Presidential Decree 451 AUTHORIZING THE SECRETARY OF EDUCATION AND CULTURE TO REGULATE THE IMPOSITION OF TUITION AND OTHER SCHOOLFEES, REPEALING REPUBLIC ACT NO. 6139, AND FOR OTHER PURPOSES Report on Educational Legislation by: MR. OMAR M. JACALNE
RULE I Policy and ScopeO Section 1. Scope. The rules and regulations herein prescribed shall apply to all private schools, colleges and universities duly authorized or recognized by the Government.
O Section 2. Authority to Regulate. The Secretary of Education and Culture has the authority to regulate any increase or change in the rate of tuition and/or other school fees or charges collected from pupils or students and/or their parents by all private schools, colleges and universities.O Any increase or change including new fees in private schools, colleges, and universities shall not be effective without the prior approval of the Secretary of Education and Culture.
O Section 3. Purpose of Increase. As a general rule, the purpose or purposes for which any increase or change in the current rates of tuition and/or other school fees or charges of private schools, colleges and universities shall be to upgrade and update classroom instruction by improving their facilities and hiring competent teachers in all levels of education, provide salary and/or wage increase and other benefits to their teaching, administrative and other personnel to keep up with the increasing cost of living, and to grant student assistance and establish extension services.
O Section 4. Effectivity of Increase. Unless otherwise provided, the effectivity of each approval of an application for increase or change in tuition and/or other school fees or charges, including new fees or charges, shall be specified and indicated on the action taken by the Secretary of Education and Culture.
RULE II Definition of TermsO Section 1. Unless otherwise specifically defined the following terms shall be understood thusO a) Tuition fee covers the school charges for the subjects or course enrolled in by a pupil or student, as indicated in the respective prospectuses, colleges and universities, which may either be on a term or yearly basis or per unit or units.
RULE II Definition of TermsO b) Other school fees includes all miscellaneous fees charged to be charged by private schools, colleges and universities as embodied in their respective prospectuses, bulletins of information, or catalogues, which are collected and earmarked for certain specified purposes pursuant to existing laws, rules and regulations.
O c) Current school fees means the tuition and other school fees collected or charged by private schools, colleges and universities as approved, indicated and published in their respective prospectuses, bulletins of information, or catalogues.
O d) Increase in fees means any addition in the amount of the current tuition and/or other school fees as defined in subsections (a), (b), and (c) herein.
O e) New fee or charge means those which are imposed by new schools or by existing schools which are not included in their public bulletin or catalogue.
RULE III ApplicationO Section 1. Period of Filing. For the school year 1974-75, each application for increase in tuition and/or other school fees or charges, including new fees or charges, together with all necessary supporting documents, shall be filed directly by mail or personal delivery to the Director of Private Schools in Manila.
O Section 2. Contents. The application referred to in the preceding section shall indicate, among others, (a) the purpose and jurisdiction for the proposed increase in tuition and/or other school fees or other charges, (b) the itemized current rates of tuition fee or other school charges, (c) the corresponding proposed percentage increase, (d) the revised rates to be imposed or collected, (e) the proposed allocation and program of expenses to be effected if the petition is approved, and (f) the effectivity in point of school year on a term at which time the new rates shall be implemented.
RULE III ApplicationO Section 3. Notices. Application for increase in tuition fee and/or other school charges, or for new fees or charges, shall be announced by the school administration.
RULE III ApplicationO Section 4. Oath and Other Requirements. The application shall be signed by the school head, under oath, and shall include as annexes (a) copy of the financial statement showing the financial status of the school, college or university, duly certified correct by a licensed Certified Public Accountant; and (b) copy of the latest tax returns filed by the school, college or university with the Bureau of Internal Revenue, or in the negative, and lieu of the required tax returns, a corresponding statement relative thereto by the school head or his duly authorized representative; and (c) a certification by the school head to the effect that the application for increase has been announced.
RULE IV Action on ApplicationO Section 1. Delegation of Authority. The Director of Private Schools is hereby authorized to process and evaluate all applications for increase in tuition fee and/or other charges, including new school fees or charges, and to submit corresponding recommendations thereon to the Secretary of Education and Culture for appropriate action.
RULE VDisposition of Proceeds from Increase O Section 1. Emoluments. At least sixty (60) per cent of the total incremental proceeds from the increase in tuition fee and/or other school charges shall be applied toward an equitable increase in the emoluments and/or benefits for members of the faculty, including the staff and administrative employees of the school, college or university concerned, a maximum of twelve (12%) per cent for return on investments, and the rest or twenty- eight (28%) per cent for institutional development, including the emergency allowance called for under LOI No. 174, are deemed embraced in the emoluments and/or other benefits for members of the faculty and staff.
O Section 2. Percentage of Increase. The rate of increase in tuition and/or other school fees or charges shall in no case exceed fifteen (15%) per centum of the current school fees in the school, college, or university concerned during the next preceding school year.
O Section 3. Scholarships. As a condition precedent for the grant of any increase in tuition and/or other school fees or charges, each school, college or university is required to provide free scholarships to poor but deserving pupils or students at the ratio of one (1) free scholarship for every five hundred (500) pupils/students enrolled: Provided, however, That the free scholarships herein called for shall be exclusive or in addition to any existing privileges internally granted by private schools, colleges and universities to class valedictorians, salutatorians, and other pupils/students who have achieved scholastic distinctions as well as other forms or kinds of scholarships such as those granted to athletes, working students, and other beneficiaries.
O Section 4. Review of Financial Statements. The Secretary of Education and Culture, whenever he deems fit and necessary for verification purposes, may authorize and/or request a representative of the Commission on Audit, through its Chairman, to review the financial statements submitted pursuant to Section 2 of Rule III hereof, and to examine the pertinent books and records of the school, college or university concerned.
RULE VI MiscellaneousO Section 1. Prohibitions. No school administration shall sponsor or hold any benefit performances, movies, concerts, dramatic presentations, games and/or shows of whatever kind or nature whether for charity or otherwise. Any such act on the part of the school administration shall be considered a circumvention of Presidential Decree No. 451 and shall accordingly be taken as sufficient cause for the cancellation of the latest approval of the increase in tuition and/or other school fees or charges of the school, college or university concerned granted by the Secretary of Education and Culture, if any, or a valid ground for the denial or disapproval of its application if one is pending consideration.
O Section 2. Penal Provision. Pursuant to Section 8 of Presidential Decree No. 451, any violation of the law or any provisions of these Implementing Rules and Regulations, or any final decision made by the Secretary of Education and Culture shall be punishable by a fine of Five thousand pesos (5,000.00) or imprisonment of two (2) years or both at the discretion of the court, which penalty shall be imposed on the official(s) of the private school or any person acting for and in behalf of the school directly responsible for the violation. If the violator be a public official the same penalty shall be imposed without prejudice to any administrative action that may be taken against him.
O Section 3. Repealed Clause. All existing rules and regulations inconsistent with the present Implementing Rules and Regulations are repealed, cancelled, revoked, or modified accordingly.O Section 4. Effectivity. These implementing rules and regulations shall be effective immediately.O Manila Philippines, May 13, 1974.
Republic Act 7641 AN ACT AMENDING ARTICLE 287 OF PRESIDENTIALDECREE NO. 442, AS AMENDED, OTHERWISE KNOWN ASTHE LABOR CODE OF THE PHILIPPINES, BY PROVIDINGFOR RETIREMENT PAY TO QUALIFIED PRIVATE SECTOR EMPLOYEES IN THE ABSENCE OF ANY RETIREMENT PLAN IN THE ESTABLISHMENT O Report on Educational Legislation by: O MR. OMAR M. JACALNE
SECTION 1.O Article 287 of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines, is hereby amended to read as follows:O “Art. 287. Retirement. — Any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract.
SECTION 1.O “In case of retirement, the employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and any collective bargaining agreement and other agreements: Provided, however, That an employee’s retirement benefits under any collective bargaining and other agreements shall not be less than those provided herein.
SECTION 1.O “In the absence of a retirement plan or agreement providing for retirement benefits of employees in the establishment, an employee upon reaching the age of sixty (60) years or more, but not beyond sixty-five (65) years which is hereby declared the compulsory retirement age, who has served at least five (5) years in the said establishment, may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one whole year.
SECTION 1.O “Unless the parties provide for broader inclusions, the term one- half (1/2) month salary shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more than five (5) days of service incentive leaves.
SECTION 1.O “Retail, service and agricultural establishments or operations employing not more than (10) employees or workers are exempted from the coverage of this provision. chanroblespublishingcompanyO “Violation of this provision is hereby declared unlawful and subject to the penal provisions provided under Article 288 of this Code.” chanroblespublishingcompany
SECTION 2.O Nothing in this Act shall deprive any employee of benefits to which he may be entitled under existing laws or company policies or practices.
SECTION 3.O This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) national newspapers of general circulation, whichever comes earlier.O Approved: December 9, 1992
RULES IMPLEMENTING THE NEW RETIREMENT LAW (April 1, 1993)O Pursuant to the provisions of Article 287 of the Labor Code as amended by Republic Act No. 7641, in relation to Article 5 of the same Code, RULE II of Book VI of the Rules Implementing the Labor Code is hereby issued, the full text of which shall read as follows:
RULE II Retirement BenefitsO SECTION 1. General Statement on Coverage. — This Rule shall apply to all employees in the private sector, regardless of their position, designation or status and irrespective of the method by which their wages are paid, except to those specifically exempted under Section 2 hereof. As used herein, the term “Act” shall refer to Republic Act No. 7641 which took effect on January 7, 1993.
RULE II Retirement BenefitsO 2.1 Employees of the National Government and its political subdivisions, including Government-owned and/or controlled corporations, if they are covered by the Civil Service Law and its regulations. chanroblespublishingcompanyO 2.2 Domestic helpers and persons in the personal service of another. (Deleted by Department Order No. 20 issued by Secretary Ma. Nieves R. Confessor on May 31, 1994.)
RULE II Retirement BenefitsO 2.3 Employees of retail, service and agricultural establishment or operations regularly employing not more than ten (10) employees. As used in this sub- section;O (a) “Retail establishment” is one principally engaged in the sale of goods to end-users for personal or household use. It shall lose its retail character qualified for exemption if it is engaged in both retail and wholesale sale of goods.
RULE II Retirement BenefitsO (b) “Service establishment” is one principally engaged in the sale of service to individuals for their own or household use and is generally recognized as such.O (c) “Agricultural establishment/operations” refers to an employer which is engaged in “agriculture”. This terms refers to all farming activities in all its branches and includes among others, the cultivation and tillage of the soil, production, cultivation, growing and harvesting of any agricultural or horticultural commodities, dairying, raising of livestock or poultry, the culture of fish and other aquatic products in farms or ponds, and any activities performed by a farmer or on a farm as incident to or in conjunction with such farming operations, but does not include the manufacture and/or processing of sugar, coconut, abaca, tobacco, pineapple, aquatic or other farm products.
RULE II Retirement BenefitsO SECTION 3. Retirement under CBA/contract.O 3.1 Any employee may retire or be retired by his employer upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract or retirement plan subject to the provisions of Section 5 hereof on the payment of retirement benefits.
RULE II Retirement BenefitsO 3.2 In case of retirement under this Section, the employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and any collective bargaining agreement and other agreements; provided, however, that an employee’s retirement benefits under any collective bargaining and other agreements shall not be less than those provided under this Rule, and provided further that if such benefits are less, the employer shall pay the difference between the amount due the employee under this Rule and that provided under the collective or individual agreement or retirement plan.
RULE II Retirement BenefitsO 3.3 Where both the employer and the employee contribute to a retirement fund in accordance with an individual or collective agreement or other applicable employment contract, the employer’s total contribution thereto shall not be less than the total retirement benefits to which the employee would have been entitled had there been no such retirement fund. In case the employer’s contribution is less than the retirement benefits provided under this Rule, the employer shall pay the deficiency.
RULE II Retirement BenefitsO SECTION 4. Optional; Compulsory Retirement.O 4.1 Optional Retirement. — In the absence of a retirement plan or other applicable agreement providing for retirement benefits of employees in an establishment, an employee may retire upon reaching the age of sixty (60) years or more if he has served for at least five (5) years in said establishment.O 4.2 Compulsory Retirement. — Where there is no such plan or agreement referred to in the immediately preceding sub-section, an employee shall be retired upon reaching the age of sixty-five (65) years.
RULE II Retirement BenefitsO 4.3 Upon retirement of an employee, whether optional or compulsory, his services may be continued or extended on a case to case basis upon agreement of the employer and employee.O 4.4 Service Requirement. — The minimum length of service in an establishment or with an employer of at least five (5) years required for entitlement to retirement pay shall include authorized absences and vacations, regular holidays and mandatory fulfillment of a military or civic duty.
RULE II Retirement BenefitsO 5.1 In the absence of an applicable agreement or retirement plan, an employee who retires pursuant to the Act shall be entitled to retirement pay equivalent to at least one-half (½) month salary for every year of service, a fraction of at least six (6) months being considered as one whole year.O 5.2 Components of One-half (½) Month Salary. — For the purpose of determining the minimum retirement pay due an employee under this Rule, the term “one-half month salary” shall include all of the following:
RULE II Retirement BenefitsO (a) Fifteen (15) days salary of the employee based on his latest salary rate. As used herein, the term “salary” includes all remunerations paid by an employer to his employees for services rendered during normal working days and hours, whether such payments are fixed or ascertained on a time, task, piece of commission basis, or other method of calculating the same, and includes the fair and reasonable value, as determined by the Secretary of Labor and Employment, of food, lodging or other facilities customarily furnished by the employer to his employees. The term does not include cost of living allowances, profit-sharing payments and other monetary benefits which are not considered as part of or integrated into the regular salary of the employees.
RULE II Retirement BenefitsO (b) The cash equivalent of not more than five (5) days of service incentive leave;O (c) One-twelfth of the 13th month pay due the employee.O (d) All other benefits that the employer and employee may agree upon that should be included in the computation of the employee’s retirement pay.
RULE II Retirement BenefitsO 5.3 One-half month salary of employees who are paid by results. — For covered workers who are paid by results and do not have a fixed monthly rate, the basis for determination of the salary for fifteen days shall be their average daily salary (ADS), subject to the provisions of Rule VII-A, Book III of the Rules Implementing the Labor Code on the payment of wages of workers who are paid by results. The ADS is the average salary for the last twelve (12) months reckoned from the date of their retirement, divided by the number of actual working days in that particular period.
RULE II Retirement BenefitsO SECTION 6. Exemption from tax. — The retirement pay provided in the Act may be exempted from tax if the requirements set by the Bureau of Internal Revenue under Sec. 2 (b) item (1) of Revenue Regulations No. 12-86 dated August 1, 1986 are met, to wit:O Pensions, retirement and separation pay. — Pensions, retirement and separation pay constitute compensation subject to withholding, except the following:O (1) Retirement benefits received by officials and employees of private firms under a reasonable private benefit plan maintained by the employer, if the following requirements are met:
RULE II Retirement BenefitsO (i) The benefit plan must be approved by the Bureau of Internal Revenue;O (ii) The retiring official or employee must have been in the service of the same employer for at least ten (10) years and is not less than fifty (50) years of age at the time of retirement; andO (iii) The retiring official or employee shall not have previously availed of the privilege under the retirement benefit plan of the same or another employer.
RULE II Retirement BenefitsO SECTION 7. Penal Provision. — It shall be unlawful for any person or entity to circumvent or render ineffective the provisions of the Act. Violations thereof shall be subject to the penal provisions provided under Article 288 of the Labor Code of the Philippines.O SECTION 8. Relation to agreements and regulations. — Nothing in this Rule shall justify an employer from withdrawing or reducing any benefits, supplements or payments as provided in existing laws, individual or collective agreements or employment practices or policies.O All rules and regulations, policy issuances or orders contrary to or inconsistent with these rules are hereby repealed or modified accordingly.
RULE II Retirement BenefitsO SECTION 9. Effectivity. — This Rule took effect on January 7, 1993 when the Act went into force.
Quotes “Power politics is the diplomatic name for the law of the jungle.” Ely Culbertson (1891 - 1955) U.S. bridge player. “Does capital punishment tend to the security of thepeople? By no means. It hardens the hearts of men,and makes the loss of life appear light to them; and itrenders life insecure, inasmuch as the law holds out that property is of greater value than life.” Elizabeth Fry (1780 - 1845) British prison reformer