Tax exemption for public school teachers sought

MANILA – A lawmaker is proposing the grant of tax exemption to public school teachers as a non-wage benefit.

In a statement issued on Tuesday, Cagayan de Oro City Rep. Rufus Rodriguez said it is crucial that the government adequately compensate teachers so that the education sector could attract the most qualified individuals.

“To do this, the government must provide compensation and benefits, whether monetary or otherwise, commensurate to the work they perform and the contribution they make to society,” Rodriguez said.

He pointed out that teachers are among the lowest-paid government workers despite the importance of their work.

According to data from the Department of Budget and Management (DBM), there are about 880,000 public school teachers in the country.

Citing the same data, he said the teacher-to-student/pupil ratio is 1:29 in the elementary level, 1:25 in high school, and 1:29 in senior high school.

"This highlights the difficulties our teachers face in providing quality education to our students,” he said.

Rodriguez said under House Bill 9106, all salaries, wages, allowances, and benefits granted to public school teachers, including those in state colleges and universities at all levels, shall be exempted from the withholding taxes as provided for by pertinent laws, rules, and regulations on withholding taxes.

The commissioner of the Bureau of Internal Revenue shall be mandated to implement the provisions of the proposed law, if and when it is enacted.

The bill also provides that “all laws, decrees, executive orders, letters of instruction, letters of implementation, rules and regulations, and other issuances inconsistent with any provision of this Act are hereby repealed, modified, superseded, or amended accordingly.”

Rodriguez said the entry-level salary in the public education sector is Salary Grade 11, or PHP27,000 for Step 1. This salary grade pays up to PHP29,075 (Step 8), depending on the holder’s length of service.

Under the law, in addition to their monthly compensation, all government personnel are entitled to a mid-year pay equivalent to a one-month salary and a yearend bonus, which is also equivalent to a one-month salary, plus a PHP5,000 cash gift. (PNA)