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Effects of Salary Standardization Law on the Socio-

Economic Status, Work Performance, Motivation and Job
Satisfaction of Teachers
Ofelia A. Bajarin, Rosanna D. Gonzales, PhD
PSU-School of Advanced Studies, Moncada Tarlac Elementary School
[email protected], [email protected]

Abstract - This study aimed to describe the effects of salary standardization law on the socio-economic status,
work performance, motivation and job satisfaction of teachers. It covered 405 public school teachers in the country
regardless of their point of origin. It made used of descriptive-evaluative design. Moreover, a survey questionnaire
was used and was processed using descriptive and inferential statistics.
Majority of the teachers were young and in the early adulthood, with master’s units,and with at least one
organizational affiliation, earning salary grade 13, and were still young in the service. They earn low monthly net
income, have at least one other source of income, and performing very satisfactory. Teachers have small number of
family members and dependents, were living in rural areas and were spending monthly expenses at an average.
They have three to six assets which majority, are electronic gadgets, motorcycles and appliances, majority also
engaged in loans which were salary, emergency and multipurpose loans.
In terms of the perceived effects of SSL on the socio-economic status of teachers, it garnered a grand
weighted mean of 3.11 and descriptively rated as “moderate”. On spending habits and borrowing practices it
garnered an average mean of 3.12 and 3.14 which both descriptively rated as “moderate” respectively.
Furthermore, salary standardization law has “high” effects along the teachers’ work performance (weighted mean
of 3.79), motivation (weighted mean of 3.69), and job satisfaction (weighted mean of 3.66).
The overall level of socio economic status, work performance, motivational level, and job satisfaction of
teachers does not differ in general.
In addition, net income registered a highly significant relationship (r=+.564, p=.000) to their salary
grade. It implies that teachers who have higher salary grade and receiving higher salary tend to have bigger net
income.

Keywords – SSL, socio-economic status, work performance, motivational level, job satisfaction, salary grade

INTRODUCTION quality, accessible, relevant and liberating basic

education for all [1].
The salary of public school teachers in the
country is way below the average teachers’ salary The first Salary Standardization Law or
in the Association of Southeast Asian Nations SSL 1 was promulgated through Republic Act No.
(ASEAN). Inadequate take-home pay for a 6758 on August 1989 under President Corazon C.
majority of public school teachers has been a Aquino’s administration. It was known as “the
common complaint which is said to have led to Compensation and Position Classification Act of
their increased indebtedness. Thus, to attract and 1989. This act aimed to provide equal pay for
retain competent and committed civil servants. substantially equal work and to base differences in
Salary Standardization Law has been created, pay upon substitute differences in duties and
which primarily aims to upgrade the standard of responsibilities, and qualification requirements of
living of government employees and that includes the position. The rates of pay were determined
the public school teachers, hoping that this will with due regard, given to, among others, prevailing
yield positive results in their work performance rates in the private sector for comparable work [2].
and organizational commitment. Moreover, this After Cory Aquino’s term, it has been
may lead to the realization of one of the adopted through Executive Order No. 164 s. 1994
Philippines Development Plan goal of achieving of President Fidel V. Ramos administration with
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the following objectives; 1.) to gear up the entry position of Teacher 1 with a Salary Grade 11
bureaucracy to be more inspired and effective in Step 1 receiving a salary of 18, 549 pesos, it had
achieving the country’s development goals, it is increased to 20,754 pesos.
imperative to upgrade and further rationalize the One of the government’s major goals is to
present compensation system; 2.) to stream line the uplift the quality of education and one of its
policy of the government has burdened the answers to achieve this goal is to give proper and
remaining personnel with additional duties and just compensation to its teaching workforce. With
responsibilities for which they must be properly more than a million of teachers in the Philippines,
compensated; 3.) for an immediate need to update salary increase assumed, had yield outcomes on
the compensation structure to keep in step with the their job roles, attainment of performance targets,
existing economic conditions and ameliorate the deliverance of results and job satisfaction. Thus,
plight of government personnel [3]. the researcher wants to find out the effects of the
Salary increase of uniformed and civilian SSL on public school teacher’s socio-economic
government workers continued in the term of status, work performance, motivational level and
office of President Gloria M. Arroyo through the job satisfaction.
signing of Executive Order No. 811 s. 2009 which
is popularly known as Salary Standardization Law OBJECTIVES OF THE STUDY
III [4]. The main purpose of the study was to
determine the effects of the salary standardization
On February 2016, President Benigno S. law on the socio-economic status, work
Aquino III also signed Executive Order 201 or the performance, motivation and job satisfaction of the
Salary Standardization Law IV that comes in four public school teachers. Specifically, it aims to
tranches. This is to ensure that the compensation answer the following specific problems: 1) The
structure of government personnel is comparable profile of the public school teachers in terms of; a.
with the prevailing rates in the private sector personal, b. family, c. assets and d. liabilities. 2)
thereby attracting and retaining competent and The effect of salary standardization law to along
committed civil servants, the existing the; a. socio-economic status, b. work
Compensation and Classification System (CPCS) performance, c. motivation and d. job satisfaction
was revised or updated to conform with the of teachers 3) The significant difference on the
following: a) Raise the minimum salary for Salary effect of Salary Standardization Law on the
Grade 1 from the current rate of Nine Thousand socioeconomic status, work performance,
Pesos (P9,000) to Eleven Thousand Sixty Eight motivational level, and level of job satisfaction of
Pesos (P11,068) to make it even more competitive teachers along their salary grade level 4) The
with the market rates; b) Bring the compensation significant relationship between the salary grade
of government personnel closer to their private and net income of teachers. 5) The teachers’
counterparts to at least 70% of the median of the financial management action plan proposed based
market for all salary grades; c) Eliminate overlaps on the findings of the study.
in between salary grade allocations of government
personnel to recognize differences in duties and Research Hypothesis
responsibilities of the positions; d) Maximize the The research hypothesis is stated in null form
net take home pay of government personnel and was tested at the .05 level of significance: 1)
through the inclusion of additional benefits; and e) There is no significant difference on the effect of
Strengthen the performance-based incentive Salary Standardization Law on the socioeconomic
system in recognition of government personnel status, work performance, motivational level, and
who play a greater role and carry a heavier level of job satisfaction of teacher-respondents
responsibility in attaining performance targets and along their salary grade. 2) There is no significant
delivering results[5]. relationship between the salary grade and net
income of teachers.
SSL (E.O No. 201 s., 2016) which was
started last 2016 ended last 2019. Four tranches of
salary pay hike had been implemented. From an
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MATERIALS AND METHODS It contains analysis of data on the following:

1.a) description of the personal profiles of teachers
Research Design such as age, sex, civil status, highest educational
attainment, membership/organizational affiliation,
This research made used of descriptive- salary grade level and step, teaching experience,
evaluative methodology. The descriptive method is net income, other source/s of income, teaching
designed for the researcher to gather information performance. 1.b) description of the family profiles
about existing conditions [6]. of teachers such as total number of family
The descriptive survey research design was members, number of dependents, number of
used to describe the profile of the teachers, their working family members, type of residence, total
socio-economic status, teaching performance, monthly income of the family, total monthly
motivational level and their level of job expenses of the family. 1.c) description of assets of
satisfaction. The research investigation was teachers such as real and personal properties. 1.d)
likewise a survey because of the use of the description of the liabilities of teachers. 2.)
questionnaire. description of the perceived effects of salary
Moreover, the evaluative method was also used standardization law along socio-economic status,
since the researcher evaluated the effects of SSL work performance, motivation and job satisfaction
on socio-economic status, work performance, 3.) difference on the effect of salary
motivational level, and level of job satisfaction standardization law on the socioeconomic status,
among the teachers along their teaching position work performance, motivational level, and level of
after its implementation. job satisfaction of teacher-respondents along their
teaching position. 4. relationship between the
Respondents of the Study salary grade and net income of teachers
Random Sampling Technique was made used.
The researcher used the Slovin’s formula to Respondents Profile
determine the sample respondents. The subjects of
the study were the 405 public school teachers in Presented in Table 1 is the personal profile
the Philippines regardless of their point of origin. of the public school teachers in terms of personal;
Further, responses were retrieved using google age, sex, civil status, highest educational
forms. attainment, membership or organizational
affiliation, salary grade and step, teaching
experience, net income, other sources of income,
RESULTS AND DISCUSSION and teaching performance.
Presented in Table 2 is the family profile
of public school teachers which includes the total
This section deals with the presentation,
number of family members, number of dependents,
analysis and interpretation of the data gathered
number of working family members, total monthly
through survey questionnaires that helped in
income of the family, place of residence, total
answering the problems connected to the effects of
monthly expenses.
salary standardization law on socio-economic
status, work performance, motivation and job
Presented in Table 3 are the assets and
satisfaction of public school teachers.
liabilities of the public school teachers.

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Table 1
Personal Profile of Teachers
Personal Profile of Teachers frequency %
Age:
21-30 yrs old (young age) 146 36.00
31-40 yrs old (early adulthood) 137 33.80
41-50 yrs old (middle adulthood) 76 18.80
51-60 yrs old (late adulthood) 45 11.10
61 and above (seniors) 1 0.20
Total 405 100.00
Sex:
Male 126 31.10
Female 279 68.90
Total 405 100.00
Civil Status:
Single 130 32.10
Married 256 63.20
Widow/Widower 19 4.70
Total 405 100.00
Highest Educational Attainment:
Bachelor's Degree 84 20.70
with Master’s Degree 148 36.50
Master's Degree Graduate 94 23.20
with Doctorate units 50 12.30
Doctorate Degree Graduate 29 7.10
Total 405 100.00
*Membership/Organizational Affiliation:
None
Alliance of Concerned Teachers (ACT)
49 12.10
Philippine Public School Teachers Association (PPSTA)
150 37.00
Philippine Association of Teacher’s Education (PafTE)
290 71.60
Provincial Teachers’ Association
6 1.50
District Teachers’ Association
20 4.90
Others (Association of Research and Trainers, Philippine
14 3.50
Educational Measurement and Evaluation
16 4.00
Association, Philippine Guidance Counselor
Association, Manila Teachers Association)
Number of Membership/Organizational Affiliation
None 49 12.20
1 231 57.30
2 111 27.50
3 8 2.00
4 4 1.00
Total 405 100.00
Salary Grade:
11 115 28.40
12 76 18.80
13 178 44.00
18 18 4.40
19 13 3.20
20 3 0.70
21 2 0.50
Total 405 100.00
Teaching Experience:
1-10 yrs. (young) 235 58.00
11-20 yrs. (moderately experienced) 135 33.30
21-30 yrs. 30 7.40
31-40 yrs. 5 1.20
Total 405 100.00
Net Income:

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below 15,000 (very low) 137 33.80

15,001-25,000 (low) 199 49.10
25,001-35,000(average) 50 12.30
35,001-45,000 (high) 14 3.50
45,001-55,000(very high) 5 1.20
Total 405 100.00
*Other Sources of Income:
None
Online Retail Store 64 15.90
Sari-Sari Store 137 34.10
Farming 45 11.20
Fishing 142 35.30
Livestock Raising 2 0.50
Online Networking Business 34 8.50
Others (freelance graphic artist, vendor, sports coach, t- 42 10.40
shirt printing, motor repair shop, college 24 6.00
instructors, real estate agent, insurance agent)
Teaching Performance:
Outstanding 114 28.10
Very Satisfactory 291 71.90
Total 405 100.00

A. Personal Profile ranking process for promotions as stipulated in

DepEd Order 66 s. 2007. It can also be used in
Age The ages of teachers range from 21 to applying for Equivalent Record Forms for
above 61 years. The data indicate that the largest Promotion if the teachers have already the
group, 146 or 36%, of respondents is in the bracket educational points to apply for it and be promoted
of 21-30 years of age, they were categorized as to higher teaching positions through ERF process.
young. The second largest group 137 or 33.80% Membership or Organizational
belongs to the age bracket of 31-40 years old. Affiliation In terms of affiliating to organizations,
There were 76 or 18.80% aged 41-50,. However, majority 290 or 71.60% of public school teachers
only 45 or 11.10% belong to age bracket of 51-60, were members of the Philippine Public School
and 1 or 0.20% were at least 61 years old. Result Teachers Association (PPSTA), 150 or 37%were
shows that majority of the teachers were young and members of the Alliance of Concerned Teachers
in the early adulthood [7]. (ACT), 49 or 12.10% have no membership to
Sex Two hundred seventy nine or 68.90% organizations, 20 or 4.90% were members of their
public school teachers were female while 126 or provincial teachers’ association, 14 or 3.50%
31.10% are male. affiliates to district teachers’ association. 16 or 4%
Civil Status Most of the teacher have other memberships and only six or 1.10%
respondents were married 256 or 63.20% and 130 were members of PAfTE.
or 32.10% of the public school teachers were still Number of Membership or
single. Only 19 or 4.70% were widows/widowers. Organizational Affiliation Majority, 231 or
Highest Educational Attainment The 57.30% of teachers were members of one
data revealed that most 148 or 36.50% of the organization, 111 or 27.50% were members of two
respondents have earned units in master’s program; organizations, 12 or 3% of teachers were members
94 or 23.20% were master’s degree graduates; 84 of three to four organizations and 49 or 12.20%
or 20.70% of the respondents were bachelor’s were not members of any organizations.
degree holders while 32 or 7.90% have Ed.D..
units and 18 or 4.40% have Ph.D. units. Only 18 or Salary Grade Teachers were paid
4.40% were Ed.D. graduates and 11 or 2.70% were according to their position which tantamount to
Ph.D. graduates. Data show that majority or their salary grade level. Results revealed that most,
79.20% of teachers were enrolled or graduated post 178 or 44% of the teachers were on SG 13, 115 or
graduate courses due to the fact that it can give 28.40% were SG 11, 76 or 18. 80% were SG 12,
them additional 25 points in maximum in the while 18 or 4.40% were on SG 18, 13 or 3.20%
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were SG 19, three or .70% were SG 20 and only other sources of income. Most, 142 or 35.30%
two or .50% were on SG 21. These data show that were into farming, 137 or 34.10% were into online
majority 369 or 91.11% of the teachers are paid on retail business, 64 or 15.90% do not engaged into
the SG-11 –SG 13 levels, while only 36 or 8.89% other sources of income, 45 or 11.20% have sari-
were on the levels of SG 18-SG 21. sari store, 42 or 10.40% were into online
networking business, 34 or 8.50% were into
Teaching Experience In terms of livestock raising, 24 or 6% have other sources of
experience in teaching, 235 or 58% are on the income such as freelance graphic artists, college
bracket of 1-10 years of experience, 135 or 33.30% instructors, meat vendor, t-shirt printing, only two
were on the bracket of 11-20 years of experience, or .40% were into fishing as other source of
30 or 7.40% are 21-30 years in teaching and only 5 income. Data show that teachers were into farming
or 1.20% were 31-40 years in public service. These and online retail store as other sources of income.
show that in terms of experience majority 370 or
91.36% were young and moderately experienced in Teaching Performance Majority 291 or
the service. Categorization of experience was 71.90% of public school teachers were very
adopted from the study of Lansangan (2003) [8]. satisfactory, while 114 or 28.10% were outstanding
in their teaching performance.
Net Income In response to the queries on
the net income of public school teachers, data
show that most 199 or 49.10% were on the net
income bracket of 15,001-25,000, 137 or 33.80% B. Family Profile
are on the net income bracket of below 15,000. 50
or 12.30% were on 25,001-35,000, 14 or 3.50% Total Number of Family Members
were on 35,001-45,000, and only 5 or 1.20% were Majority, 260 or 64.20% of the teachers belong to
on the income bracket of 45,001-55,000. These 1-4 members in the household, 135 or 33.30%
show that majority 336 or 82.96% of teachers were belong to 5-8 members in the household, 9 or
having low to least net income. According to the 2.30% belong to the 9-12 members in the
2018 Philippine Statistics Authority (PSA) Survey household and only one or .20% belongs to 13 and
on Family Income and Expenditure and on the above members in the household. Results revealed
indicative range of monthly family income (for a that public school teachers have small family
family of five in the Philippines) 2015 and 2017, members in their households. Data show cascade
public school teachers are on the ranges of low to the results to the very low net income of
income class (but not poor) with range of PHP teachers. Filipino parents agree that supporting
9,520-19,040 and lower middle income class with their kids with schoolwork, inspiring them, and
range of PHP 19,040-38,080 income clusters, in providing structure at home helps their kids excel
terms of per capita income, teachers are on in school, consistent with the current parental
between poverty line and twice the poverty line participation literature. The lesser the number of
and between 2 and 4 times the poverty line. children they care and support the more structured
Moreover, the indicative ranges based on PSA parental involvement they can extend to them.
indicate that the teachers fall on the low income to (Garcia 2018) [10].
middle income classes. Results further justify why Number of Dependents Majority 212 or
teachers are not into savings and investment due to 52.34% of teachers have 1-2 number of
their low class income which made hard for them dependent/s, 61or 15.06% have 3-4 dependents, 17
to set aside money for savings or investments [9]. or 4.20% have 5 or more dependents and 15 or
Other Sources of Income To augment 3.70% have no dependent member of the family.
teachers income, teachers engaged themselves to Results revealed that public school teachers have
small number of dependents.

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Table 2
Family Profile of Teachers

Family Profile of Teachers frequency %

Total No. Of Family Members:
1-4 (small) 260 64.20
5-8 135 33.30
9-12 9 2.30
13 and more (big) 1 .20
Total 405 100.00
No. of Dependents:
None 15 3.70
1-2 (small) 212 52.34
3-4 (average) 61 15.06
5 and above (big) 17 4.20
Total 405 100.00
No. of Working Family Members:
1-3 382 94.32
4-6 23 5.68
Total 405 100.00
Total Monthly Income of the Family:
below 15,000 (least) 27 6.70
15,001-25,000 (low) 97 24.00
25,001-35,000 (average) 144 35.60
35,001-45,000(moderately high) 78 19.30
45,001-55,000 (high) 38 9.40
55,001 and above (very high) 21 5.20
Total 405 100.00
Place of Residence:
Rural 302 74.60
Urban 103 25.40
Total 405 100.00
Total Monthly Expenses:
below 15,000 (very low) 60 14.80
15,001-25,000 (low) 128 31.60
25,001-35,000 (average) 122 30.10
35,001-45,000 (moderately high) 84 20.70
45,001-55,000 (high) 8 2.00
55,001 and above (very high) 3 .70
Total 405 100.00

Number of Working Family Members In 25,000, 78 or 19.30% have income bracket of

terms of the working family members, majority 382 35,001-45,000, 38 or 9.40% have income bracket of
or 94.32% have working family members on the 45,001-55,000, 27 or 6.70% are on the bracket of
bracket of 1-3, while 23 or 5.68% have working below 15,000 pesos, and 21 or 5.20% are on the
family members on the bracket of 4-6. Results show income bracket of 55,001 and above. We can
that teachers have a relatively small number of family obtained from the results that teachers’ families’ total
members who can help in augmenting the total income are on the bracket of low to average income
income of the family. earners.
Total Monthly Income of the Family Most Place of Residence Majority, 302 or 74.60%
144 or 35.60% of the public teachers have families’ of the public school teachers lived in the rural areas
total monthly income of 25,001-35,000 income while 103 or 25.40% lived on the urban areas.
bracket, 97 or 24% have income bracket of 15,001-

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Total Monthly Expenses In terms of total Assets and Liabilities:

monthly expenses of the public school teachers, most, Assets Public school teachers file their
128 or 31.60% spend on the bracket of 15,001-25,000 statement of assets and liabilities annually as
monthly, 122 or 30.10% spend 25,001-35,000, 84 or indicated in their Statement of Assets, Liabilities and
20.70% spend on the bracket 35,001-45,000, 60 or Net worth (SALN). Data revealed that 361 or 89.10%
14.80% spend on the bracket of below 15,000 pesos of teachers have electronic gadgets, 341 or 84.20%
while eight or 2% and three or .70% spend on the have appliances, 315 or 77.80% have motorcycles or
bracket of 45,001-55,000 and 55,000 and above. tricycles, 243 or 60% have furniture, 197 or 48.60%
Results revealed that public school teachers have have their houses, 191 or 47.20% have jewelries, 165
total monthly expenses ranging from average to low. or 40.70% have lots, 71 or 17.50% have their savings
account, 65 or 16% have their service utility vehicles,
and only eight or 2% have stocks/bonds. Data reveal
that teachers are not into savings or investments.

Table 3
Assets and Liabilities of Teachers
Assets and Liabilities frequency %
*Assets:
House 197 48.60
Lot 165 40.70
SUV 65 16.00
Trike 315 77.80
Savings Account 71 17.50
Jewelries 191 47.20
Appliances 341 84.20
Furniture 243 60.00
Electronic Gadgets 361 89.10
Stocks/Bonds 8 2.00
Number of Assets
With 1-2 assets 37 9.10
3 to 4 assets 138 34.10
5 to 6 assets 160 39.50
7 to 8 assets 57 14.10
9 and above assets 13 3.20
Total 405 100.00
*Liabilities:

None 12 3.00
Real Loan 7 1.80
Housing Loan 62 15.50
Multipurpose Loan 165 41.20
Emergency Loan 190 47.50
Pag-ibig Loan 127 31.80
Salary Loan 361 90.20
Policy Loan 189 47.20
Educational Loan 87 21.80
Credit Card Balance 8 2.00
Vehicle Amortization 27 6.80
Others 7 1.80
Number of Liabilities
No loans/liability 7 1.70
With 1-2 Loans 189 46.70
With 3 to 4 loans 103 25.40
With 5 to 6 loans 92 22.70
With more than 7 loans 14 3.50
Total 405 100.00
*(multiple responses)

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Number of Assets In terms of real and School Teachers Association (PPSTA), 231 or
personal properties of teachers, most 160 or 57.30% were members of at least one organization,
39.50% have 5 to 6 assets, 138 or 34.10% have 3 majority, 178 or 44% of the teachers were earning
to 4 assets 57 or 14.10% have 7 to 8 assets, 37 or a salary grade 13 basic pay. Large number, 235 or
9.10% have one to two assets while 13 or 3.20% 58% of public school teachers were still young in
have 9 and above assets. the service, while majority, 199 or 49.10% were
Liabilities In terms of liabilities, majority earning a low monthly income of 15-001-25,000
361 or 90.20% have salary loans, 190 or 47.50% pesos. Thus, teachers engaged themselves into
have emergency loans, 189 or 47.20% have policy other sources of income, of which most 142 or
loans, 165 or 41.20% of teachers have 35.30% and 137 or 34.10% were into farming and
multipurpose-loans, 127 or 31.80% have pag-ibig online retail business. Moreover, majority 291 or
loans, 87 or 21.80% of teachers have educational 71.90% of public school teachers performed very
loans, 62 or 52.50% are into housing loans, 27 or satisfactory.
6.80% are still paying their car amortization, eight
or .2% have credit card balances, seven or 1.80% On the other hand, most of the teachers
are engaged into other types of loans and debts have 1-4 family members in the household,
such gadget loan and 5/6. Only 12 or 3% of the majority 227 or 56.04% have 0-2 dependent/s.
public school teachers do not have any loans. Majority 382 or 94.32% of teachers have working
Number of Liabilities Most 189 or family members of 1-3 members. Most, 144 or
46.70% of the teachers have 1-2 loans, 103 or 35.60% have families earning a total monthly
25.40% have 3-4 loans, 92 or 22.70% have 5-6 income of 25,001-35,000 and 302 or 74.60% are
loans, 14 or 3.50% have more than 7 loans and living in the rural areas. Majority 248 or 61.70% of
only 7 or 1.40% have no loans or liability. teachers’ families spend low to average total
monthly expenses of 15,001-35,000 pesos.
Summary of Findings
In terms of teachers’ assets and liabilities,
Results of this study revealed that the majority 361 or 90.20%, 341 or 84.20%, 315 or
majority 283 or 69.80% of public school teachers 7.80%, have electronic gadgets, appliances and
were relatively young with age bracket of 21-40 motorcycles or tricycles, 298 or 73.60% have 3-6
yrs. old. 279 or 68.90% were females, Majority assets. On the other hand, majority, 361 or 90.20%
256 or 63.20% were married, and 148 or 36.50% of teachers engaged in salary loan, 190 or 47.50%
have master’s units. Two hundred ninety or on emergency loan and 165 or 41.20% are into
71.60% were members of the Philippine Public multipurpose loan, Furthermore,398 or 98.30%
have loan/s or liability/ies.

Perceived Effects of Salary Standardization Law in terms of the socio-

Standardization Law (SSL) to Teachers economic status, work performance, motivational
level and job satisfaction of public school teachers.
Presented in Table 4, 5, 6 and 7 are the
extent of perceived effects of Salary

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Table 4
Perceived Effects of Salary Standardization Law on the Socio-Economic Status to Teachers
(n=405)
A1. SPENDING HABITS 5 4 3 2 1 WM DE
1. They spend more now than before because of
19 180 167 31 8 3.42 High
the salary increases.
5% 44% 41% 8% 2%
2. They can now buy branded products compared
15 125 196 55 14 3.17 Moderate
before that it was hard for them to have one.
4% 31% 48% 14% 3%
3. They can now travel to beautiful tourist spots not 3.07 Moderate
16 131 158 67 33
like before that traveling is quite a luxury.
4% 32% 39% 17% 8%
4. They visit shopping malls and online shopping
sites more often, compared before that they usually 27 148 172 47 11 3.32 Moderate
stay at home on weekends.
7% 37% 42% 12% 3%
5. They have their own credit cards now to easily 2.60 Moderate
buy what they want compared before that they 11 85 147 59 103
usually wait for their salary to buy what they want
and pay in cash.
3% 21% 36% 15% 25%
Average Weighted Mean 3.12
Descriptive Rating Moderate

A2. BORROWING PRACTICES 5 4 3 2 1

1. They are able to have multiple loans now 3.17 Moderate
17 162 141 44 41
because of the pay hike brought by SSL.
4% 40% 35% 11% 10%
2. They can now apply for a bigger amount of 3.36 Moderate
25 162 156 37 25
loans due to the pay increase.
6% 40% 39% 9% 6%
3. They can now easily apply for a new loan/reloan
in banks and private lending institutions because of 28 163 153 41 20 3.34 Moderate
the annual salary increase.
7% 40% 38% 10% 5%
4. They can now apply for car loan and pay its
amortization earlier than/on the expected date of 13 116 150 62 64 2.88 Moderate
payment.
IN 3% 29% 37% 15% 16%
5. They can now pawn their atm card, bonuses
14 108 152 43 88 2.79 Moderate
and other incentives and get the money in advance.
3% 27% 38% 11% 22%
Average Weighted Mean 3.14
Descriptive Rating Moderate
GRAND MEAN 3.11
DESCRIPTIVE RATING Moderate

Socio-Economic Status of Teachers average mean of 3.12 which descriptively rated as

“ moderate”, while on teachers’ borrowing
It can be noted from Table 4 that in terms practices it garnered an average weighted mean of
of the perceived effects of SSL on the socio- 3.14 and descriptively rated as “moderate”.
economic status of teachers, it garnered a grand
weighted mean of 3.11 and descriptively rated as Moreover, on teachers spending habits, the
“moderate”. statement they spend more now than before
because of the salary increases accumulated the
The table also shows that in terms of highest mean score of 3.42 and descriptively rated
teachers’ spending habits, it also garnered an as high while as to they have their own credit cards
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now to easily buy what they want compared before spend and borrow moderately, it was found out
that they usually wait for their salary to buy what that in terms of number of loans 98.30% of
they want and pay in cash got the lowest mean teachers have loans/liabilities with 73.60% have 3-
score of 2.60 descriptively rated as moderate. In 6 assets and most are electronic gadgets,
terms teachers borrowing practices the statement motorcycle or tricycle and appliances and only
they can now apply for a bigger amount of loans 3.60% of them have their savings account.
due to the pay increase got the highest mean score
of 3.36 while they can now pawn their atm card, Work Performance of Teachers
bonuses and other incentives and get the money in
advance got the lowest mean score of 2.79. This Table 5 presents the perceived effect of
shows that public school teachers spend their salary standardization law on the work
salaries and borrow money on moderate levels. performance of public school teachers. Based on
The data cascade on the results on number of the results of the study, salary standardization law
assets and liabilities of teachers. While teachers has high effect (weighted mean of 3.79) on the
work performance of the public school teachers.

Table 5
Perceived Effects of Salary Standardization Law on the Work Performance of Teachers
(n=405)
A. SSL has brought salary increase which helped the
5 4 3 2 1 WM DE
teachers in:
1. Exemplifying better teaching performance due to the felt
42 219 133 9 2 3.71 High
salary increase and additional work incentives.
10% 54% 33% 2% 0%
2. Producing more efficient, timely and quality performance
60 191 141 12 1 3.73 High
reports and outputs.
15% 47% 35% 3% 0%
3. Creating more multi-sensory based instructional
63 209 119 13 1 3.79 High
materials for the better learning and retention.
16% 52% 29% 3% 0%
4. Creating more conducive learning environment by
purchasing paints, bulletin boards and other school supplies and 76 200 113 14 2 3.82 High
additional cleaning materials out of my salary.
19% 49% 28% 3% 0%
5. Assessing student’s performance more accurately and
53 220 113 14 2 3.76 High
with ease.
13% 54% 28% 3% 0%
6. Linking to stakeholders for continuous and higher level of
55 221 121 7 1 3.79 High
improvement and positive feed backing.
14% 55% 30% 2% 0%
7. Allowing themselves to continually improve through
attending seminars, trainings and enrolling for my post graduate 75 212 105 12 1 3.85 High
degrees or related programs which will help me grow
professionally.
19% 52% 26% 3% 0%
8. Improving their knowledge and skills in using ICT. 86 195 114 9 1 3.87 High
21% 48% 28% 2% 0%
9. Formulating and creating quality innovations, researches
and income generating projects as a support to the different 52 214 114 9 1 3.74 High
programs, projects and activities of DepEd.
13% 53% 28% 2% 0%
10 Discovering their potentials and skills in becoming a
60 229 101 14 1 3.82 High
more effective and efficient school manager and a leader.
15% 57% 25% 3% 0%
Average Weighted Mean 3.79
Descriptive Rating High

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Subsequently, the statement .SSL has them to improve their knowledge and skills in ICT
brought salary increase which helped the teachers and led to producing more efficient works and
in improving their knowledge and skills in using better outputs.
ICT accumulated the highest mean score of 3.87
descriptively rated as high. On the other hand , the Motivational Level of Teachers
statement, SSL has brought salary increase which
helped the teachers in exemplifying better teaching Table 6 presents the perceived effects of
performance due to the felt salary increase and Salary Standardization Law (SSL) on the
additional work incentives got the lowest mean motivational level of teachers.
score of 3.71. This shows that due to the pay The study found that salary standardization
increase brought by SSL, teachers have managed law has high effect (weighted mean of 3.69) on the
to purchase personal computers and connect teachers’ motivational level.
themselves on the internet which highly affected

Table 6
Perceived Effects of Salary Standardization Law on the Motivational Level of Teachers
(n=405)
A. SSL has improved their motivation in such a
5 4 3 2 1 WM DE
way that:
1. They can now meet their daily needs because
of the adequate salary, thus, they are more motivated 42 211 129 21 2 3.66 High
to go to work.
10% 52% 32% 5% 0%
2. They can now purchase their dream gadgets or
equipment, thus it motivates them to make innovations 35 157 158 49 6 3.40 Moderate
and conduct researches.
9% 39% 39% 12% 1%
3. Promotions are more easily attained for the last
33 192 146 29 5 3.54 High
four years thus it motivates them to perform well.
8% 47% 36% 7% 1%
4. Their loyalty to the school/work is strengthen. 65 209 114 13 4 3.78 High
16% 52% 28% 3% 1%
5. Due to the pay hike brought by SSL, they are a
lot motivated to outstandingly perform in various 42 187 154 19 3 3.60 High
competitions by bagging awards and recognitions.
10% 46% 38% 5% 1%
6. They have better rapport and harmonious
relationship with colleagues which made their social life 54 207 117 22 5 3.69 High
active.
13% 51% 29% 5% 1%
7. They are more motivated to enroll in post
graduate degrees for they have enough funds to 46 178 159 19 3 3.60 High
pursue it.
11% 44% 39% 5% 1%
8. They are more motivated to encourage their
students to pursue their studies and finish degree 53 203 125 20 4 3.69 High
courses for employment to government agencies.
13% 50% 31% 5% 1%
9. Because of the high regard to teaching
profession, they are more motivated to establish 52 203 135 11 4 3.71 High
linkages to other professionals.
13% 50% 33% 3% 1%
10. They are more motivated to extend their
assistance to their students, colleagues and to 62 209 119 11 4 3.73 High
whoever needs help.
15% 52% 29% 3% 1%
Average Weighted Mean 3.69
Descriptive Rating High

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Further, the statement SSL has improved researches accumulated the lowest mean score of
their motivation in such a way that their loyalty to 3.40 descriptively rated as high. Results show that
the school/work is strengthen accumulated the increase in pay has high effect on the employee’s
highest mean score of 3.78 and descriptively rated retention and motivation to the organization.
as high while the SSL has improved their
motivation in such a way that they can now Job Satisfaction of Teachers
purchase their dream gadgets or equipment, thus it The data in Table 7 revealed that salary
motivates them to make innovations and conduct standardization law has high effect (3.66) on the
job satisfaction of teachers.

Table 7
Perceived Effects of Salary Standardization Law on the Job Satisfaction of Teachers
(n=405)
A. SSL has brought salary increase and
5 4 3 2 1 WM DE
additional incentives which made them:
1. More satisfied with the present salary. 42 198 137 21 7 3.60 High
10% 49% 34% 5% 2%
2. Achieve higher morale and work efficiency. 50 204 133 15 3 3.69 High
12% 50% 33% 4% 1%
3. Happier with the current status at work. 46 203 130 23 3 3.65 High
11% 50% 32% 6% 1%
4. Believe that the current pay is a lot fair and
44 187 130 31 13 3.53 High
just.
11% 46% 32% 8% 3%
5. Meet the performance targets easier and
36 218 129 16 6 3.64 High
with higher success rating.
9% 54% 32% 4% 1%
6. Feel of having a more secure job. 50 215 121 15 4 3.72 High
12% 53% 30% 4% 1%
7. Enjoy more forms of incentive/benefits
46 225 116 16 2 3.73 High
apart from the salary.
11% 56% 29% 4% 0%
8. Confident to retire earlier with the
assurance of higher retirement pay and 38 196 146 20 5 3.59 High
benefits.
9% 48% 36% 5% 1%
9. Believe that teaching in the public school is
47 207 123 24 5 3.65 High
a greener pasture.
12% 51% 30% 6% 1%
10. Feel high regard for the school, school
managers, teaching staff as well as to the 55 211 122 14 3 3.74 High
teaching profession.
14% 52% 30% 3% 1%
Average Weighted Mean 3.66
Descriptive Rating High
Moreover, the statement SSL has brought salary increase and additional incentives which
salary increase and additional incentives which made them believe that the current pay is a lot fair
made them enjoy more forms of incentive/benefits and just accumulated the lowest mean score of
apart from the salary accumulated the highest 3.53 descriptively rated as high. It goes to show
mean score of 3.73 descriptively rated as high. On that pay increase is an important indicator to make
the other hand, the statement SSL has brought the teachers feel satisfied with their jobs.

Table 8
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Summary on the Effects of Salary Standardization Law along Socio-Economic Status, Work
Performance, Motivation and Job Satisfaction of Teachers
DESCRIPTIVE
DEPENDENT VARIABLES AWM
EVALUATION
Socio-Economic Status 3.11 Moderate
Spending Habits 3.12 Moderate
Borrowing Practices 3.14 Moderate
Work Performance 3.79 High
Motivational Level 3.69 High
Job Satisfaction 3.66 High

Summary of the Effects of SSL to Teachers Motivational Level The study found that
salary standardization law has high effect
It can be gleaned on Table 8 the Summary (weighted mean of 3.69) on the teachers’
of the Effects of SSL to the public school teachers. motivational level.
Socio-Economic Status In terms of the Job Satisfaction The data revealed that
perceived effects of SSL on the socio-economic salary standardization law has high effect (3.66) on
status of teachers, it garnered a grand weighted the job satisfaction of teachers. It goes to show that
mean of 3.11 and descriptively rated as pay increase is an important indicator to make the
“moderate”. The table also shows that in terms of teachers feel satisfied with their jobs.
teachers’ spending habits, it also garnered an
average mean of 3.12 which descriptively rated as
“ moderate”, while on teachers’ borrowing
practices it garnered an average weighted mean of Differences on the Socio-Economic
3.14 and descriptively rated as “moderate”. This Status, Work Performance, Motivational Level,
shows that public school teachers spend their and Level of Job Satisfaction of Teachers Along
salaries and borrow money on moderate levels. Their Teaching Position

Work Performance Based on the results Table 9 presents the differences on the
of the study, salary standardization law has high socio-economic status, work performance,
effect (weighted mean of 3.79) on the work motivational level and job satisfaction of public
performance of the public school teachers. school teachers.

Table 9
Comparison on the Socio-Economic Status, Work Performance, Motivational Level, and Level of
Job Satisfaction of Teachers Along Their Teaching Position
Test Between Subjects
Multivariate Test Compared Categories F Sig. Partial Eta Squared
Socio Economic Status .236 .790 .001
Wilk’s Lamda =.754 Work Performance 1.589 .205 .008
Sig.=.643
Partial Eta Motivation Level .705 .495 .003
Squared=.008 Job satisfaction .595 .552 .003

* significant at .05 level of significance Grouped Positions

SG 11 to 13 369
SG 18 and 19 31
SG 20 and 21 5

The Multivariate Analysis of Variance performance, motivation, and job satisfaction on

(MANOVA) was used as tool to test the difference their work positions. Results show that the
on the level of socio economic status, work obtained Wilk’s Lamda is .754 and the p-value is
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larger than .05. Thus, the overall level of socio

economic status, work performance, motivational
level, and job satisfaction does not differ in Relationship Between the Net Income and
general. Furthermore, based on the above results Salary Grade Level of Teachers
on test between subjects, it can be generalized that
the socio economic status levels, work Table 10 presents the relationship between
performance, motivational level, and job net income of teachers to their salary grade level.
satisfaction level of teachers are the same in all
teaching positions. Hence, leads to the non-
rejection of the null hypothesis.

Table 10
Relationship Between the Salary Grade Level and Net Income of Teachers

Salary Grade Level

Variable
r-value Sig
Net Income +0.564** 0.000
**(highly significant)

Pearson Product Moment of Correlation account. In addition, teachers engaged themselves

was used to determine the relationship between the into 1-4 loans and most are salary, emergency and
salary grade and net income of teachers. multipurpose loans.
Correlation analysis reveals that there is a strong This study also revealed that the spending
positive relationship between the salary grade and habits and borrowing practices of teachers are at
net income of teachers since the probability value the same levels which both are descriptively rated
is less than .01 (probability value = .000). The as moderate, thus, teachers should practice
positive sign of the coefficient of correlation (R = financial management techniques to achieve their
+ 0.564) implies that as the salary grade of teachers financial goals and have debt free life.
becomes higher their net income will likewise Teachers also registered a no significant
increase. This goes to show that teachers who differences in terms of socio-economic status,
have higher salary grade and are receiving higher work performance, motivational level and job
salary tend to have bigger net income. This means satisfaction level along their teaching positions.
that the implementation of SSL has a great impact This verifies that whatever the pay and status and
on the financial stability of the teachers as their net teaching positions of teachers, they will highly
income becomes higher and contributed to their perform, motivated and job satisfied, these result
better quality of life. may due/affected to their current situation brought
by Covid19 pandemic, a lot of people lost their
jobs and some businesses posted closures but the
The Proposed Teachers’ Financial Management teachers still have their monthly pay and can multi-
Plan task because they are working from home. As a
This study found out that the net incomes result, they have appreciated and valued more their
work as a teacher.
of teachers are on the ranges of least to low income
brackets. Further, their total monthly income and Hence, using the adapted strategy planning
total monthly expenses are at the same levels, thus model of Morato [11] a financial management plan
is proposed and presented in the Table 11.
only small numbers of teachers have their savings

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Table 11
Proposed Teacher Financial Management Plan
Program Objectives Activities Resources Success Indicator
Teacher’s -Build/put up a -Teachers are encouraged to -Teachers, members, -Sustainable increase in the
Savings and savings and participate and become school heads, start-up income of the teachers.
Loans loans members of the proposed monetary capital.
Association association for savings and loans association.
teachers. -Have savings which
increases gradually.
-Laid out the rules and by laws -Teachers, members,
of the association and elect the school heads, lawyer
board of trustees. -Set up an emergency fund
that will amount to at least
3-6 months of their total
-Work out the necessary -BOT’s and officers income.
requirements in putting
up/building an association in
accordance with the law or -Properly manage finances
DepEd Memorandum of and lesser number of loans
Agreement (MOA) on loans. or debts.

-Teacher-members of the - Teacher-members,

association may enjoy engaging loan and savings
in a loan and at the same time processors/
have their savings account personnel.
which they can save an ample
amount of money through the
loan they engaged in the
association with lower percent
of interest compared to the
private lending institutions or
banking loans interests.

-Conduct series -Conduct financial literacy -Financial coaches,

of seminars, orientations, workshops and teacher-members of
orientations on seminars to make the teachers the association,
financial appreciate the importance of teacher who wants to
literacy financial management towards a become members.
debt-free life.

-Capacitate the -Practice various saving - Financial coaches,

teachers into techniques and tips learned in books and videos of
practicing the financial management various saving tips
savings workshops. and techniques.
techniques.

-Possess a -Embrace positive attitude -Stories about rags to

positive mindset towards handling finances riches (Example:
on savings and wisely. Lessons from Dad of
investment and John Gokongwei),
be able to testimonies of
influence their -Integrate financial successful
colleagues and management into lessons and entrepreneurs and
students. share to colleagues and friends how they manage
the benefits of being financially their finances
wise will make them ready to properly.
any unexpected incidents in life.

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3. The Department of Education may consider

CONCLUSION AND RECOMMENDATION
conducting workshops and seminars related to
Conclusion teachers’ financial management.
4. The government may consider creating a
Based from the findings of the study, the systematic plan to further challenge the work
following conclusions were generated. performance, motivation and job satisfaction of
1. Majority of the teachers are females, teachers which will yield better learning
married, and with master’s units, subject outcomes.
area leaders, with at least one organizational 5. Similar study may be conducted using the
affiliation, earning salary grade 13, and still school managers as subjects of the study.
young in the service. They earn low monthly 6. Copy of results of this study may be provided to
net income, have at least one other source of the DepEd Main Office for their reference in
income, and performing very satisfactory. making plans and actions to enhance the work
They have small numbers of family performance, job satisfaction and motivation of
members and dependents, living in rural teachers.
areas and spending monthly expenses at an
average, have three to six assets which most REFERENCES
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