MAYROSE V. AGRAMON
Master of Business Administration | Divine Word
College of Laoag, Laoag City
Abstract
Personal and salary loans have become an
important financial resource for many employees, including teaching and
non-teaching personnel of the Department of Education (DepEd). Loans may
provide immediate assistance for legitimate needs such as education, medical
expenses, home repairs and improvements, emergencies, family obligations, or
other financial requirements. While borrowing can provide necessary financial
assistance, it also creates responsibilities beyond repaying monetary
obligations, and borrowing should not automatically be seen as an indication of
irresponsibility or poor character.
This article examines personal and
salary loans among DepEd personnel from an ethical and moral perspective,
focusing on financial responsibility, integrity, accountability, prudence, and
professional duty. It emphasizes that having a loan is not inherently
unethical; rather, the ethical dimension of borrowing depends on how responsibly
an individual obtains, manages, and repays their financial obligation. It also
discusses the importance of complying with government policies on salary
deductions, avoiding fraudulent or unauthorized lending practices, and
maintaining professional responsibilities despite personal financial
challenges.
Furthermore, it highlights the role of
financial literacy and institutional support in promoting responsible borrowing
and financial well-being among DepEd Employees. Ultimately, responsible debt
management reflects personal accountability and professional integrity. By
developing a culture of informed and ethical financial decision-making, DepEd
personnel can better balance legitimate personal financial needs with their
continuing responsibility to serve learners, the Department, and the community.
Keywords: DepEd Personnel; personal and salary loans; financial responsibility; professional ethics; public service; debt management; financial literacy; accountability; integrity; responsible borrowing
Personal Financial Needs and the Reality
of Borrowing
Personal and salary loans of DepEd
personnel can provide financial assistance when regular income is insufficient
to meet immediate or unexpected needs. Medical expenses, education, home
repairs and improvements, family obligations, emergencies, and other essential
expenditures may lead employees to seek additional financial resources. DepEd
itself has established mechanisms through its Provident Fund and Automatic
Payroll Deduction System (APDS) to facilitate certain employee loans and
authorized salary deductions. (Department of Education, DO
42, s. 2003 – Grant of DepEd Provident Fund Loans to Casual Employees); (Department
of Education, DepEd Order No. 20, s. 2021: Enhanced Guidelines on
Accreditation/Re-Accreditation of Private Entities Under the Automatic Payroll
Deduction System (APDS) Program;
DO 49, s. 2017 – Revised Guidelines on
Accreditation/Re-Accreditation of Private Lending Institutions (PLIs) under the
Automatic Payroll Deduction System (APDS) Program)
Borrowing, however, should be approached
with prudence and financial responsibility. A loan provides immediate access to
money but creates a continuing obligation to repay the principal, interest, and
applicable charges. DepEd Order No. 5, s. 2018 recognizes the importance of
protecting employees' take-home pay by providing that authorized deductions
should not reduce a personnel's monthly net take-home pay below ₱5,000. The
order also reminds personnel that delays in loan payments may result in penalties
and accrued interest. (Department of Education, DO
05, s. 2018 – Implementation of P 5,000.00 Net Take-Home Pay for Department of
Education Personnel)
Borrowing becomes more challenging when
employees accumulate multiple loans. Heavy salary deductions can leave limited
resources for daily necessities, emergencies, savings, and family
responsibilities.
From an ethical perspective, debt should
not automatically be considered a moral failing. Financial circumstances differ
from one employee to another, and borrowing may be a reasonable response to
legitimate needs. Ethical responsibility lies in making informed borrowing
decisions, understanding the loan terms, avoiding fraudulent practices, and
honoring one's financial commitments. (DO 57, s. 2016 –
Reiteration of Policies Under DepEd Order Nos. 49, s. 2006 and 101, s. 2009
(Fraudulent Representations Related to the Department’s Automatic Payroll
Deduction System Program)
This is consistent with the principles
of responsibility, integrity, and public service embodied in Republic Act No.
6713, which requires public officials and employees to act with responsibility,
integrity, competence, and loyalty and to uphold public interest over personal
interest. (Republic Act No. 6713, 1989, or the Code of
Conduct and Ethical Standards for Public Officials and Employees)
Therefore, personal financial needs and
professional responsibility should not be viewed as opposing concerns. Rather,
responsible financial management can help DepEd personnel maintain financial
stability while continuing to perform their duties effectively.
The Ethical Dimension of Borrowing
Debt involves more than a financial
transaction. It involves a commitment between a borrower and a lender. When an
employee voluntarily enters into a loan agreement, they assume an obligation to
comply with its terms.
Responsible borrowing requires honesty
in providing information, careful consideration of one's ability to repay,
understanding of interest and other charges, and commitment to pay one's
obligations. Borrowers should also be cautious about lending schemes that
appear attractive but may expose them to high costs or financial risks.
DepEd has previously warned personnel
about fraudulent representations involving salary loans and the Automatic
Payroll Deduction System. The Department has also cautioned teachers and other
personnel about deceptive loan-related schemes. (DO 57,
s. 2016 – Reiteration of Policies Under DepEd Order Nos. 49, s. 2006 and 101,
s. 2009 (Fraudulent Representations Related to the Department’s Automatic
Payroll Deduction System Program))
Financial literacy is therefore an important component of ethical decision-making. DepEd has recognized financial education as a way to help personnel develop financial management skills and make wiser financial decisions. Its financial education initiatives have specifically included teachers, leaders, and non-teaching personnel. (Department of Education. (2021). DepEd expands financial education in K to 12 to improve literacy of Filipinos)
The Importance of Living Within One’s
Means
Living within one’s means is an
important financial principle for every employee, including teachers and
non-teaching personnel of the Department of Education (DepEd). It means
managing expenses according to one’s income, prioritizing essential needs, avoiding
unnecessary borrowing, and setting aside money for savings and emergencies. For
DepEd personnel, this principle is especially relevant because excessive
borrowing can lead to multiple salary deductions and reduced take-home pay.
(Department of Education. (2021). DepEd expands financial education in K to 12
to improve literacy of Filipinos)
Borrowing can be useful when used for
important, planned purposes such as education, medical needs, housing, or
emergencies. However, taking several loans without considering one’s capacity
to repay can create financial difficulties. DepEd has acknowledged the
financial challenges faced by employees with loan obligations and has worked
with lending institutions to provide measures intended to ease the burden of
loan payments. (Department of Education, Press Release
October 15, 2020)
Living within one’s means can therefore
help DepEd personnel avoid excessive debt. Before taking a loan, DepEd
personnel should assess monthly income, existing deductions, household
expenses, and the purpose of the loan. A simple budget can help determine
whether a new financial obligation can be comfortably managed without
sacrificing basic needs. Employees should also understand the interest rates,
fees, repayment period, and other conditions before signing a loan agreement. (DepEd
Order No. 22, s. 2021 Financial Education Policy)
The issue of personnel debt has received
continuing attention from DepEd. In 2026, DepEd announced a partnership with
LANDBANK involving a loan assistance arrangement for public teachers and
non-teaching personnel facing heavy salary deductions. The program aimed to
refinance certain existing debts and give affected personnel higher take-home
pay. DepEd reported that the arrangement covered approximately 1,000 loan
accounts with salary garnishments totaling about ₱500 million. (Department
of Education. (2026). Mas magaan na loan program para sa mga guro, inilunsad ng
DepEd at LANDBANK)
Ultimately, living within one’s means is not about avoiding loans entirely. Rather, it is about borrowing responsibly and balancing present needs with future financial security. For DepEd personnel, responsible financial management can help protect their take-home pay, reduce the burden of multiple debts, and provide greater financial stability for themselves and their families. Developing good spending, budgeting, saving, and borrowing habits can support a healthier financial life while allowing employees to stay focused on their important role in educating Filipino learners.
Debt and Professional Responsibility
Debt does not automatically diminish an
employee's professionalism. A teacher or other DepEd employee should not be
judged solely on whether they have personal debt or how much they owe.
Financial circumstances vary, and some individuals may experience unavoidable
financial difficulties.
Professional responsibility, however,
requires employees to continue performing their duties regardless of their
personal financial circumstances. Under Republic Act No. 6713, the Code of
Conduct and Ethical Standards for Public Officials and Employees, public
servants are expected to uphold standards of responsibility, integrity,
professionalism, and commitment to the public interest. (Republic
Act No. 6713, 1989, or the Code of Conduct and Ethical Standards for Public
Officials and Employees)
This means that personal financial
problems should not be allowed to compromise official responsibilities. An
employee should not use government resources, authority, or position to obtain
improper financial advantages. Likewise, financial difficulties should not
become a reason to neglect learners, coworkers, or the public the employee is
expected to serve.
In short, manage personal financial obligations without sacrificing professional obligations.
When Debt Becomes a Professional Concern
Personal debt generally remains a
private matter. However, it can become a professional concern when financial
problems lead to behavior that conflicts with ethical standards or official
responsibilities.
For example, concerns may arise when an
employee:
- falsifies
documents to obtain a loan; (DO 57, s. 2016 –
Reiteration of Policies Under DepEd Order Nos. 49, s. 2006 and 101, s.
2009 (Fraudulent Representations Related to the Department’s Automatic
Payroll Deduction System Program))
- misrepresents
financial information; (DO 57, s. 2016 –
Reiteration of Policies Under DepEd Order Nos. 49, s. 2006 and 101, s.
2009 (Fraudulent Representations Related to the Department’s Automatic
Payroll Deduction System Program))
·
uses
government position or resources for personal financial gain; (Republic
Act No. 6713, 1989 or the Code of Conduct and Ethical Standards for Public
Officials and Employees)
- act
as an unauthorized agent for a lending institution; (May
31, 2006, DM 190, s. 2006 – Prohibiting DepEd Personnel To Act As Agent
For Both Accredited and Unaccredited Private Lending Institutions (Pls) To
Automatic Payroll Deduction System (APDS)
· pressures colleagues to enter into a questionable financial arrangement; (Republic Act No. 6713, 1989, or the Code of Conduct and Ethical Standards for Public Officials and Employees)
·
allows
financial difficulties to interfere substantially with official duties; (Republic
Act No. 6713, 1989 or the Code of Conduct and Ethical Standards for Public
Officials and Employees)
- allows
monthly loan amortizations to remain unpaid or substantially overdue; and/or
(Department of Education, DepEd Order No.
20, s. 2021: Enhanced Guidelines on Accreditation/Re-Accreditation of
Private Entities Under the Automatic Payroll Deduction System (APDS)
Program)
· allows creditors or lending representatives to repeatedly visit the school or office to demand or collect personal loan payments, particularly when such visits disrupt official duties, affect the workplace, or involve colleagues and learners (Republic Act No. 6713, 1989, or the Code of Conduct and Ethical Standards for Public Officials and Employees
DepEd has specifically prohibited its
personnel from acting as agents of private lending institutions in connection
with its payroll deduction system and has warned against improper practices
involving lending institutions.
These rules emphasize that the ethical issue is not simply having debt. Rather, it is how a person behaves while managing that debt and exercising public responsibilities.
The Role of Integrity and Accountability
Integrity is particularly important for
public servants. Republic Act No. 6713 declares that public office is a public
trust and requires public officials and employees to discharge their duties
with responsibility, integrity, competence, and loyalty. It also emphasizes
putting public interest above personal interest. (Republic
Act No. 6713, 1989, or the Code of Conduct and Ethical Standards for Public
Officials and Employees)
For DepEd personnel, these principles
are especially meaningful because teachers and education employees serve as
role models to learners. Financial responsibility can therefore be viewed as
part of a broader culture of accountability.
This does not mean that teachers must have perfect financial circumstances. Rather, it means that they should strive to make honest, informed, and responsible decisions and avoid allowing personal financial interests to compromise their public duties. (Republic Act No. 6713, 1989, or the Code of Conduct and Ethical Standards for Public Officials and Employees)
Toward a Culture of Financial Wellness
Addressing debt among DepEd personnel
should not focus exclusively on individual responsibility. Institutions also
have a role in promoting financial literacy and employee welfare.
DepEd's financial education initiatives
recognize that financial literacy can help personnel make informed decisions
and improve their financial management skills. Financial literacy is an
important life skill for every employee, including teaching and non-teaching
personnel of the Department of Education (DepEd). It involves having the
knowledge and skills to manage income, expenses, savings, loans, investments, and
other financial responsibilities. For DepEd personnel, financial literacy can
help promote responsible borrowing, better budgeting, and greater financial
security. (Department of Education. (2021), DepEd expands
financial education in K to 12 to improve literacy of Filipinos)
DepEd has recognized financial literacy
as an important component of employee development and welfare. DepEd Order No.
22, s. 2021, or the Financial Education Policy, provides for
capability-building opportunities for teaching and non-teaching personnel. The
policy specifically directs concerned DepEd offices to develop training and
capacity-building programs that can help personnel apply financial education
concepts to their personal finance management. (Department
of Education. (2021), DepEd expands financial education in K to 12 to improve
literacy of Filipinos)
More recently, in May 2026, DepEd and
LANDBANK announced a loan assistance arrangement intended to refinance certain
existing debts of affected teaching and non-teaching personnel, with the stated
goal of reducing the burden of salary deductions and improving employees'
take-home pay. (Department of Education. (2026). Mas
magaan na loan program para sa mga guro, inilunsad ng DepEd at LANDBANK)
These initiatives show that responsible debt management involves both individual action and institutional support. Employees can practice prudent borrowing, while institutions can provide financial education, counseling, transparent lending systems, and appropriate assistance programs.
Conclusion
Debt is neither inherently moral nor
immoral. A personal or salary loan can be a legitimate financial instrument
when it is obtained for a reasonable purpose, understood by the borrower, and
managed responsibly. The ethical concern arises when borrowing becomes
reckless, dishonest, exploitative, or inconsistent with one's obligations.
For DepEd personnel, balancing debt and
duty requires more than making monthly payments. It calls for prudent
borrowing, honest financial transactions, accountability for one's obligations,
and continued dedication to public service.
Responsible borrowing is ultimately an
expression of responsibility. A DepEd employee who carefully evaluates
financial needs, understands the consequences of borrowing, protects their
capacity to meet basic needs, and continues to fulfill professional duties shows
that financial responsibility and professional integrity can coexist.
The goal should not be to create a workplace where employees are judged because they have loans. Instead, the goal should be to foster a culture where DepEd personnel are financially informed, ethically responsible, protected from abusive or fraudulent lending practices, and able to perform their duties with dignity and integrity.
References
·
Department of Education, DO
42, s. 2003 – Grant of DepEd Provident Fund Loans to Casual Employees
·
Department of
Education, DepEd Order No. 20, s. 2021: Enhanced Guidelines on
Accreditation/Re-Accreditation of Private Entities Under the Automatic Payroll
Deduction System (APDS) Program
·
DO 49, s. 2017 – Revised
Guidelines on Accreditation/Re-Accreditation of Private Lending Institutions
(PLIs) under the Automatic Payroll Deduction System (APDS) Program)
·
Department of Education, DO
05, s. 2018 – Implementation of P 5,000.00 Net Take-Home Pay for Department of
Education Personnel
·
DO 57, s. 2016 – Reiteration
of Policies Under DepEd Order Nos. 49, s. 2006 and 101, s. 2009 (Fraudulent
Representations Related to the Department’s Automatic Payroll Deduction System
Program)
·
Republic Act No. 6713, 1989,
or the Code of Conduct and Ethical Standards for Public Officials and Employees
·
Department of Education.
(2021). DepEd expands financial education in K to 12 to improve literacy of
Filipinos
·
Department of Education, Press
Release October 15, 2020
·
DepEd Order No. 22, s. 2021
Financial Education Policy
·
Department of Education.
(2026). Mas magaan na loan program para sa mga guro, inilunsad ng DepEd at
LANDBANK
·
May 31, 2006, DM 190, s. 2006
– Prohibiting DepEd Personnel To Act As Agent For Both Accredited and
Unaccredited Private Lending Institutions (Pls) To Automatic Payroll Deduction
System (APDS)
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