NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ________ 
INTRODUCED BY REP. SANCHO FERNANDO “ANDO” F. OAMINAL 
AN ACT 
PROVIDING FOR ZERO INTEREST SALARY LOANS TO ALL GOVERNMENT 
EMPLOYEES IN GOVERNMENT FINANCIAL INSTITUTIONS 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
EXPLANATORY NOTE 
It cannot be gainsaid that national and local government employees are the backbone in ensuring 
the peoples’ continued and fast access to public service. Much as this is known, however, the fact 
that the meager remunerations of our employees for serving in government can hardly make both 
ends meet has yet to be fully remedied. Consequently, the vast majority of our government workers 
have availed of numerous high interest-bearing loans from both government and private lenders in 
order to fully provide for their families. 
As we strive to ensure their continued growth and consistent with our efforts to promote their 
welfare, including that of their dependents, especially in these tumultuous times, it is necessary that 
we offer economic respite to our hardworking and ever-reliable government employees through 
“Zero Interest Salary Loans” in all Government- owned and/or controlled Financial Institutions. 
This kind of facility will not only improve and advance the socio-economic situation of our public 
servants but will likewise pave the way to diminish, if not eradicate their dependence on 
unregulated and/or unregistered private lenders who charge usurious interest rates. This privilege, 
once approved, also seeks to curtail the temptations faced by struggling workers in engaging in 
corrupt practices. 
In view of the foregoing, approval of this bill is earnestly sought. 
SANCHO FERNANDO “ANDO” F. OAMINAL 
Representative 
2nd District of Misamis Occidental 
July 20, 2022
4:51 pm
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NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ________ 
INTRODUCED BY REP. SANCHO FERNANDO “ANDO” F. OAMINAL 
AN ACT 
PROVIDING FOR ZERO INTEREST SALARY LOANS TO ALL GOVERNMENT 
EMPLOYEES IN GOVERNMENT FINANCIAL INSTITUTIONS 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. This Act shall be known as the “Zero Interest Salary Loans Act of 
2022”. 
SECTION 2. Declaration of Policies. It is the policy of the state, in accordance with our 
Constitution, to protect the rights of workers, promote their welfare, and affirm labor as a 
primary social economic force.  
SECTION 3. Definition of Terms. As used in this Act, the term: 
(a) "Government" includes the National Government, the local governments, and all other
instrumentalities, agencies or branches of the Republic of the Philippines including
government-owned or controlled corporations, and their subsidiaries.
(b) "Government Employees" includes elective and appointive officials and employees,
permanent or temporary, whether in the career or non-career service, including military, police,
and barangay personnel, as long as they receive compensation, regardless of amount.
(c) “Government Financial Institutions (GFIs)” refer to financial institutions or corporations
in which the government directly or indirectly owns majority of the capital stock and which
are either: (1) registered with or directly supervised by the Bangko Sentral ng Pilipinas; or (2)
collecting or transacting funds or contributions from the public and places them in financial
instruments or assets such as deposits, loans, bonds and equity including, but not limited to,
the Government Service Insurance System. 
(d) “Net Take Home Pay” refers to the monthly net income of government employees after
deduction of taxes, compulsory contributions to Government Service Insurance System,
Philippine Health Insurance Corporation, Home Development and Mutual Fund (Pag-Ibig 
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Fund), employees union or cooperatives, loan obligations to government financial institutions 
and accredited private lending corporations. 
 
(e) “Zero Interest Salary Loans” refers to a zero-interest cash loan amounting to a maximum 
of twelve (12) months gross salary of an eligible government employee who meets all of the 
requirements in this Act payable through salary deductions for the next three (3) to six (6) years 
granted by government financial institutions. 
 
SECTION 4. Zero Interest Salary Loans. All Government Financial Institutions are hereby 
mandated to provide to all eligible government employees Zero Interest Salary Loans.  Zero 
Interest Salary Loans refers to a zero-interest cash loan amounting to a maximum of twelve 
(12) months gross salary of an eligible government employee who meets all of the requirements 
in this Act payable through salary deductions not to exceed six (6) years. 
 
SECTION 5. Amount and Term of Zero Interest Salary Loans. The following shall be the 
terms and conditions of Zero Interest Salary Loan: 
 
(a) Loanable Amount. The maximum loanable amount that may be granted by any 
government financial institution pursuant to this Act must not exceed the twelve (12) months 
gross salary of an eligible government employee. The loanable amount shall be determined by 
taking into account the government employee’s Net Take Home Pay after remittance of all 
mandatory contributions, deduction of outstanding liabilities, and monthly amortization after 
availment of this loan facility which must not go below Five Thousand Pesos (P 5,000.00).  
 
(b) Loan Term. The loan availed of through this Act must be repaid in full for a term not 
exceeding six (6) years. Provided, that government employees who have resigned or have been 
dismissed either for cause or by reason of loss of trust and confidence must pay their entire 
outstanding loan obligation within thirty (30) days from effectivity of their resignation or 
dismissal. Otherwise, the concerned government financial institution can initiate the 
appropriate legal action to collect the balance at the cost of the delinquent borrower. Provided 
that, government employees may renew their loan after payment of their outstanding loan 
obligations equivalent to six (6) months amortization, with no delinquent installments on the 
same terms.  
 
SECTION 6. Eligibility Requirements. To be eligible for “Zero Interest Salary Loans” a 
government employee must meet and comply with the following requirements: 
 
(a) He/She must be an active government employee; 
 
(b) His/Her Net Take Home Pay after remittance of all mandatory contributions, outstanding 
liabilities, and availment of this loan facility must not go below Five Thousand Pesos (P 
5,000.00) per month; 
 
(c) He/She must have been serving the government for at least three (3) months and would 
undertake to maintain least thirty (30) days leave credits until the full settlement of his/her 
salary loan whichever comes earlier. Thus, until the loan in this Act is fully paid, the employee 
cannot monetize or go on vacation leave when in so doing, his/her available leave credits will 
go below thirty (30) days; 
 
(d) In the case of renewal of loans,  


 
 
SECTION 7. Separability Clause. If any provisions of this Act is declared unconstitutional or 
inoperative, the other provisions not so declared shall remain in force and effect. 
 
SECTION 8. Repealing Clause. All laws, decrees, orders, rules and regulations or parts 
thereof inconsistent with the Act or the rules and regulations promulgated pursuant thereto are 
hereby repealed or amended accordingly. 
 
SECTION 9. Effectivity Clause. This Act shall take effect fifteen (15) days after publication 
in two (2) national newspapers of general circulation. 
 
 
Approved.