DBM not opposed to teachers’ salary hike
DBM Secretary Benjamin Diokno categorically stated that he is “not opposed to the increase in the salaries of our teachers” in a press conference yesterday morning at the DBM Central Office.
“I understand the crucial role teachers have in nation-building and I do believe they should be rewarded accordingly,” he said.
The budget chief said the take-home pay of teachers has already increased this year with the implementation of the third tranche of Salary Standardization Law (SSL).
Furthermore, government personnel, including teachers, may expect another round of salary adjustments with the fourth tranche of SSL set to be implemented in 2019.
Currently, an entrylevel public school teacher (Teacher 1), having Salary Grade 11 under Tranche 3 of the SSL, earns a monthly salary of P20,179. Annually, he/she will enjoy bonuses and allowances of P74,358. This rounds up the monthly compensation package of teachers to P26,375.
By 2019, their monthly salaries will increase to P20,754 and their total annual bonuses and allowances will increase to P75,5081, rounding up their monthly compensation package to P27,046, or P671 more per month.
At the same time, the significant reduction in taxes with the lower personal income tax rates imposed by Train will significantly increase the take-home pay of teachers. In fact, a Teacher 1 is tax-exempt under the Train law as his/ her annual taxable income falls below P250,000. Additional take home pay due to lower taxes for Teacher 1 will amount to P35,537, 176% of his/her monthly salary.
The combined effect of the increase in salary from the SSL and lowered tax rates due to the implementation of Train law will result to an additional take home pay of P43,363
per year. In 2019, annual tax savings will increase to P37,262 as it is indexed to salary. Additional take home pay due to SSL and Train increase to P45,312.
The DBM estimates that doubling the salaries of teachers in 2018 will require an additional P343.7 billion in Personnel Services (PS) costs.
In the 2018 GAA, the programmed PS costs for teaching positions is set at P381.1 billion. Doubling the salaries of teachers will require PS costs of about P724.8 billion, implying a financing requirement of P343.7 billion.