• 
Srnlltr 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
(~Hfl;r Ilf IIle ,~'fnrbr~ 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'14 
JUL 30 P 6 :52 
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV 
AN ACT PROVIDING FOR A MINIMUM MONTHLY NET TAKE-HOME PAY FOR ALL 
GOVERNMENT EMPLOYEES AFTER AUTHORIZED DEDUCTIONS 
EXPLANATORY NOTE 
Teachers are among our modern day heroes. They inspire and shape the youth to become 
productive citizens ofthe country. They go great lengths to provide for their families while serving 
the country. 
With the increasing cost of living, teachers tighten their belts to get by on their modest 
salaries. They turn to loan agents, government and private, to make ends meet. They go into debt 
in order to provide for their families' needs, even to the extent that the entirety of their salary 
end up going to loan payments. 
How can these critical players in nation building impact the next generation if they are 
bombarded with financial woes? It is thus imminent that the State takes care of its own by 
curbing unhealthy practices and providing clear policies in support of its government servant-
leaders. 
By setting a minimum net take-home pay for government employees, this bill seeks to 
ensure that teachers and other government employees are able to meet their families' basic 
needs and reduce their need to take on debts. Setting a minimum take-home amount allows an 
appropriate control for government employees to be able to properly budget for their 
~ouseholds expenses. 
Such measure contributes in the efforts to ensure that no one gets left behind, especially 
among our country's public servants, in the progress and development of the country. 
In view of the foregoing, the approval of this bill is earnestly sought. 
,-"--,,V-"V"I_ ~ 
lA,,'~ 
Sena or Paolo Beni: "B~" A. Aquino IV 


SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'14 ,JUl30 P6 :52 
SENATE 
S.B. No. 2333 
iU;('EIVElJ BY:---f~ 
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV 
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 the House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as the "Minimum Take Home Pay Bill". 
2 
SECTION 2. Definition of Terms. - For the purposes of this bill, these terms are defined as 
.3 
follows: 
4 
a. "Take-Home Pay" refers to the net income of government employees after all 
5 
authorized deductions are removed from the basic salary; and 
6 
b. "Authorized Deductions" refer to deductions from salaries, emoluments or other 
7 
benefits accruing to any government employee that may be allowed for the payment of an 
8 
employee's contributions or obligations. 
9 
SECTION 3. Minimum Take Home Pay, - The minimum monthly take-home pay of all 
10 
government employees after all authorized deductions shall at all times be at least thirty percent 
11 
(30%) of their monthly salary. 
12 
SECTION 4. Authorized Deductions. - In the event that total authorized deductions shall 
13 
reduce the government employee's mandatory minimum monthly take-home pay, authorized 
14 
deductions for the following shall be prioritize~ in this order: 
15 
a) The Bureau of Internal Revenue, Government Service Insurance System, Home 
16 
Development Mutual Fund and the Philippine Health Insurance Corporation; 
17 
b) Mutual benefits associations, thrift banks and non-stock savings and loan associations 
18 
duly operating under existing laws which are managed by, and for the benefit of, 
19 
government employees; 
20 
c) Associations or cooperatives organized and managed by government employees for 
21 
their benefit and welfare; 


• 
d) Duly licensed insurance companies accredited by national government agencies; and 
2 
e) Other authorized deductions as may be authorized by law. 
3 
Any deficiency in loan payments of government employees as a result of the mandatory 
4 
minimum take-home pay may be addressed through direct payment arrangements to be 
5 
voluntarily made by the employee to the lending institutions. 
6 
SECTION 5. Implementing Rules and Regulations. - The Secretary of Budget and 
7 
Management shall, within thirty (30) days from the effectivity of this Act, issue the necessary 
8 
rules and regulations for the implementation of this Act. 
9 
SECTION 6. Separability Clause. - If any provision of this Act is subsequently declared 
10 
invalid or unconstitutional, other provisions hereof which are not affected thereby shall remain 
11 
in full force and effect. 
12 
SECTION 7. Repealing Clause. - All laws, decrees, orders, rules and regulations, and other 
13 
issuances, or parts thereof, inconsistent with the proviSions of this Act are hereby repealed or 
14 
modified accordingly. 
15 
SECTION 8. Effectivity Clause. - This Act shall take fifteen (15) days after its publication 
16 
in the Official Gazette or in a newspaper of general circulation 
17 
Approved,