Teachers To Receive Higher Net-Take Home Pay and Allowances under TRAIN

Due to the government’s Tax Reform for Acceleration and Inclusion (TRAIN) Act, public school teachers can now expect a bigger net take-home pay and allowances beginning this year.  This was recently announced by the Department of Education (DepEd).

For Teacher 1 or Salary Grade 11 without dependents, they will receive a gross basic salary of Php20,179 and a net take home pay of Php20,012.89. They previously earn a gross of Php19,620/month, and take-home pay of Php17,220.86.

This is inclusive of Personnel Economic Relief Allowance (PERA) and applying the new tax schedule. The 3rd trance of the Salary Standardization Law (SSL) of2015 has also been applied on the computation.

For 2018, teachers can expect a total net increase of 16.21 percent or P2,792.03 per month, the agency said.

This means that this year, teachers will have a total net increase of 16.21% or Php2,792.03 per month, according to DepEd.

Aside from the increased take home pay, the annual ‘chalk allowance,’ intended for the purchase of classroom supplies was increased from Php2,500 to Php3,500. Teachers’ clothing allowance has also been increased from Php5,000 to Php6,000.

Deped points out that the said reform is in line with Education Secretary Leonor Briones’ commitment ‘to provide adequate compensation for the invaluable contribution’ of teachers to nation building.

The TRAIN ACT which was implemented at the beginning of 2018 will make Filipinos making an annual taxable income of Php250,000 and below exempted from paying income tax. However, the said act is also expected to affect prices of some basic goods and services.

Furthermore, data released by DepEd last year showed public school teachers have incurred Php178 billions of debt from private lending institutions and another Php123 billion in credit from the Government Service Insurance Systems and Pag-IBIG fund.

 

Source: Rappler / CNN Philippines

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