Sixteenth Congress
First Regular Session

HOUSE BILL NO. 4441

Introduced by Hons. Rosenda Ann Ocampo, Kimi 8. Cojuangeo, Jorge Banal, Sergio A. F. Apostol, Maria
Leonor Robredo, Rufus B. Rodriguez, Evelina G, Eseudero, Dakila Carlo E. Cua, Josephine Y. Ramirez
Sato, Mariano U. Piamonte, Jose L. Atienza, Jr, Walden F. Bello, and Regina Ongsiako Reyes

EXPLANATORY NOTE

This bill seeks to provide for a minimum of five thousand pesos as the
monthly net take-home pay of all government employees after authorized
deductions.

The annual General Appropriations Act (GAA) sets the monthly minimum
net take-home pay of all government employees after authorized deductions. This
is to ensure that all government employees bring home a decent portion of their
earnings after paying all their obligations and contributions. In 2012, the minimum
net take-home pay after deductions was increased to five thousand pesos from
three thousand pesos during the previous years. This adjustment was deemed
necessary considering the rising cost of living in the Philippines. However, under
the GAA of 2013, the said minimum net take-home pay of government employees
was again reduced to three thousand pesos, Reducing the minimum net take-home
pay means the employees could take out more loans, a habit that the government
is strongly discouraging. It is a known fact that most government employees take
out loans left and right, notwithstanding their capacity to pay. On the other hand,
increasing the minimum net take-home pay per month would boost the employees’
purchasing power, allowing them to have a few thousand pesos more to spend on
their family’s needs, Also, this could put some form of control on the loan amount
an employee could avail of.

In its 20/2 Full Year Official Poverty Statistics Report, the National
Statistical Coordination Board (NSCB) stated that a family of five will need at


Ieast a monthly income of P5,513.00 to buy its minimum basic food needs and
around P7,890.00 a month for minimum basic food and non-food needs
Incidentally, inflation in the country increased at 4.1% per year from 2009 to
2012. This is a clear indication that Filipinos now require a bigger purchasing
power in order to live sustainably, with only the basics, In fact, having a deficit of
1a few hundred pesos below the required amount set by the NSCB may already be
considered as living below the poverty line, Certainly, a net take-home pay of
P3,000.00 a month is not enough.

Our state employees selflessly render their invaluable service to the
government and are the primary movers towards the country's growth and
development, It is necessary to preserve their well-being and help them keep their
dignity by providing measures that will protect their economic liberties. The
provision under the GAA which sets the minimum monthly net take-home pay of
government employs annually must be enacted as a special law to gain
permanence and give our state workers a sense of security.

If enacted, this measure will finally set the minimum monthly net take~
home pay of all government employees at a fixed and reasonable rate, subject to a
review by the Secretary of Budget and Management every three years beginning
from the effectivity of this Act, taking into consideration relevant economic and
social indicators including cost of living and inflation,

In view of the foregoing, approval of this bill is

ily sought

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least a monthly income of P5,513.00 to buy its minimum basic food needs and
around P7,890.00 a month for minimum basic food and non-food needs.
Incidentally, inflation in the country increased at 4.1% per year from 2009 to
2012, This is a clear indication that Filipinos now require a bigger purchasing
power in order to live sustainably, with only the basics, In fact, having a deficit of
1a few hundred pesos below the required amount set by the NSCB may already be
considered as living below the poverty line. Certainly, a net take-home pay of
P3,000.00 a month is not enough

Our state employees selflessly render their invaluable service to the
government and are the primary movers towards the country's growth and
development, It is necessary to preserve their well-being and help them keep their
dignity by providing measures that will protect their economic liberties, The
provision under the GAA which sets the minimum monthly net take-home pay of
government employees annually must be enacted as a special law to gain
permanence and give our state workers a sense of securily,

If enacted, this measure will finally set the minimum monthly net take-
home pay of all government employees at a fixed and reasonable rate, subject to a
review by the Secretary of Budget and Management every three years beginning
from the effectivity of this Act, taking into consideration relevant economic and
social indicators including cost of living and inflation,

In view of the foregoing, approval of this bill is earnestly sought

whe
ARIA, at ed AObAEDO

Uaromd SO eed


Sixteenth Congress
First Regular Session

HOUSE BILL NO. 444 it

Introduced by Hons. Rosenda Ann Ocampo, Kimi S. Cojuangco, Jorge Banal, Sergio A. F. Apostol, Maria
Leonor Robredo, Rufus B. Rodriguez, Evelina G. Escudero, Dakila Carlo E. Cua, Josephine Y. Ramirez
Sato, Mariano U. Piamonte, Jose L. Atienza, Jr., Walden F. Bello, and Regina Ongsiako Reyes

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:

SECTION 1. The minimum monthly net take-home pay of all government
employees after all authorized deductions shall at all times be equivalent to 30%
of the monthly salary prescribed for Step 8 of Salary Grade 12 as provided under
Republic Act No. 6758, otherwise known as the “Compensation and Position
Classification Act of 1989,” as amended.

As used in this Act, “authorized deductions” refers 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 due

the following:


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a) The Bureau of Internal Revenue, Government Service Insurance
System, Home Development Mutual Fund and the Philippine Health Insurance
Corporation;

b) — Mutual benefits associations, thrift banks and non-stock savings and
loan associations duly operating under existing laws which are managed by, and
for the benefit of, government employees;

c) Associations or cooperatives organized and managed by government
employees for their benefit and welfare;

d) Duly licensed insurance companies accredited by national
government agencies; and.

) Other authorized deductions may be authorized by law.

SEC. 2. In the event that total authorized deductions shall reduce the
government employee's mandatory minimum monthly net take-home pay,
authorized deductions under item (a) Section 1 of this Act shall take first
preference, those under item (b) of the same section shall enjoy second preference,
and so forth. Any deficiency in loan payments of government employees as a
result of the mandatory minimum net take-home pay may be addressed through
direct payment arrangements to be voluntarily made by the employee to the
lending associations.

SEC. 3. The Secretary of Budget and Management shall, within thirty (30)

days from the effectivity of this Act, issue the necessary rules and regulations for

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the implementation of this Act.

SEC. 4. All laws, decrees, orders, rules and regulations, and other
issuances, or parts thereof, inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.

SEC. 5. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,