Offin aft TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session AU6 -6 A9:59 SENATE RECEEED BY S. No. Introduced by Senator Jinggoy Ejercito Estrada AN ACT MANDATING EMPLOYERS TO PROVIDE A PERSONAL FINANCE EDUCATION PROGRAM, AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES EXPLANATORY NOTE The International Labour Organization emphasized that "Financial education is key to ensuring that people, regardless of their income or social status, not only have access to relevant financial services but also know how to use them effectively." The World Bank, in its publication, "Financial Education Programs and Strategies: Approaches and Available Resources" defined financial education as "a tool for increasing consumer financial literacy. According to OECD, financial education is the process by which financial consumers and investors improve their understanding of financial products and concepts and, through information, instruction and objective advice, develop skills and confidence to become more aware of financial risks and opportunities to make informed choices, know where to go for help, and take other effective actions to improve their financial well-being."? Sadly, a global study reveals that the Philippines is in the bottom 30 of 144 countries in terms of financial literacy and a survey conducted by the Bangko Sentral 1 Financial education (ilo.org) 2 World Bank Document
ng Pilipinas (BSP) showed that only one percent (1%) of surveyed Filipino adults answered the questions on financial literacy correctly.3 Meanwhile, the publication, "Financial Literacy, Insurance, and Investment Ownership in the Philippines" published in September 2022 and authored by Jared Desello of Japan University of Economics, about 2 out of 10 respondents of a survey conducted could not get a single questions correct; about 43% got one correct answer only; and only a meager 9% got a perfect score. Further, according to World Bank, only 25% of adult Filipinos are knowledgeable on basic financial concepts.5 Republic Act No. 10922 or the "Economic and Financial Literacy Act" was signed into law in 2016 to mandate the celebration of "Economic and Financial Literacy Week" every second week of November. Apart from this law, the BSP and other concerned government agencies and private organizations are rolling out various programs to improve the financial literacy of our people from various walks of life. The role of employers to take a lead in this endeavor cannot be undermined because they provide the most accessible venues and channels for such initiatives. The "Personal Finance Education in the Workplace Act" mandates the employers to provide free financial education program for all its workers and employees. This will benefit the employees and workers because it will give them the knowledge and skills to effectively and efficiently manage their resources and allow them to be financially stable. Consequently, the companies will benefit from financially stable employees who are more focused on their tasks, thus more productive and satisfied in their work. The immediate passage of this bill is highly recommended. Cisest t 1 JINGGOY EJERCITO ESTRADA 3 BSP bridges financial literacy gap among Filipinos | Philippine News Agency (pna.gov.ph) 4 ResearchGate § Bringing about a more financially free future through financial literacy | Inquirer Business
Office of tas TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) 25 AUG -6 A9:59 First Regular Session SENATE RECEIVED BY S. No. Introduced by Senator Jinggoy Ejercito Estrada AN ACT MANDATING EMPLOYERS TO PROVIDE A PERSONAL FINANCE EDUCATION PROGRAM, AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Short Title. - This Act shall be known as the "Personal Finance
Education in the Workplace Act".
Sec. 2. A new Article denominated as Article 217-A is hereby inserted after
4 Article 217 of Presidential Decree No. 442, as amended, which shall read as follows: "ARTICLE 217-A. PERSONAL FINANCE EDUCATION PROGRAM. - EVERY EMPLOYER SHALL PROVIDE FREE FINANCIAL EDUCATION PROGRAM FOR ALL ITS WORKERS AND EMPLOYEES WHICH SHALL INCLUDE: "(A) BEHAVIORAL FINANCE; "(B) SAVINGS, EMERGENCY, AND RESILIENCE FUND DEVELOPMENT; "(C) DEBT MANAGEMENT; "(D) AND INVESTMENT, INSURANCE, RETIREMENT PLANNING; AND
"(E) OTHER APPLICABLE PERSONAL FINANCE PROGRAMS." "THE DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE), IN CONSULTATION WITH THE BANGKO SENTRAL NG PILIPINAS (BSP) AND OTHER CONCERNED GOVERNMENT AGENCIES, SHALL MAKE AVAILABLE THE STANDARD CONTENT OF THE SAID PROGRAM. "THE EMPLOYER MAY CONDUCT THE PROGRAM IN-HOUSE, OUTSOURCED OR OTHER AVAILABLE OPTIONS."
Sec. 3. Implementing Rules and Regulations (IRR). - Within ninety (90) days
from the effectivity of this Act, the Secretary of Labor and Employment shall 14 promulgate the rules and regulations to effectively implement the provisions of this 15 Act.
Sec. 4. Separability Clause. - If any provision or part hereof is held invalid or
unconstitutional, the remainder of the law or the provision or part not otherwise affected shall remain valid and subsisting.
Sec. 5. Repealing Clause. - Any law, presidential decrees, executive orders,
20 rules and regulations inconsistent with any provisions of this Act shall be deemed repealed or modified accordingly.
Sec. 6. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general circulation. Approved,