THE government is set to lose P3 billion in revenues with the implementation of a new law that seeks to boost the chances of some 1.3 million first-time job seekers to land a job.
The Department of Labor and Employment (DOLE) said this is the expected outcome of Republic Act (RA) 11261, or the First Time Jobseekers Assistance Act, once it is fully enforced after its implementing rules and regulations (IRR) was signed on Thursday.
Despite the projected revenue loss from implementing the new law, Labor Assistant Secretary Joji V. Aragon said the government considers the provision of free documents a “critical investment” to beef up the country’s work force.
“The government looks at this [as an] investment that can double or triple returns in terms of having a productive human capital and work force for the nation,” Aragon said.
Citing studies from the World Bank, Asian Development Bank and the International Labour Organization, she said the cost of pre-employment documents required by firms is a major constraint that discourages the poor and those in the provinces from applying for a job.
“For the first time in history I think, this administration has addressed this particular constraint,” Aragon said.
Under RA 11261, total fees for several pre-employment government documents, ranging from P1,800 to P2,400, will be waived for first-time job applicants.
Among those that will no longer be paid by first-time job seekers are clearances from the National Bureau of Investigation (NBI) and police, birth certificates, transcripts of record from government schools and training facilities.
Aragon said at least 1.3 million first-time job seekers annually are expected to benefit from the new law.
Labor Secretary Silvestre H. Bello III said the law will cover all first-time job seekers, who are actively looking for employment.
“There is no age limit [for its beneficiaries] as long as they are first-time job seekers. But most of them will likely be new graduates,” Bello said.
Bureau of Local Employment (BLE) Director Dominique R. Tutay said those who would like to avail themselves of the free pre-employment documents should first get the necessary barangay certification.
“They would have to make an undertaking in that certification, wherein they will guarantee they are first-time job seekers,” Tutay said.
The validity of the availment of the benefits under the IRR shall be one year from the issuance of the barangay certificates.
The IRR will take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation.
Image credits: Nonoy Lacza