By Merlina Hernando-Malipot
Amid criticisms on the government’s tax reform program, the Department of Education (DepEd) said it would benefit public school teachers as they are set to receive higher salaries and more allowances starting this year.
In a statement, Education Secretary Leonor Briones reiterated her support to the Tax Reform for Acceleration and Inclusion (TRAIN) citing it was “consistent” with the DepEd’s support of the Duterte administration’s tax reform package “as a means to significantly develop the country’s human capital.”
The TRAIN, Briones said, is also in line with her “commitment to continuously provide adequate compensation for the invaluable contribution of teachers to nation-building.” She noted that through the TRAIN, “educators are set to receive additional net take home pay and allowances beginning January 2018.”
DepEd noted that a Teacher 1 (Salary Grade 11) – without dependents and has a starting basic salary of P19,620.00 – used to take home P17,220.86 with Personnel Economic Relief Allowance (PERA) under the 2017 tax schedule.
However, the TRAIN law implementation and the 3rd tranche of the Salary Standardization Law (SSL) of 2015 in effect, DepEd said a “Teacher 1 is expected to receive a gross basic salary of P20,179 and will have a net-take-home-pay (NTHP) of P20,012.89 (with PERA).”
DepEd said “this amounts to a total net increase of 16.21 percent or P2,792.03 per month.”
Aside from increase in their take home pay, teachers’ annual “chalk allowance” will also see an increase from P2,500 to P3,500. This allowance is allotted for the purchase of chalks, erasers and other classroom supplies and materials.
Meanwhile DepEd said there is also a P1,000-increase in the clothing allowance – from P5,000 to P6,000.
Take it as a package
Earlier, Briones has expressed full support to the TRAIN since its “intended main beneficiaries of the expected net revenue gains from the comprehensive tax reform – infrastructure, education, health, and social protection – are critical sectors in facilitating sustained growth and development that is inclusive.”
Briones said the TRAIN must be approached “as a package.”
On the revenue side, Briones noted that “the government will meet the additional expenditure requirements not by simply identifying new taxes, but by taking the opportunity to institute a comprehensive reform that will address revenue, equity, efficiency, and overcomplexity of the tax system at the same time.”
Briones explained that on the expenditure side, the package has “put not just infrastructure but also people at the center of the package, committing to finance the investment requirements of education over the medium term.” She added that when taken together, the reform program is “clearly pro-poor and pro-development.”
Earlier, Alliance of Concerned Teachers (ACT) Rep. Antonio Tinio expressed opposition to the TRAIN citing it was “anti-poor.” Under the TRAIN, income tax of wage earners is expected to decrease however the excise tax that will be imposed on goods and services would significantly inc