Chel Diokno bats for non-taxable stipends for interns

Akbayan Partylist Representative Jose Manuel “Chel” Diokno has filed a bill seeking to provide a national framework for interns’ rights, which includes giving non-taxable stipends to college or university students undergoing internships for work or services rendered.

Under House Bill 5081 or the proposed Interns’ Rights and Welfare Act, Diokno seeks to have interns of government agencies or instrumentalities a non-taxable stipend equivalent to 75% of Salary Grade 1, under the current salary standardization law.

This includes interns of government-owned and -controlled corporations (GOCCs) with original charters or local government units (LGUs), prorated based on attendance and actual hours worked, and subject to civil service rules.

Other interns in the private sector will also receive a non-taxable allowance equivalent to 75% of the applicable minimum wage, prorated according to the actual hours worked based on an eight-hour workday.

“While formal employees are protected under the Labor Code, student-interns in both public and private sectors often fall into a regulatory gap,” the bill’s explanatory note read.

Aside from compensation, the bill also seeks to provide “humane working conditions” such as reasonable work hours; personal and medical leave; access to medical, dental, and mental health services; and accident insurance to such interns.

It also provides for the use of basic services and facilities in workplaces; the protection from discrimination, sexual harassment, abuse, and exploitation; and due process before pre-termination of internship or imposition of sanctions.

If enacted into law, schools and employers must ink a memorandum of agreement (MOA) that specifies the detailed roles and responsibilities of all concerned parties and includes an internship plan that includes the timeline and performance indicators.

Those qualified under the proposed bill are students at least 18 years of age, and currently enrolled in a tertiary-level internship subject, and must not exceed 300 hours or last for more than six months.

Violations include the possible filing of appropriate administrative and criminal cases against schools and employers. — JMA, GMA Integrated News