Salary loan is a notorious term in the world of public school teachers. For some, it’s a mean of paying their other debts; for others, it’s the reason why they have successfully given their children a good education; some even use their loans to invest in teaching equipment; but for most of us, it’s a burden when you have multiple loans that are being deducted to your monthly payslip.
In line with this, the Department of Education DepEd Order No. 14 s.2019 which will stop deducting salary loan amortizations from teachers’ take-home pay from 16 particular financial companies. This would also mean that public school teachers will have to pay their monthly salary loan amortizations over-the-counter if they have existing loans from the list of Private Lending Institutions below. These are the financial companies that would be affected by the implementation of the 5,000 Net Take Home Pay for DepEd Personnel for Fiscal Year 2019.
Here’s an excerpt from the Policy Statement of DO 14, s.2019
All DepEd personnel are reminded of the consequences of applying for loans with lending institutions. Delay in the payment of loans may result in the imposition of penalties and accrued interests by the Government Service Insurance System (GSIS), Home Development Mutual Fund (HDMF), other government financial institutions, and private lenders. DepEd personnel whose loans are not deducted under the APDS are advised to pay their loans directly to their respective lenders.
“Outstanding pa rin ang mga loans pero kailangan po natin itong bayaran over the counter. Ibig sabihin, kanya-kanya na po kayo na magbayad,” said DepEd Undersecretary Annalyn Sevilla.
The new policy would be in accordance with the General Appropriations Act of 2019 which states that teachers’ net take-home pay should not be less than P5,000. Moreover, the retirement plan for teachers would also be ensured as the government will prioritize on paying the Government Service Insurance System (GSIS).
DepEd plans on implementing the said policy come August this year for them to give ample time for the agency, teachers, and for their system to adjust.
Source: ABS-CBN News