Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

1639
House Bill No.

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

EXPLANATORY NOTE

The high and ever increasing costs of basic necessities has always been a
pressing concern to the Filipino people. Present incomes fail to cope with the
accelerating prices. as reflected in the annual increase in the consumer price index.

Government employees are especially vulnerable to this scenario. This is in
spite of the regular adjustments that have been made in their salaries over the
last decades. To provide for their families’ needs.. they are often compelled to take
Joans, regardless of their capacity to pay, As a result, most of their monthly salary
ends up going to loan payments:

Our government employees, those who toil in the name of public service. need
to be granted additional assistance for them to cope with the rising cost of living. The
State has an obligation to ensure that these workers can afford to live decently
Government workers must. therefore. be given a helping hand by the State to help
them deal with the spiraling prices of basic commodities and goods.

This bill seeks to set a minimum monthly take-home pay for all government
employees to enable them to manage their finances better. minimize their loans.
boost their purchasing power. and meet their financial obligations more effectively,

In view of the foregoing, the passage of this bill is earnestly sought

ALFRED D. VARGAS
itth District, Quezon City


Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS

First Regular Session

House Bill No. 1638

INTRODUCED BY REPRESE!

TATIVE ALFRED VARGAS

AN ACT

IMUM MONTHLY NET TAKE-HOME PAY FOR
EMPLOYEES AFTER AUTHORIZED DEDUCTIONS.

PROVIDING FOR A MI
ALL GOVERNMEN

Be it enacted by the Senate and the douse of Representatives of the
Philippines in Congress assembled

jon 1. Short Title, - This Act shall be known as the "Minimum Take Home

Section 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
alter all

authorized deductions are removed from the basic salary: arid
B. ‘Authorized Deductions" refers to deductions from the government
employee's

salary. remuneration, or other benefits to fulfill his payment obligations.

Section 3. Minimum Take Home Pay, - the minimum monthly take-home pay
of all government employees afier all authorized deductions shall at all times be at
least thirty percent (30%) of their monthly salary.

Section 4. Authorized Deductions. - \n 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 benefits 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:

D. Duly licensed insurance companies accredited by national government
agencies: and

Other authorized deductions as may be authorized by law

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

Seetion 5, Implementing Rules and Regulations. ~

and Management shall. within thirty (30) days

he Secretary of Budget
‘om the effectivity of this Act.
issue the necessary rules and regulations for the implementation of this Act

Section 6, Separability Clause. - If any provision of this Act
subsequently declared invalid or unconstitutional, other provisions hereof which are
not affected thereby shall remain in full force and effect

Section 7. Repealing Clause, - All laws, decrees. orders. rules and regulation

and other issuances. or parts thereof, inconsistent with the provisions of this Act
are hereby repealed or modified accordingly

Section 8. Effectivity Clause, - This Act shall take effect filteen (15) days
after its publication in the Official Gazette or in a newspaper of general circulation

Approved.