Teachers� Compensation with SSL and TRAIN
According to the budget chief, the take-home pay of teachers has already increased this year with the implementation of the Third Tranche of Salary Standardization Law (SSL). Furthermore, government personnel, including teachers, may expect another round of salary adjustments with the Fourth Tranche of SSL set to be implemented in 2019.
Currently, an entry-level public school teacher (Teacher 1), having Salary Grade 11 under Tranche 3 of the SSL, earns a monthly salary of P20,179. Annually, he/she will enjoy bonuses and allowances of P74,358. This rounds up the monthly compensation package of teachers to P26,375. By 2019, their monthly salaries will increase to P20,754 and their total annual bonuses and allowances will increase to P75,5081, rounding up their monthly compensation package to P27,046, or P671 more per month.
At the same time, the significant reduction in taxes with the lower personal income tax rates imposed by TRAIN will significantly increase the take-home pay of teachers. In fact, a Teacher 1 is tax-exempt under the TRAIN law as his/ her annual taxable income falls below P250,000. Additional take home pay due to lower taxes for Teacher 1 will amount to P35,537, 176% of his/her monthly salary.
The combined effect of the increase in salary from the SSL and lowered tax rates due to the implementation of TRAIN law will result to an additional take home pay of P43,363 per year. In 2019, annual tax savings will increase to P37,262 as it is indexed to salary. Additional take home pay due to SSL and TRAIN increase to P45,312.
Source: Department of Budget and Management
According to the budget chief, the take-home pay of teachers has already increased this year with the implementation of the Third Tranche of Salary Standardization Law (SSL). Furthermore, government personnel, including teachers, may expect another round of salary adjustments with the Fourth Tranche of SSL set to be implemented in 2019.
Currently, an entry-level public school teacher (Teacher 1), having Salary Grade 11 under Tranche 3 of the SSL, earns a monthly salary of P20,179. Annually, he/she will enjoy bonuses and allowances of P74,358. This rounds up the monthly compensation package of teachers to P26,375. By 2019, their monthly salaries will increase to P20,754 and their total annual bonuses and allowances will increase to P75,5081, rounding up their monthly compensation package to P27,046, or P671 more per month.
At the same time, the significant reduction in taxes with the lower personal income tax rates imposed by TRAIN will significantly increase the take-home pay of teachers. In fact, a Teacher 1 is tax-exempt under the TRAIN law as his/ her annual taxable income falls below P250,000. Additional take home pay due to lower taxes for Teacher 1 will amount to P35,537, 176% of his/her monthly salary.
The combined effect of the increase in salary from the SSL and lowered tax rates due to the implementation of TRAIN law will result to an additional take home pay of P43,363 per year. In 2019, annual tax savings will increase to P37,262 as it is indexed to salary. Additional take home pay due to SSL and TRAIN increase to P45,312.
Source: Department of Budget and Management
Annual Bonuses and Allowances of Teachers in 2019
Reviewed by Anonymous
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February 11, 2019
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Reviewed by Anonymous
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February 11, 2019
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