Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18 Congress
First Regular Session

598

HOUSE BILL NO.

Introduced by: HON. LORNA C. SILVERIO

EXPLANATORY NOTE

Government employees are are the frontliners of the State when it
comes to public service. Their clients transcends social classes and are
expected to deliver the results in a consistent manner. The recent
inflation which brought about higher costs of basic commodities made it
harder for government employees to manage their salaries and made
them prone to lending facilities which utimately resulted to almost only
Php 3,000.00 monthly take home pay. This bill provides for a “Safety
net” to State workers wherein their take home pay will still be
manageable after deducting the loans and mandatory contributions
required by the Government.

Managing finances better and lessening their dependence on loan
facilities shall be the ultimate objective of this bill and teach them to live
within their means.

In view of the foregoing, approval of this bill is earnestly sought.

LORNA C. SILVERIO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18% Congress
First Regular Session
598
HOUSE BILL NO.

Introduced by: HON. LORNA C, SILVERIO-

AN ACT PROVIDING FOR A MINIMUM MONTHLY NET TAKE HOME PAY FOR ALL
GOVERNMENT EMPLOYEES AFTER AUTHORIZED DEDUCTIONS

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
Assembled:

SEC 1. Short Title. This Act shall be known as the "Minimum Take Home Pay Bill”
SEC 2. Definition of Terms. For the purposes of this bill, these terms are defined as follows:

A. “Take Home Pay” refers to the net income of government employees after all
authorized deductions are removed from the basic salary; and

B. “Authorized Deductions” refer to deductions from salaries, emoluments or other
benefits accruing to any government employee that may be allowed for the payment
of an employee’s contributions or obligations.

SEC 3. Minimum Take Home Pay. The minimum monthly take home pay of all government
employees after all authorized deductions shall at all times be at least thirty percent (30%) of
their monthly salary.

SEC 4. Authorized Deductions. In the event that total authorized deductions shall reduce the
government employee's mandatory minimum monthly take-home pay, authorized deductions for
the following shall be prioritized in this order:

‘A. The Bureau of Internal Revenue, Government Service Insurance System, Home
Development Mutual Fund and the Philippine Health Insurance Corporation;

B, Mutual benefit associations, thrift banks, and non-stock savings and loan associations
duly operating under existing laws which are managed by, and for the benefit of
government employees;

C. Associations or cooperatives organized and managed by government employees for

their benefit and welfare;

. Duly licensed insurance companies accredited by national government agencies; and

Other authorized deductions as may be authorized by law.

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Any deficiency in loan payments of government employees as a result of the mandatory
minimum take home pay may be addressed through direct payment arrangements to be
voluntarily made by the employee to the lending institutions.

SEC 5. Implementing Rules and Regulations. The Secretary of Budget and Management
shall, within thirty (30) days from the effectivity of this Act, issue the necessary rules and
regulations for the proper implementation of the provisions hereof.

SEC 6. Separability Clause. If any provision of this Act shall be held unconstitutional or
declared invalid, the other provisions not otherwise affected shall remain in full force and effect.

SEC 7. Repealing Clause. All laws, presidential decrees, executive orders, ordinances, rules and
regulation, and other issuances or part thereof which are inconsistent with this Act, are hereby
repealed or modified accordingly

SEC 8. Effectivity. This Act shall take after fifteen (15) days after its publication in the Official
Gazette or in newspapers of general circulation.

Approved,

Serna hm