REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

4819
0.

House Ne

Introduced by Pangasinan Fifth District Representative
HON. RAMON V. GUICO III

EXPLANATORY NOTE

Article XIV, Section 5 of the 1987 Constitution sought to “ensure that teaching will attract and
retain its rightful share of the best available talents through adequate remuneration and other means of
job satisfaction and fulfilment.” Likewise, Republic Act No. 4670, otherwise known as the Magna
Carta for Public School Teachers, provided for the promotion and improvement of the overall
wellbeing of our school teachers, so that they may “compare favorably with existing opportunities in
other walks of life and to attract and retain in the teaching profession more people with the proper
qualifications.”

The abovementioned principles have always been the legal comerstone of every raging debate
regarding the salary hike for public school teachers. Much has been said—and rightfully so—about
their plight, who despite their noble profession, has continued to languish on the brink of destitution
because of deficient compensation. Granted that teachers’ salaries have seen marked improvements
over time, and with the numerous benefits that are already provided for and supposedly, enjoyed by
teachers, their conditions remain far from optimal. As a consequence, teaching professionals have
become part of the on-going brain drain phenomenon in the country, while others decidedly gave up
the profession.

While this representation recognizes the relatively bleak reality of being a public school teacher
in the country, it is also well aware of the fiscal strains that salary increases entail. For one, there is the
issue of equitability of professions. Anticipation of salary increase for one profession would mean
greater demand for salary increases in several others, making the matter at hand not only fiscally
strenuous, but morally contentious. Secretary of Education, Leonor Briones, estimated that a P5000.00
across the board increase for an 830,000 strong teaching force will require an additional P75 billion
annually. Such a huge sum will obviously take a toll on the fiscal health of the country.

Seeking to strike a balance between providing for our teachers a quality of life they truly
deserve and practicing the fiscal discipline required so as not to compromise the integrity of other
equally important government services and functions, this bill is proposed. Under this Act, public


school teachers with the ranks of Teacher I, II, and III shall be given tax relief to provide them greater
financial leeway to maintain a decent standard of living.

Improving the lot of our public school teachers is not a one-time endeavour. The salary increase
for public school teachers shall never be out of the question, but it still has to be equitable and
sustainable. Tax relief and the effective and efficient dispensation of the benefits due to them is
preferable and by far, more manageable. A salary increase is in order if the government has the means
to do so, but for now, we have to think of alternative solutions to address this glaring problem.

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

ae

Rep. Rampn V. Guico III


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 4819

Introduced by Pangasinan Fifth District Representative
HON. RAMON V. GUICO III

AN ACT
EXEMPTING PUBLIC SCHOOL TEACHERS FROM INCOME TAX, AMENDING
FURTHER FOR THIS PURPOSE SECTIONS 22 AND 24(A)(2) OF THE NATIONAL
INTERNAL REVENUE CODE OF 1997, AS AMENDED BY REPUBLIC ACT NO. 9504

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

SECTION 1. Section 22 of Republic Act No. 8424, otherwise known as the National Internal
Revenue Code of 1997, as amended by Republic Act No. 9504, shall hereby be amended further by
adding the following definitions after Subsection (HH) to read as follows:

“SEC. 22. Definitions. — when used in this Title:

“(A) xxx.

(HH) xxx.

“(1l) THE TERMS ‘TEACHER I, TEACHER II, AND TEACHER III’? SHALL REFER
TO THE BASIC CLASSROOM TEACHER POSITIONS IN PUBLIC ELEMENTARY
AND SECONDARY SCHOOLS AS DEFINED BY THE DEPARTMENT OF
EDUCATION (DEPED).

“(JJ) THE TERM ‘PUBLIC SCHOOL’ SHALL REFER TO EDUCATIONAL
INSTITUTIONS ESTABLISHED, ADMINISTERED, AND MAINTAINED BY THE
GOVERNMENT AT THE PUBLIC’S EXPENSE.

SEC. 2. Section 24(A)(2) of Republic Act No. 8424, otherwise known as the National Internal
Revenue Code of 1997, as amended by Republic Act No. 9504, shall hereby be further amended to read
as follows:

“SEC. 24. Income Tax Rates. —

“(A) Rates of Income Tax on Individual Citizen and Individual Resident Alien of the
Philippines. ~


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29 (1) xxx:

30

31 (2) xxx

32

33 “Provided, That minimum wage eamers as defined in Section 22 (HH) of this Code AND
34 PUBLIC SCHOOL TEACHERS WITH THE RANKS OF TEACHER I, I, AND III AS
35 DEFINED IN SECTION 22 (11) OF THIS CODE shall be exempt from the payment of
36 income tax on their taxable income: Provided, further, That the holiday pay, overtime pay, night
37 shift differential pay and hazard pay received by such minimum wage earners shall likewise be
38 exempt from income tax.

39 SEC. 3. Separability Clause. — If any part or provision of this Act is declared invalid or
40 unconstitutional, the other parts not otherwise affected shall remain in full effect and force.

41 SEC. 4. Repealing Clause.—All laws, decrees, executive orders or parts thereof inconsistent
42. with the provisions of this Act is hereby repealed or modified accordingly.

43

44 SEC. 5. Effectivity. - — This Act shall take effect fifteen (15) days after its publication in at

45 least two (2) newspapers of general circulation.

Approved,