Short answer. Yes. Article 28 of the Labor Code requires all applicants for authority to hire, or renewal of a recruitment license, to have such substantial capitalization as determined by the Secretary of Labor. The article does not fix a peso amount itself; the specific figure is set administratively.
What the law says
Capitalization. All applicants for authority to hire or renewal of license to recruit are required to have such substantial capitalization as determined by the Secretary of Labor.
Labor Code, Article 28 — Capital Required Of Recruiters. Read the full provision →
Substantial capitalization is a condition, not a suggestion
Article 28 states the requirement without qualification: all applicants for authority to hire or renewal of license to recruit are required to have such substantial capitalization as determined by the Secretary of Labor. The word 'required' signals that this is a mandatory condition for both a first-time application and a renewal, not merely a factor considered alongside other qualifications. An agency that cannot demonstrate the required capitalization does not meet one of the basic conditions the law sets for being authorized to recruit.
Why the article does not name a specific peso figure
Article 28 deliberately leaves the exact amount to the Secretary of Labor to determine, rather than fixing a number directly in the statute. This structure lets the required capitalization be adjusted over time and by administrative rule-making, without needing a legislative amendment every time economic conditions or policy considerations call for a different threshold. Because this site publishes only the verified text of the Labor Code article itself, and not the separate administrative issuances that set the actual figure, the specific amount currently required is not something this page states.
Why the requirement applies to renewals as well as new applications
The article explicitly covers both situations, applying to applicants for authority to hire or renewal of license to recruit alike. This means an agency cannot treat substantial capitalization as a one-time hurdle cleared only at the start of its operations; the requirement carries forward each time the agency seeks to renew its license. An agency whose financial standing has fallen below what is currently required risks failing to satisfy this condition when the time comes to renew, not just when it originally applied.
What a recruitment agency should do
Because the specific capitalization figure is set by the Secretary of Labor rather than fixed in this article, an agency preparing to apply for or renew its recruitment license should confirm the currently applicable amount through the appropriate labor authority before submitting its application, rather than relying on outdated figures or assumptions. Keeping financial records that clearly demonstrate the agency's capitalization is also essential, since this requirement functions as a real precondition to obtaining or keeping the authority to recruit.