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Tuition Fee Increase


Clearly, only 70% may be used for the payment of salaries, wages, allowances and other benefits of teaching and non-teaching personnel.


A school is principally established to deliver quality education at all levels, as the constitution requires.  Therefore, any tuition fee increase authorized by the DepEd should not solely benefit the teaching and non-teaching personnel but should rather be used for the welfare of the entire school community, particularly the students.  Thus, if the school uses any part of the 20% reserved for the upgrading of school facilities to supplement the salaries of their academic and non-academic personnel, they would not only be violating the student’s constitutional right to quality education through “improvement and modernization” but also committing infraction of the mandating provisions of RA 6728.


The DepEd has referred to the remaining 10% as the “return of investment” for proprietary schools or “free portion” for non-stocks, non-profit educational institutions.  This is the only portion of the tuition fee increase which schools may use as they wish. (MRPS, p.391)


Unless otherwise mandated, private schools may not be compelled by teachers and other school personnel to use the 70% solely to effect an increase in their salaries or other wage related benefits.


With respect to the distribution of the increment proceeds arising from increases in tuition fees (but not other fees), the law under RA 6728 (and quoted almost verbatim under DepEd Order No. 21, s. 1993) explicitly mandates that it should go to the payment of salaries, wages, allowances and other benefits of teaching and non-teaching personnel, except administrators who are principal stockholders of the school.



DepEd is of the view that the discretion is vested upon the school authorities:  the school can distribute the entire 70% for an across-the-board salary increase, if it is so wished, and/or merit increases, and/or for allowances or other benefits.  The benefit must accrue to specific individual school personnel and the benefit once given for a specific year cannot be revoked for that same year.


The following may be counted:  teachers’ uniforms, transport allowance, pension fund, health insurance, etc.  A meeting room cannot be counted, as it does not accrue to specific individuals.  (MRPS, pp. 392-393)


The distribution of the 70% from the tuition fee increase is based on the following clusters of priority:


1.     Across the board

2.     Performance Incentive/Perfect Attendance

3.     Faculty Development/Educational Benefits for Children

4.     Substitution/Homeroom/Double Assignment/Overload

5.     Representation

6.     Christmas Bonus (Optional, subject to availability of funds) 


A bonus is an amount granted and paid to an employee for his industry and loyalty, which contributed to the success of the employer’s business and made possible the realization of profits.  It is an act of generosity of the employer not covered by any mandate or law (MRPS, p. 413).



Thirteenth Month Pay


The minimum 13th month pay required by law should equal not less than 1/12 of the total basic salary for a calendar year.  It does not include allowances and other monetary benefits that are not part of the basic pay, such as cash equivalents of unused sick leave, overtime pay, premium pay, holiday pay and COLA.


The school issues 13th month pays in two partial payments. The first issued on the first month of the school year (June) and the second the last month of the year (December).


“An employee who resigned or whose services were terminated any time before the grant of 13th month pay is still entitled hereto but the amount he receives shall be proportionate to the duration of his service for the year.  This period is reckoned from the onset of his employment to the point of his resignation or termination.” (MRPS, p. 406)


SSS and PhilHealth


                SSS and PhilHealth benefits are given to employees in conformance with existing and applicable laws and regulations. Please see appendix for details.


Pag-Ibig Membership


                The Pag-Ibig Fund is a savings program for employees provided for by law. It is generated by the employee’s monthly contribution and by the employer’s counterpart. A major feature of the program is a Housing Loan Assistance for employee-members.


Retirement Benefits


Retirement age for all ESS employees is 60 years old.  Upon retirement of an employee, his services maybe continued or extended on a case-to-case basis upon the agreement of the management and the employee.


The minimum retirement pay due an employee includes the following:


a.     ½ month salary for every year of service based on the employee’s latest salary.  For this purpose a fraction of at least six months shall be considered one year


b.     Salary for 15 days based on the employee’s latest salary rate.  This does not include cost-of-living allowances, profit sharing payments and other monetary benefits, which are not considered part or integrated into the regular salary of the employee


c.     Cash equivalent of five days service incentive leave


                        d.   One-twelfth of the 13th month due the employee

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