Full TEXT:

ORDINANCE NO. 2026-002

AN ORDINANCE INSTITUTIONALIZING THE NAGA CITY YOUTH EMPLOYMENT PROGRAM (YEP), INTEGRATING THE SPECIAL PROGRAM FOR EMPLOYMENT OF STUDENTS (SPES) AND THE STUDENTS EMPLOYMENT FOR ENROLMENT (SEFE) PROGRAM, AND PROVIDING FUNDS THEREFOR:

Hon. Elmer S. Baldemoro
Author

Hon. Jefson Romeo B. Felix
Co-Author

Explanatory Note

To increase the probability of finding work and improve productivity among the youth, the national government instituted the Special Program for Employment of Students (SPES) by virtue of Republic Act No. 7323, as amended by Republic Act No. 9547 and Republic Act No. 10917. This program has also facilitated the smooth transition of young individuals from school to the labor market.

In 2019, the City Government of Naga enacted Ordinance No. 2019-041, otherwise known as the Summer Employment for Enrollment (SEFE) Ordinance, in order to address the limited slots being provided by the Department of Labor and Employment for SPES. Through the SEFE Ordinance, the City of Naga has been able to provide more young individuals with work experience and with income to help pay for their tuition fees.

However, over the years of implementing the SEFE Program, it has been observed that the wages provided to its beneficiaries are lower compared to those under SPES. This disparity stems from the fact that SPES is implemented by the national government and that its beneficiaries’ wages are based on the entry level of LGUs implementing the program per IRR of SPES Act (RA 10917 amending RA 9547 and RA 7323) under Department Order No. 175 Series of 2017. In the interest of fairness and equality given that both SPES and SEFE beneficiaries perform the same work and that both programs share the same intent and purpose this gap in wage rates must be addressed. Integrating SPES and SEFE into one institutionalized program under the Metro Naga Public Employment Service Office will effectively resolve this issue.

Additionally, under the current implementation of the SPES and SEFE programs, private establishments are not actively encouraged to participate. This represents a missed opportunity for the government. Actively enjoining private firms to participate in the SPES and SEFE programs would result in more employment slots for the youth of Naga City, thereby creating a more equipped and experienced local talent pool.

The need to strengthen and expand the youth employment program is clearly supported by data from the 2024 Community-Based Monitoring System, which indicates that the youth population of Naga City stands at 56,154, representing 30.99% of the city’s total population. Despite this substantial demographic, program coverage remains limited. In 2024, only 790 out of 2,241 applicants, or 35.25%, were accommodated by the City Government of Naga. This gap underscores the necessity for increased budgetary allocation and the institutionalization of private sector participation to expand employment opportunities for the city’s youth. Such measures are essential to ensure sustained support for their educational needs while providing structured avenues for skills development, civic engagement, and meaningful public service.

Given the foregoing, the passage of this ordinance is respectfully sought.

BE IT ORDAINED by the Sangguniang Panlungsod of the City of Naga, that:

SECTION 1. SHORT TITLE. This Ordinance shall be known, for brevity, as “The Naga City Youth Employment Program (YEP) Ordinance”.

SECTION 2. DECLARATION OF POLICY. It is hereby declared the policy of the City Government of Naga to promote the holistic development and welfare of the youth by providing employment, training, and educational opportunities that develop work readiness, productivity, and social responsibility.

Pursuant to Sections 16 and 17 (b) (iv) of Republic Act No. 7160 (Local Government Code of 1991), the City recognizes its duty to promote full employment, enhance youth welfare, and implement livelihood and work exposure programs aligned with the national framework for youth employment.

SECTION 3. OBJECTIVES. The Naga City YEP shall aim to:

a) Integrate and harmonize the national Special Program for Employment of Students (SPES) under RA 7323, as amended by RA 9547 and RA 10917, and the local Students Employment for Enrollment (SEFE) program;
b) Provide work opportunities for poor but deserving students, out-of-school youth, and dependents of displaced or low-income workers, aged 15 to 30 to pursue and continue their education;
c) Develop technical, vocational, and soft skills among the youth through gainful employment and work immersion;
d) Encourage private sector participation in youth employment through a wage-sharing mechanism consistent with DOLE guidelines;
e) Institutionalize accountability, transparency, and performance evaluation mechanisms; and
f) Ensure protection of the rights, data privacy, and welfare of all program beneficiaries.

SECTION 4. COVERED BENEFICIARIES. The Naga City YEP shall cover the youth who are:

• Poor but deserving students who are enrolled or are intending to enroll in any secondary, tertiary or technical-vocational institutions;
• Out-of-school youth (OSY) who wish to pursue further education or skills training; and,
• Dependents of unemployed, underemployed or displaced or would-be displaced workers due to business closures or work stoppages, or natural calamities, who are enrolled or who are intending to enroll in any secondary, tertiary or technical-vocational institutions.

As defined in existing laws, the youth shall refer to individuals who are fifteen (15) years of age but not more than thirty (30) years old.

Priority shall be given to children of solo parents, youth with disability, son/daughter of a PWD, or youth from low-income households as certified by the City Social Welfare and Development Office (CSWDO).

For qualified youth with disability or son/daughter of a PWD, their city counterpart salaries shall be charged to the budget of PDAO.

Consistent with the policies of other city programs and in order to ensure wider participation and equitable access to benefits, if more than one member of the same family applies, only one (1) shall be accommodated in the program. A family may be either a solo-parent family or a nuclear family, which consists of the parent/s and his/her/their socially recognized children, whether legitimate, illegitimate, or adopted.

YEP student-beneficiaries shall not be allowed to drop any subject while enrolled in the program. As the YEP is intended to support tuition fee payments while providing employment experience to student-beneficiaries, dropping any subject shall result in removal from the roll of beneficiaries.

Inclusion of a student-beneficiary in the Naga City Tertiary Scholarship Program shall also be a ground for disqualification. However, if a student becomes a city scholar while enrolled in YEP, he or she shall be allowed to complete the program and receive remuneration.

SECTION 5. PROGRAM COMPONENTS. The Naga City YEP shall consist of:

a) Special Program for Employment of Students (SPES) in partnership with DOLE, wherein 60% of wages shall be paid by the City Government or private employer and 40% reimbursed by DOLE, consistent with RA 10917 and DOLE Department Order No. 175. s. 2017;

b) Students Employment for Enrollment (SEFE) a local counterpart program fully funded by the City Government, providing employment to qualified youth not covered by SPES slots; and

c) Private Sector Partnership Metro PESO shall identify and engage private employers willing to participate in the YEP under the same wage-sharing terms.

SECTION 6. COMPENSATION AND BENEFITS. All beneficiaries shall receive compensation equal to the DOLE-prescribed SPES wage rate applicable at the time of employment. They shall be entitled to working conditions, safety measures, and benefits provided under labor laws and local regulations.

SECTION 7. PARTICIPATION OF PRIVATE EMPLOYERS. Metro Naga Public Employment Service Office (Metro PESO) shall endeavor in encouraging private employers to participate in the Youth Employment Program.

In the implementation of the YEP, private employers shall pay 60% of the salaries of program beneficiaries, while the remaining 40% shall be shouldered by the City Government of Naga.

Private employers willing to participate in YEP shall register with Metro PESO as YEP partners. They shall be provided with priority lanes at the Business One Stop Shop and shall be prioritized in accessing loans and other assistance from the city government.

Full documentation and compliance monitoring shall be done by Metro PESO to ensure that there will be no circumvention of labor standards and laws.

SECTION 8. PROGRAM IMPLEMENTATION AND ACCOUNTABILITY. In implementing the YEP, the following offices shall have the following duties and accountabilities:

a) The Metro Naga Public Employment Service Office (Metro PESO) shall be the lead implementing office of the YEP;
b) The City Accountant, City Treasurer, and City Budget Officer shall jointly ensure proper fund utilization, certification, and documentation in compliance with COA Circulars Nos. 2009-006 and 2021-006;
c) The City Mayor, through Metro PESO, shall be responsible for program oversight, coordination with DOLE and partner institutions, and overall performance evaluation. The City Mayor shall also submit to the Sangguniang Panlungsod an Annual Implementation and Financial Report detailing the number of beneficiaries, total disbursements, and program outcomes;
d) The City Internal Audit Office shall conduct periodic post-audits of YEP disbursements and submit reports to the Sangguniang Panlungsod; and,
e) The City Events, Protocol and Public Information Office, together with the officials of the Sangguniang Barangay and Sangguniang Kabataan across the 27 barangays of Naga City, shall assist in conducting public information campaigns to promote the program to the youth.

SECTION 9. MONITORING AND EVALUATION (M&E) MECHANISM. The Naga City Youth Employment Program Board (YEP Board) is hereby created to serve as the monitoring, evaluation, and policy oversight body of the program. The YEP Board shall be composed of:

• The City Mayor or his/her duly authorized representative, as Chairperson;
• The Metro PESO Manager, as Vice-Chairperson;
• The SP Committee Chair on Manpower and Livelihood Development
• The SK Federation President
• The City Youth Development Officer;
• The PDAO Head
• The City Accountant;
• The City Budget Officer;
• The City Treasurer;
• The City Legal Officer;
• One representative each from DOLE and TESDA;
• One representative from the industry; and
• One representative from the academe.

The Board shall meet bi-annual (1st and 3rd Quarter), and shall:

• Approve annual program work plans and evaluation metrics;
• Review monitoring reports and recommend policy or budget adjustments; and,
• Ensure that M&E findings are publicly disclosed.

SECTION 10. PERFORMANCE METRICS AND PROGRAM INDICATORS. The Metro PESO, under the supervision of the YEP Board, shall develop and maintain quantifiable indicators, including but not limited to:

a. Number of beneficiaries employed and trained;
b. Rate of school re-enrollment or completion among student beneficiaries;
c. Post-program employment or livelihood engagement rate of the graduated YEP beneficiaries;
d. Percentage of private sector participation;
e. Wage compliance and satisfaction rating;
f. Cost-effectiveness ratio (total program cost versus employment outcomes); and
g. Number of beneficiaries disqualified due to dropping out of a subject or from school.

The Chairperson of the YEP Board shall submit to the Sangguniang Panlungsod an Annual Performance and Evaluation Report based on these indicators.

Every three (3) years, the Sangguniang Panlungsod of Naga shall conduct a comprehensive review of this ordinance and its implementation to ensure that the program and the City’s policies remain responsive to changing circumstances and emerging needs.

SECTION 11. DATA PRIVACY AND BENEFICIARY PROTECTION. To protect the integrity and privacy of the data of beneficiaries, the following shall be implemented:

a) The City Government, through Metro PESO, shall act as the Personal Information Controller of all data collected under the YEP.
b) The Metro PESO shall comply with RA 10173 (Data Privacy Act of 2012) and related issuances of the National Privacy Commission (NPC);
c) A Data Protection Officer (DPO) shall be designated within Metro PESO to ensure data security, consent management, and lawful data sharing with DOLE and partner employers; and,
d) Personal information shall be collected only for legitimate purposes, securely stored, and retained no longer than necessary for program implementation.

SECTION 12. FISCAL INTEGRITY AND DOCUMENTATION. To ensure fiscal integrity and documentation, the following shall be enforced:

a. The amount necessary for the program shall be allocated in the Annual Budget under the Metro PESO. Appropriations for the program shall not be reduced below the amount allocated for the previous year.
b. All disbursements shall be supported by documented payrolls, contracts, attendance sheets, and certifications of actual services rendered, consistent with COA rules;
c. No cash advances shall be made except for legally authorized purposes, and all unutilized balances shall revert to the General Fund;
d. The YEP shall be integrated into the City’s Annual Investment Program (AIP) and Work and Financial Plan (WFP).

SECTION 13. TRANSPARENCY AND PUBLIC DISCLOSURE. To ensure transparency, the Metro PESO shall publish annual reports on program accomplishments, beneficiary statistics, and audited fund utilization on the City Government website, official social media pages, and the MyNaga App, consistent with the Full Disclosure Policy (DILG MC 2014-83).

SECTION 14. ALIGNMENT WITH NATIONAL FRAMEWORKS. The YEP shall be implemented in coordination with national youth and employment frameworks, including but not limited to:

• The National Employment Recovery Strategy (NERS);
• The TESDA National Technical Education and Skills Development Plan (NTESDP 2023-2028); and
• The Philippine Development Plan (PDP 2023-2028).

The Metro PESO shall submit annual certification to DOLE Regional Office V confirming such alignment.

SECTION 15. LEGAL COMPLIANCE AND RISK PROTECTION. All officials and employees involved in the implementation of this Ordinance shall strictly comply with COA rules, DOLE guidelines, and Data Privacy Act provisions.

Failure to observe these standards may constitute administrative or criminal liability under RA 3019 (Anti-Graft and Corrupt Practices Act) and RA 6713 (Code of Conduct and Ethical Standards for Public Officials and Employees).

Good faith compliance with the provisions of this Ordinance and the rules of the YEP Board shall be recognized as a mitigating circumstance in any audit or administrative proceeding.

SECTION 16. SEPARABILITY. Should any portion or provision of this ordinance be declared unconstitutional or invalid, the other parts or provisions thereof which are not affected thereby shall continue to be in full force and effect.

SECTION 17. REPEALING CLAUSE. Ordinances, rules and regulations or parts thereof, which are inconsistent or in conflict with the provisions of this ordinance, are hereby repealed or modified accordingly.

SECTION 18. EFFECTIVITY. This ordinance shall take effect beginning Fiscal Year 2026, after publication in a newspaper of local circulation and compliance with Section 59 of RA 7160 (Local Government Code of 1991).

ENACTED: January 20, 2026

WE HEREBY CERTIFY to the correctness of the foregoing ordinance.

GABRIEL BORDADO JR.

City Vice Mayor & Presiding Officer

LILIANO PASCUAL

Acting Secretary to the Sangguniang Panlungsod

APPROVED:

MARIA LEONOR G. ROBREDO

City Mayor