Press Release
March 19, 2019

Sen. Bam proposes mandatory monthly net take-home pay

Senator Bam Aquino IV is proposing a mandatory monthly net take-home pay for all government employees.

Aquino, who filed Senate Bill No. 710, otherwise known as an Act Providing for a Minimum Monthly Net Take-Home Pay for All Government Employees After Authorized Deductions, said setting a minimum take-home amount would ensure that government workers would be able to meet their families' basic needs. He said it would also reduce the employees' need to take on debts.

Aquino said enactment of the bill into law would also allow government employees to budget their household's expenses.

"Government employees have turned to loan agents, government and private, to make ends meet. They go into debt in order to provide for their families' needs, even to the extent that the entirety of their salary end up going to loan payments," Aquino said.

"It is imperative that the state curb unhealthy practices and provide clear policies in support of its government servant-leaders," he added.

Aquino has proposed a minimum monthly take-home pay of at least 30 percent of the employees' monthly salary after authorized deductions.

He said the bill has prioritized authorized deductions in the following order: Bureau of Internal Revenue (BIR), Government Service Insurance System (GSIS), Home Development Mutual Fund (PagIbig) and the Philippine Health Insurance Corporation (PhilHealth);

Mutual benefits associations, thrift banks and non-stock savings and loan associations duly operating under existing laws with area managed by and for the benefit of, government employees;

Duly licensed insurance companies accredited by national government agencies and other authorize deductions as may be authorized by law.

Aquino said any deficiency in loan payments of government employees as a result of the mandatory minimum take-home pay may be addressed through direct payment arrangements to be voluntarily made by the employees to the lending institutions.

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