A program managed by the Payroll Services and

Systems Divisions at the Central Office, Regional

Payroll Services Unit at the regional level and
implementing units/secondary schools with fiscal
autonomy.

APDS provides for the automatic deduction for

salary loan amortization , insurance premium
payments and membership dues owed to
government financial institutions (GFIs), private
lending institutions (PLIs), insurance companies
and teacher associations or cooperatives upon a
teachers written authorization.
Only entities expressly authorized by law may avail of
the privileges under APDS, in view of the following
provisions of the laws:

1. No person shall make any deduction whatsoever

from the salaries of teachers except under specific
authority of law authorizing such deductions
(Section 21 of RA 4670 re: Magna Carta for Public
School Teachers); and

2. Except as may otherwise be provided by law, it shall

be unlawful for a treasurer or other fiscal officer to
draw or retain from the salary due an officer or
employee, any amount for contribution or payment
of obligations other than those due the government
or its instrumentalities (Section 66, Title I(A), Book
V of the Administrative Code of 1987)
 A single APDS accreditation/reaccreditation
system shall be recognized and applied
nationwide with the assignment of authorized
deduction codes by the Office of the
Secretary, through the Office of the
Undersecretary for Finance and
Administrative, on the basis of the duly
executed APDS-MOA.
1. Lending

2. Insurance premium, mutual aid system

(MAS) and savings deposit membership
A. For Lending

1. To provide a cap on interest rates + service

charges, other fees charged by lending
institutions participating in the scheme in order to
prevent usurious lending; and

2. To eliminate illegal and unauthorized deductions

from teachers salaries
B. Insurance Companies, MAS and Savings
Deposit

1. To prevent and/or eliminate illegal and

unauthorized deductions from DepEd employees
salaries; and

2. To help DepEd teachers/employees with the

prompt payment of their authorized obligations
to insurance companies/MAS organizations
 Particulars Ceiling/Rates/No. of Month

Nominal Rates
- Interest
> 1 year Up to 7.50% per annum, added on loan
> 2 years Up to 9% per annum, added on loan
> 3 years Up to 9.66% per annum, added on loan

- Other Charges One time 6% added on loan (must be itemized)

Amount of monthly amortization Depending on the amount of loan

No. of loan deductions/amortization Maximum of 36 months

Grace period on start of loan Two (2) months

deduction/amortization

Provision on Rebate/Discount Only the principal loan balance shall be paid

by the DepEd borrower, in case of advance
payment of loan in full.

Note: The above rates may be adjusted anytime depending on the

prevailing market rates specifically with reference to benchmark
Treasury Bills.
 Example: Mr. X applied a loan of P10,000.00
payable for 1 year.

Principal Amount of loan P10,000.00

Less: Service fee (6%) 600.00
---------
Net Proceeds P 9,400.00
========

Principal Amount P10,000.00

Add: Interest (10,000x7.5%) 750.00
----------
Total Amount Payable P10,750.00/12

Monthly Amortization P895.83

Private Lending Institution 46

GOCCs 2

Insurance 16

MAS Organization 5
Section 49 of General Provisions of GAA for FY 2015

Departments, bureaus, offices and agencies, which

collect service fees for the payment of any
obligation through authorized deductions under
Section 43, shall deposit said service fees with the
National Treasury, to be recorded in its books of
accounts as trust receipts. Said service fees shall
be used exclusively for the operation of a Provident
Fund in favor of all its employees in accordance
with pertinent rules and regulations. The Provident
Fund shall be used for loaning operations and
other purposes beneficial to all members as may be
approved by its governing board.
 REQUIREMENT UNDER SECTION 49 OF THE
GENERAL PROVISION OF THE GENERAL
APPROPRIATIONS ACT 2015

Accredited companies/organizations are required

to pay corresponding Service Fees on their
monthly collections to be automatically deducted
from their respective monthly remittances.

The Service Fees collected are deposited to the

National Treasury as DepEds Trust Receipt
Account and then reverted by the Department of
Budget and Management as DepEd Provident
Fund (PF).
DepEd SERVICE FEE RATES

1. For Loans:

Insurance companies, thrift and rural banks 3% of amount

remitted/collected; 1% for educational/policy loan

Teachers associations, cooperatives and non-stock/profit savings

and loan associations 1% of amount remitted/collected.[1]

2. For insurance premia/MAS memberships/savings deposits:

Banks, insurance companies and financing institutions 1% of the

amount remitted/collected

Teachers Associations, teachers cooperatives and non-government

associations 0.5% of the amount remitted collected [1]

[1] The 0.5% is based on Monetary Board Resolution No. 153, dated
January 30, 2003, as circulated under Bangko Sentral ng Pilipinas
Circular No. 368, series of 2003, in favor of non-stock savings and
loan associations
 PSU has been receiving
1. fake stoppage for loan deductions ;
2. requests for temporary stoppage
of deduction for loans ;
3. complaints from PLIs for under deduction
4. complaints from PLIs for receiving
fake payslips;

Payslip appears to be more important than

salary or net take home pay
 Buying-out of loans became rampant;
ATM Cards are used as collateral for personal
and additional loans from other PLIs;
Newly hired teachers attribute borrowing to
slow processing of first salary;
Legal Office receives complaints against
teachers for overdue or non-payment of loans;
and
Poor attendance of teachers after release of
payslip