Press Release - Gatchalian seeks incentives for private sector participation in public education

Senator Win Gatchalian has filed a bill to incentivize private sector assistance to develop, modernize, and upgrade the country's public education system.

The Adopt-a-School Act of 2024, (Senate Bill No. 2371) amends the Adopt-a-School Act of 1998 (Republic Act No. 8525) to strengthen linkages between educational institutions and the country's industries, particularly in the employment and training of senior high school (SHS) graduates. Gatchalian filed this bill alongside former Senator and now Education Secretary Sonny Angara.

"Sa pag-angat natin sa kalidad ng edukasyon ng bansa, mahalagang katuwang natin ang pribadong sektor. Kasama ang ating Kalihim ng Edukasyon, isinusulong nating palawakin at patatagin ang Adopt-a-School program upang mahikayat ang pribadong sektor na tulungan ang ating mga pampublikong paaralan," said Gatchalian, Chairperson of the Senate Committee on Basic Education.

To incentivize private sector involvement in public education, the proposed measure seeks an additional deduction amounting to 50% of labor training expenses incurred for scholarships incurred for teachers' scholarships and skills development of enterprise-based trainees as provided for under the Corporate Recovery and Tax Incentives for Enterprises Act or the CREATE Law (Republic Act No. 11534).

Another incentive is an additional deduction amounting to 20% of salaries paid to SHS graduates employed. Donations made to public schools under the Adopt-a-School Program shall also be exempted from customs duties, value-added tax, excise tax donor's tax, and other fees.

Under the proposed measure, the Adopt-a-School program shall allow Filipino or foreign individuals and entities to assist public early childhood, elementary, secondary, technical-vocational, Alternative Learning System (ALS), and higher education institutions. Preference shall be given to institutions in fourth- and fifth-class municipalities and local government units with severe shortages, insufficient budget, and a large number of poor but high-performing learners.

The proposed measure provides that participants of the Adopt-a-School program can assist in the following: training and development for teachers and