or
farmers' organizations. nonfarmer in the sale of rice, corn or other agricultural
produce sold under any government program.
SECTION 24. Income-generating Activities. — Small
farmers shall be encouraged to engage in other CHAPTER IX Research and Extension Services
income-generating activities to supplement their farm
income. National agencies, in collaboration with local SECTION 28. Research and Development System. —
government units, shall provide technical and skills The R and D System shall conduct mission-oriented or
training assistance through farmers' organizations, and strategic research and adaptation trials taking into
shall also be tasked to provide marketing assistance to consideration specific needs of the intended
small farmers. beneficiaries. The results of these adaptation trials shall
be verified under actual farm conditions to determine
Farmers' organizations shall be the main conduits for their performance in comparison with existing farming
funding livelihood projects. Assistance to livelihood systems.
projects shall include identification of specific markets
and facilitating access to market facilities. The The R and D System shall complement national
Government shall also provide other support services research centers by contributing studies or actual data to
necessary for the success of livelihood projects. Priority such studies. It shall concentrate on addressing the
shall be given to demand-pulled production activities. problems faced by farmers at the local level. The R and D
System shall also tap the knowledge or experience of the
SECTION 25. Price Support. — The Department of farmers in the area and, through proper assessment and
Agriculture, through its appropriate agencies, shall


development, synthesize such with the present stock Act Numbered Seventy-one hundred sixty, otherwise
data. known as the Local Government Code of 1991.
The Philippine Council for Agriculture and Resources SECTION 37. Separability Clause. — In case any
Research and Development shall be the lead agency to provision of this Act or any portion thereof is declared
strengthen the existing R and D System in coordination unconstitutional by a competent court, other provisions
with the Bureau of Agricultural Research, the Philippine shall not be affected thereby.
Rice Research Institute and other government research SECTION 38. Effectivity Clause. — This Act shall take
institutions, private research institutions; state colleges effect fifteen (15) days after its publication in the Official
and universities; and the farmers' organizations in the Gazette or in two (2) newspapers of general circulation.
area.
Approved: June 4, 1992
SECTION 29. Demonstration Farms. — Technology
verification and piloting shall be conducted by the Published in Malaya and the Philippine Times
farmers' organizations on the farmers' fields under the Journal on June 10, 1992. Published in the Official
supervision of the R and D personnel. These Gazette, Vol. 88 No. 30 page 4826 on July 27, 1992.
demonstration farms shall showcase technologies that (An Act Providing a Magna Carta of Small Farmers,
have passed regional adaptability tests. Republic Act No. 7607, [June 4, 1992])
Emphasis shall be given on the case of application of
the concept/technique, the use of indigenous technology
and materials, resource conservation, the increase in RA No 8425 | Social Reform and Poverty
productivity and income of the farmers and other similar
considerations; Alleviation Act
SECTION 30. Focus on Research, Training and
Extension. — Research, training and extension shall focus
on the development and transfer of adaptive Revised Rules and Regulations Implementing the
technologies that provide solutions to problems Social Reform and Poverty Alleviation Act
encountered by the small farmers in the areas of
production, postharvest and processing, marketing, December 11, 1997
entrepreneurship and management, and community
organizing and institutional development. AN ACT INSTITUTIONALIZING THE SOCIAL REFORM
AND POVERTY ALLEVIATION PROGRAM, CREATING
SECTION 31. Studies on Soil Types and Climatic FOR THE PURPOSE THE NATIONAL ANTI-POVERTY
Conditions. — The Bureau of Soils and Water COMMISSION, DEFINING ITS POWERS AND
Management (BSWM) and other concerned agencies FUNCTIONS, AND FOR OTHER PURPOSES
shall conduct studies in the municipalities and provinces
in order to determine the best use of the land, the most Be it enacted by the Senate and House of
profitable cropping mix, and the fertilizers needed for Representatives of the Philippines in Congress
such areas and crops. The BSWM shall likewise determine assembled::
the soil management practices suitable for the areas to Section 1. Title. – This Act shall be known as the
ensure sustainability of farming in these areas. "Social Reform and Poverty Alleviation Act."
SECTION 32. Extension Services. — The extension Section 2. Declaration of policy. – It is the policy of
workers of the Department of Agriculture shall serve as the State to:
linkages between the small farmers and farmers' (1) Adopt an area-based, sectoral and focused
organizations. Together, they shall identify on-farm intervention to poverty alleviation wherein every poor
problems to be referred to the research and development Filipino family shall be empowered to meet its minimum
institutions. They shall likewise disseminate tested basic needs of health, food and nutrition, water and
location-specific technologies to their farmer clientele. environmental sanitation, income security, shelter and
The farmers' organization shall complement the decent housing, peace and order, education and
extension program of the Department of Agriculture for functional literacy, participation in governance, and family
more effective technology transfer and information care and psychosocial integrity;
dissemination.
(2) Actively pursue asset reform or redistribution of
SECTION 33. Agro-industrial Linkages. — The productive economic resources to the basic sectors
Department of Trade and Industry and the Department including the adoption of a system of public spending
of Agriculture shall jointly devise a program that will which is targeted towards the poor;
increase the linkage between agriculture and industries,
especially those in industrial estates, through the (3) Institutionalize and enhance the Social Reform
promotion of processing industries in order to develop a Agenda, hereinafter known as the SRA, which embodies
sound agri-based industrial development of rural the results of the series of consultations and summits on
communities. poverty alleviation;
(4) Adopt and operationalize the following principles
CHAPTER X Final Provisions and strategies as constituting the national framework
SECTION 34. Appropriations. — The amounts integrating various structural reforms and anti-poverty
necessary to carry out the provisions of this Act are initiatives:
hereby authorized to be appropriated in the General (a) Social reform shall be a continuing process that
Appropriations Act of the year following its enactment addresses the basic inequities in Philippine society
into law. Other funding sources like the Philippine Aid through a systematic package of social interventions;
Plan may also be tapped for the purpose.
(b) The SRA shall be enhanced by government in
SECTION 35. Implementing Guidelines. — Within equal partnership with the different basic sectors
sixty (60) days from the effectivity of this Act, the through appropriate and meaningful consultations and
Department of Agriculture shall issue the necessary rules participation in governance;
and regulations to implement this Act.
(c) Policy, programs and resource commitments from
SECTION 36. Repealing Clause. — All laws, decrees, both government and the basic sectors shall be clearly
executive orders, administrative orders, rules and defined to ensure accountability and transparency in the
regulations or parts thereof inconsistent with the implementation of the Social Reform Agenda;
provisions of this Act are hereby repealed or modified
accordingly: Provided, however, That nothing in this Act (d) A policy environment conducive to sustainable
shall amend, modify or repeal the provisions of Republic social reform shall be pursued;


(e) The SRA shall address the fight against poverty (h) "Migrant workers" – As defined in Republic Act No.
through a multi-dimensional and cross-sectoral approach 8042, otherwise known as the "Migrant Workers and
which recognizes and respects the core values, cultural Overseas Filipino Act of 1995";
integrity, and spiritual diversity of target sectors and (i) "Micro-enterprise" – Any economic enterprise with
communities; a capital of One hundred fifty thousand pesos
(f) The SRA shall pursue a gender-responsive (P150,000.00) and below. This amount is subject to
approach to fight poverty; periodic determination of the Department of Trade and
(g) The SRA shall promote ecological balance in the Industry to reflect economic changes;
different ecosystems, in a way that gives the basic sectors (j) "Microfinance" – A credit and savings mobilization
a major stake in the use, management, conservation and program exclusively for the poor to improve the asset
protection of productive resources; base of households and expand the access to savings of
(h) The SRA shall take into account the principle and the poor. It involves the use of viable alternative credit
interrelationship of population and development in the schemes and savings programs including the extension
planning and implementation of social reform programs of small loans, simplified loan application procedures,
thereby promoting self-help and self-reliance; and group character loans, collateral-free arrangements,
alternative loan repayments, minimum requirements for
(i) The SRA implementation shall be focused on savings, and small denominated savers' instruments;
specific target areas and basic sectors.
(k) "Minimum basic needs" – Refers to the needs of a
Section 3. Definition of terms. – As used in this Act, Filipino family pertaining to survival (food and nutrition;
the following terms shall mean: health; water and sanitation; clothing), security (shelter;
(a) "Artisanal fisherfolk" – Refers to municipal, small peace and order; public safety; income and livelihood)
scale or subsistence fishermen who use fishing gear and enabling (basic education and literacy; participation
which do not require boats or which only require boats in community development; family and psycho-social
below three (3) tons; care);
(b) "Basic sectors" – Refer to the disadvantaged (l) "Human development index" – Refers to the
sectors of Philippine society, namely: farmer-peasant, measure of how well a country has performed, based on
artisanal fisherfolk, workers in the formal sector and social indicators of people's ability to lead a long and
migrant workers, workers in the informal sector, healthy life, to acquire knowledge and skills, and to have
indigenous peoples and cultural communities, women, access to the resources needed to afford a decent
differently-abled persons, senior citizens, victims of standard of living. This index looks at a minimum of three
calamities and disasters, youth and students, children, outcomes of development: the state of health (measured
and urban poor; by life expectancy at birth), the level of knowledge and
skill (measured by a weighted average of adult literacy
(c) "Cooperative" – Refers to a duly registered and enrollment rates), and the level of real income per
association of at least fifteen (15) persons, majority of capita, adjusted for poverty considerations;
which are poor, having a common bond of interest, who
voluntarily join together to achieve a lawful common (m) "Non-government organizations" – Refers to duly
social and economic end. It is organized by the members registered non-stock, non-profit organizations focusing
who equitably contribute the required share capital and on the upliftment of the basic or disadvantaged sectors of
accept a fair share of the risks and benefits of their society by providing advocacy, training, community
undertaking in accordance with the universally accepted organizing, research, access to resources, and other
corporate principles and practices; similar activities;
(d) "Capability building" – Refers to the process of (n) "People's organization" – Refers to a self-help
enhancing the viability and sustainability of microfinance group belonging to the basic sectors and/or
institutions through activities that include training in disadvantaged groups composed of members having a
microfinance technologies, upgrading of accounting and common bond of interest who voluntarily join together to
auditing systems, technical assistance for the installation achieve a lawful common social or economic end;
or improvement of management information systems, (o) "Poor" – Refers to individuals and families whose
monitoring of loans and other related activities. The term income fall below the poverty threshold as defined by the
capability building shall in no way refer to the provision of National Economic and Development Authority and/or
equity investments, seed funding, partnership's seed cannot afford in a sustained manner to provide their
funds, equity participation, start-up funds or any such minimum basic needs of food, health, education, housing
activity that connotes the infusion of capital or funds and other essential amenities of life;
from the government or from the people's development
trust fund to microfinance institution as defined in this (p) "Poverty alleviation" – Refers to the reduction of
Act. Capability building precludes the grant of any loan or absolute poverty and relative poverty;
equity funds to the microfinance institution; (q) "Absolute poverty" – Refers to the condition of the
(e) "Collateral-free arrangement" – A financial household below the food threshold level;
arrangement wherein a loan is contracted by the debtor (r) "Relative poverty" – Refers to the gap between the
without the conventional loan security of a real estate or rich and the poor;
chattel mortgage in favor of the creditor. In lieu of these (s) "Social reform" – Refers to the continuing process
conventional securities, alternative arrangements to of addressing the basic inequities in Filipino society
secure the loans and ensure repayment are offered and through a systematic, unified and coordinated delivery of
accepted; socioeconomic programs or packages;
(f) "Group character loan" – A loan contracted by a (t) "Small Savers Instrument (SSI)" – Refers to an
member and guaranteed by a group of persons for its evidence of indebtedness of the Government of the
repayment. The creditor can collect from any of the Republic of the Philippines which shall be in small
members of the group which guaranteed the said loan, denominations and sold at a discount from its
without prejudice to the right of reimbursement of the redemption value, payable to bearer and redeemable on
member or members of the group who had advanced demand according to a schedule printed on the
the payment in favor of the actual debtor; instrument, with a discount lower than the full stated rate
(g) "Indigenous cultural communities/ indigenous if not held to maturity. The resources generated under
peoples" – As defined in Republic Act No. 8371, otherwise this scheme shall be used primarily for micro-credit for
known as "The Indigenous Peoples Rights Act of 1997"; the poor. SSIs are not eligible as legal reserve of banks
and legal reserves prescribed of insurance companies
operating in the Philippines;


(u) "Urban poor" – Refers to individuals or families (1) Institution-building and effective participation in
residing in urban centers and urbanizing areas whose governance;
income or combined household income falls below the (2) Livelihood programs;
poverty threshold as defined by the National Economic
and Development Authority and/or cannot afford in a (3) Expansion of micro-credit/microfinance services
sustained manner to provide their minimum basic needs and capability building; and
of food, health, education, housing and other essential (4) Infrastructure buildup and development.
amenities of life;
(v) "Workers in the formal sector" – Refers to workers TITLE I NATIONAL ANTI-POVERTY
in registered business enterprises who sell their services COMMISSION
in exchange for wages and other forms of compensation;
Section 5. The National Anti-Poverty Commission. –
(w) "Workers in the informal sector" – Refers to poor To support the above-stated policy, the National
individuals who operate businesses that are very small in Anti-Poverty Commission, hereinafter referred to as the
scale and are not registered with any national NAPC, is hereby created under the Office of the
government agency, and to the workers in such President, which shall serve as the coordinating and
enterprises who sell their services in exchange for advisory body for the implementation of the SRA. The
subsistence level wages or other forms of compensation; Presidential Commission to Fight Poverty (PCFP), the
and Social Reform Council (SRC), and the Presidential Council
(x) "Youth" – Refers to persons fifteen (15) to thirty (30) for Countryside Development (PCCD) are hereby
years old. abolished and the NAPC shall exercise the powers and
functions of these agencies. The NAPC shall be the
Section 4. Adoption and integration of Social successor-in-interest of the three (3) abolished
Reform Agenda (SRA) in the National Anti-Poverty commissions and councils.
Action Agenda. – The National Anti-Poverty Action
Agenda shall principally include the core principles and The creation and operationalization of the NAPC shall
programs of the Social Reform Agenda (SRA). The SRA be guided by the following principles:
shall have a multi-dimensional approach to poverty (1) Incorporation of the Social Reform Agenda into the
consisting of the following reforms: formulation of development plans at the national,
(1) Social dimension access to quality basic services. – regional, sub-regional and local levels;
These are reforms which refer to equitable control and (2) Efficiency in the implementation of the
access to social services and facilities such as education, anti-poverty programs by strengthening and/or
health, housing, and other basic services which enable streamlining present poverty alleviation processes and
the citizens to meet their basic human needs and to live mechanisms, and reducing the duplication of functions
decent lives; and activities among various government agencies;
(2) Economic dimension asset reform and access to (3) Coordination and synchronization of social reform
economic opportunities. – Reforms which address the and poverty alleviation programs of national government
existing inequities in the ownership, distribution, agencies;
management and control over natural and man-made
(4) Exercise of policy oversight responsibilities to
resources from which they earn a living or increase the
ensure the attainment of social reform and poverty
fruits of their labor;
alleviation goals;
(3) Ecological dimension sustainable development of
(5) Strengthening of local government units to more
productive resources. – Reforms which ensure the
effectively operationalize the SRA in local development
effective and sustainable utilization of the natural and
efforts;
ecological resource base, thus assuring greater social
acceptability and increased participation of the basic (6) Institutionalization of basic sectoral and NGO
sectors in environmental and natural resources participation in effective planning, decision-making,
conservation, management and development; implementation, monitoring and evaluation of the SRA at
all levels;
(4) Governance dimension democratizing the
decision-making and management processes. – Reforms (7) Ensuring adequate, efficient and prompt delivery
which enable the basic sectors to effectively participate in of basic services to the poor; and
decision-making and management processes that affect (8) Enjoining government financial institutions to
their rights, interests and welfare. open credit and savings windows for the poor, and
The SRA shall focus on the following sector-specific advocating the creation of such windows for the poor
flagship programs: among private banking institutions.
(1) For farmers and landless rural workers – Section 6. Composition of the NAPC. – The President
agricultural development; of the Republic of the Philippines shall serve as
Chairperson of the NAPC. The President shall appoint the
(2) For the fisherfolk – fisheries and aquatic resources
Lead Convenor of the NAPC, either from the government
conservation, management and development;
or private sector, who shall likewise serve as the head of
(3) For the indigenous peoples and indigenous the National Anti-Poverty Commission Secretariat, and
communities – respect, protection and management of shall have the rank of a Cabinet Secretary. There shall be a
the ancestral domains; vice-chairperson for the government sector and a
(4) For workers in the informal sector – workers' vice-chairperson for the basic sectors; the former to be
welfare and protection; designated by the President, and the latter to be elected
among the basic sector representatives of the NAPC as
(5) For the urban poor – socialized housing; and vice-chairperson for the basic sector; and the following as
(6) For members of other disadvantaged groups such members:
as the women, children, youth, persons with disabilities, (1) Heads of the following government bodies:
the elderly, and victims of natural and man-made
calamities – the Comprehensive Integrated Delivery of (a) Department of Agrarian Reform (DAR);
Social Services (CIDSS). (b) Department of Agriculture (DA);
Additionally, to support the sectoral flagship (c) Department of Labor and Employment (DOLE);
programs, the following cross-sectoral flagships shall
(d) Department of Budget and Management (DBM);
likewise be instituted:


(e) Department of Social Welfare and Development programs for their respective areas in conformity with the

(DSWD); National Anti-Poverty Action Agenda;
(f) Department of Health (DOH); (3) Recommend policy and other measures to ensure
(g) Department of Education, Culture and Sports the responsive implementation of the commitments
(DECS); under the SRA;
(h) Department of the Interior and Local Government (4) Ensure meaningful representation and active
(DILG); participation of the basic sectors;
(i) Department of Environment and Natural (5) Oversee, monitor and recommend measures to
Resources (DENR); ensure the effective formulation, implementation and
evaluation of policies, programs and resource allocation
(j) Department of Finance (DOF); and management of social reform and poverty alleviation
(k) National Economic and Development Authority programs;
(NEDA); (6) Advocate for the mobilization of funds by the
(l) People's Credit and Finance Corporation (PCFC), national and local governments to finance social reform
subject to Sec. 17 of this Act; and and poverty alleviation programs and capability building
activities of people's organizations;
(m) Presidential Commission on Urban Poor (PCUP).
(7) Provide financial and non-financial incentives to
(2) Presidents of the Leagues of Local Government local government units with counterpart resources for
Units: the implementation of social reform and poverty
(a) League of Provinces; alleviation programs; and
(b) League of Cities; (8) Submit an annual report to Congress including,
but not limited to, all aspects of its operations and
(c) League of Municipalities; programs and project implementation, financial status
(d) Liga ng mga Barangay. and other relevant data as reflected by the basic reform
(3) Representatives from each of the following basic indicator.
sectors: Section 8. Principal office. – The NAPC shall
(a) Farmers and landless rural workers; establish its principal office in Metro Manila and may
establish such branches within the Philippines as may be
(b) Artisanal fisherfolk; deemed necessary by the President of the Philippines to
(c) Urban poor; carry out the powers and functions of the NAPC.
(d) Indigenous cultural communities/indigenous Section 9. The NAPC secretariat. – The NAPC shall
peoples; be supported by a Secretariat, which shall be headed by
the Lead Convenor referred to under Sec. 6 hereof. The
(e) Workers in the formal sector and migrant workers; Secretariat shall provide technical and administrative
(f) Workers in the informal sector; support to the NAPC. It shall be formed from the
unification of the secretariats of the following bodies:
(g) Women;
(1) Presidential Commission to Fight Poverty (PCFP);
(h) Youth and students;
(2) Social Reform Council (SRC); and
(i) Persons with disabilities;
(3) Presidential Council for Countryside Development
(j) Victims of disasters and calamities; (PCCD).
(k) Senior citizens; Within three (3) months from the effectivity of this
(l) Nongovernment organizations (NGOs); Act, the Office of the President shall finalize the
(m) Children; and organizational plan for the NAPC.
(n) Cooperatives. To provide the continuity of existing social reform and

poverty alleviation related programs, all accredited
Sectoral councils formed by and among the organizations under the three (3) unified councils and
members of each sector shall respectively nominate three commissions shall be automatically accredited under the
(3) nominees from each sector within six (6) months after NAPC until such time that additional accreditation
the effectivity of the implementing rules and regulations requirements may be provided by the NAPC.
of this Act, and every three (3) years thereafter and in case
of vacancy. The President of the Republic of the Section 10. The People's Development Trust Fund. –
Philippines shall, within (30) days after the submission of The People's Development Trust Fund (PDTF) is hereby
the list of nominees, appoint the representatives from the established, which shall be monitored by the NAPC.
submitted list. Sectoral representatives shall serve for a The Trust Fund in the amount of Four billion and five
term of three (3) years without reappointment. hundred million pesos (P4,500,000,000.00) shall be
Appointment to any vacancy for basic sector funded from the earnings of the PAGCOR in addition to
representatives shall be only for the unexpired term of appropriations by Congress, voluntary contributions,
the predecessor. grants, gifts from both local and foreign sources as may
The implementing rules and regulations (IRR) of this be accepted or decided on by the NAPC. Any additional
Act shall contain the guidelines for the formation of amount to the Trust Fund shall form part of the corpus of
sectoral councils, the nomination process, recall the Trust Fund, unless the donor, contributor or grantor
procedures and such other mechanisms to ensure expressly provides as a condition that the amount be
accountability of the sectoral representatives. included in the disbursible portion of the Trust Fund.
Section 7. Powers and functions. – The NAPC shall The President of the Philippines shall assign to any
exercise the following powers and functions: existing government department or agency the
administration of the Trust Fund, based on the expertise,
(1) Coordinate with different national and local organizational capability, and orientation or focus of the
government agencies and the private sector to assure full department or agency. The NAPC shall be limited to the
implementation of all social reform and poverty function of monitoring the utilization of the PDTF, while
alleviation programs; the government departments or agencies designated by
(2) Coordinate with local government units in the the President shall directly administer the utilization of
formulation of social reform and poverty alleviation the earnings of the PDTF.


Only the fruits of the PDTF shall be used for the National Anti-Poverty Action Agenda in their respective
purposes provided in this Act. Any undisbursed fruits for jurisdictions. The LGUs shall:
the preceding year shall form part of the disbursible (a) Identify the poor in their respective areas based on
portion of the PDTF in the following year. indicators such as the minimum basic needs approach
For the purpose of monitoring the earnings of the and the human development index, their location,
PDTF, the NAPC shall: occupation, nature of employment, and their primary
(1) Source funds for the establishment of and resource base and formulate a provincial/city/municipality
augmentation to the Trust Fund; anti-poverty action agenda;
(2) Recommend to the appropriate government (b) Identify and source funding for specific social
department or agency the accreditation of organizations reform and poverty alleviation projects;
and institutions that shall act as resource partners in (c) Coordinate, monitor and evaluate the efforts of
conducting institutional development and capability local government units with the private sector on
building activities for accredited organizations and planning and implementation of the local action
beneficiaries of microfinance and micro-enterprise program for social reform and poverty alleviation; and
programs; (d) Coordinate and submit progress reports to the
(3) Ensure that validation and monitoring activities National Anti-Poverty Commission regarding their local
are conducted for funded institutional development and action programs.
capability building projects/programs/beneficiaries; and Nothing in this Act shall be construed as diminishing
(4) Promote research and development work on the powers granted to the local government units under
livelihood and microfinance technology and the Local Government Code.
publications/communications programs that assist the
poor beneficiaries. TITLE II MICROFINANCE SERVICES FOR THE
Section 11. Purposes of the People's Development POOR
Trust Fund (PDTF). – The earnings of the PDTF shall be Section 13. Microfinance program. – The programs
utilized for the following purposes: and implementing mechanisms of the Social Reform
(1) Consultancy and training services for microfinance Agenda's Flagship Program on Credit shall be integrated,
institutions and their beneficiaries on the establishment adopted and further enhanced to effectively support the
of the necessary support services, social and financial objectives of this Act along the following thrusts:
preparation of beneficiaries, preparation of plans and (1) Development of a policy environment, especially in
programs including fund sourcing and assistance, the area of savings generation, supportive of basic sector
establishment of credit and savings monitoring and initiatives dedicated to serving the needs of the poor in
evaluation mechanisms; terms of microfinance services;
(2) Scholarships or training grants for microfinance (2) Rationalization of existing government programs
staff and officers, and selected beneficiaries; for credit and guarantee;
(3) Community organizing for microfinance, livelihood (3) Utilization of existing government financial
and micro-enterprises training services; entities for the provision of microfinance products and
(4) Livelihood/micro-enterprise project/program services for the poor; and
feasibility studies and researches; (4) Promotion of mechanisms necessary for the
(5) Savings mobilization and incentive programs, and implementation of microfinance services, including
other similar facilities; indigenous microfinance practices.
(6) Information and communication systems such as Section 14. People's Credit and Finance
baseline surveys, development monitoring systems, Corporation (PCFC). – The People's Credit and Finance
socioeconomic mapping surveys, organizational Corporation (PCFC), a government- controlled
assessments, and other similar activities; corporation registered with the Securities and Exchange
Commission and created in accordance with
(7) Legal and other management support services Administrative Order No. 148 and Memorandum Order
such as registration, documentation, contract review and No. 261, shall be the vehicle for the delivery of
enforcement, financial audit and operational assessment; microfinance services for the exclusive use of the poor. As
(8) Information dissemination of microfinance a government-owned and -controlled corporation, it shall
technology; and be the lead government entity specifically tasked to
mobilize financial resources from both local and
(9) Other activities to support microfinance as
international funding sources for microfinance services
approved by the designated agency administering the
for the exclusive use of the poor.
PDTF.
Section 15. Increase in the Capitalization of PCFC. –
The PDTF may be accessed by the following:
To facilitate the increase in the capitalization of the PCFC,
(a) Registered microfinance organizations engaged in the President of the Republic of the Philippines shall take
providing micro-enterprise services for the poor to enable measures to enable the amendment of the Articles of
them to become viable and sustainable; Incorporation of the PCFC such that:
(b) Local government units providing microfinance (a) The authorized capital stock of the PCFC may be
and micro-enterprise programs to their constituents: increased from One hundred million pesos
Provided, That the PDTF shall not be used by the LGUs for (P100,000,000.00) to Two billion pesos
personal services and maintenance and other operating (P2,000,000,000.00) divided into twenty million common
expenses; and shares with a par value of One hundred pesos (P100.00)
(c) Local government units undertaking self-help per share;
projects where at least twenty-five percent (25%) of the (b) The subscribed capital stock may be increased
total earnings of the PDTF shall be used exclusively for from One hundred million pesos (P100,000,000.00) to Six
the provision of materials and technical services. hundred million pesos (P600,000,000.00) and the
Section 12. The role of Local Government Units national government may subscribe the difference of Five
(LGUs). – The local government units, through the local hundred million pesos (P500,000,000.00);
development councils of the province, city, municipality, (c) The initial paid-up capital may be increased from
or barangay shall be responsible for the formulation, One hundred million pesos (P100,000,000.00) to Two
implementation, monitoring and evaluation of the hundred fifty million pesos (P250,000,000.00), to be
increased subsequently to a total of Six hundred million



pesos (P600,000,000.00), such that at the end of a period the second year, Three hundred fifty million pesos
of four (4) years the subscribed capital shall be fully (P350,000,000.00); on the third year, Four hundred million
paid-up, in the following manner: pesos (P400,000,000.00); on the fourth year, Four
For the initial increase in paid-up capital during the hundred million pesos (P400,000,000.00); on the fifth
first year, the difference of One hundred fifty million year and every year thereafter until the tenth year, Five
pesos (P150,000,000.00) shall be paid and appropriated hundred million pesos (P500,000,000.00) annually.
for by government; for the second year, One hundred fifty (3) The aggregate sum of Five hundred million pesos
million pesos (P150,000,000.00); for the third year, One (P500,000,000) for four years shall be appropriated for the
hundred million pesos (P100,000,000.00); and for the increase in the capitalization of the PCFC, from the share
fourth year, One hundred million pesos (P100,000,000.00). of the national government in the earnings of the
The appropriations for the additional paid-up capital PAGCOR, at such time that the increase in the
shall be sourced from the share of the national capitalization of the PCFC, in the manner provided for
government in the earnings of the PAGCOR, in the under Sec. 15 of this Act, shall have been effected. The
manner provided for under Sec. 18, which provides for the appropriation shall be made in the following manner: on
appropriations under this Act. the first year, One hundred fifty million pesos
(P150,000,000.00); on the second year, One hundred fifty
Section 16. Special credit windows in existing million pesos (P150,000,000.00); on the third year, One
Government Financing Institutions (GFIs). – The hundred million pesos (P100,000,000.00); and on the
existing government financial institutions shall provide fourth year, One hundred million pesos (P100,000,000.00).
for the savings and credit needs of the poor. The GFIs
such as the Land Bank of the Philippines, Philippine Section 19. Transitory provision. – The Social Reform
Postal Bank, Al Amanah Bank, and the Development Council (SRC) and the representatives therein shall, in
Bank of the Philippines are hereby mandated to temporary capacity, exercise the powers and assume the
coordinate with NAPC and PCFC in setting up special duties of the NAPC until such time that the members of
credit windows and other arrangements, such as the NAPC shall have been duly appointed or designated.
servicing of Small Savers Instruments (SSIs), that will The Office of the President shall formulate the
promote the microfinance program of this Act. implementing rules and regulations (IRR) of this Act
The private financing institutions may also provide within six (6) months after its effectivity.
the savings and credit requirements of the poor by The assets, liabilities and personnel of PCFP, SRC and
setting up similar credit windows and other PCCD are hereby transferred to the NAPC. Personnel who
arrangements to promote the savings component of the cannot be absorbed by NAPC shall be entitled to a
microfinance program of this Act. separation pay of one-and-a-half (1 1/2) months for every
Special credit windows for the poor shall, as far as year of service and other benefits under existing
practicable, include an allocation for the basic sectors, as retirement laws, at the option of the personnel
defined in this Act, particularly those living in the rural concerned.
areas, agrarian reform communities, and women in the Section 20. Repealing clause. – All laws, executive
countryside. orders, rules and regulations, or parts thereof,
Section 17. PCFC privatization. – In the event that inconsistent with this Act are hereby repealed, amended
the ownership of the majority of the issued voting stocks or modified accordingly. The provisions of this Act shall
of PCFC shall have passed to private investors (exclusively not be repealed, amended or modified unless expressly
qualified nongovernment organizations, people's provided in subsequent general or special laws.
organizations and cooperatives), the stockholders shall Section 21. Separability clause. – If any provision of
cause the registration with the Securities and Exchange this Act shall be held invalid or unconstitutional, the
Commission (SEC) of the revised Articles of Incorporation remaining provisions thereof not affected thereby shall
and By-laws. The PCFC shall thereafter be considered as a remain in full force and effect.
privately organized entity subject to the laws and Section 22. Effectivity clause. – This Act shall be
regulations generally applied to private corporations. effective on June 30, 1998.
The chairman of the PCFC may still be a member of Approved: December 11, 1997
the National Anti-Poverty Commission (NAPC) upon the

privatization of the PCFC: Provided, That the PCFC will
continue its main purpose of providing for the savings
and credit needs of the poor. RA No 9257 | Expanded Senior Citizens
Act of 2003
TITLE III APPROPRIATIONS FOR THE NATIONAL Amending RA No 7432 (1992), and further amended by
ANTI-POVERTY COMMISSION (NAPC) AND THE RA 9994 (2010), retitling to the Expanded Senior
PEOPLE'S DEVELOPMENT TRUST FUND (PDTF) Citizens Act of 2010
Section 18. Appropriations. – To carry out the
provisions of this Act, the following amounts are
appropriated as follows: Rules and Regulations Implementing the Expanded
(1) The sum of One hundred million pesos Senior Citizens Act of 2010
(P100,000,000.00) is hereby appropriated as the initial
operating fund in addition to the unutilized funds of the February 26, 2004
rationalized commission and councils. The sum shall be
sourced from the President's Contingent Fund. In AN ACT GRANTING ADDITIONAL BENEFITS AND
subsequent years, the amount necessary to implement PRIVILEGES TO SENIOR CITIZENS AMENDING FOR THE
this Act shall be included in the annual appropriations. PURPOSE REPUBLIC ACT NO. 7432, OTHERWISE
The said amounts shall be under the management of the KNOWN AS "AN ACT TO MAXIMIZE THE CONTRIBUTION
NAPC. OF SENIOR CITIZENS TO NATION BUILDING, GRANT
BENEFITS AND SPECIAL PRIVILEGES AND FOR OTHER
(2) The aggregate sum of Four billion and five PURPOSES"
hundred million pesos (P4,500,000,000.00) for ten (10)
years is hereby appropriated for the establishment of the Be it enacted by the Senate and House of
People's Development Trust Fund (PDTF) from the share Representatives of the Philippines in Congress
of the national government in the earnings of the assembled:
Philippine Amusement and Gaming Corporation SECTION 1. Declaration of Policies and Objectives. –
(PAGCOR), in the following manner: on the first year, As provided in the Constitution of the Republic of the
Three hundred fifty million pesos (P350,000,000.00); on Philippines, it is the declared policy of the State to



promote a just and dynamic social order that will ensure (e) Dental services to oral examination, cleaning,
the prosperity and independence of the nation and free permanent and temporary filling, extractions and gum
the people from poverty through policies that provide treatments, restoration, replacement or repositioning of
adequate social services, promote full employment, a teeth, or alteration of the alveolar or periodontium
rising standard of living and an improved quality of life. In process of the maxilla and the mandible that are
the Declaration of Principles and State Policies in Article necessary for the diagnosis or treatment of an illness or
II, Sections 10 and 11, it is further declared that the State injury;
shall provide social justice in all phases of national (f) Nearest surviving relative refers to the legal spouse
development and that the State values the dignity of who survives the deceased senior citizen: Provided, That
every human person and guarantees full respect for where no spouse survives the decedent, this shall be
human rights. limited to relatives in the following order of degree of
Article XIII, Section 11 of the Constitution provides that kinship: children, parents, siblings, grandparents,
the State shall adopt an integrated and comprehensive grandchildren, uncles and aunts;
approach to health development which shall endeavor to (g) Home health care service refers to health or
make essential goods, health and other social services supportive care provided to the senior citizen patient at
available to all the people at affordable cost. There shall home by licensed health care professionals to include,
be priority for the needs of the underprivileged, sick, but not limited to, physicians, nurses, midwives, physical
elderly, disabled, women and children. Article XV, Section therapist and caregivers; and
4 of the Constitution Further declares that it is the duty of
the family to take care of its elderly members while the (h) Indigent senior citizen, refers to any elderly who is
State may design programs of social security for them. frail, sickly or with disability, and without pension or
permanent source of income, compensation or financial
Consistent with these constitutional principles, this assistance from his/her relatives to support his/her basic
Act shall serve the following objectives: needs, as determined by the Department of Social
(a) To recognize the rights of senior citizens to take Welfare and development (DSWD) in consultation with
their proper place in society and make it a concern of the the National Coordinating and Monitoring Board.
family, community, and government; (as amended by RA No 9994)
(b) To give full support to the improvement of the SECTION 3. Contribution to the Community. – Any
total well-being of the elderly and their full participation qualified senior citizen as determined by the Office for
in society, considering that senior citizens are integral Senior Citizens Affairs (OSCA) may render his/her services
part of Philippine society; to the community which shall consist of, but not limited
(c) To motivate and encourage the senior citizens to to, any of the following:
contribute to nation building; (a) Tutorial and/or consultancy services;
(d) To encourage their families and the communities (b) Actual teaching and demonstration of hobbies
they live with to reaffirm the valued Filipino tradition of and income generating skills;
caring for the senior citizens;
(c) Lectures on specialized fields like agriculture,
(e) To provide a comprehensive health care and health, environment protection and the like;
rehabilitation system for disabled senior citizens to foster
their capacity to attain a more meaningful and (d) The transfer of new skills acquired by virtue of
productive ageing; and their training mentioned in Section 4, paragraph (d); and
(f) To recognize the important role of the private (e) Undertaking other appropriate services as
sector in the improvement of the welfare of senior determined by the Office for Senior Citizens Affairs
citizens and to actively seek their partnership. (OSCA) such as school traffic guide, tourist aide,
pre-school assistant, etc.
In accordance with these objectives, this Act shall:
In consideration of the services rendered by the
(1) establish mechanisms whereby the contributions qualified elderly, the Office for Senior Citizens Affairs
of the senior citizens are maximized; (OSCA) may award or grant benefits or privileges to the
(2) adopt measures whereby our senior citizens are elderly, in addition to the other privileges provided for
assisted and appreciated by the community as a whole; under this Act.
(3) establish a program beneficial to the senior SECTION 4. Privileges for the Senior Citizens. – The
citizens, their families and the rest of the community they senior citizens shall be entitled to the following:
serve: and (a) the grant of twenty percent (20%) discount and
(4) establish community-based health and exemption from the value -added tax (VAT), if applicable,
rehabilitation programs for senior citizens in every on the sale of the following goods and services from all
political unit of society. (as amended by RA No 9994) establishments, for the exclusive use and enjoyment or
SECTION 2. Definition of Terms. – For purposes of availment of the senior citizen
this Act, these terms are defined as follows: (1) on the purchase of medicines, including the
(a) Senior citizen or elderly refers to any resident purchase of influenza and pnuemococcal vaccines, and
citizen of the Philippines at least sixty (60) years old; such other essential medical supplies, accessories and
equipment to be determined by the Department of
(b) Geriatrics refer to the branch of medical science Health (DOH).
devoted to the study of the biological and physical
changes and the diseases of old age; The DOH shall establish guidelines and mechanism
of compulsory rebates in the sharing of burden of
(c) Lodging establishment refers to a building, edifice, discounts among retailers, manufacturers and
structure, apartment or house including tourist inn, distributors, taking into consideration their respective
apartelle, motorist hotel, and pension house engaged in margins;
catering, leasing or providing facilities to transients,
tourists or travelers; (2) on the professional fees of attending physician/s in
all private hospitals, medical facilities, outpatient clinics
(d) Medical Services refer to hospital services, and home health care services;
professional services of physicians and other healthcare
professionals and diagnostics and laboratory tests that (3) on the professional fees of licensed professional
the necessary for the diagnosis or treatment of an illness health providing home health care services as endorsed
or injury; by private hospitals or employed through home health
care employment agencies;


(4) on medical and dental services, diagnostic and (k) provision of express lanes for senior citizens in all
laboratory fees in all private hospitals, medical facilities, commercial and government establishments; in the
outpatient clinics, and home health care services, in absence thereof, priority shall be given to them; and
accordance with the rules and regulations to be issued by (l) death benefit assistance of a minimum of Two
the DOH, in coordination with the Philippine Health thousand pesos (Php2, 000.00) shall be given to the
Insurance Corporation (PhilHealth); nearest surviving relative of a deceased senior citizen
(5) in actual fare for land transportation travel in which amount shall be subject to adjustments due to
public utility buses (PUBs), public utility jeepneys (PUJs), inflation in accordance with the guidelines to be issued
taxis, Asian utility vehicles (AUVs), shuttle services and by the DSWD.
public railways, including Light Rail Transit (LRT), Mass In the availment of the privileges mentioned above,
Rail Transit (MRT), and Philippine National Railways (PNR); the senior citizen, or his/her duly authorized
(6) in actual transportation fare for domestic air representative, may submit as proof of his/her entitled
transport services and sea shipping vessels and the like, thereto any of the following:
based on the actual fare and advanced booking; (1) an identification card issued by the Office of the
(7) on the utilization of services in hotels and similar Senior Citizen Affairs (OSCA) of the place where the senior
lodging establishments, restaurants and recreation citizen resides: Provided, That the identification card
centers; issued by the particular OSCA shall be honored
(8) on admission fees charged by theaters, cinema nationwide;
houses and concert halls, circuses, leisure and (2) the passport of the senior citizen concerned; and
amusement; and (3) other documents that establish that the senior
(9) on funeral and burial services for the death of citizen is a citizen of the Republic and is at least sixty (60)
senior citizens; years of age as further provided in the implementing
(b) exemption from the payment of individual income rules and regulations.
taxes of senior citizens who are considered to be In the purchase of goods and services which are on
minimum wage earners in accordance with Republic Act promotional discount, the senior citizen can avail of the
No. 9504; promotional discount or the discount provided herein,
(c) the grant of a minimum of five percent (5%) whichever is higher.
discount relative to the monthly utilization of water and The establishment may claim the discounts granted
electricity supplied by the public utilities: Provided, That under subsections (a) and (c) of this section as tax
the individual meters for the foregoing utilities are deduction based on the cost of the goods sold or services
registered in the name of the senior citizen residing rendered: Provided, That the cost of the discount shall be
therein: Provided, further, That the monthly consumption allowed as deduction from gross income for the same
does not exceed one hundred kilowatt hours (100 kWh) of taxable year that the discount is granted: Provided,
electricity and thirty cubic meters (30 m3) of water: further, That the total amount of the claimed tax
Provided, furthermore, That the privilege is granted per deduction net of VAT, if applicable, shall be included in
household regardless of the number of senior citizens their gross sales receipts for tax purposes and shall be
residing therein; subject to proper documentation and to the provisions of
(d) exemption from training fees for socioeconomic the National Internal Revenue Code (NIRC), as amended.
programs; (as amended by RA No 9994)
(e) free medical and dental services, diagnostic and SECTION 5. Government Assistance. –The
laboratory fees such as, but not limited to, x-rays, government shall provide the following:
computerized tomography scans and blood tests, in all (a) Employment
government facilities, subject to the guidelines to be
issued by the DOH in coordination with the PhilHealth; Senior citizens who have the capacity and desire to
work, or be re-employed, shall be provided information
(f) the DOH shall administer free vaccination against and matching services to enable them to be productive
the influenza virus and pneumococcal disease for members of society. Terms of employment shall conform
indigent senior citizen patients; with the provisions of the Labor Code, as amended, and
(g) educational assistance to senior citizens to pursue other laws, rules and regulations.
pot secondary, tertiary, post tertiary, vocational and Private entities that will employ senior citizens as
technical education, as well as short-term courses for employees, upon the effectivity of this Act, shall be
retooling in both public and private schools through entitled to an additional deduction from their gross
provision of scholarships, grants, financial aids, subsides income, equivalent to fifteen percent (15%) of the total
and other incentives to qualified senior citizens, including amount paid as salaries and wages to senior citizens,
support for books, learning materials, and uniform subject to the provision of Section 34 of the NIRC, as
allowances, to the extent feasible: Provided, That senior amended: Provided, however, That such employment
citizens shall meet minimum admission requirements; shall continue for a period of at least six (6) months:
(h) to the extent practicable and feasible, the Provided, further, That the annual income of the senior
continuance of the same benefits and privileges given by citizen does not exceed the latest poverty threshold as
the Government Service Insurance System (GSIS), the determined by the National Statistical Coordination
Social Security System (SSS) and the PAG-IBIG, as the Board (NSCB) of the National Economic and
case may be, as are enjoyed by those in actual service; Development Authority (NEDA) for that year.
(i) retirement benefits of retirees from both the The Department of Labor and Employment (DOLE),
government and the private sector shall be regularly in coordination with other government agencies such as,
reviewed to ensure their continuing responsiveness and but not limited to, the Technology and Livelihood
sustainability, and to the extent practicable and feasible, Resource Center (TLRC) and the Department of Trade
shall be upgraded to be at par with the current scale and Industry (DTI), shall assess, design and implement
enjoyed by those in actual service; training programs that will provide skills and welfare or
(j) to the extent possible, the government may grant livelihood support for senior citizens.
special discounts in special programs for senior citizens (b) Education
on purchase of basic commodities, subject to the The Department of Education (DepED), the Technical
guidelines to be issued for the purpose by the Education and Skills Development Authority (TESDA) and
Department of Trade and Industry (DTI) and the the Commission on Higher Education (CHED), in
Department of Agriculture (DA); consultation with nongovernmental organizations


(NGOs) and people's organizations (POs) for senior (1) Social Pension
citizens, shall institute programs that will ensure access to Indigent senior citizens shall be entitled to a monthly
formal and nonformal education. stipend amounting to Five hundred pesos (Php500.00) to
(c) Health augment the daily subsistence and other medical needs
The DOH, in coordination with local government of senior citizens, subject to a review every two (2) years
units (LGUs), NGOs and POs for senior citizens, shall by Congress, in consultation with the DSWD.
institute a national health program and shall provide an (2) Mandatory PhilHealth Coverage
integrated health service for senior citizens. It shall train All senior citizens shall be covered by the national
community-based health workers among senior citizens health insurance program of PhilHealth. Funds necessary
and health personnel to specialize in the geriatric care to ensure the enrollment of all senior citizens not
and health problems of senior citizens. currently covered by any existing category shall be
The national health program for senior citizens shall, sourced from the National Health Insurance Fund of
among others, be harmonized with the National PhilHealth from proceeds of Republic Act No. 10351, in
Prevention of Blindness Program of the DOH. accordance with the pertinent laws and regulations.(as
Throughout the country, there shall be established a amended by RA No 10351)
"senior citizens' ward" in every government hospital. This Social safety assistance intended to cushion the
geriatric ward shall be for the exclusive use of senior effects of economics shocks, disasters and calamities shall
citizens who are in need of hospital confinement by be available for senior citizens. The social safety assistance
reason of their health conditions. However, when urgency which shall include, but not limited to, food, medicines,
of public necessity purposes so require, such geriatric and financial assistance for domicile repair, shall be
ward may be used for emergency purposes, after which, sourced from the disaster/calamity funds of LGUs where
such "senior citizens' ward" shall be reverted to its nature the senior citizens reside, subject to the guidelines to be
as geriatric ward. issued by the DSWD.
(d) Social Services (as amended by RA No 9994)
At least fifty percent (50%) discount shall be granted SECTION 6. The Office for Senior Citizens Affairs
on the consumption of electricity, water, and telephone (OSCA). – There shall be established in all cities and
by the senior citizens center and residential care/group municipalities an OSCA to be headed by a senior citizen
homes that are government-run or non-stock, non-profit who shall be appointed by the mayor for a term of three
domestic corporation organized and operated primarily (3) years without reappointment but without prejudice to
for the purpose of promoting the well-being of an extension if exigency so requires. Said appointee shall
abandoned, neglected, unattached, or homeless senior be chosen from a list of three (3) nominees as
citizens, subject to the guidelines formulated by the recommended by a general assembly of senior citizens
DSWD. organizations in the city or municipality.
(1) “self and social enhancement services" which The head of the OSCA shall be appointed to serve the
provide senior citizens opportunities for socializing, interest of senior citizens and shall not be removed or
organizing, creative expression, and self-improvement; replaced except for reasons of death permanent disability
(2) "aftercare and follow-up services" for citizens who or ineffective performance of his duties to the detriment
are discharged from the homes or institutions for the of fellow senior citizens.
aged, especially those who have problems of The head of the OSCA shall be entitled to receive an
reintegration with family and community, wherein both honorarium of an amount at least equivalent to Salary
the senior citizens and their families are provided with Grade 10 to be approved by the LGU concerned.
counseling; The head of the OSCA shall be assisted by the City
(3) "neighborhood support services" wherein the Social Welfare and Development officer or by the
community or family members provide caregiving Municipal Social Welfare and Development Officer, in
services to their frail, sick, or bedridden senior citizens; coordination with the Social Welfare and Development
and Office.
(4) "substitute family care " in the form of residential The Office of the Mayor shall exercise supervision over
care or group homes for the abandoned, neglected, the OSCA relative to their plans, activities and programs
unattached or homeless senior citizens and those for senior citizens. The OSCA shall work together and
incapable of self-care. establish linkages with accredited NGOs Pos and the
(e) Housing barangays in their respective areas.
The national government shall include in its national The OSCA shall have the following functions:
shelter program the special housing needs of senior (a) To plan, implement and monitor yearly work
citizens, such as establishment of housing units for the programs in pursuance of the objectives of this Act;
elderly. (b) To draw up a list of available and required services
(f) Access to Public Transport which can be provided by the senior citizens;
The Department of Transportation and (c) To maintain and regularly update on a quarterly
Communications (DOTC) shall develop a program to basis the list of senior citizens and to issue national
assist senior citizens to fully gain access to public individual identification cards, free of charge, which shall
transport facilities. be valid anywhere in the country;
(g) Incentive for Foster Care (d) To serve as a general information and liaison
The government shall provide incentives to center for senior citizens;
individuals or non-governmental institution caring for or (e) To monitor compliance of the provisions of this Act
establishing homes, residential communities or particularly the grant of special discounts and privileges
retirement villages solely for, senior citizens, as follows: to senior citizens;
(1) realty tax holiday for the first five (5) years starting (f) To report to the mayor, any individual,
from the first year of operation; and establishments, business entity, institutions or agency
(2) priority in the construction or maintenance of found violating any provision of this Act; and
provincial or municipal roads leading to the aforesaid (g) To assist the senior citizens in filing complaints or
home, residential community or retirement village. charges against any individual, establishments, business
(h) Additional Government Assistance entity, institution, or agency refusing to comply with the
privileges under this Act before the Department of



Justice (DOJ), the Provincial Prosecutor's Office, the (b) Vice Chairperson - the Secretary of the
regional or the municipal trial court, the municipal trial Department of the Interior and Local Government (DILG)
court in cities, or the municipal circuit trial court. or an authorized representative; and
(as amended by RA No 9994) (c) Members:
SECTION 7. Municipal/ City Responsibility. – It shall (1) the Secretary of the DOJ or an authorized
be the responsibility of the municipal/city through the representative;
mayor to require all establishment covered by this Act to (2) the Secretary of the DOH or an authorized
prominently display posters, stickers, and other notices representative;
that will generate public awareness of the right and
privileges of senior citizens and to ensure that the (3) the Secretary of the DTI or an authorized
provisions of this Act are implemented to its fullest. representative; and
SECTION 8. Partnership of the National and Local (4) representatives from five (5) NGOs for senior
Government Units. – The national government and local citizens which are duly accredited by the DSWD and have
government units shall explore livelihood opportunities service primarily for senior citizens. Representatives of
and other undertaking to enhance the well-being of NGOs shall serve a period of tree (3) years.
senior citizens. The shall encourage the establishment of "The Board may call on other government agencies,
grassroots organizations for the elderly in their respective NGOs and Pos to serve as resource persons as the need
territorial jurisdictions. arises. Resource person have no right to vote in the
SECTION 9 Support for Non-Governmental National Coordinating and Monitoring Board.
Organizations (NGOs). – Non-governmental (as amended by RA No 9994)
organizations or private volunteer organizations
dedicated to the promotions, enhancement and support SECTION 12. Implementing Rules and Regulations.
of the welfare of senior citizens are hereby encouraged to – The Secretary of Social Welfare and Development,
become partners of government in the implementation within sixty (60) days from the approval of this Act, shall
of program and projects for the elderly. promulgate the implementing, rules and regulations for
the effective implementation of the provisions of this Act.
According, the government shall recognize the vital In consultation and coordination with the following
role of NGOs in complementing the government in the agencies and offices:
delivery of services to senior citizens. It shall likewise
encourage NGOs for the senior citizens to develop (a) Department of Health;
innovative service models and pilots projects and to assist (b) Department of Labor and Employment;
in the duplication of successful examples of these models
elsewhere in the country. (c) Department of Education;
SECTION 10. Penalties. – Any person who refuses to (d) Depart of Transportation and Communications;
honor the senior citizen card issued by this the (e) Department of Justice;
government or violates any provision of this Act shall (f) Department of Interior and Local Government;
suffer the following penalties:
(g) Department of Trade and Industry;
(a) For the first violation, imprisonment of not less
than two (2) years but not more than six (6) years and a (h) Department of Finance;
fine of not less than Fifty thousand pesos (Php50,000.00) (i) Commission of Higher Education;
but not exceeding One hundred thousand pesos
(Php100,000.00); (j) Technical Education and Skills Development
Authority;
(b) For any subsequent violation, imprisonment of not
less than two (2) years but not more than six (6) years and (k) National Economic and Development Authority;
a fine of not less than One Hundred thousand pesos (l) Housing and Urban Development Coordinating
(Php100,000.00) but not exceeding Two hundred Council; and
thousand pesos (Php200,000.00); and
(m) Five (5) non-governmental organizations of
(c) Any person who abuses the privileges granted people's organizations for the senior citizens duly
herein shall be punished with imprisonment of not less accredited by the DSWD.
than six (6) months and a fine of not less than Fifty
thousand pesos (Php50,000.00) but not more than One SECTION 13. Appropriation. – The necessary
hundred thousand pesos (Php100,000.00). appropriation for the operation and maintenance of the
OSCA shall be appropriated and approved by the local
If the offender is a corporation, partnership, government units concerned. The amount necessary to
organization or any similar entity, the officials thereof carry out the provisions of this Act upon its effectivity
directly involved such as the president, general manager, shall be charged out of the funds of the Office of the
managing partner, or such other officer charged with the President. Thereafter, any such sum as shall be needed
management of the business affairs shall be liable for the regular implementation of this Act shall be
therefor. included in subsequent General Appropriations Act
If the offender is an alien or a foreigner, he/she shall following its enactment into law.
be deported immediately after service of sentence.
Upon filing of an appropriate complaint, and after

due notice and hearing, the proper authorities may also
RA No 9433 | The Magna Carta for
cause the cancellation or revocation of the business Public Social Workers
permit, permit to operate, franchise and other similar
privileges granted to any person, establishment or
business entity that fails to abide by the provisions of this
Act. Rules and Regulations Implementing the Magna
Carta for Public Social Workers
(as amended by RA No 9994)

SECTION 11. Monitoring and Coordinating April 11, 2007
Mechanism. – A National Coordinating and Monitoring
Board shall be established which shall be composed of AN ACT PROVIDING FOR A MAGNA CARTA OF
the following: SOCIAL WORKERS
(a) Chairperson - the Secretary of the DSWD or an

authorized representative;


Be it enacted by the Senate and House of DSWD or his/her representative shall be the head of the
Representatives of the Philippines in Congress Council.
assembled: SEC. 8. Classification of Social Work Personnel. -
SECTION 1. Title. - This Act shall be known as the The Social Work Management and Consultative Council
"Magna Carta for Public Social Workers." shall develop a career ladder and classification system for
SEC. 2. Declaration of Policy. - The state shall all social work positions in government service: Provided,
promote and improve the social and economic That all position classification shall carry Social Worker
well-being of public social workers, their living and title.
working conditions, and terms of employment. It shall SEC. 9. Code of Conduct. - All public social workers
develop their skills and capabilities to make them more shall be guided by the Social Work Code of Ethics as
responsive to the needs and problems of their clients and adopted by the Board of Social Work and as approved by
better equipped in delivering social services and the PRC within six months from the effectivity of this Act.
programs. The state shall likewise encourage those with SEC. 10. Normal Hours of Work. - The normal hours
proper qualifications and excellent abilities to apply and of work of any public social worker shall not exceed eight
remain in social development work in the government hours a day or forty (40) hours a week. Hours of work shall
service. include:
SEC. 3. Definition of Terms. - As used in this Act, the (a) the time during which a public social worker is
following terms shall mean as follows: required to be on active duty or to be at a prescribed
(a) 'Social Work' - refers to the profession which helps workplace;
individuals, families, groups, and communities develop, (b) the time during which the public social worker is
improve, maintain or restore their capability for coping permitted to work; or
with the demands of their environment, through the use
of social work methods and interventions; (c) the time during which a public social worker is
required in a place other than the prescribed workplace.
(b) 'Registered Social Workers' - refers to a graduate of
Bachelor of Science in Social Work or Master's Degree in Provided, That, the time when a public social worker
Social Work and who has passed the social work licensure is placed on 'On Call' status shall not be considered as
examination; hours worked but shall entitle the public social worker to
an 'On Call' pay equivalent to fifty percent (50%) of his/her
(c) 'Public Social Worker' - refers to registered social regular wage. 'On Call' status refers to a condition when
worker employed in the government service; public social workers are called upon to respond to
(d) 'Public Social Welfare and Development Worker' - urgent or immediate need or relief work during
refers to those employed in government social welfare emergencies such that he/she cannot devote the time for
and development agencies; his/her own use: Provided, further, That, no public social
(e) 'CSC' - refers to the Civil Service Commission; worker shall be placed in 'On-Call' status beyond seven
days per month. Public social workers can also teach or
(f) 'DSWD' - refers to the Department of Social practice their profession after office hours.
Welfare and Development;
SEC. 11. Overtime Work. - Where the exigencies of
(g) 'DOLE' - refers to the Department of Labor and the service so require, any public social worker may be
Employment; required to render service beyond the normal eight hours
(h) 'DILG' - refers to the Department of the Interior a day, inclusive of Saturday, Sundays or non-working
and Local Government; holidays. In such a case, the public social workers shall be
paid an additional compensation in accordance with
(i) 'NLRC' - refers to the National Labor Relations existing laws.
Commission; and
SEC. 12. Compensation. - The existing law on the
(j) 'PRC' - refers to the Professional Regulations salary scale of government employees shall apply in
Commission. determining the salaries of public social workers. In case
SEC. 4. Coverage. - This Act shall cover all registered of violations of this provision, the public social worker
social workers employed in the government service. concerned shall file the necessary complaint to the CSC
or NLRC through the Social Work Management and
SEC. 5. Recruitment and Qualifications. - The Consultative Council.
selection and appointment of social workers shall be in
accordance with the merit and fitness principle. SEC. 13. Leave Benefits. - Public social workers shall
be entitled to all leave benefits and privileges, such as but
All government social work agencies and institutions not limited to maternity, paternity, vacation and sick
shall be headed by registered social worker except for leaves, as provided for under existing laws: Provided, That
cabinet and non-career positions. Priority shall be given upon separation of the public social workers from service,
to registered social workers in filling up social work they shall be entitled to all accumulated leave credits
positions in the government. with pay.
SEC. 6. Merit Promotion and Career System. - A SEC. 14. Highest Basic Salary Upon Retirement. -
Social Work Management and Consultative Council shall Upon retirement, a public social worker shall
be created to prepare a uniform career and personnel automatically be granted an increase of one salary grade
development plan applicable to public social workers. higher than his/her basic salary and his/her retirement
Such career and personnel development plan shall benefits shall be computed on the basis of his/her
include provisions on merit, promotion, performance highest salary received.
evaluation, in-service training grants, job rotation,
incentive awards system and other policies that govern SEC. 15. Other Benefits. - Aside from the benefits
the social security of the social workers received as required under existing laws and executive
orders, the public social workers shall receive the
SEC. 7. Composition. - The Social Work Management following:
and Consultative Council shall be composed of
representative of the DSWD, CSC, DILG, DOLE, Philippine (a) Hazard Allowance - Public social workers and
Association of Social Workers, Inc. (PASWI), Association of public social welfare and development workers assigned
Provincial/City and Municipal Social Welfare and in remote and depressed areas, strife-torn or embattled
Development Officer of the Philippines, Inc. areas, distressed or isolated stations, mental hospitals,
(APCMSWDOPI), the League of Provinces, League of leprosaria, areas declared under a state of calamity or
Cities and League of Municipalities. The Secretary of the emergency which expose them to great danger, volcanic
activity/eruption, occupational risks or threats to life shall
be compensated with hazard allowance equivalent to at



least twenty per centum (20%) of the monthly basic of the public social worker and his/her immediate family
salary. shall be paid for by the agency concerned.
(b) Subsistence/Transportation Allowance - Public SEC. 19. Married Public Social Workers. - Whenever
social workers who are required to render services in possible, the proper authorities shall take steps to enable
communities, institutions, hospitals and other social work married couples, both of whom are public social workers,
establishments in order to make their services available at to be employed or assigned in the same municipality, but
all times, shall be entitled to daily full subsistence not in the same office: Provided, That it shall not apply to
allowance of three meals which shall be computed married public social workers already assigned in the
according to prevailing circumstances. Those assigned same office at the time this law takes effect.
out of their regular work stations shall be entitled to per SEC. 20. Freedom from Interference or Coercion. - It
diem in place of this allowance. Actual transportation shall be unlawful for any person to commit any of the
allowance shall also be provided to public social workers following acts of interference or coercion:
on field work.
(a) To intimidate or force a public social worker to
(c) Housing and Living Quarters Allowance - All submit valuable documents that will violate the
public social workers who are transferred to another principles of confidentiality of records agreed upon
assignment due to the exigency of the service shall be between him/her and the clientele groups: Provided, That
entitled to free housing within the agency concerned: the release of such documents shall be approved by the
Provided, That, if living quarters are not available within clients concerned and shall redound to their social
the agency and the personnel has his/her residence well-being, and upon court order;
outside of fifty (50) kilometers radius from such
government facility, he/she shall receive a housing (b) to prevent a public social worker from upholding
allowance, and: Provided, further, That the rate of such and applying the basic social work principles in carrying
housing allowance shall be periodically adjusted for out the programs and services for the target client
inflation. groups of the social work agency;
(d) Longevity Pay - A monthly longevity pay (c) To intimidate in order to encourage or discourage
equivalent to five per centum (5%) of his/her latest membership in any social work organization or union;
monthly basic pay shall be paid to a public social worker (d) to prevent a public social worker from carrying out
for every five years of continuous, efficient and his/her duties and functions in the social work
meritorious service rendered as certified by the chief of organization or union or to penalize the public social
office concerned, commencing with the service after worker for any lawful action performed in that capacity;
approval of this Act.
(e) To make calculated harassment and interference
(e) Clothing Allowance - All public social workers shall with the intention of intimidating or preventing the
be entitled to a minimum of One thousand five hundred public social worker from performing his duties and
pesos (P1,500.00) clothing allowance annually, which functions;
amount shall be adjusted as needed.
(f) To make calculated harassment against, or, to
SEC. 16. Compensation From Injuries. - Public social transfer, penalize or terminate the services of a public
workers shall be protected against work-related injuries in social worker who is carrying out his/her advocacy
accordance with the Labor Code and Civil Service Law, as function role for and in behalf of his/her clientele groups
the case may be. Injuries incurred while doing overtime who are victims of social injustice.
work shall be presumed work-connected.
SEC. 21. Human Resources Development. - The
SEC. 17. Rights of a Public Social Worker. - Public DSWD shall conduct a periodic human resource
social workers shall have the following rights: development and management study in the following
(a) Protection from discrimination by reason of sex, areas:
sexual orientation, age, political or religious beliefs, civil (a) Adequate facilities and resources to render quality
status, physical characteristics/disability, or ethnicity; social service to the clientele;
(b) Protection from any form of interference, (b) Opportunities for public social workers to grow
intimidation, harassment, or punishment, to include, but professionally and to develop their potentials and
not limited to, arbitrary reassignment or termination of experience a sense of worth and dignity in their work;
service, in the performance of his/her duties and
responsibilities; (c) Mechanisms for democratic consultations;
(c) Join, organize, or assist organizations or unions for (d) Staffing patterns and standards of social work to
lawful purposes; ensure that the clients receive quality care;
(d) Protection from any act that will prevent his/her (e) Upgrading of working conditions, reclassification
from applying professional interventions that the client's of positions and salaries of public social workers to correct
situation may require; and the disparity vis-a-vis other professions.
(e) Opportunities for continuing professional growth (f) Allocation of funds for the participation of public
and development. social workers in seminars, conferences, conventions and
similar activities as part of their continuing professional
SEC. 18. Reassignment of Public Social Workers. - growth.
Except in the interest of public service, no transfer or
geographical reassignment shall be made or effected SEC. 22. Security of Tenure. - No public social worker
without written notice to a public social worker: Provided, holding a permanent position shall be terminated except
That, said written notice, stating the reasons for the for cause: Provided, That, in the event the public social
reassignment, shall be made at least thirty (30) days prior worker is found to be unjustly dismissed by the CSC or
to the date of transfer or reassignment: Provided, further, the NLRC; as the case may be, he/she shall be entitled to
That, if the public social worker believes that there is no reinstatement without loss of seniority rights and
justification for the transfer and/or reassignment, he/she backwages with twelve per centum (12%) interest to be
may appeal his/her case to the CSC, which shall cause computed from the time his/her compensation was
his/her transfer and/or reassignment to be held in withheld from him/her up to the time of reinstatement.
abeyance: Provided, furthermore, That, reassignment SEC. 23. Implementing Rules and Regulations.. -
coinciding with any local or national election shall be The Social Work Management and Consultative Council,
made in compliance with Election Code and other upon consultation with the Chairperson of the Senate
existing laws and rules: Provided, finally, That the Committee on Social Justice, Welfare and Rural
necessary expenses of the transfer and/or reassignment Development and the Chairperson of the House
Committee on Social Services, shall formulate the


necessary rules and regulations, not inconsistent with any (b) "Association" refers to the homeowners’

provisions of this law, for the implementation of the association which is a nonstick, nonprofit corporation
Magna Carta for Public Social Workers. The rules and registered with the Housing and Land Use Regulatory
regulations shall be promulgated within six months from Board (HLURB), or one previously registered with the
the effectivity of this Act. Home Insurance Guarantee Corporation (now Home
SEC. 24. Penal Provisions. - Any person who shall Guaranty Corporation) or the Securities and Exchange
willfully interfere with restrain or coerce any public social Commission (SEC), organized by owners or purchasers of
worker in the exercise of his/her rights or shall in any a lot in a subdivision/village or other residential real
manner commit any act in violation of any of the property located within the jurisdiction of the association;
provisions of this Act, upon conviction, shall be punished or awardees, usufructuaries, legal occupants and/or
by a fine not less than Twenty thousand pesos lessees of a housing unit and/or lot in a government
(P20,000.00) but not more than Forty thousand pesos socialized or economic housing or relocation project and
(P40,000.00) or imprisonment of not more than one year, other urban estates; or underprivileged and homeless
or both at the discretion of the court. If the offender is a citizens as defined under existing laws in the process of
public official, the court, in addition to the being accredited as usufructuaries or awardees of
abovementioned penalties, may impose the additional ownership rights under the Community Mortgage
penalty of disqualification from office. Program (CMP), Land Tenure Assistance Program (LTAP)
and other similar programs in relation to a socialized
SEC. 25. Separability Clause. - If any provision of this housing project actually being Implemented by the
Act is declared unconstitutional or invalid, the remainder national government or the LGU.
thereof not affected thereby shall continue to be in full
force and effect. (c) "Association member" refers to a homeowner who
is a member of the association where his/her housing
SEC. 26. Repealing Clause. - All laws, ordinances, unit or lot is situated and those defined in the articles of
rules and regulations, other issuances or parts thereof incorporation and bylaws of the association.
which are inconsistent with this law are hereby repealed
or modified accordingly. (d) "Basic community services and facilities" refer to
services and facilities that redound to the benefit of all
SEC. 27. Effectivity. - This Act shall take effect fifteen homeowners and from which, by reason of practicality, no
(15) days after its publication in at least two newspapers of homeowner may be excluded such as, but not limited to:
general circulation. security; street and vicinity lights; maintenance, repairs
and cleaning of streets; garbage collection and disposal;
and other similar services and facilities.
RA No 9904 | Magna Carta for (e) "Board" refers to the board of directors or trustees
Homeowners and Homeowners’ of the association which has primary authority to manage
the affairs of the association.
Associations
(f) "Common areas" refer to property owned or
otherwise maintained, repaired or administered in whole
or in part by the association including, but not limited to,
Rules and Regulations Implementing the Magna roads, parks, playgrounds and open spaces as provided in
Carta for Homeowners and Homeowners’ Associations Presidential Decree No. 1216.
(g) "Common expense" refers to costs incurred by the
AN ACT PROVIDING FOR A MAGNA CARTA FOR association to exercise any of the powers provided for in
HOMEOWNERS AND HOMEOWNERS’ ASSOCIATIONS, this Act.
AND FOR OTHER PURPOSES
(h) "Economic housing" refers to a type of housing
Be it enacted by the Senate and House of project with lower interest rates and longer amortization
Representatives of the Philippines in Congress periods provided to moderately low - income families, as
assembled: defined under existing laws, rules and regulations.
(i) "Governing document" refers to the articles of
CHAPTER I TITLE AND DECLARATION OF
incorporation, bylaws, conditions, rules and regulations of
POLICY the association, or other written instrument by which the
Section 1. Title. – This Act shall be known as the association has the authority to exercise any of the
"Magna Carta for Homeowners and Homeowners’ powers provided for in this Act.
Associations". (j) "Homeowner" refers to any of the following;
Section 2. Declaration of Policy. - In fulfillment of the (1) An owner or purchaser of a lot in a
constitutional principles directing the State to encourage, subdivision/village;
promote and respect non-governmental, community -
based and people’s organizations in serving their (2) An awardee, usufructuary, or legal occupant of a
legitimate collective interests in our participatory unit, house and/or lot in a government socialized or
democracy, it is hereby declared the policy of the State to economic housing or relocation project and other urban
uphold the rights of the people to form unions, estates; or
associations, or societies, and to recognize and promote (3) An informal settler in the process of being
the rights and the roles of homeowners as individuals accredited as beneficiary or awardee of ownership rights
and as members of the society and of homeowners' under the CMP, LTAP, and other similar programs.
associations. To this end, the State shall endeavor to make
available resources and assistance that will help them (k) "Residential real property" refers to any real
fulfill their roles In serving the needs and interests of their property, the use of which is limited by law to primarily
communities, in complementing the efforts of local residential purposes.
government units (LGUs) in providing vital and basic (l) "Simple majority" refers to fifty percent (50%) plus
services to our citizens, and in helping implement local one (1) of the total number of association members.
and national government policies, programs, rules and
(m) "Socialized housing" refers to housing programs
ordinances for the development of the nation.
and projects covering houses and lots or home lots only
Section 3. Definition of Terms. - For purposes of this undertaken by the government or the private sector for
Act, the following terms shall mean: the underprivileged and homeless citizens which shall
(a) "Accounting period" refers to the fiscal or calendar include sites and services development, long - term
year adopted by a homeowners’ association in the financing, liberalized terms on interest payments, and
recording and reporting of its fiscal transactions. other benefits in accordance with the provisions of


Republic Act No. 7279, otherwise known as the Urban (e) to participate in association meetings, elections
Development and Housing Act of 1992 (UDHA). and referenda, as long as his/her bona fide membership
(n) "Subdivision/Village" refers to a tract or parcel of subsists; and
land partitioned into individual lots, with or without (f) to enjoy all other rights as may be provided for in
improvements thereon, primarily for residential purposes. the association bylaws.
Section 4. Registration with the HLURB. - Every Section 8. Duties of a Member. - A member shall
association of homeowners shall be required to register have the following duties:
with the HLURB. This registration shall serve to grant (a) to pay membership fees, dues and special
juridical personality to all such associations that have not assessments;
previously acquired the same by operation of the General
Corporation Law or by any other general law. (b) to attend meetings of the association; and
The procedure for registration shall be specifically (c) to support and participate In projects and
provided for in the implementing rules and regulations to activities of the association.
be promulgated by the HLURB pursuant to Section 28 of Section 9. Delinquent Member. - The bylaws shall
this Act. Such procedure shall provide for an adjudicatory provide for guidelines and procedures in determining
mechanism that will be observed in the event there is a who is a delinquent member, or a member not in good
dispute involving two (2) or more associations established standing, and to prescribe the administrative sanctions to
within the same subdivision/village), community/area, or be imposed on such member. The right to due process
housing project seeking registration. In resolving this shall be observed in cases where administrative sanctions
type of dispute, the HLURB shall take into account the are imposed on a delinquent member.
date each association was legally established, the date of
submission of its application for registration, the number CHAPTER III HOMEOWNERS’ ASSOCIATION
of members, and other similar factors.
Section 10. Rights and Powers of the Association. -
The existence of associations previously registered An association shall have the following rights and shall
with the Home Insurance Guarantee Corporation or the exercise the following powers:
SEC shall be respected, and the said associations shall not
be charged a penalty when they register with the HLURB (a) Subject to consultation and with the approval of a
after this Act takes effect. simple majority of the members, adopt and amend the
articles of incorporation and bylaws, rules and
CHAPTER II HOMEOWNERS regulations, pursuant to existing laws and regulations;
Section 5. Rights and Duties of Every Homeowner. - (b) In behalf of its members, institute, defend, or
Every homeowner has the right to enjoy the basic intervene in litigation and/or administrative proceedings
community services and facilities: Provided, That he/she affecting the welfare of the association and the
pays the necessary fees and other pertinent charges. subdivision/village as a whole, excluding, however,
disputes that are not the responsibility of the association;
Section 6. Qualification of a Member. - A homeowner
as defined under this Act shall be qualified to be a (c) Regulate the use, maintenance, repair,
member of an association: Provided, however, That a replacement and modification of common areas and
lessee, usufructuary, or legal occupant shall have the cause additional improvements to be made part of the
right of a homeowner as set forth under this Act upon common areas: Provided, That the aforementioned do
procurement of a written consent or authorization from not contradict the provisions of the approved subdivision
the owner of the lot or housing unit. plan;
Until such consent or authorization is revoked in (d) Regulate access to, or passage through the
writing, the owner of the lot or housing unit is deemed to subdivision/village roads for purposes of preserving
have waived his/her rights enumerated under Section 7 privacy, tranquility, internal security, and safety and traffic
of this Act, except subsection (b) of the same section order: Provided, That: (1) public consultations are held; (2)
which can be simultaneously enjoyed by both the owner existing laws and regulations are met; (3) the authority of
and the lessee. the concerned government agencies or units are
obtained; and (4) the appropriate and necessary
For purposes of this Act, the lessee authorized in memoranda of agreement are executed among the
accordance with this section shall qualify as a member concerned parties;
with all the rights enumerated in this Act, including the
duties and obligations enumerated under Sections 7, 8 (e) Hire, discharge or contract managing agents and
and 9 hereof: Provided, further, That lessees in other employees, agents and independent contractors to
government socialized housing projects or urban estates ensure the full functioning and operation of the
and those in communities of underprivileged and association;
homeless citizens covered under the term under Section (I) Subject to consultation with and the approval of a
3 of this Act will be considered as homeowners for the simple majority of the association members, acquire,
purpose of qualifying as a member of a homeowners' hold, encumber and convey in its own name any right,
association without need of such written consent or title to or interest in real or personal property: Provided,
authorization. That such approval of a simple majority of the association
Section 7. Rights of a Member. - An association members shall not be required for the acquisition,
member has full rights: holding, encumbrance and conveyance of personal
properties in amounts not exceeding ten percent (10%) of
(a) to avail of and enjoy all basic community services the association’s cash holdings for its use in the course of
and the use of common areas and facilities; its normal operations;
(b) to inspect association books and records during (g) Ensure the availability of quality water services at a
office hours and to be provided upon request with annual reasonable price and at its option, administer and
reports, including financial statements; manage the waterworks system of the subdivision;
(c) to participate, vote and be eligible for any elective (h) Upon consultation, grant easements, leases,
or appointive office of the association subject to the concessions and authority to use common areas and
qualifications as provided for in the bylaws; petition for or consent to the vacation of streets and
(d) to demand and promptly receive deposits alleys: Provided, That the said grant of easements, leases,
required by the association as soon as the condition for concessions and authority shall not be applicable to
the deposit has been complied with or the period has access roads, main interconnecting roads, alleys and
expired; sidewalks within the subdivision;


(i) Impose or collect reasonable fees for the use of (g) Exercise such other powers as may be necessary
open spaces, facilities, and services of the association to and proper in accordance with this Act and for the
defray necessary operational expenses, subject to the accomplishment of the purposes for which the
limitations and conditions imposed under the law, the association was organized.
regulations of the board and the association’s bylaws; The board shall act in all instances on behalf of the
(j) Cause compliance with regard to height association, except to amend the articles of incorporation,
regulations, easements, use of homes, buildings, edifices, to dissolve the association, to elect members of the board
or structures that may be built within the subdivision, in or to determine the qualifications, powers and duties, or
accordance with the National Building Code, zoning laws, terms of office of the board, and other instances that
HLURB rules and regulations, existing local ordinances, require the vote or approval of the members themselves.
and existing deeds of restriction; In the performance of their duties, the officers and
(k) Subject to consultation and with the approval of a members of the board shall exercise the degree of care
simple majority of the association members, allow the and loyalty required by such position.
establishment of certain institutions such as, but not Section 13. Removal of a Director or Trustee. -
limited to, schools, hospitals, markets, grocery stores and Through a signed petition of a simple majority of the
other similar establishments that will necessarily affect association members in good standing, subject to a
the character of the subdivision/village in terms of traffic verification and validation by the HLURB, a
generation, and/or opening the area to outsiders which director/trustee may be removed for causes provided in
may result in the loss of privacy, security, safety, and the bylaws of the association: Provided, That if a majority
tranquility to its residents, in accordance with the of the members of the board is removed, it shall be
National Building Code, zoning laws, existing local considered a dissolution of the entire board, in which
ordinances, HLURB rules and regulations, and existing case, Section 14 hereof shall govern.
jurisprudence: Provided, That such prior approval shall Within sixty (60) days after the removal of a director
not be necessary for the establishment of sari - sari stores, or trustee, an election shall be called by the remainder of
home industries and similar small - scale business the board for the purpose of determining who shall hold
enterprises within the subdivision/village classified as office for the unexpired term of the removed
socialized housing; director/trustee.
(l) Suspend privileges of and services to and/or Section 14. Dissolution of the Board. - Through a
impose sanctions upon its members for violations and/or signed petition of two - thirds (2/3) of the association
noncompliance with the association's bylaws, and rules members subject to a verification and validation by the
and regulations; HLURB, the board of the association may be dissolved for
(m) Petition for the creation of a separate barangay, causes provided in the bylaws of the association.
independently or together with neighboring subdivisions: Within sixty (60) days from the above dissolution, an
Provided, That all the requirements of the Local election for a new board shall be called and conducted by
Government Code of 1991 are met; and the HLURB for the purpose of determining who shall hold
(n) Exercise any other powers conferred by the bylaws office for the unexpired term of the dissolved board.
and the HLURB necessary for the governance and Until the new board members shall have been
operation of the association. elected and qualified, the HLURB shall designate an
Section 11. Board of Directors or Trustees. - The interim board: Provided, That such board shall be
bylaws of the association shall provide for the composed of association members in good standing:
qualifications and number of the directors or trustees Provided, further, That such interim board members shall
that will comprise the board. not be eligible to run in the election called for the
Section 12. Duties and Responsibilities of the Board. purpose of replacing the members of the dissolved board.
In addition to the duties and responsibilities stated in the Section 15. Association Bylaws. - The bylaws of the
bylaws of the association, the board shall have the association shall be adopted by a simple majority of the
following duties and responsibilities: members of the association. Consistent with the
(a) Regularly maintain an accounting system using provisions of this Act, it shall provide for:
generally accepted accounting principles, and keep (a) The rights, duties and obligations of members;
books of accounts, which shall be open for inspection to (b) The circumstances under which membership is
any homeowner and duly authorized representatives of acquired, maintained, and lost;
government agencies upon request, during reasonable
hours, on business days; (c) The schedule, venue, and manner of conducting
the regular, special, and emergency meetings of the
(b) Collect the fees, dues and assessments that may general membership, the required quorum, and
be provided for in the bylaws and approved by a majority allowable proxies in such meetings;
of the members;
(d) The number, qualifications, powers and duties,
(c) Collect reasonable charges for assessments, and terms of office, manner of electing and removing the
after due notice and hearing by the board in accordance board and the filling of vacancies in the board: Provided,
with the procedures as provided in the bylaws, and rules That the term of office of the members of the board shall
and regulations adopted by the board, charge reasonable not exceed two (2) years;
fines for late payments and for violation of the bylaws,
rules, and regulations of the association, in accordance (e) The qualifications, positions, duties, election or
with a previously established schedule adopted by the appointment, and compensation of other officers and
board and furnished to the homeowners; employees of the association: Provided, That the term of
office of the other officers shall not exceed two (2) years:
(d) Propose measures to raise funds and the Provided, further, That no officer of the association
utilization of such funds and submit the same for holding a rank of director or trustee shall likewise be
consideration of the members of the association; entitled to any compensation;
(e) Undergo a free orientation by the HLURB or any (f) The schedule, venue, and manner of conducting
other competent agency deputized by it on how to the regular, special, and emergency meetings of the
conduct meetings, preparation of minutes, handling of board, the required quorum, and allowable proxies in
accounts, laws and pertinent rules and regulations within such meetings;
thirty (30) days after election or appointment;
(g) Such powers that the board may delegate to a
(f) Discharge the duties and responsibilities provided managing agent, if any, or to other persons;
for in the association’s bylaws; and


(h) Which of its officers may prepare, execute, certify (90) days from the end of the accounting period to be
and record amendments to the governing documents on posted in the association office, bulletin boards, or other
behalf of the association; conspicuous places within the subdivision/village, and to
(i) The grounds and procedure for removal of director be submitted to the HLURB; and
or trustee, and the manner of filling up vacancies in the (d) The funds of the association shall be kept in
board, consistent with Section 13 of this Act; accounts in the name of the association and shall not be
(j) The grounds and procedure for dissolution of the joined with the funds of any other association, or any
board, and the manner of reconstituting the board, person responsible for the custody of such funds.
consistent with Sections 13 and 14 of this Act; Section 18. Relationship with LGUs. - Homeowners'
(k) The actions for limiting, broadening or denying associations shall complement, support and strengthen
the right to vote, and the extent thereof; LGUs in providing vital services to their members and
help implement local government policies, programs,
(I) The designation of the presiding officer at ordinances, and rules.
meetings of directors or trustees and members;
Associations are encouraged to actively cooperate
(m) The time for holding the regular election of with LGUs in furtherance of their common goals and
directors or trustees and the mode or manner of giving activities for the benefit of the residents of the
notice thereof; subdivisions/villages and their environs.
(n) The creation of election, grievance and audit Where the LGUs lack resources to provide for basic
committees, and such other committees which the services, the associations shall endeavor to tap the means
association may deem necessary; as well as a conciliation to provide for the same. In recognition of the associations’
or mediation mechanism for the amicable settlement of efforts to assist the LGUs III providing such basic services,
disputes among members, directors or trustees, officers association dues and income derived from rentals of their
and committee members of the association; facilities shall be tax - exempt: Provided, That such
(o) The dues, fees, and special assessments to be income and dues shall be used for the cleanliness, safety,
imposed on a regular basis, and the manner in which the security and other basic services needed by the
same may be imposed and/or increased; members, including the maintenance of the facilities of
their respective subdivisions or villages.
(p) The method of adopting, amending, repealing
and abrogating the bylaws; LGUs shall, upon due notice, hold public
consultations with the members of the affected
(q) The list of acts constituting a violation by its associations, especially their officers and directors, where
officers and the corresponding penalties therefor; proposed rules, zoning and other ordinances, projects
(r) The penalties for violation of the bylaws; and and/or programs affecting their jurisdiction and
surrounding vicinity are to be implemented prior to the
(s) Such other matters necessary for the proper or effectivity or implementation of such rules, zoning,
convenient transaction of its corporate business and ordinances, projects or programs: Provided, That in cases
affairs. of zonal reclassification, the approval of a simple majority
Section 16. Proxies. - Association members may vote of homeowners shall be required.
in person or by proxy in all meetings of members. Proxies Such public consultations shall conform to the
shall be in writing, signed by the member and filed manner as specified in Rule XI, Article 54 of the
before the scheduled meeting with the association implementing rules and regulations of Republic Act No.
secretary. Unless otherwise provided in the proxy, it shall 7160, otherwise known as the Local Government Code of
be valid only for the meeting for which it is intended, No 1991.
proxy shall be valid and effective for a period longer than
three (3) years at anyone time unless earlier revoked by Section 19. Relationship with National Government
the member. Agencies. - The associations shall complement, support
and strengthen the efforts of the national government
Section 17. Financial and Other Records. - The agencies in providing vital services to their members and
homeowners’ association is enjoined to observe the help implement the national government policies and
following, with regard to its funds, financial and other programs.
records:
Associations are encouraged to actively cooperate
(a) The association or its managing agent shall keep with national government agencies in the furtherance of
financial and other records sufficiently detailed to enable their common goals and activities for the benefit of the
the association to fully declare to each member the true residents of the subdivisions and its environs. National
statement of its financial status. All financial and other government agencies shall consult the associations
records of the association including, but not limited to, where proposed rules, projects and/or programs may
checks, bank records and invoices, in whatever form affect their welfare.
these are kept, are the property of the association. Each
association’s managing agent shall turn over all original
CHAPTER IV DUTIES AND RESPONSIBILITIES OF
books and records to the association immediately upon
termination of the management relationship with the THE HLURB
association, or upon such other demand as is made by Section 20. Duties and Responsibilities of the HLURB.
the board. An association’s managing agent is entitled to - In addition to the powers, authorities and
keep association records. All records which the managing responsibilities vested in it by Republic Act No. 8763,
agent has turned over to the association shall be made Presidential Decree No. 902 - A, Batas Pambansa Big. 68
reasonably available for the examination and copying by and Executive Order No. 535, Series of 1981, as amended,
the managing agent; the HLURB shall:
(b) All records involving the affairs of the association (a) Regularly conduct free orientation for officers of
shall be available for examination by all owners, holders of homeowners’ associations or deputize another
mortgages on the lots, and their respective authorized competent agency to conduct the orientation;
agents upon reasonable advance notice, during normal
(b) Formulate and publish a Code of Ethics and
working hours at the office of the association: Provided,
Ethical Standards for board members detailing
That holders of mortgages on lots may have access to the
prohibited conflicts of interest;
information about the property held in mortgage with
the written consent of the registered owner; (c) Register all associations, federations,
confederations or umbrella organizations of the
(c) A financial statement of the association shall be
associations;
prepared annually by an auditor, the treasurer and/or an
independent certified public accountant within ninety



(d) Hear and decide inter - association and/or inter - thousand pesos (Php5, 000.00) but not more than Fifty
association controversies and/or conflicts, without thousand pesos
prejudice to filing civil and criminal cases by the parties (Php50, 000.00) and permanent disqualification from
concerned before the regular courts: Provided, That all being elected or appointed as member of the board,
decisions of the HLURB are appealable directly to the officer or employee of the association, without prejudice
Court of Appeals; to being charged before a regular court for violations of
(e) Formulate the rules or manner of verification and the provisions of the Revised Penal Code, Civil Code and
validation of petitions for the removal of director(s) or other pertinent laws.
trustee(s) of the association or dissolution of the board If the violation is committed by the association, the
pursuant to Sections 13 and 14 of this Act; members, officers, directors or trustees of the association
(f) Exercise the same powers over federations, who have actually participated in, authorized, or ratified
confederations or umbrella organizations of the the prohibited act shall be held liable.
associations; If the violation is committed by the employees and
(g) Formulate, in consultation with the agents who acted in gross violation of the provisions of
representatives of associations, federations, this Act, the officers, directors or trustees, or incorporators
confederations or umbrella organizations of the of the association shall be jointly and severally liable with
associations, standard nomenclatures to be used for the the offending employees, agents, and the association.
associations' books of accounts, and a standard articles of Section 24. Review of Association's Bylaws. - In order
incorporation and bylaws for homeowners' association for to comply with the provisions of this Act, the
reference purposes; homeowners' association shall, within six (6) months from
(h) Formulate, in consultation with the the effectivity of this Act, conduct a review of its bylaws,
representatives of associations, federations, draft its own rules of procedure to be incorporated in the
confederations or umbrella organizations of the bylaws and conduct a plebiscite for the approval of the
associations, the guidelines in regulating the kinds of members of the association. A simple majority shall be
contributions and fees that may be charged and/or used to determine the approval of the bylaws.
collected by associations; and Section 25. Appropriations. - The amounts necessary
(i) Call upon the Philippine National Police, other law for the implementation of this Act and for carrying out
enforcement agencies, and other instrumentalities of the the additional functions and responsibilities of the
government, if necessary, for the enforcement of its HLURB shall be included in the annual General
functions. Appropriations Act.
Section 21. Additional Positions and Personnel for the Section 26. Separability Clause. - If any provision of
HLURB. - For purposes of this Act, the HLURB shall, upon this Act is declared invalid or unconstitutional, the
its discretion, create positions and enlist additional remainder of the Act shall remain valid and subsisting.
personnel to carry out its mandate. Section 27. Repealing Clause. - All other issuances,
laws, decrees, orders, rules and regulations, or parts
CHAPTER V FINAL PROVISIONS thereof inconsistent with this Act are hereby repealed or
Section 22. Prohibited Acts. - It shall be prohibited for modified accordingly.
any person: Section 28. Implementing Rules and Regulations. -
(a) To compel a homeowner to join the association, The HLURB shall formulate and promulgate, in
without prejudice to the provisions of the deed of consultation with concerned sectors, rules and
restrictions, its extensions or renewals as approved by the regulations necessary to implement the provisions of this
majority vote of the members or as annotated on the title Act within SIX (6) months of its effectivity.
of the property; the contract for the purchase of a lot in No rule or regulation shall be issued which tends to
the subdivision project; or an award under a CMP project undermine the organizational and territorial integrity of
or a similar tenurial arrangement; any association.
(b) To deprive any homeowner of his/her right to avail Section 29. Effectivity. - This Act shall take effect
of or enjoy basic community services and facilities where fifteen (15) days following Its publication in the Official
he/she has paid the dues, charges, and other fees for such Gazette or in at least two (2) national newspapers of
services; general circulation.
(c) To prevent any homeowner who has paid the
required fees and charges from reasonably exercising
his/her right to inspect association books and records; RA No 10361 | Domestic Workers Act
(d) To prevent any member in good standing from
participating in association meetings, elections and
referenda; Rules and Regulations Implementing the Domestic
(e) To deny any member due process in the Workers Act
imposition of administrative sanctions;
(f) To exercise rights and powers as stated m Section January 18, 2013
10 in violation of the required consultation and approval
of the required number of homeowners or members; AN ACT INSTITUTING POLICIES FOR THE PROTECTION
(g) To unreasonably fail to provide basic community AND WELFARE OF DOMESTIC WORKERS
services and facilities and maintain, repair, replace, or Be it enacted by the Senate and House of
modify such facilities; Representatives of the Philippines in Congress
(h) To unreasonably fail to comply with Section 17 of assembled:
this Act; or
(i) To violate any other provision of this Act. ARTICLE I GENERAL PROVISIONS
Section 23. Penalties and Sanctions. - Any person Section 1. Short Title. – This Act shall be known as the
who, intentionally or by gross negligence, violates any "Domestic Workers Act" or "Batas Kasambahay".
provision of this Act, fails to perform his/her functions Section 2. Declaration of Policies. – It is hereby
under this Act and/or violates the rights of the members, declared that:
shall be punished with a fine of not less than Five
(a) The State strongly affirms labor as a primary social
force and is committed to respect, promote, protect and



realize the fundamental principles and rights at work meals a day and humane sleeping arrangements that
including, but not limited to, abolition of child labor, ensure safety.
elimination of all forms of forced labor, discrimination in The employer shall provide appropriate rest and
employment and occupation, and trafficking in persons, assistance to the domestic worker in case of illnesses and
especially women and children; injuries sustained during service without loss of benefits.
(b) The State adheres to internationally accepted At no instance shall the employer withdraw or hold in
working conditions for workers in general, and abeyance the provision of these basic necessities as
establishes labor standards for domestic workers in punishment or disciplinary action to the domestic worker.
particular, towards decent employment and income,
enhanced coverage of social protection, respect for Section 7. Guarantee of Privacy. – Respect for the
human rights and strengthened social dialogue; privacy of the domestic worker shall be guaranteed at all
times and shall extend to all forms of communication and
(c) The State recognizes the need to protect the rights personal effects. This guarantee equally recognizes that
of domestic workers against abuse, harassment, violence, the domestic worker is obliged to render satisfactory
economic exploitation and performance of work that is service at all times.
hazardous to their physical and mental health; and
Section 8. Access to Outside Communication. – The
(d) The State, in protecting domestic workers and employer shall grant the domestic worker access to
recognizing their special needs to ensure safe and outside communication during free time: Provided, That
healthful working conditions, promotes gender-sensitive in case of emergency, access to communication shall be
measures in the formulation and implementation of granted even during work time. Should the domestic
policies and programs affecting the local domestic work. worker make use of the employer’s telephone or other
Section 3. Coverage. – This Act applies to all domestic communication facilities, the costs shall be borne by the
workers employed and working within the country. domestic worker, unless such charges are waived by the
Section 4. Definition of Terms. – As used in this Act, employer.
the term: Section 9. Right to Education and Training. – The
(a) Debt bondage refers to the rendering of service by employer shall afford the domestic worker the
the domestic worker as security or payment for a debt opportunity to finish basic education and may allow
where the length and nature of service is not clearly access to alternative learning systems and, as far as
defined or when the value of the service is not reasonably practicable, higher education or technical and vocational
applied in the payment of the debt. training. The employer shall adjust the work schedule of
the domestic worker to allow such access to education or
(b) Deployment expenses refers to expenses that are training without hampering the services required by the
directly used for the transfer of the domestic worker from employer.
place of origin to the place of work covering the cost of
transportation. Advances or loans by the domestic worker Section 10. Prohibition Against Privileged
are not included in the definition of deployment Information. – All communication and information
expenses. pertaining to the employer or members of the household
shall be treated as privileged and confidential, and shall
(c) Domestic work refers to work performed in or for a not be publicly disclosed by the domestic worker during
household or households. and after employment. Such privileged information shall
(d) Domestic worker or "Kasambahay" refers to any be inadmissible in evidence except when the suit involves
person engaged in domestic work within an employment the employer or any member of the household in a crime
relationship such as, but not limited to, the following: against persons, property, personal liberty and security,
general househelp, nursemaid or "yaya", cook, gardener, and chastity.
or laundry person, but shall exclude any person who
performs domestic work only occasionally or sporadically ARTICLE III PRE-EMPLOYMENT
and not on an occupational basis. Section 11. Employment Contract. – An employment
The term shall not include children who are under contract shall be executed by and between the domestic
foster family arrangement, and are provided access to worker and the employer before the commencement of
education and given an allowance incidental to the service in a language or dialect understood by both
education, i.e. "baon", transportation, school projects and the domestic worker and the employer. The domestic
school activities. worker shall be provided a copy of the duly signed
employment contract which must include the following:
(e) Employer refers to any person who engages and
controls the services of a domestic worker and is party to (a) Duties and responsibilities of the domestic worker;
the employment contract. (b) Period of employment;
(f) Household refers to the immediate members of (c) Compensation;
the family or the occupants of the house that are directly
provided services by the domestic worker. (d) Authorized deductions;
(g) Private Employment Agency (PEA) refers to any (e) Hours of work and proportionate additional
individual, legitimate partnership, corporation or entity payment;
licensed to engage in the recruitment and placement of (f) Rest days and allowable leaves;
domestic workers for local employment.
(g) Board, lodging and medical attention;
(h) Working children, as used under this Act, refers to
(h) Agreements on deployment expenses, if any;
domestic workers who are fifteen (15) years old and above
but below eighteen (18) years old. (i) Loan agreement;
(j) Termination of employment; and
ARTICLE II RIGHTS AND PRIVILEGES
(k) Any other lawful condition agreed upon by both
Section 5. Standard of Treatment. – The employer or parties.
any member of the household shall not subject a
domestic worker or "kasambahay" to any kind of abuse The Department of Labor and Employment (DOLE)
nor inflict any form of physical violence or harassment or shall develop a model employment contract for domestic
any act tending to degrade the dignity of a domestic workers which shall, at all times, be made available free of
worker. charge to domestic workers, employers, representative
organizations and the general public. The DOLE shall
Section 6. Board, Lodging and Medical Attendance. – widely disseminate information to domestic workers and
The employer shall provide for the basic necessities of the
domestic worker to include at least three (3) adequate



employers on the use of such model employment

contract. ARTICLE IV EMPLOYMENT – TERMS AND
CONDITIONS
In cases where the employment of the domestic
worker is facilitated through a private employment Section 19. Health and Safety. – The employer shall
agency, the PEA shall keep a copy of all employment safeguard the health and safety of the domestic worker in
contracts of domestic workers and shall be made accordance with laws, rules and regulations, with due
available for verification and inspection by the DOLE. consideration of the peculiar nature of domestic work.
Section 12. Pre-Employment Requirement. – Prior to Section 20. Daily Rest Period. – The domestic worker
the execution of the employment contract, the employer shall be entitled to an aggregate daily rest period of eight
may require the following from the domestic worker: (8) hours per day.
(a) Medical certificate or a health certificate issued by Section 21. Weekly Rest Period. – The domestic
a local government health officer; worker shall be entitled to at least twenty-four (24)
consecutive hours of rest in a week. The employer and
(b) Barangay and police clearance; the domestic worker shall agree in writing on the
(c) National Bureau of Investigation (NBI) clearance; schedule of the weekly rest day of the domestic worker:
and Provided, That the employer shall respect the preference
of the domestic worker as to the weekly rest day when
(d) Duly authenticated birth certificate or if not
such preference is based on religious grounds. Nothing in
available, any other document showing the age of the
this provision shall deprive the domestic worker and the
domestic worker such as voter’s identification card,
employer from agreeing to the following:
baptismal record or passport.
(a) Offsetting a day of absence with a particular rest
However, Section 12(a), (b), (c) and (d) shall be
day;
standard requirements when the employment of the
domestic worker is facilitated through the PEA. (b) Waiving a particular rest day in return for an
equivalent daily rate of pay;
The cost of the foregoing shall be borne by the
prospective employer or agency, as the case may be. (c) Accumulating rest days not exceeding five (5)
days; or
Section 13. Recruitment and Finder’s Fees. –
Regardless of whether the domestic worker was hired (d) Other similar arrangements.
through a private employment agency or a third party, no Section 22. Assignment to Nonhousehold Work. – No
share in the recruitment or finder’s fees shall be charged domestic worker shall be assigned to work in a
against the domestic worker by the said private commercial, industrial or agricultural enterprise at a wage
employment agency or third party. rate lower than that provided for agricultural or
Section 14. Deposits for Loss or Damage. – It shall be nonagricultural workers. In such cases, the domestic
unlawful for the employer or any other person to require a worker shall be paid the applicable minimum wage.
domestic worker to make deposits from which Section 23. Extent of Duty. – The domestic worker
deductions shall be made for the reimbursement of loss and the employer may mutually agree for the former to
or damage to tools, materials, furniture and equipment in temporarily perform a task that is outside the latter’s
the household. household for the benefit of another household. However,
Section 15. Prohibition on Debt Bondage. – It shall be any liability that will be incurred by the domestic worker
unlawful for the employer or any person acting on behalf on account of such arrangement shall be borne by the
of the employer to place the domestic worker under debt original employer. In addition, such work performed
bondage. outside the household shall entitle the domestic worker
to an additional payment of not less than the existing
Section 16. Employment Age of Domestic Workers. –
minimum wage rate of a domestic worker. It shall be
It shall be unlawful to employ any person below fifteen
unlawful for the original employer to charge any amount
(15) years of age as a domestic worker. Employment of
from the said household where the service of the
working children, as defined under this Act, shall be
domestic worker was temporarily performed.
subject to the provisions of Section 10(A), paragraph 2 of
Section 12-A, paragraph 4 of Section 12-D, and Section 13 Section 24. Minimum Wage. – The minimum wage of
of Republic Act No. 7610, as amended, otherwise known domestic workers shall not be less than the following:
as the "Special Protection of Children Against Child (a) Two thousand five hundred pesos (P2,500.00) a
Abuse, Exploitation and Discrimination Act". month for those employed in the National Capital Region
Working children shall be entitled to minimum wage, (NCR);
and all benefits provided under this Act. (b) Two thousand pesos (P2,000.00) a month for
Any employer who has been sentenced by a court of those employed in chartered cities and first class
law of any offense against a working child under this Act municipalities; and
shall be meted out with a penalty one degree higher and (c) One thousand five hundred pesos (P1,500.00) a
shall be prohibited from hiring a working child. month for those employed mother municipalities.
Section 17. Employer’s Reportorial Duties. – The After one (1) year from the effectivity of this Act, and
employers shall register all domestic workers under their periodically thereafter, the Regional Tripartite and
employment in the Registry of Domestic Workers in the Productivity Wage Boards (RTPWBs) shall review, and if
barangay where the employer’s residence is located. The proper, determine and adjust the minimum wage rates of
Department of the Interior and Local Government (DILG) domestic workers.
shall, in coordination with the DOLE, formulate a
registration system for this purpose. Section 25. Payment of Wages. – Payment of wages
shall be made on time directly to the domestic worker to
Section 18. Skills Training, Assessment and whom they are due in cash at least once a month. The
Certification. – To ensure productivity and assure quality employer, unless allowed by the domestic worker
services, the DOLE, through the Technical Education and through a written consent, shall make no deductions
Skills Development Authority (TESDA), shall facilitate from the wages other than that which is mandated by
access of domestic workers to efficient training, law. No employer shall pay the wages of a domestic
assessment and certification based on a duly worker by means of promissory notes, vouchers, coupons,
promulgated training regulation. tokens, tickets, chits, or any object other than the cash
wage as provided for under this Act.
The domestic worker is entitled to a thirteenth month
pay as provided for by law.



Section 26. Pay Slip. – The employer shall at all times service, the employer or the domestic worker may give
provide the domestic worker with a copy of the pay slip notice to end the working relationship five (5) days before
containing the amount paid in cash every pay day, and the intended termination of the service.
indicating all deductions made, if any. The copies of the The domestic worker and the employer may mutually
pay slip shall be kept by the employer for a period of three agree upon written notice to pre-terminate the contract
(3) years. of employment to end the employment relationship.
Section 27. Prohibition on Interference in the Section 33. Termination Initiated by the Domestic
Disposal of Wages. – It shall be unlawful for the employer Worker. – The domestic worker may terminate the
to interfere with the freedom of any domestic worker to employment relationship at any time before the
dispose of the latter’s wages. The employer shall not force, expiration of the contract for any of the following causes:
compel or oblige the domestic worker to purchase
merchandise, commodities or other properties from the (a) Verbal or emotional abuse of the domestic worker
employer or from any other person, or otherwise make by the employer or any member of the household;
use of any store or services of such employer or any other (b) Inhuman treatment including physical abuse of
person. the domestic worker by the employer or any member of
Section 28. Prohibition Against Withholding of the household;
Wages. – It shall be unlawful for an employer, directly or (c) Commission of a crime or offense against the
indirectly, to withhold the wages of the domestic worker. domestic worker by the employer or any member of the
If the domestic worker leaves without any justifiable household;
reason, any unpaid salary for a period not exceeding
fifteen (15) days shall be forfeited. Likewise, the employer (d) Violation by the employer of the terms and
shall not induce the domestic worker to give up any part conditions of the employment contract and other
of the wages by force, stealth, intimidation, threat or by standards set forth under this law;
any other means whatsoever. (e) Any disease prejudicial to the health of the
Section 29. Leave Benefits. – A domestic worker who domestic worker, the employer, or member/s of the
has rendered at least one (1) year of service shall be household; and
entitled to an annual service incentive leave of five (5) (f) Other causes analogous to the foregoing.
days with pay: Provided, That any unused portion of said
annual leave shall not be cumulative or carried over to the Section 34. Termination Initiated by the Employer. –
succeeding years. Unused leaves shall not be convertible An employer may terminate the services of the domestic
to cash. worker at any time before the expiration of the contract,
for any of the following causes:
Section 30. Social and Other Benefits. – A domestic
worker who has rendered at least one (1) month of service (a) Misconduct or willful disobedience by the
shall be covered by the Social Security System (SSS), the domestic worker of the lawful order of the employer in
Philippine Health Insurance Corporation (PhilHealth), and connection with the former’s work;
the Home Development Mutual Fund or Pag-IBIG, and (b) Gross or habitual neglect or inefficiency by the
shall be entitled to all the benefits in accordance with the domestic worker in the performance of duties;
pertinent provisions provided by law. (c) Fraud or willful breach of the trust reposed by the
Premium payments or contributions shall be employer on the domestic worker;
shouldered by the employer. However, if the domestic (d) Commission of a crime or offense by the domestic
worker is receiving a wage of Five thousand pesos worker against the person of the employer or any
(P5,000.00) and above per month, the domestic worker immediate member of the employer’s family;
shall pay the proportionate share in the premium
payments or contributions, as provided by law. (e) Violation by the domestic worker of the terms and
conditions of the employment contract and other
The domestic worker shall be entitled to all other standards set forth under this law;
benefits under existing laws.
(f) Any disease prejudicial to the health of the
Section 31. Rescue and Rehabilitation of Abused domestic worker, the employer, or member/s of the
Domestic Workers. – Any abused or exploited domestic household; and
worker shall be immediately rescued by a municipal or
city social welfare officer or a social welfare officer from (g) Other causes analogous to the foregoing.
the Department of Social Welfare and Development Section 35. Employment Certification. – Upon the
(DSWD) in coordination with the concerned barangay severance of the employment relationship, the employer
officials. The DSWD and the DILG shall develop a shall issue the domestic worker within five (5) days from
standard operating procedure for the rescue and request a certificate of employment indicating the
rehabilitation of abused domestic workers, and in nature, duration of the service and work performance.
coordination with the DOLE, for possible subsequent job
placement. ARTICLE VI PRIVATE EMPLOYMENT AGENCIES
ARTICLE V POST EMPLOYMENT Section 36. Regulation of Private Employment
Agencies (PEAs). – The DOLE shall, through a system of
Section 32. Termination of Service. – Neither the licensing and regulation, ensure the protection of
domestic worker nor the employer may terminate the domestic workers hired through the PEAs.
contract before the expiration of the term except for
grounds provided for in Sections 33 and 34 of this Act. If The PEA shall be jointly and severally liable with the
the domestic worker is unjustly dismissed, the domestic employer for all the wages, wage-related benefits, and
worker shall be paid the compensation already earned other benefits due a domestic worker.
plus the equivalent of fifteen (15) days work by way of The provision of Presidential Decree No. 442, as
indemnity. If the domestic worker leaves without amended, otherwise known as the "Labor Code of the
justifiable reason, any unpaid salary due not exceeding Philippines", on qualifications of the PEAs with regard to
the equivalent fifteen (15) days work shall be forfeited. In nationality, net worth, owners and officers, office space
addition, the employer may recover from the domestic and other requirements, as well as non-transferability of
worker costs incurred related to the deployment license and commission of prohibited practices, shall
expenses, if any: Provided, That the service has been apply.
terminated within six (6) months from the domestic
worker’s employment. In addition, PEAs shall have the following
responsibilities:
If the duration of the domestic service is not
determined either in stipulation or by the nature of the



(a) Ensure that domestic workers are not charged or and regulations for the effective implementation of this
levied any recruitment or placement fees; Act.
(b) Ensure that the employment agreement between
the domestic worker and the employer stipulates the ARTICLE X FINAL PROVISIONS
terms and conditions of employment and all the benefits Section 43. Separability Clause. – If any provision or
prescribed by this Act; part of this Act is declared invalid or unconstitutional, the
(c) Provide a pre-employment orientation briefing to remaining parts or provisions not affected shall remain in
the domestic worker and the employer about their rights full force and effect.
and responsibilities in accordance with this Act; Section 44. Repealing Clause. – All articles or
(d) Keep copies of employment contracts and provisions of Chapter III (Employment of Househelpers) of
agreements pertaining to recruited domestic workers Presidential Decree No. 442, as amended and
which shall be made available during inspections or renumbered by Republic Act No. 10151 are hereby
whenever required by the DOLE or local government expressly repealed. All laws, decrees, executive orders,
officials; issuances, rules and regulations or parts thereof
inconsistent with the provisions of this Act are hereby
(e) Assist domestic workers with respect to repealed or modified accordingly.
complaints or grievances against their employers; and
Section 45. Effectivity Clause. – This Act shall take
(f) Cooperate with government agencies in rescue effect fifteen (15) days after its complete publication in the
operations involving abused or exploited domestic Official Gazette or in at least two (2) national newspapers
workers. of general circulation.
ARTICLE VII SETTLEMENT OF DISPUTES

Section 37. Mechanism for Settlement of Disputes. –
All labor-related disputes shall be elevated to the DOLE
Regional Office having jurisdiction over the workplace
without prejudice to the filing of a civil or criminal action
in appropriate cases. The DOLE Regional Office shall
exhaust all conciliation and mediation efforts before a
decision shall be rendered.
Ordinary crimes or offenses committed under the
Revised Penal Code and other special penal laws by
either party shall be filed with the regular courts.
ARTICLE VIII SPECIAL PROVISIONS

Section 38. Information Program. – The DOLE shall,
in coordination with the DILG, the SSS, the PhilHealth and
Pag-IBIG develop and implement a continuous
information dissemination program on the provisions of
this Act, both at the national and local level, immediately
after the enactment of this law.
Section 39. "Araw Ng Mga Kasambahay". – The date
upon which the President shall approve this "Domestic
Workers Act" shall be designated as the "Araw ng mga
Kasambahay".
ARTICLE IX PENAL AND MISCELLANEOUS

PROVISIONS
Section 40. Penalty. – Any violation of the provisions
of this Act declared unlawful shall be punishable with a
fine of not less than Ten thousand pesos (P10,000.00) but
not more than Forty thousand pesos (P40,000.00)
without prejudice to the filing of appropriate civil or
criminal action by the aggrieved party.
Section 41. Transitory Provision; Non-Diminution of
Benefits. – All existing arrangements between a domestic
worker and the employer shall be adjusted to conform to
the minimum standards set by this Act within a period of
sixty (60) days after the effectivity of this Act: Provided,
That adjustments pertaining to wages shall take effect
immediately after the determination and issuance of the
appropriate wage order by the RTWPBs: Provided, further,
That nothing in this Act shall be construed to cause the
diminution or substitution of any benefits and privileges
currently enjoyed by the domestic worker hired directly
or through an agency.
Section 42. Implementing Rules and Regulations. –
Within ninety (90) days from the effectivity of this Act, the
Secretary of Labor and Employment, the Secretary of
Social Welfare and Development, the Secretary of the
Interior and Local Government, and the Director General
of the Philippine National Police, in coordination with
other concerned government agencies and accredited
non-government organizations (NGOs) assisting
domestic workers, shall promulgate the necessary rules

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LABOR AND AGRARIAN TITLE FIVE Final Provisions

SOCIAL LEGISLATION RA No 8187 | Paternity Leave Act of 1996

© Compiled by Rehne Gibb N. Larena | JD-2 | University of San Carlos

Social Legislation 134

© Compiled By RGL 2 of 169

© Compiled By RGL 3 of 169

© Compiled By RGL 4 of 169

© Compiled By RGL 5 of 169

© Compiled By RGL 6 of 169

© Compiled By RGL 7 of 169

© Compiled By RGL 8 of 169

© Compiled By RGL 9 of 169

non-governmental organizations assisting migrant

© Compiled By RGL 10 of 169

© Compiled By RGL 11 of 169

© Compiled By RGL 12 of 169

© Compiled By RGL 13 of 169

© Compiled By RGL 14 of 169

The LGU shall establish a monitoring system wherein June 29, 2016

© Compiled By RGL 15 of 169

© Compiled By RGL 16 of 169

© Compiled By RGL 17 of 169

© Compiled By RGL 18 of 169

(3) Decline any employment application because of

© Compiled By RGL 19 of 169

© Compiled By RGL 20 of 169

m) "Apprenticeable Occupation" is an appointed thereafter to ﬁll vacancies caused by expiration

© Compiled By RGL 21 of 169

© Compiled By RGL 22 of 169

© Compiled By RGL 23 of 169

© Compiled By RGL 24 of 169

© Compiled By RGL 25 of 169

e) To facilitate integration of persons with disability

© Compiled By RGL 26 of 169

© Compiled By RGL 27 of 169

© Compiled By RGL 28 of 169

© Compiled By RGL 29 of 169

© Compiled By RGL 30 of 169

© Compiled By RGL 31 of 169

© Compiled By RGL 32 of 169

© Compiled By RGL 33 of 169

© Compiled By RGL 34 of 169

business deductions for said expenses under the National (g) The National Economic and Development

© Compiled By RGL 35 of 169

© Compiled By RGL 36 of 169

© Compiled By RGL 37 of 169

© Compiled By RGL 38 of 169

States and other duty-bearers are answerable for the aquatic resources. These include, but are not to be limited

© Compiled By RGL 39 of 169

© Compiled By RGL 40 of 169

© Compiled By RGL 41 of 169

population in granting athletic scholarship. There shall be (3) Responsible, ethical, legal, safe, and effective methods

© Compiled By RGL 42 of 169

© Compiled By RGL 43 of 169

© Compiled By RGL 44 of 169

© Compiled By RGL 45 of 169

© Compiled By RGL 46 of 169

© Compiled By RGL 47 of 169

technical/skills education; and AN ACT DECLARING SEXUAL HARASSMENT UNLAWFUL

© Compiled By RGL 48 of 169

Section 6. Independent Action for Damages. - Nothing in The best interests of children shall be the paramount

© Compiled By RGL 49 of 169

© Compiled By RGL 50 of 169

© Compiled By RGL 51 of 169