P50,000 for Teacher I | Higher Pay Could Reduce Dependence on Loans

Calls for a substantial salary increase for public school teachers are gaining renewed attention as concerns continue over the growing indebtedness of educators and their reliance on loans to meet everyday expenses.

At the center of the discussion is the proposal to raise the entry-level salary of public school teachers to ₱50,000 per month, a measure being pushed by the Alliance of Concerned Teachers (ACT) and its representatives in Congress.

For the group, repeated warnings against excessive borrowing or surrendering payroll ATM cards as loan collateral may help protect teachers from abusive lending practices, but they do not fully address the reason many educators borrow money in the first place.

The bigger issue, ACT argues, is whether teachers are earning enough to support their families and meet their financial obligations without repeatedly turning to loans.

From managing debt to preventing it

Teachers commonly rely on salary loans, government lending programs, cooperatives, banks and other financing options for household expenses, medical needs, education costs, emergencies and other major financial obligations.

While access to legitimate credit can be useful, persistent borrowing can become a serious financial problem when a large portion of a teacher's monthly salary is already committed to loan deductions.

This is why advocates are calling for government intervention that goes beyond reminding teachers to borrow responsibly.

Instead of concentrating only on how teachers manage their debts, ACT has maintained that government should also address the underlying financial pressure that causes many educators to become heavily indebted.

A substantial increase in basic salary, the group believes, could give teachers greater disposable income and reduce their dependence on loans for regular household expenses.

₱50,000 proposed minimum salary for Teacher I

Under the proposal being pushed in Congress, the minimum monthly salary of public school teachers would be increased to ₱50,000, or the equivalent of Salary Grade 15 if that amount eventually becomes higher.

This would particularly benefit Teacher I, the entry-level teaching position in the public school system.

Under the 2026 government salary schedule, Salary Grade 11 Step 1—the salary grade associated with Teacher I—provides a basic monthly salary of ₱31,705.

Raising the entry-level salary to ₱50,000 would therefore mean a substantial increase in the monthly basic pay of beginning public school teachers.

Supporters argue that an increase of this size could have a more meaningful effect on teachers' financial stability than smaller adjustments that are quickly absorbed by rising prices, household expenses and existing loan payments.

Higher pay could reduce dependence on loans

For many educators, loan deductions can significantly reduce their actual take-home pay.

Once deductions for housing, personal loans, emergency loans and other obligations are removed from their monthly salary, some teachers are left with limited funds for food, transportation, utilities, children's education and other necessities.

This can create a cycle in which teachers take another loan to cover expenses while still paying previous debts.

A higher basic salary could help break that cycle by allowing teachers to allocate more money to everyday needs, savings and emergency funds before resorting to borrowing.

It could also strengthen teachers' ability to qualify for safer and more affordable financial products rather than turning to high-interest or informal lending arrangements.

Salary increase seen as a welfare issue

The campaign for a ₱50,000 entry-level salary is therefore not being presented solely as a reward for teachers.

Advocates are framing it as a broader welfare measure that could help address financial stress, excessive indebtedness and the economic difficulties experienced by education workers.

ACT has repeatedly argued that teachers should receive compensation that reflects their professional qualifications, workload and responsibilities.

Aside from classroom teaching, educators are often tasked with preparing learning materials, completing reports, attending trainings, communicating with parents and carrying out various school-related responsibilities.

Supporters of the salary proposal believe that improving compensation would not only help teachers financially but could also improve morale, retention and the attractiveness of the teaching profession.

More than reminders

Recent reminders from the Department of Education against using payroll ATM cards as loan collateral have once again brought the issue of teacher indebtedness into public discussion.

Such reminders may help discourage risky borrowing practices, but teacher groups argue that financial discipline alone cannot solve the problem if salaries remain insufficient compared with the cost of living.

For them, protecting teachers from excessive debt requires both responsible borrowing policies and stronger government support.

That includes affordable lending programs, financial literacy initiatives, protection from predatory lenders and, most importantly, a significant increase in basic salaries.

Proposal still needs congressional approval

The proposal to set the entry-level salary of public school teachers at ₱50,000 per month is not yet an approved salary increase.

It remains subject to the legislative process, including congressional deliberations, funding considerations and eventual approval into law.

Still, the proposal has placed an important question at the center of the debate over teachers' debts: Should government focus mainly on controlling how teachers borrow, or should it also substantially increase their salaries so that borrowing becomes less necessary?

For groups advocating the ₱50,000 salary, the answer is clear. Long-term financial security for teachers cannot be achieved through warnings and restrictions alone. Addressing indebtedness, they argue, also means ensuring that a Teacher I earns enough to meet the rising cost of living without having to depend heavily on loans simply to make ends meet.