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S E N A T E  
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S. No. 
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Introduced by Senator S. R. OsmeAa Ill 
EXPLANATORY NOTE 
Teachers play a very vital role in preparing our youth for the challenges of 
the next millennium. To help ensure that they perform their tasks efficiently, it is 
essential that they be paid their correct wages on time and with minimum errors. 
A perennial problem facing our teachers is the centralized payment of their 
salaries by the Manila-based Payroll Service Division of the Department of 
Education, Culture and Sports. Because of the number of personnel - around 
485,000 teaching and non-teaching-employees - handled by that office, mistakes 
are frequently committed in the form of excessive or unauthorized deductions, 
wrong computation of withholding tax and the like. Moreover, instances of 
delayed payment of salaries to newly hired teachers or those who have gone on 
leave without pay are often. As a result of these inefficiencies, our poor teachers 
in the provinces are forced to go to Manila to follow up their problems and in the 
process spend their hard-earned resources. 
This bill provides for a remedy by improving the delivery of payroll services 
to public school teachers around the country. This will be done by further 
decentralizing the payment of salaries by expanding its coverage to include not 
only public secondary school teachers but also elementary school teachers. 
Passage of this bill therefor is earnestly sought. 
& 
SERGIO OSMENA 111 
Senator 


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' THIRTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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First Regular Session 
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S E N A T E  
Introduced by Senator S. R. OsmeAa 111 
AN ACT 
PROVIDING FOR THE REORGANIZATION OF THE DEPARTMENT OF 
EDUCATION, CULTURE AND SPORTS PAYROLL SERVICE DIVISION AND 
PROVIDING FOR FUNDS THEREFOR 
Be if enacted by the Senafe and House of Represenfafives of the Philippines in 
Congress assembled: 
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SECTION 1. The IBM - Payroll Service Division of the Department of 
2 Education, Culture and Sports shall be decentralized by establishing a Payroll 
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Division (PSD) unit in every regional office of the Department. 
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SEC. 
2. 
The Regional PSD shall have the following duties and 
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responsibilities: 
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2.1 
Process, print and distribute the salary checks of public secondary 
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and elementary school teachers including those of non-teaching personnel; 
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2.2 
Subject to existing laws and pertinent regulations, to enter into 
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agreement with accredited insurance companies, saving banks, thrift banks, and 
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duly registered teachers cooperatives with regard to loan amortization or 
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premium payments due these financial institutions from teachers and other 
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DECS personnel; 
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2.3 
To adopt necessary measures to ensure the release of salary 
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checks of teachers and other personnel not later than three (3) days before the 
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end of the month for which such salaries are due. 


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2.4 
To ensure that newly-hired regular teachers and substitute 
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teachers, including those who are returning from leave without pay, are released 
not later than seven (7) days from the date documents for such claims are 
received; 
2.5 
To take all steps to ensure that complaints from teachers for 
unauthorized deductions, over-deductions, non-deductions, and other salary- 
related problems are attended to within seven (7) days from receipt of such 
complaints; 
2.6 
To furnish every teacher every time the salary check is released 
with a pay slip containing the following information: date of release of check, 
total salary due the teacher for a given period, total amount deducted, itemized 
deductions, and the amount being released. 
SEC. 3. The Regional PSD unit shall be headed by the chief of the 
Budget and Finance Division who shall perform this function in a concurrent 
capacity, and shall be under the direct supervision of the Regional Director. The 
members of the PSD staff shall be taken from other divisional offices, if 
necessary. Personnel from the national PSD may be devolved to regional PSD’s 
SEC. 4. Subject to pertinent laws and regulations, the PSD staff, as well 
as other personnel who are directly involved in the PSD operation shall be 
entitled to claim honoraria in addition to their regular salaries. 
SEC. 5.‘ A Regional PSD is authorized to collect service fees from 
financial institutions mentioned in Section 2 of this Bill provided such collection is 
covered with official receipts. 
SEC. 6. Service fees collected shall be constituted into a trust fund a part 
of which may be utilized for the maintenance and operating expenses of the PSD 
as well as for the purchases of needed equipment. Such func may also be 
converted into a Provident Fund for teachers to be entrusted to accredited 
teachers’ cooperative in the region. 


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All disbursement from PSD service fees shall be subject to the approval of 
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the Secretary of the Department of Education, Culture and Sports. 
SEC. 7. The Office of the Secretary of the Department of Education, 
Culture and Sports shall monitor the operation of Regional PSD's particularly with 
regard to the quality of their services to teachers as well as to the utilization of 
funds generated. 
SEC. 8. Any person who wilfully violates or cause the violation of any 
provisions of this Act shall upon conviction be penalized with a fine of Twenty 
Thousand (P20,OOO.OO) Pesos and/or imprisonment of three (3) months 
depending upon the discretion of the court. 
SEC. 9. This Act shall take effect after publication in two (2) national 
newspaper of general circulation. 
Approved,