Teacher Salary Subsidy (TSS)


Republic Act No. 8545 (RA 8545), or the Expanded Government Assistance to Students and Teachers in Private Education (E-GASTPE) Act, provides the legal basis for state-funded programs of financial assistance to stakeholders in private education.

The programs on Education Service Contracting (ESC) and the Teachers’ Salary Subsidy (TSS) are respectively provided for in Sections 7 and 14 of RA 8545.

RA 8545 supports Article XIV Section 2.3 of the Philippine Constitution of 1987 which mandates the State to establish a system of, among others, subsidies and incentives to deserving individuals in both public and private schools.

Policy Statement

Section 2 of the E-GASTPE Act, states, “It is a declared policy of the State in conformity with the mandate of the Constitution, to promote and make quality education accessible to all Filipino citizens. The State also hereby recognizes the complementary roles of public and private educational institutions in the educational system and the invaluable contribution that the private schools have made and will make to education. For these purposes, the State shall provide the mechanisms to improve quality in private education by maximizing the use of existing resources of private education, recognizing in the process the government’s responsibility to provide education as having priority over its other functions.”

To fulfill the goals of RA 8545, the ESC and TSS programs are governed by the following policies:

ESC aims to make quality junior high school education accessible by proving financial assistance to deserving elementary school graduates who wish to study junior high school in private schools. By this mechanism, ESC also helps to decongest public junior high schools.

ESC grantees are assured of financial assistance throughout junior high school as long as they meet the requirements for regular promotion in each grade level.

The ESC is a concrete demonstration of public-private partnership in education and this partnership is sought in all levels of the program’s operations.

The TSS aims to improve the quality of private junior high schools by providing a salary subsidy to teachers in ESC-participating junior high schools.

Role of PEAC

The Private Education Assistance Committee (PEAC) has been contracted by the DepEd to administer the ESC and TSS programs. PEAC is the trustee of the Fund for Assistance to Private Education (FAPE), a perpetual fund created to provide assistance to private education in the country. PEAC is represented nationally by its National Secretariat (PEAC NS) and in each region by its Regional Secretariats (PEAC RS).

The PEAC NS has the following responsibilities:

  • Provide the infrastructure, systems, coordination and controls required for the smooth implementation of the ESC and TSS programs
  • Provide in-service training of teachers in ESC-participating JHSs and conduct pertinent research (see http://peac.org.ph/research/ for details on these programs).

The PEAC RSs shall be the first line of program support to ESC-participating JHSs in the regions.

The PEAC RS has the following responsibilities:

  • Manage day-to-day implementation and coordinate its efforts with its efforts with its RPCom and the PEAC NS
  • Advise, guide and/or assist schools in complying with the guidelines
  • Conduct field audits and training and mentoring sessions as may be needed in their regions.

The Regional Program Committees (RPComs) shall oversee compliance of participating schools in their regions with the policies and guidelines of the GASTPE programs of assistance. It shall resolve problems that may occur and recommend measures to improve program implementation. The RPCom in each region is composed of representatives from DepEd and the PEAC RS with the DepEd Regional Director as Chair and the PEAC Regional Program Director as Co-Chair.

ESC-participating JHSs shall provide grantees with education that meets or exceeds the minimum standards set by DepEd. They shall orient grantees and their parents on the ESC, encode correct and complete information in the ESC IMS, prepare billing statement packages, undergo certification, and comply with these guidelines.

(from DO 20, s.2017: Guidelines on the Implementation of the Educational Service Contracting and Teachers’ Salary Subsidy Programs in Junior High School Effective School Year 2017-2018)

TSS Tutorial