EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No. 
8 7 4
i j ^ r © eicf oI t()t frc trfta rp
T9 HUG-6 P6X6
----------------------------------------------------------------  
RECEirrmn"
Introduced by SENATOR LEILA M. DE LIMA
AN ACT
PROVIDING FOR A MINIMUM MONTHLY NET TAKE-HOME PAY FOR 
ALL GOVERNMENT EMPLOYEES AFTER AUTHORIZED DEDUCTIONS
EXPLANATORY NOTE
As the public service sector plays an important role in promoting the common 
good for society, the welfare and a decent standard of living of state employees is of 
crucial interest for the government in the effective delivery of public services and its 
mandate.
Article 25 (1) of the Universal Declaration of Human Rights (UDHR) states that 
“everyone has the right to a standard of living adequate for the health and well-being 
of himself and his family”.
With the rising cost of living expenses, government employees struggle to 
manage their resources to make ends meet. Public sector employees, who enjoy the 
privilege of having security of tenure, attract loan agents who entice the employees to 
borrow at almost predatory rates. As a result, the employees end up losing almost all 
of their receivable salaries to payment deductions. This cycle is then perpetuated as 
the employees are forced to borrow more to support their daily needs.
In response to this, the Department of Education (DepEd) issued Department 
Order No. 14, series of 2019, setting a minimum take home pay of teachers at P5,ooo 
and limiting payment deductions to their salaries1.
1 Hernando-Malipot, M (2 July 2019) DepEd order to keep teachers’ take home pay at Ps,ooo; loan payment 
deductions to be limited. Retrieved from:https://news.mb.com.ph/20i9/o7/02/deped-order-to-keep-teachers- 
take-home-pay-at-p500o-loan-payment-deductions-to-be-limited/


It is imperative for the government to stop this unfortunate cycle in order to 
ensure that public sector employees maintain a decent standard of living, as well as 
minimize the temptation of corruption.
With this bill, a proposed minimum monthly take-home pay of at least 40 
percent of the employees' monthly salary is guaranteed, after authorized deductions, 
to meet the acceptable minimum subsistence income2 of our government workers 
which they may use and spend for their basic needs. This also lowers their risks to be 
seriously indebted and resort to further loans or unacceptable practices that may pose 
a threat to their productivity and the agencies they servre.
Establishing a minimum monthly take-home pay mechanism coupled with 
basic finance management training to our government employees will go a long way 
towards having a better and more dignified corps of public servants.
A version of this bill was previously filed by Sen. Paolo Benigno “Bam” A. 
Aquino, IV during the 17th Congress.
Approval of this bill is earnestly sought.
LEILA M. DE lA
2 Cruz, E. (2 November 2011) What to do when take-home pay is below 40%. Retrieved from: 
https://business.inquirer.net/27987/what-to-do-when-take-home-pay-is-below-40


EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No. 
8 7 4
'M i t t  of tbc £>ccietavp
'19 AUG -6 P6 05
RECEI.-CA
Introduced by SENATOR LEILA M. DE UMA
1
2
3
4
5
6
7
8 
9
10
11
12
13
14
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 House of Representatives of the Philippines in Congress 
assembled:
Section i. Short Title. -  This Act shall be known as the “Minimum Take Home 
Pay Act”.
Sec. 2. Definition of Terms. -  The following terms are hereby 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, 
consistent with existing laws, circulars, and other government issuances.
Sec. 3. Minimum Take Home Pay. — The minimum monthly take-home pay of 
all government employees occupying permanent positions, after all authorized 
deductions, shall at all times be at least forty percent (40%) of their basic monthly 
salary.


1 
Sec. 4. Authorized Deductions. — In the event that total authorized deductions
2 
shall reduce the government employee’s mandatory minimum monthly take-home
3 
pay, authorized deductions for the following shall be prioritized in this order:
4 
a) The Bureau of Internal Revenue, Government Service Insurance System,
5 
Home Development Mutual Fund and the Philippine Health Insurance
6 
Corporation;
7 
b) Mutual benefits associations, thrift banks and non-stock savings and
8 
loan associations duly operating under existing laws which are managed
9 
by, and for the benefit of government employees;
10 
c) Associations or cooperatives organized and managed by government
11 
employees for their benefit and welfare;
12 
d) Duly licensed insurance companies accredited by national government
13 
agencies; and
14 
e) Other authorized deductions as may be authorized by law.
15 
Any deficiency in loan payments of government employees as a result of the
16 
mandatory minimum take-home pay shall be addressed through direct payment
17 
arrangements between the employee and the lending institutions.
18 
Sec. 5. Training of Public Sector Employees on Financial Management -
19 
Government offices shall provide, through their human resources unit, basic training
20 
on personal finance management for all their employees.
21 
Sec. 6. Implementing Rules and Regulations. -  The Secretary of Budget and
22 
Management, in consultation with the Civil Service Commission, shall, within thirty
23 
(30) days from the effectivlty of this Act, issue the necessary rules and regulations for
24 
the implementation of this Act.
25 
Sec. 7. Separability Cause. -  If any provision of this Act is declared
26 
unconstitutional or invalid, other parts or provisions hereof not affected thereby shall
27 
continue to be in full force and effect.
28 
Sec. 10. Repealing Clause. -  All laws, decrees, executive orders, rules and
29 
regulations and other issuances or parts thereof inconsistent with the provisions of
30 
this Act are hereby repealed, amended or modified accordingly.


1 
Sec. 11. Effectivity Clause. -  This Act shall take effect fifteen (15) days after its
2 
publication in the Official Gazette or in two (2) newspapers of general circulation in
3 
the Philippines.
Approved,