Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL No. _3494

Fntroduced by Rep. Witfride Mark M. Enverga

EXPLANATORY NOTE

As one writer notes "The teacher is an architect of man”. He/she designs the
destiny of the nation by preparing the blueprint of desirable, innovative, self-reliant,
productive and above all, a God fearing Filipino youth. He or she prepares the lesson
everyday and does not stop thinking of good things that he/she may add to the improvement
of knowledge, attitudes and skills of children so that they would be adequately prepared to
face actual life in the near future.

‘Aside from educating our children, teachers are likewise the most reliable and
dedicated public servants. They are being constantly called upon by officials of the local and
national governments to assist in various extra-curricular and civic activities which contribute
to the welfare of the community and the country, most notable of which is when they are
called upon by the government to assist during election period and the gathering during

census period.

As of school year 2008-2009, there are 353,280 public elementary school
teachers teaching at 37,607 public elementary schools with 12,574,506 elementary school
emollees. In the same school year, the teacher-pupil ratio is 1:36. In the secondary level, there
are 138,058 public secondary schools teaching at 5,359 public secondary schools with

5,421,562 secondary student emollees. This translates to a teacher-student ratio of 1:39.


Public school teachers are among the lowest paid government workers
considering the nature and importance of the services they render. This phenomenon has thus
resulted in an exodus of our competent teachers who find higher paying jobs and better terms
of employment abroad.

It is imperative therefore that to attract the most competent and efficient to
the teaching profession, government must provide compensation and benefits commensurate
to the work they perform and the contribution they make to the society. However, in difficult
times, the government cannot easily provide increase in their salaries and wages hence

provisions for non-wage benefits become necessary.

This bill seeks to provide public school teachers exemption to payments of
withholding taxes in their salaries and allowances. It is the sincere belief of the undersigned
author of this bill that with this privilege of tax exemption more new teachers will be
encouraged to accept teaching jobs. It will increase their take home pay and will also
encourage teachers to opt to stay in the public school system where we need the brightest of
them. .

It cannot be ignored that the tax exemption on the income of teachers will mean
extra money for them to spare for their other needs and will stop the teachers from availing
the high interest loan being offered by usurers to compensate the little take home pay they
received.

In view of the foregoing considerations, approval of this bill is highly and

pie

earnestly recommended.


Beye

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNO. 3494

Intraduced by Rep. Witfride Mark M. Enuerga

AN ACT PROVIDING NON-WAGE BENEFITS FOR PUBLIC SCHOOL TEACHERS
AND FOR OTHER PURPOSES

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

Congress assembled:

SECTION. 1. Statement of Policy. - It is hereby declared the policy of the State to
assign the highest budgetary priority to education and 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 fulfillment.

It is further declared a policy and commitment of the State to promote
and improve the economic status of all public school teachers, including those in State colleges and
universities by increasing their take home pay through exemption from tax all allowances and
benefits granted to them. :

SEC. 2. Exclusions from Payment of Withholding Taxes. - All salaries, wages,
allowances and benefits granted to public school teachers, including those in the State colleges and
universities at all levels, shall be exempted from the withholding taxes as provided for by pertinent
laws, rules and regulations pertaining to withholding taxes.


SEC. 3. Rules and Regulations. - The Commissioner of the Bureau of Internal
Revenue is hereby authorized to promulgate such rules and regulations as may be necessary to

implement the provisions of this Act.

SEC. 4. Repealing Clause. - All laws, decrees, executive orders, letters of
instruction, letters of instruction, letters of implementation, rules and regulations, and other
issuances inconsistent with any provision of this Act are hereby repealed, modified, superseded or

amended accordingly.

SEC. 5. Separabilit~ Clause. - If any provision of this Act of the application of
such provision to any person or circumstance is held invalid for any reason, the remainder of this
Act or the application of such provision fo other persons or circumstances shall not be affected

thereby.

SEC. 6. Effectivity. - This Act shall take effect fifteen (15) days after its
complete publication in any two (2) newspapers of general circulation.

Approved,