Doubling teachers’ salary is not a priority yet of the Department of Budget and Management (DBM), and that their compensation package is higher this 2018.
DBM secretary Benjamin Diokno made the statement the day after President Rodrigo Duterte confirmed that the uniformed personnel will receive doubled pay starting this January and teachers will be next in line for increase.
Diokno said that increasing of teachers’ salaries would cost “a huge amount,” as the administration seeks to put infrastructure and social spending first.
“That’s 600,000 teachers. Salaries alone, it would cost half a trillion pesos (and) that involves the doubling of the salary of teachers,” he said.
He added that right now, the salaries of public school teachers are twice than private school teachers.
“There’s about 15 to 16 percent increase in salaries this year and another in 2019 and 2020,” Diokno said.
DBM also pointed out through their Facebook page that the monthly compensation package (which includes bonuses and allowances) of teachers have increased significantly due to implementation of the Tax Reform for Acceleration and Inclusion Act (TRAIN) and the third tranche of the Salary Standardization Law.
Under the new law, those earning ₱250,000 or less a year would be exempt from income tax, while the 13th month pay and bonuses up to ₱90,000 would also be tax-free.
Teacher 1 at salary grade 11 with a basic salary of ₱19,620 without dependents used to take home ₱17,220.86 under the old tax structure.
This 2018, Teacher 1 is expected to receive a gross basic salary of ₱20,179 and will have a net take home pay of ₱20,012.89.
The annual chalk allowance has been increased from ₱2,500 to ₱3,500, while the clothing allowance has also been hiked from ₱5,000 to ₱6,000.
Here’s the sample Monthly Compensation Package of Teacher I in 2018 according to DBM:
Monthly Salary (SG 11) – P20,179
– Personal Economic Relief Allowance (PERA): 24,000
– Clothing/Uniform Allowance: 6,000
– Mid-Year Bonus (equivalent to 1 month salary) : 20,179
– Year-End Bonus (equivalent to 1 month salary) : 20,179
– Performance Enhancement Incentive (PEI): 5,000
– Cash Gift: 5,000
TOTAL ANNUAL BONUSES – P80,358
Annual Compensation Package
– Annual Salary (20,179 x 12): 242,148
– Annual Bonuses: 80,358
TOTAL ANNUAL COMPENSATION PACKAGE – P322,506
MONTHLY COMPENSATION PACKAGE (P322,506/12 months) = P26,875.50
The Duterte administration has allotted around Php356 Billion in budget for salaries of over 800,000 teachers in the country this 2018.
Diokno said that considerations on adjusting the salaries of government workers, particularly public school teachers, should be addressed after the fourth tranche of the salary standardization program has been completed in 2020.