Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS.
Third Regular Session

8385

HOUSE BILL NO.

Introduced by Manila Teachers Representative
VIRGILIO S. LACSON

INTRODUCTORY NOTE

The protection and promotion of workers’ rights and their welfare is the paramount duty of the
State as enshrined in the Constitution. Serving as the backbone of our national economy, the
labor force plays a significant and pivotal role in chartering the country’s course towards
inclusive economic growth and development. To ensure that inclusive economic growth and
development is attained, our public school teachers are the duty-bearers to mold the minds of our
youth and to equip them with the skills necessary for the attainment of national development.

In recognition of the role of our public school teachers in nation-building, the Philippine
Government, by virtue of Presidential Decree No. 851, institutionalized the 13th Month Pay to
incentivize workers in achieving higher productivity and to provide additional financial means
for families to meet their needs.

However, many public school teachers and their families still find themselves struggling to make
ends meet as prices of prime staple and commodities and the costs of utilities continue to
increase. State intervention therefore is necessary to address the plight of our public school
teachers and their families.

As such, this measure seeks to institutionalize the mandatory payment of the 14th month pay for
public school teachers with the end view of further incentivizing and motivating our teachers to
improve work performance and productivity and at the same time alleviate their financial plights.

In view of the foregoing, the speedy approval of this bill is urgently sought.

Ca
VIRGILIP S. LACSON


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session
-- 838

HOUSE BILL NO.

Introduced by Manila Teachers Representative
VIRGILIO S. LACSON

AN ACT
INSTITUTIONALIZING THE RELEASE OF 14TH MONTH PAY FOR ALL PUBLIC
SCHOOL TEACHERS

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

SECTION 1. Short Title. — This Act shall be known as the “14th Month Pay for Public School
Teachers Act”

SEC. 2. Declaration of Policy. — It is the policy of the State to affirm labor as a primary social
economic force. In this end, the State shall protect the rights of workers and promote their
welfare.

SEC. 3. Release of 14th Month Pay. — Public school teachers shall be eligible to receive a 14th
month salary every year, in an amount equivalent to the 13th-month pay; Provided, That public
school teachers employed for less than one (1) year shall only be entitled for a pro-rated 14th
month pay that corresponds to the number of months served.

In no case shall the 14th month pay be less than 1/12 of the public school teachers’ total basic
monthly salary.

SEC. 4. Schedule of Release. ~The existing 13th month pay shall be released on or before the
end of June of every year while the 14th month salary shall be released on or before the end of
December of each year; Provided, That, the frequency of payment may be the subject of
agreement between the public school teacher and his or her employee or any recognized
collective bargaining agent of public school teachers

SEC. 5. Tax Implications. ~ The 14th month salary, along with the 13th month pay shall be
excluded from the computation of gross income; Provided, however, that the total 14th month
pay shall not exceed Eighty Two Thousand Pesos (P82,000.00) as mandated in the National
Internal Revenue Code, as amended.

SEC. 6. Implementing Rules and Regulations. — The necessary rules and regulations to carry
out the provisions of this Act shall be issued within thirty days from the approval of this Act by
the Department of Finance (DOF), the Department of Budget and Management (DBM), the
Department of Education (DepEd) in consultation with the Civil Service Commission (CSC).

SEC. 7. Separability Clause. - If any provision of this Act is declared invalied or
unconstitutional, other parts or provisions hereof not affected thereby shall continue to be in full
force and effect.


SEC. 8. Repealing Clause. — All laws, orders, issuances, circulars, rules and regulations or parts
thereof, which are inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.

SEC. 9, Effectivity. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in two (2) newspapers of general circulation.

Approved,