Solons seek P5,000 minimum monthly net take-home pay

for govt workers

House members are seeking to peg at P5,000 the monthly minimum net take-home
pay of government employees after authorized deductions, to raise the purchasing power
of workers and discourage them from taking out more loans, a habit that the government is
strongly discouraging.
he lawmakers led by !ep. !osenda "nn #campo $%
th
&istrict, 'anila( raised this
proposal through House )ill ***+ seeking to provide for a monthly minimum net-take
home pay for all government employees after authorized deductions.
#campo, an assistant ma,ority leader, said increasing the minimum net take-home
pay per month would boost the employees- purchasing power and control their loan habit.
.his will allow them to have a few thousand pesos more to spend on their family-s
needs. "lso, this could put some form of control on the loan amount an employee can
avail of,/ said #campo.
.0t is a known fact that most government employees take out loans left and right
regardless of their capacity to pay which reduces their minimum net take-home pay,/
#campo further said.
#campo said the 1ational 2tatistical 3oordination )oard $123)( in its 40+4 5ull
6ear #fficial Poverty 2tatistics !eport stated that a family of five will need at least a
monthly income of P5,5+7 to buy its minimum basic food needs and around P8,9:0 a
month for minimum basic food and non-food needs. 0ncidentally, she said inflation in the
country increased at *.+ percent per year from 400: to 40+4.
.0n fact, having a deficit of a few hundred pesos below the re;uired amount set by
the 123) may already be considered as living below the poverty line. 3ertainly, a net
take-home pay of P7,000 is not enough,/ she said.
#campo, also a vice chairperson of the House committees on basic education and
culture, natural resources, and games and amusement, said state employees selflessly
render their invaluable service to the government and are the primary movers towards the
country-s growth and development.
.0t is necessary to preserve their well-being and help them keep their dignity by
providing measures that will protect their economic liberties. he provision under the
<eneral "ppropriations "ct $<""( which sets the monthly minimum net take-home pay
NR # 3504B
JUNE 21, 2014
of employees annually must be enacted as a special law to gain permanence and give our
state workers a sense of security,/ said #campo.
he annual <"" sets the monthly minimum net take-home pay of state workers
after authorized deductions. his is to ensure that they bring home a decent portion of
their earnings after paying all their obligations and contributions.
0n 40+4, #campo said the monthly minimum net take-home pay was increased to
P5,000 from P7,000 during the previous years. his ad,ustment was deemed necessary
because of the rising cost of living in the country.
However, under the <"" of 40+7, she said the monthly minimum net take-home
pay was again reduced to P7,000.
0n House )ill ***+, #campo and +4 co-authors of the measure proposed that the
minimum net take-home pay of state workers after all authorized deductions shall at all
times be e;uivalent to 70 percent of the monthly salary prescribed for 2tep 9, 2alary
<rade +4 as provided for under !epublic "ct %859, otherwise known as the
.3ompensation and Position 3lassification "ct of +:9:,/ as amended. Per =oint
!esolution 1o. *, enacted by both the 2enate and the House, and approved by former
President "rroyo in 400: on the rates for standardized salaries of government employees,
the salary e;uivalent of <rade +4, 2tep 9 is P4+,78:.
he bill refers to authorized deductions as deductions from salaries, emoluments, or
other benefits accruing to any government employee that may be allowed for the payment
of an employee-s contributions due the following> )ureau of 0nternal !evenue $)0!(,
<overnment 2ervice 0nsurance 2ystem $<202(, Home &evelopment 'utual 5und
$H&'5( and the Philippine Health 0nsurance 3orporation $PhilHealth(? 'utual benefits
associations, thrift banks and non-stock savings and loan associations duly operating
under e@isting laws which are mandated by, and for the benefit of, government employees?
"ssociations or cooperatives organized and managed by the government employees for
their benefit and welfare? &uly licensed insurance companies accredited by national
government agencies? and #ther authorized deductions as may be authorized by law.
he bill now pending at the committee on appropriations chaired by !ep. 0sidro
Angab $7rd &istrict, &avao 3ity( is co-authored by !eps. Bimi 3o,uangco $5
th
&istrict,
Pangasinan(, =orge )anal $7
rd
&istrict, Cuezon 3ity(, 2ergio "postol $4
nd
&istrict, Deyte(,
'aria Deonor !obredo $7
rd
&istrict, 3amarines 2ur(, !ufus !odriguez $4
nd
&istrict,
3agayan de #ro 3ity(, Evelina Escudero $+
st
&istrict, 2orsogon(, &akila 3arlo 3ua $Done
&istrict, Cuirino(, =osephine !amirez 2ato $Done &istrict, #ccidental 'indoro(, 'ariano
Piamonte $Party-list, "-eacher(, =ose "tienza, =r. $Party-list, )uhay(, Falden )ello
$Party-list, "kbayan( and !egina #ngsiako !eyes $Done &istrict, 'arindu;ue(. $70( rbb