Malacanang has been asked last week to suspend the implementation of Order No. 5 issued by Department of Education secretary Department of Education Leonor M. Briones that threatens “to wreak havoc” on the financial condition of public school teachers and their families.
Briones issued the order early this year as part of the guidelines in the implementation of the P5,000 net take home pay of Dep-Ed personnel to include public school teachers.
Saying the net take home is mandatory, Briones said salary deduction should not be lower than the amount (P5,000.00).
But Davao-based stakeholders said that while the order appears noble in its intention, its order of preference provision would adversely affect the interest of teachers.
The order of preference listed the following priority order of payroll deduction, namely: Priority 1 creditor (government-mandated benefits such as BIR, Philhealth, GSIS, HDMF), Priority 2 (non-stock savings, loan associations and cooperatives), Priority 3 (associations of provident funds), Priority 4 (government financial institutions), Priority 5 (licensed insurance companies) and Priority 6 (thrift banks and rural banks).
The stakeholders in a position paper said that Priorities No. 5 and 6 put low-priority creditors at a disadvantage “because they will not be able to collect anymore and could just shut down their loan portfolios for teachers.”
They explained: “This will happen if the priority creditors 1-4 will have a demandable due of P20 thousand from each teacher. Since that is already the maximum amount that be deducted from the teacher’s payroll, Priority 5 and 6 will no longer be paid—not only on a given month but possibly in the month and even after.”
“It could be even forever,” they added.
The stakeholders said that before this, payroll deductions for loans incurred are done on a first-come-first-served basis.
“That means the oldest loan will be paid first,” they added. “Every creditor therefore, gets a fair and equal chance to collect.’
The stakeholders said the ‘system aint broke’ and they were puzzled why the Dep-Ed would change it.
