Incentives for National Athletes and Coaches

Policy and guiding purpose

The State promotes excellence in sports by looking after the welfare of national athletes and coaches competing for the country.
The State provides benefits and incentives for national athletes and other athletes who win in international sports competitions and bring honor and recognition to the country.
Republic Act No. 10699 is designed to support athletes’ and coaches’ welfare and performance through direct benefits, privileges, cash incentives, retirement and death benefits, and related programs.

Definitions that control eligibility

“Athletes with disabilities” means persons with disabilities under Republic Act No. 7277 (Magna Carta for Disabled Persons), as amended, who are Filipino citizens, recognized and accredited by the Philippine Sports Commission (PSC) and the National Paralympic Committee of the Philippines (NPC PHIL), and who have represented the country in international sports competitions.
“International sports competitions” means international sports competitions under:
- Regular major competitions including the Summer Olympic Games, Winter Olympic Games, Asian Games, Asian Winter Games, SEA Games, Youth Olympic Games, Paralympic Games, Asian Park Games, Asian Indoor and Martial Arts Games, Asian Beach Games, and ASEAN Para Games.
- World-level championships held at least every two (2) years with at least forty-five (45) countries participating by sport.
- Asian-level competitions held at least every two (2) years with at least twenty-five (25) countries participating by sport.
- Qualifying competitions for World-level games with at least ten (10) countries participating.
- Competitions granting prize money are excluded from this definition.
“National athletes” means athletes (including athletes with disabilities) who are Filipino citizens, members of the national training pool, recognized and accredited by the Philippine Olympic Committee (POC) and the PSC, including athletes with disabilities (AWD) recognized and accredited by the NPC PHIL and the PSC, who have represented the country in international sports competitions.
“National coaches” means coaches of national athletes who are Filipino citizens, members of the national coaches training pool, recognized and accredited by the PSC and the POC, or by the PSC and NPC PHIL for AWD coaches, who have represented the country as official coaches to national athletes in international sports competitions.

Benefits and privileges for national athletes/coaches

Section 4 grants benefits and privileges to any national athlete and coach who is currently registered as such.
National athletes and coaches are entitled to:
- A twenty percent (20%) discount from all establishments relative to transportation services, hotels and other lodging establishments, restaurants and recreation centers, and purchase of medicine and sports equipment anywhere in the country for the actual and exclusive use or enjoyment of the national athlete and coach.
- A minimum of twenty percent (20%) discount on admission fees charged by theaters, cinema houses and concert halls, circuses, carnivals, and other similar places of culture, leisure and amusement for the actual and exclusive use and enjoyment of the national athlete and coach.
- Free medical and dental consultations in government hospitals and similar establishments anywhere in the country.
- Coverage in the National Health Insurance Program (NHIP) of the Philippine Health Insurance Corporation (PHILHEALTH) through the sponsored program of the PSC.
- A comprehensive social security program to be formulated by the Social Security System within one hundred eighty (180) days from the approval of the Act.
- Priority in existing livelihood programs being undertaken by various government agencies, subject to guidelines and qualifications by the implementing body.
- Priority in national housing programs, affordable apabahaya loans, and other housing opportunities subject to guidelines and qualifications set by the National Housing Authority (NHA) or the Home Development Mutual Fund (HDMF).
- Use of living quarters and training centers set up and maintained by the PSC for the exclusive use of national athletes while preparing and training for international competitions.
Privately-owned establishments enjoy tax deductions equivalent to the discounts extended under Section 4(a) and Section 4(b), subject to rules and regulations issued by the Secretary of Finance, as recommended by the Commissioner of Internal Revenue, within ninety (90) days upon effectivity of the Act.
Failure of the Bureau of Internal Revenue (BIR) to promulgate rules and regulations does not prevent implementation of the benefits.

Scholarship, retirement, and death benefits

Scholarships for winning athletes: A national athlete who wins in a regular major international sports competition is entitled to full tuition fees from state colleges or universities for a college or university degree.
Winning athletes receive priority in state college or university scholarship grants.
The Commission on Higher Education (CHED) and TESDA must give priority to winning national athletes who seek scholarship grants and study under their programs, subject to CHED and TESDA regulations and policies and qualifications for applicants.
Private colleges and universities are encouraged to adopt a similar scholarship program for winning national athletes.
Retirement benefits: A national athlete and coach who wins in an international competition or coached such winning national athlete receives a lump sum amount equivalent to twenty-five percent (25%) of total cash incentives computed from the start of active sports career (as a member of the national training pool or national coaches training pool) up to the last day of retirement from active competition or training as certified by the PSC.
The retirement lump sum is released sixty (60) days from the filing of the retirement papers.
Death benefits: Upon death of any national athlete and coach, the primary beneficiaries receive a lump sum of thirty thousand pesos (P30,000.00) for funeral services.
If there are no primary beneficiaries, secondary beneficiaries receive the same funeral benefit.
Primary beneficiaries are the legitimate spouse and legitimate or illegitimate children.
Secondary beneficiaries are parents and, in their absence, brothers or sisters.
Death benefits are without prejudice to other similar benefits that the athlete and coach may receive from other sources.

Cash incentives: athletes, teams, and coaches

Section 8 grants cash incentives to:
- National athletes and other athletes who are not officially or currently members of the national training pool, but who have otherwise represented the country in international sports competitions.
- Athletes who win gold, silver, and bronze medals in international sports competitions.
Individual events cash incentives:
- Gold Medalists
  - P10,000,000.00 and an Olympic Gold Medal of Valor for Summer Olympic and Winter Olympic Games.
  - P5,000,000.00 and an Olympic Gold Medal of Valor for Youth Olympic Games and Paralympic Games.
  - P2,000,000.00 for Asian Games, Asian Winter Games, and Asian Indoor and Martial Arts Games.
  - P1,000,000.00 for Asian Para Games and World-level competitions held at least every two (2) years with at least forty-five (45) countries participating.
  - P500,000.00 for Asian Beach Games, and Asian-level competitions held at least every two (2) years with at least twenty-five (25) countries participating, and qualifying competitions for World-level and Asian-level games.
  - P300,000.00 for SEA Games.
  - P150,000.00 for ASEAN Para Games.
- Silver Medalists
  - P5,000,000.00 for Summer Olympic and Winter Olympic Games.
  - P2,500,000.00 for Youth Olympic Games and Paralympic Games.
  - P1,000,000.00 for Asian Games, Asian Winter Games, and Asian Indoor and Martial Arts Games.
  - P500,000.00 for Asian Para Games and World-level competitions held at least every two (2) years with at least forty-five (45) countries participating.
  - P250,000.00 for Asian Beach Games, and Asian-level competitions held at least every two (2) years with at least twenty-five (25) countries participating, and qualifying competitions for World-level and Asian-level games.
  - P150,000.00 for SEA Games.
  - P75,000.00 for ASEAN Para Games.
- Bronze Medalists
  - P2,000,000.00 for Summer Olympic and Winter Olympic Games.
  - P1,000,000.00 for Youth Olympic Games and Paralympic Games.
  - P400,000.00 for Asian Games, Asian Winter Games, and Asian Indoor and Martial Arts Games.
  - P200,000.00 for Asian Para Games and World-level competitions held at least every two (2) years with at least forty-five (45) countries participating.
  - P100,000.00 for Asian Beach Games, and Asian-level competitions held at least every two (2) years with at least twenty-five (25) countries participating and qualifying competitions for World-level and Asian-level games.
  - P60,000.00 for SEA Games.
  - P30,000.00 for ASEAN Para Games.
Team events cash incentives:
- For competitions with less than five (5) participants per team, the team receives the same cash incentives as individual medal winners, divided equally among team members actually present during the competition.
- For competitions with five (5) or more participants per team, each team member receives twenty-five percent (25%) of the cash incentives for individual medal winners as provided.
- For demonstration and exhibition sports events in the Olympics, the winning athlete receives twenty-five percent (25%) of the cash incentives for Olympic medalists.
Record/ranking incentives: National athletes and other athletes who surpass Philippine record or ranking in any measurable international sports competition receive cash incentives in amounts determined by the PSC.
Periodic adjustment: Cash incentives may be adjusted by the PSC through consultation with the Philippine Amusement and Gaming Corporation (PAGCOR), based on studies, consultations and public hearings with relevant agencies to reflect the economic needs of the athletes:
- No later than three (3) years after effectivity of the Act; and
- Every three (3) years thereafter.
Coach cash incentives: Coaches of national athletes receive cash incentives if they personally trained and rendered service to the athletes or teams who win at least six (6) months prior to the international competition.
Certification is required for team events: the individual athlete or team captain must certify in writing, duly attested by their respective national sports associations (NSAs).
Coach incentives equal fifty percent (50%) of the cash incentives for gold, silver and bronze medalists.
If there is more than one (1) coach, the cash incentives are divided among them.

Availment, eligibility controls, and identification

Section 10 allows benefits and privileges under Sections 4, 8, 9? (No—Section 10 expressly ties to Section 4 benefits and privileges) to be availed by national athletes and coaches upon presentation of a valid identification card issued by the PSC.
The identification card is renewable every year.
National athletes and coaches must not avail the Section 4 benefits and privileges in combination with similar benefits and privileges under other existing laws.

Penalties and enforcement consequences

Section 11 penalizes violations involving Section 4(a) and Section 4(b).
For violating Section 4(a) and (b):
- First violation: a fine of not less than PHP 50,000 but not exceeding PHP 100,000, or imprisonment of not less than six (6) months but not more than two (2) years, or both, at the discretion of the court.
- Subsequent violations: a fine of not less than PHP 100,000 but not exceeding PHP 200,000, or imprisonment of not less than two (2) years but not more than six (6) years, or both, at the discretion of the court.
Any national athlete or coach who abuses the privileges granted under the Act is punished with imprisonment of not less than six (6) months or a fine of not less than PHP 5,000 but not more than PHP 50,000, or both, at the discretion of the court.
If the violator is a corporation, partnership, or any juridical person, the penalty is imposed upon the president, owner or any responsible officer.
If the violator is an alien or a foreigner, the person is deported immediately after service of sentence without further deportation proceedings.
After filing an appropriate complaint and after due notice and hearing, proper authorities may cause cancellation or revocation of a business permit, permit to operate, franchise, and other similar privileges of any business entity that fails to abide by the Act.

Funding, monitoring, and implementation mechanics

Section 12 provides that funds for the implementation of cash incentives and retirement benefits are taken from the net cash income of PAGCOR.
Remittances are made directly as a special account to the National Sports Development Fund (NSDF) of the PSC, in addition to the regular income share of the PSC under Republic Act No. 6847.
Any additional funding requirement to implement increases in cash incentives and retirement benefits is sourced from the fifty percent (50%) national government share in the gaming revenue of PAGCOR under Presidential Decree No. 1869, as amended.
A separate fund equivalent to not less than sixty percent (60%) of the existing NSDF is automatically set aside for training and preparation of national athletes covered by the Act.
Section 14 mandates that the PSC, in consultation with the POC, NPC PHIL, DOH, DepED, CHED, TESDA, DOF, BIR, PAGCOR, PHILHEALTH, among others, and other concerned agencies, promulgate and issue the IRR within sixty (60) days from approval of the Act.
Failure of the PSC to promulgate the IRR does not prevent implementation of the Act upon its effectivity.
Section 15 requires PSC to submit monitoring reports on benefits, privileges and incentives granted under the Act to the DOF, DBM, PAGCOR, the Senate Committee on Games, Amusement and Sports, and the House of Representatives Committee on Youth and Sports Development.
The report must be submitted no later than three (3) years from effectivity and every three (3) years thereafter.

Transitory coverage, repeal, and separability

Section 13 treats national athletes who have won and availed of benefits and privileges under Section 9 (Benefits, Privileges and Incentives for Past Achievers) of the repealed Republic Act No. 9064 as having fully claimed their cash incentives.
National athletes who have not availed of those cash incentives must claim within three (3) years from effectivity of Republic Act No. 10699; thereafter, they are treated as not eligible for the claim and have waived their rights.
Section 16 repeals Republic Act No. 9064 (the National Athletes, Coaches and Trainers Benefits and Incentives Act of 2001 / Sports Benefits and Incentives Act of 2001).
All laws, presidential decrees, executive orders, rules and regulations, or parts inconsistent with the Act are repealed, amended, or modified accordingly.
Section 17 establishes separability: if any provision is declared unconstitutional, the remainder remains in full force and effect.

Issuance authority and interacting programs

PSC is the principal implementing agency that grants identification cards for availment of benefits and coordinates IRR issuance.
Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, issues regulations governing tax deductions for establishments extending the required discounts.
Social Security System must formulate a comprehensive social security program within one hundred eighty (180) days from approval of the Act.
PHILHEALTH, through PSC’s sponsored program, provides NHIP coverage.
PAGCOR supplies funding via net cash income remittances to NSDF, and consultations with PAGCOR support periodic adjustments of cash incentives by PSC.