Lapu-Lapu City Employees: Perception on TRAIN Law

A Quantitative Research Presented To

Pajo National High School, Pajo,

Lapu-Lapu City, Cebu

Philippines

In Partial Fulfillment of the Requirements

For Practical Research II

Roxanne Kent Jelly D. Repormado

Erica Mae Angel K. Reyes

Anthony Jay P. Ybanez

Robelyn Z. Patigdas

Ralph M. Sibug

Charity A. Bate

Rowena Lee P. Radaza

Practical Research II Instructor

October 29, 2018

 2

ABSTRACT

The study ought to investigate The Impacts of TRAIN Law to the employees of

Lapu-Lapu City. The study used a sample size of 30 people. The researchers used survey

questionnaire for the wage earners to determine the effects of implementation of Republic

Act no. 10963 otherwise known as Tax Reform for Acceleration and Inclusion Law. The

study examined the respondents’ ratings on each question given concerning the factors

that are considered as parallel cause of the dilemma related to higher income tax rate,

increasing prices of commodities, maximizing social services offered by the government

towards individuals. Thus, the study concludes that there is a significant relationship

between the daily income and the impact of TRAIN law to the employees of Lapu-Lapu

City.
 3

ACKNOWLEDGMENT

The researchers are exceedingly delighted and grateful to God Almighty for

affording the opportunity and knowledge to pursue this research study.

At the same time our deepest gratitude and appreciation go to our School

Principal II of Pajo National High School, MR. RICARDO T. CAYACAP JR., for his

giving us the time and permission in conducting the study outside the said institution.

We would also like to express our deepest dedication and thank you to our

Practical Research II Instructor MS. ROWENA LEE P. RADAZA for her continuous

support, patience, motivation and most especially for making experience what

quantitative research and how hard it is without hard work and perseverance and its

diverse lesson to become good grown-up individuals.

To our statistician, MRS. JULIETA L. EMBRALINAG, for giving us so much

time and guidance regarding with the statistical method to come up with a good results.

And for lecturing us the best formula to be used in our study.

The Master teacher III in English, MRS. HELEN GRACE V. CRUZ, for

mentoring and being the consultant with regard to the grammar of transmittal letter.

The ever supportive family members, friends, mentors and teachers for the

undying support and for being the motivation in making this entire research. We also

thank the respondents that wholeheartedly participated in the survey given. Without the

presence of the said people above this study could not have been a reality.
 4

DEDICATION

We wholeheartedly dedicate this to our loving and very supportive family for

giving us the full support and who always love us unconditionally which is our basis and

motivation for pursuing this study, giving us the words of wisdom to work hard on the

things that were assigned to us. For those people who never left our side, the hardships

and our little grief while conducting the study, whose the person that our crying shoulder

especially when conducting the pilot and not passing the reliability they give us strength

and courage to continue the study. We are truly thankful for having them in our lives that

we met this kind of people in hard times and good times they are always there to cheer us

up for us to cope up with the problems we are facing with. And lastly, we offer this study

to our glorious almighty father, we thank him for the guidance, strength, power of mind

that we came up with this kind of study, protection when conducting the survey outside

the school and not letting us into an accident and also giving us a healthy life. All of

these, we owe them so much.

 5

TABLE OF CONTENTS

TITLE PAGE I

ABSTRACT II

ACKNOWLEDGMENT III

DEDICATION IV

TABLE OF CONTENTS V

LIST OF FIGURES VII

CHAPTER I

PROBLEM AND ITS SCOPE

INTRODUCTON

Rationale 1

Background of the study 2

Review of Related Literature 4

THE PROBLEM

Statement of the problem 7

Hypothesis of the study 7

Scope and Delimitation 7

Significance of the study

RESEARCH METHODOLOGY

Research Design 8

Research Environment 9

Research Respondents 9
 6

Research Instruments 10

Data Gathering Procedure 10

Treatment of the Data 11

Definition of Terms 12

Theoretical Background 13

Theoretical Framework 15

Flow of the study 16

CHAPTER II

PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

Results and Discussion of the study 17

CHAPTER III

SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATION

Summary of Findings 22

Conclusion 23

Recommendation 23

APPENDIX

A. Transmittal Letter 25

B. Letter of Agreement 26

C. Survey Questionnaire 27

D. Graph for the FDT 29

E. Raw Data in Solving Pearson(r) 30

BIBLIOGRAPHY 32

CURRICULUM VITAE 33
 7

LIST OF FIGURES

Theoretical Background of the Stud 15

Flow of the study 16

Demographic profile of the respondents 17

Perception on TRAIN Law 19

Hypothesis Testing 20

FDT of the total scores of the respondents 21

Graph for the FDT 29

Raw Data in Solving Pearson(r) 30

 8

CHAPTER I

THE PROBLEM AND ITS SCOPE

INTRODUCTION

Rationale of the study

The Tax Reform for Acceleration and Inclusion TRAIN law is the first package of

the Comprehensive Tax Reform Program (CTRP) envisioned by President Duterte’s

administration which seeks to correct a number of deficiencies in the tax system to make

it simpler, fairer and more efficient. It also includes mitigating measure that are designed

to redistribute some gain to the poor.

Congruent to that, this study aims to know the Impacts of the implementation of

R.A 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law to the

common Filipino citizen especially to those job holders whose position are directly

affected the ordained law.

However, TRAIN addresses several weaknesses of the current tax system by

lowering and simplifying personal income taxes, simplifying estate and donor taxes,

expanding the value added tax (VAT). The Tax Reform for Accelerations and Inclusion

law exempts from paying taxes the first Php250, 000 annual taxable income, meaning

those earning Php21, 000 monthly will have to shoulder the burden of paying additional

tax.

The researchers observed a commotion and rants in the community about this

newly implemented taxation system. These actions led the researchers to conduct a study

on the perception of Lapu-Lapu City employees towards TRAIN Law.

 9

Background of the Study

The Tax Reform for Acceleration and Inclusion (TRAIN) law or R.A 10963 was

signed by President Rodrigo Duterte last December 9, 2017. TRAIN Law officially took

effect on the first day of January 2018 with the objective of simplifying the tax system

and make it fairer. The TRAIN Law will provide hefty income tax cut for majority of

Filipino taxpayers while raising additional funds to help support the government’s

accelerated spending on its ‘BUILD, BUILD, BUILD” and social services programs.

This Tax Reform package corrects a long-standing inequality of the tax system by

deducting the personal income taxes for 99 percent of taxpayers, hence giving them the

much needed relief after 20 years of non-adjustment of the tax rates and brackets.

This study is anchored on Fiscal Psychology Theory where it shows the role of

taxpayer’s perception on the government as an important aspect. This approach

emphasizes the importance of positive policies developed by the government to improve

the cooperation between the taxpayer and the government (Lewis 1982) accordingly, the

presence of governmental initiatives an various perceptions it garners from one sector of

the working class with the topic of the study.

Through TRAIN Law every Filipino contributes in finding more infrastructure

and social services to eradicate extreme poverty and reduce inequality towards prosperity

at all. TRAIN Law addresses several weaknesses of the current tax system by lowering

and simplifying personal income taxes, simplifying estate and donor taxes, expanding the

Value Added Tax (VAT) base, all the automobile excuse taxes, and introducing excise

tax on sugar and sweetened beverages. According to Republic Act no. 10963 and

Department of Finance, in the next five years for the Education benefits, TRAIN law
 10

could create a more conducive learning environment with the ideal teacher-to-student

ratio which can fund 629,120 public school classroom or can produce 2,685,101 public

school teachers; For Healthcare services, 60, 483 rural health units or 484,326 barangay

health stations and 1,324 provincial hospitals; For Infrastructure programs, additional

funds from the tax reform will be used for the projects of the Department of Public works

and Highways which consist of major highways expressways, and flood control projects,

35,745 km of paved roads, or 786,400 km of temporary bridge upgrades or 2.6 million

hectares of irrigated land

The proposed Tax Reform Program aims to provide the needed, promoting better

lives for Filipinos and to benefit the entire nation, firstly, it aims to correct deficiencies of

the tax system, making it simpler, more efficient, and fairer. Contrary to what Naysayers

say the TRAIN law will benefit poor more by promoting equity
 11

Review of the Related Literature

In the first quarter of the year, “This landmark measure is among the corner

stone of President Rodrigo Roa Duterte’s poverty alleviation initiative. Having said this,

it is the duty of government to sufficiently inform the people on how this new law would

affect their everyday lives. Apart from simplifying the country’s tax system, TRAIN

allows for a better collection of government revenues to fund projects on infrastructure

modernization and human capital formation, while easing the burden of the average

Filipino wage earner. According to Ogbonna and Ebimobowei(2012) “the political,

economic and social development of any country depends on the amount of revenue

generated for the provision of infrastructure in that given country”. They further stated

that a well-structured tax system would boost the generation of the income for a

meaningful development of such country.

Gerald W. Scully (2003) says that the tax reform is to achieve a trade-off

between fairness and efficiency (economic growth) by constructing two models of

government spending and taxation into the analytical framework of economic growth. “In

line with the firm commitment to provide timely, reliable and accurate information to

citizen on the benefits of the government’s agenda, we have come up with a TRAIN

primer to help explain the law’s key provisions to the public”, this was the statement of

Harry J. Roque Jr. (Presidential spokesperson) in an interview with the media last

January 8, 2018. This is just part of the first steps of through economic growth of the

country, thus the TRAIN also aims to address prolong and overdue corrections in the tax

laws and introduces a more progressive tax system where the rich and the poor will

contribute to give better public services to the people. Ability to pay principle is the most
 12

popular and commonly accepted principle of equity or justice in taxation, that is, citizens

of a country should pay taxes to the government in accordance with their ability to pay

which is part of perception in implementing TRAIN law.

Moreover De Guzman (June 2018) mentioned that the supreme court explains the

symbiotic relationship between the state and its citizens in the 1988 case of CIR vs.

Algue Inc. where it held that without taxes, the government would be paralyze for lock of

motive power to activate and operate it. Hence, despite the natural reluctance to surrender

part of one’s hard earned income to the taxing authorities, every person who is able to,

must contribute his share in the running of the government. Thus, the states inherent right

to tax its citizen to defray the expenses of government is aptly justified by the “Life

Blood Theory” of taxation.The life blood theory constitutes the theory of taxation, which

provides that the existence of government is a necessity; that government cannot continue

without means to pay its expenses; and that for these means it has a right to compel its

citizens and property within its limits to contribute.

In addition Ellingsen (May 2014) analyze that, raising revenue from taxes

distorts economic behavior by changing the relative prices of various forms of market

activities. In general, this has an impact on how resources are located by the market. On

the otherhand, generating enough revenue is necessary for a government to finance many

of the preconditions of a functioning market economy. Thus, raising a given amount of a

revenue in the least distortionary manner is the main tension in designing tax system.

According to Ogbonna and Ebimobowei(2012) “the political,economic and social

development of any country depends on the amout of revenue generated for the provision

of infrastructure in that given country”. They further stated that a well-structured tax
 13

system would boost the generation of the income for a meaningful development of such

country. In general, the change upon the tax system has a significant impact of every the

people. TRAIN law enforce a not so good actions toward the people living below of the

average economic status, yet as a whole nation every people regardless of economic

status can be part of the growth of the nation itself.

The most explicable requirement of equity or fairness is to treat equal people in

equal circumstances in an equal way (James 2000) it says. A good tax system must be

designed on the basis of an appropriate set of principles, such as equality or fairness and

certainty. TRAIN aims to make the current tax system simpler, fairer, and more efficient

which Fairness Principle suggests that those with more income should contribute a larger

share of their income through paying taxes.

As for Dr. Tullao, he believes that the newly imposed bill is not anti-poor. For

him, TRAIN law precludes everyone to have equal benefits regardless of what state of

living they currently belong to. Employees with fixed rate of income will still “receive

the same income but the tax rate of the commodities they consume [will increase].”

Bottom line, the TRAIN law benefits the employed ton and does otherwise for the

unemployed and those with fixed income.

 14

THE PROBLEM

Statement of the Problem

The main purpose of this study is to identify the impact of TRAIN law to the

employees in Lapu-Lapu City.

The study sought to answer the following questions:

1. What is the profile of the respondents in terms of:

1.1 Marital Status

1.2 Daily Income

1.3 Mandatory Deduction

2. What is the perception of respondents group on TRAIN Law?

2.1 Above Average

2.2 Average

2.3 Below Average

3. Is there a significant relationship between the daily of the respondents in the

perception of respondent’s group?

Hypothesis of the study

There is no significant relationship between the daily income of the employees

and their perception on TRAIN Law.

Scope and Delimitation

This study limits the response of wage earners. This study focuses on the

perception of the employees in Lapu-Lapu City towards TRAIN Law. This study is only

limited to 30 individuals around 2 barangays, specifically Pajo and Pusok.

 15

Significance of the Study

This section provides brief description on the various significance of the study.

The primordial purpose of the study is to provide the individuals with complete and

balanced information relating to the perception on TRAIN Law. Thus, the result of this

study will benefit the individual, community, students and the future researchers. This

study will serve as the basis for future plans of actions by the government agencies

especially the Local Government Units (LGU) with regard to the necessary action of

helping each individual to cope and give incentives.

The entrepreneurs, the proposed study serves as their references guide in

coping up with the rising issue of excise tax. It will also help the individuals to plan out

their budget proposals.

The Community, this research will help the to analyze and critique the issue the

Local Government Units to make a contingency planning in regard to governance good

and welfare for the people.

The students, will be provided with information particularly in helping their

parents on how to budget the money given to them. This will help the students to realize

how difficult life is and also making their own strategic way to save money.

Furthermore, this study will serve as a model for Future researchers of the

same nature if ever the existing problem has penetrated in this case will exist in the

future. Future researchers will benefit from this study and it will provide them the facts

needed to compare their study during their respective time and use ability.
 16

RESEARCH METHODOLOGY

Research Design

This study used a Quantitative Descriptive Survey Design which analyzes the

characteristics such as daily income, marital status, and mandatory deduction among

employees of Lapu-Lapu City. It aims to determine the existence of a relationship

between two or more variables and to determine the degree of the relationship.

Descriptive research design is the gathering, analyzing, classifying and ordering data

about impact of TRAIN law to the employees of big factor Lapu-Lapu City and then the

accurate interpretation of data.

Research Environment

This study was conducted in Barangay Pajo and Pusok Lapu-Lapu City. These

two barangays, are the barangays in Lapu-Lapu City with the highest and grossing

economic growths.

According to Philippine Statistics Authority (PSA), Pajo is one of the populous

barangays in Lapu-Lapu City, which ranked as top 6. Approximately 21, 000. This

number gives a big factor in economic development and quantity of workforce in the

area.

In the other hand, Pusok is one of the largest when it comes to job industry. In

fact, located in this barangay are Mactan Economic Philippine Zone Authority, known

hotels, malls, and other establishments.

Research Respondents

The respondents of the study are from Barangay Pajo and Pusok. The 30 main

respondents are identified through simple random sampling. This sampling procedure is
 17

the most frequently used type of probability sampling technique. The 30 main

respondents were divided into 3 categories based on their daily income: below average,

average (386), and above average.

Research Instrument

The questionnaire/survey form is the main instrument in this study. Surveys

enable the researcher to obtain data about practices, situations or views at one point in

time through questionnaires or interviews. The use of survey permits a researcher to gain

information of the wage earners on on their perspective towards TRAIN Law. The

research questionnaire is made up of parts namely: the respondent’s personal profile

which includes the marital status, daily income, and mandatory deduction; wage group;

their perception on TRAIN Law. The research instrument used in this study is a

researcher-made questionnaire that has been validated through a pilot study conducted in

Basak, Lapu-Lapu City.

Data-gathering Procedure

In doing this research, the researchers started by discussing the current issue in

the community. The researchers have made the transmittal letter to be submitted to the

school principal for approval. The researchers constructed and used a researcher-made

questionnaire that has undergone reliability test. After the survey the data was tallied,

analyzed and interpreted.

 18

Treatment of the data

The statistical treatments used by the researchers in the presentation and analysis

of the data this includes the following:

1. t-test is used in this study to test whether there is a significant relationship of the

impact of train law to the employees with wages below minimum; minimum

(386); and above.

t = r √ n-2

√1-r^2

Where:

r = correlation

n= sample size

2. The frequency distribution table (FDT) is also computed and presented in this

study. The table is composed by class limits and frequency.

3. By the tallied data from the questionnaires, the relationship of the variables:

Employees response level to their perception on TRAIN law and their daily

income.
 19

Definition of terms

Wage Earner-someone who receives money for work that they do

Employee - An individual who works part-time or full-time under a contract of

employment, whether oral or written, express or implied, and has recognized rights and

duties. Also called worker.

Daily Income - money received, especially on a regular basis, for work or through investments.

Taxation - refers to the practice of a government collecting money from its citizens to pay

for public services. Without taxation, there would be no public libraries or parks.

Tax system - A type of official governmental system connected to governmental policy

created to administer, collect, integrate, improve, change and manage methodically tax

law and tax legislation within a country or state.

Frequency - The number of times that a periodic function repeats in the same sequence

of values during a unit variation of the independent variable.

Perception - the way a person thinks about or understand someone something

Marital Status – are the distinct options that describe a person’s relationship with a

significant other. Married, Single, Divorced and widowed are examples of marital status
 20

Theoretical Background

Fiscal Psychology Theory explains that the taxpayer's perception of the

government is an important factor. Fiscal Psychology Theory emphasizes the loss of

motivation of the taxpayer to pay taxes because there is no real advantage of the benefits

of tax payments (Hasseldine Dan Bebbington, 1991). Kogler et al., (2013) Dan Turner

(2005) A indicates that the level of voluntary compliance is more influenced by the

taxpayer to the government's trust, especially against the tax system. Fiscal Psychology

Theory was firstly introduced by Schmölders (1959), which emphasizes the lack of

motivation for the taxpayer to pay taxes because there is no real advantage of the benefits

of tax payments. Fiscal Psychology Theory provide better insight into how people behave

in the economic situation, to explore the effects of economic issues and government

action against the attitude of the community in an effort to encourage positive behavior to

comply with tax rules. Fiscal Psychology Theory is a mixture of economic and

psychological approach, which is another option that is better in explaining the tax

compliance (Hasseldine Dan Bebbington, 1991). This approach emphasizes the

importance of positive policies that was developed by government to improve the

collaboration between taxpayers and the government. In other words, in the Fiscal

Psychology Theory, tax enforcement is seen as a crisis of behaviour, which can be fixed

with the cooperation of the taxpayers with the government.

Benefit Theory According to this theory, the state should levy taxes on

individuals according to the benefit conferred on them. The more benefits a person

derives from the activities of the state, the more he should pay to the government. This

principle has been subjected to severe criticism on the following grounds: If the state
 21

maintains a certain connection between the benefits conferred and the benefits derived. It

will be against the basic principle of the tax. A tax, as we know, is compulsory

contribution made to the public authorities to meet the expenses of the government and

the provisions of general benefit. There is no direct quid pro quo in the case of a tax.

Sacrifice Theory Since the nub of the sacrifice theory—interpersonal

comparisons of utility—is now generally discarded, we shall not spend much time

discussing the sacrifice doctrine in detail. However, several aspects of this theory are of

interest. The sacrifice theory divides into two main branches: (1) the equal-

sacrifice principle and (2) the minimum-sacrifice principle. The former states that every

man should sacrifice equally in paying taxes; the latter, that society as a whole should

sacrifice the least amount. Both versions abandon completely the idea of government as a

supplier of benefits and treat government and taxation as simply a burden, a sacrifice that

must be borne in the best way we know how.

 22

Theoretical Framework

FISCAL PSYCHOLOGY
THEORY
Schmölders (1959)

BENEFIT THEORY SACRIFICE THEORY

Eric Lindahl Knut Wicksell

_ __ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _
HOUSE BILL NO.4774

IMPACT OF TRAIN LAW BASED ON THE DAILY INCOME OF THE

EMPLOYEES OF LAPU-LAPU CITY

EMPLOYEES’ PERCEPTION

DAILY INCOME

There is no significant relationship between the profile of the

respondents in the perception of respondent’s group.

Schematic diagram of the Theoretical Background of the Study

 23

Flow of the Study

PROCESS OUTPUT
INPUT

Quantitative Conducting
Descriptive symposium and
Survey Design seminars to
Respondent’s
Profile further deepen
the understanding
of the affected
Distribution of individuals of
Survey TRAIN law
Questionnaire

Teaching the
Wage group
Retrieval of affected
Questionnaire individuals on
practical
budgeting

Statistical Data
Perception of Treatment
the
respondents
towards TRAIN
Law
Analysis and
Interpretation
 24

CHAPTER II

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter presents, analyzes, and interprets the data gathered from the

respondents for the purpose of formulating the findings, conclusion and recommendation

of the study

Demographic Profile of the Employees

This part presents the demographic profile of the employees.

BACKGROUND TYPE OF EMPLOYEES TOTAL

CHARACTERISTICS BELOW AVERAGE ABOVE

AVERAGE AVERAGE

MARITAL

STATUS

Single 4 7 2 13

Married 5 3 8 16

Other 1 1

DAILY

INCOME

150-319 6 0 0 6

320-489 4 10 0 14

490-659 0 0 2 2

660-829 0 0 4 4

830-1,000 0 0 4 4

MANDATORY
 25

DEDUCTION

YES 4 7 10 21

SSS 4 7 1 12

PAG-IBIG 4 6 10 20

PHILHEALTH 4 6 10 20

GSIS 1 1 5 7

NO 6 3 0 9

Table 1 Demographic profile of the respondents

The respondent’s demographic status states that the earners group has an equal

distribution, 10 for below average, average and above-average earners. Daily income

with 320-420 class has the most number of respondents with 14, followed by class 150-

319, 660-829, 830-1,000 and 490-659 with 6, 4, 4, 2, respectively.

Respondents with Mandatory deductions are 21, while employees with no

mandatory deductions are 6. Deductions for PAG-IBIG and PhiHealth with both 20 are

the highest, followed by SSS and GSIS with 12 and 7, respectively.

The table above shows that most of the respondents are married, and most of them

are classified as above average earners. In terms of income, the class with the highest

frequency is class 320-489, rating 46 %. Great number also implicates that the majority

of the respondents have mandatory deductions, having the PAG-IBIG and PhilHealth as

the top.
 26

CATEGORY SCORES

BELOW AVERAGE 226

AVERAGE 279

ABOVE AVERAGE 332

TOTAL 837

Table 2 Perception for the newly legalized TRAIN Law

PERCEPTION
350
300
250
SCORES

200
150
100
50
0
BELOW AVERAGE AVERAGE ABOVE AVERAGE
CATEGORY

Figure 2 Perception for the newly legalized TRAIN Law

The perception of the employees on the TRAIN Law for below average earners is

226, followed by average earners and above-average earners of 279 and 332,

respectively. (see Table 2 “Perception on the newly legalized TRAIN Law” and figure 2)

This implicates that below average earners have poor perception than average and

above-average earners. Thus, this means that TRAIN Law is more favourable to above-

average earners since it seems that respondents on this earners group agree to the

implementation of TRAIN Law.

The respondents that belonged to above average has the highest score, that is 332,

which denotes that the above average earners have a most positive perception than the
 27

other group. On the other hand, below average group shows the least positive outlook on

TRAIN Law. In conclusion, the employees with higher earnings have a positive

perception about the newly enforced law.

T- computed value Critical values Relationship Interpretation

There is a

significant

r = 0.43 ±1.699 relationship between Failed to accept the

the daily income of null hypothesis

t= ± 2.52 the employees and

their perception on

TRAIN Law.

Table 3 Hypothesis Testing

The table above shows the hypothesis testing in which t-test is used to treat the

data. Having it formulated, T-computed value is ± 2.52, which has been derived through

Pearson (r) which is 0.43.(see Table 3 “Hypothesis Testing”)

Having ±1.699 as the critical value, the t-computed value falls on the rejection region of

the Bell shape (normal distribution). This indicates to reject the null hypothesis and

accept the alternative hypothesis. Therefore, there is a significant relationship between

the daily income of the employees and their perception on TRAIN Law.
 28

FREQUENCY DISTRIBUTION TABLE (FDT)

CLASSES FREQUENCY

18-22 3

23-27 10

28-32 12

33-37 4

38-42 1

Total 30

Figure 1 Frequency Distribution Table of the total scores of the respondents

The table above indicates the frequency distribution table of the score-classes

from the respondent’s perception on TRAIN Law. The class interval is 5 which is

computed by the given formula 2k ≥ 30. The classes are 18-22, 23-27, 28-32, 33-37, 38-

42. The frequency of every class is as follows in exact order: 3, 10, 12, 4, 1. (see Figure 1

“Frequency Distribution Table of the total scores of the respondents”)

Most of the respondent’s score were in the class 28-32 in which out of the 30

respondents, 12 of them got the frequent score. The highest score belonged to the class of

38-42, meanwhile the lowest score was the class of 18-22.

Respondents with reflected least scores believed that the impact of TRAIN Law is

not beneficial to all members of the family. However the reflected high scores

respondents believe that it is favourable because TRAIN Law is advantageous to

marginalize average wage earners in terms of education and healthcare services as to

infrastructure programs in the government.

 29

CHAPTER III

SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATION

This chapter deals with the summary of findings and the conclusions formulated

on the bases of findings. This study has provided certain recommendations of the

informative basis of research findings and suggestions for similar future researchers.

Summary of Findings

Demographic profile of the respondents. There are 13 single, 16 married, and 1

common law couple among the respondents. The lowest income of the respondents is

150, while the highest is 1000. Majority of the daily income of the respondents range is

320-489 which rates 46%. As regard to mandatory deduction, 21 of the respondents have

a mandatory deduction. Among the 21, there 3 with SSS,7 with GSIS, and 20 with PAG-

IBIG and PHILHEALTH. However, 9 respondents doesn’t have any mandatory

deduction.

Perception of the employees on the newly legalized TRAIN Law. The above

average earners got the highest score which totalled 332, indicating that they have a

positive perception about TRAIN Law. However, the below average group got the lowest

score of 226 which, in the other hand, denotes the least positive perception on TRAIN

Law. Therefore, the employees with higher earnings have a more positive perception

about the newly enforced law.

Relationship between the daily income and the perception on TRAIN Law.

Having the ±1.699 as critical value, the t-computed value, which is ±2.52, falls on the

rejection region of the normal distribution. Through hypothesis testing, the decision is to

reject the null hypothesis.

 30

Conclusion

In this study, most of the respondents are married and mostly have an income

between 320-489. Moreover, the majority has a mandatory deduction most especially in

PAG-IBIG and PhilHealth. In terms of perception through their daily income, the

employees with higher earnings have a positive perception about the newly enforced law.

Upon formulating the hypothesis testing, it resulted in rejecting the null hypothesis.

Therefore, statistically proven, there is a significant relationship between the daily

income of the respondents and their perception on the newly legalized TRAIN Law.

Recommendation

Upon implementing the TRAIN law, employees live in a way that expenses

maximizes their whole earnings, leaving them with no resources to be kept or saved, thus

this disadvantages could compensate this dis-benefit, through fairer and balanced tax

system, suspending the income taxes of earners with monthly income of Php. 21,000 and

efficient social services for them.

Based on the findings and conclusions the researchers would like to recommend the

following;

1. Below average earners tend to show an unfavorable outlook toward TRAIN Law.

Thus, the researchers would like to recommend for them to create a budget plan in

coping with the increasing price of commodities.

2. Upon conducting the survey, the researchers observed that most of the

respondents have heard and has been informed about the TRAIN Law. However,

most of the respondents lack awareness and knowledge of the said implemented

law. In connection with this, it is suggested to conduct a seminar or awareness

 31

program to give enough knowledge to the community through Local Government

Unit(s) (LGUs) in every barangay.

3. The future researchers shall include in their studies the external factors that affects

the employees due to the implementation of the TRAIN law which are not

presented, and fill in the gaps in this research study.

 32

APPENDIX A

Transmittal Letter to the Secondary School Principal

September 21, 2018

Mr. Ricardo T. Cayacap Jr.

Secondary School Principal II
Pajo National High School
Pajo, Sangi road, Lapu-Lapu City

Dear Sir:

Warm Christian Greetings!

We, the students researchers from Grade 12- GAS Rembrandt would like to ask your approval for us to
conduct a survey entitled "The Impact of TRAIN Law" for the below and above minimum wage earner as
our respondents at Barangay Basak, Pusok, and PajoLapu-Lapu City. This is in compliance of requirements
in Practical Research 2.
Rest assured that all information provided shall be kept confidentially and would be used only for academic
purposes, your favorable approval to conduct this study will be greatly appreciated. More power and God
Speed!

Sincerely Yours,
Anthony Jay Ybañez
Erica Mae Angel K. Reyes
Roxanne Kent Jelly D. Repormado
Ralph M. Sibug
RobelynPatigdas
Charity Bate
Researchers

Noted By:

Rowena Lee P. Radaza

Practical Research 2 Teacher

Approved By:

Ricardo T. Cayacap Jr.

Secondary School Principal
 33

APPENDIX B

Letter of Agreement for the Respondents

September 22, 2018

Dear Respondents:

Greetings!

We are presently conducting a study entitled "The Impact of TRAIN Law", as a partial fulfillment of our
requirement in Practical Research II.

In this connection, we would like to request your kind cooperation to be one of our respondents in our
study. We hope you can help us by answering the survey sincerely and truthfully.

Thank you very much!

Very Truly Yours,

Anthony Jay Ybañez

Erica Mae Angel K. Reyes

Roxanne Kent Jelly D. Repormado

Ralph M. Sibug

RobelynPatigdas

Charity Bate
Researchers

Noted by:

Rowena Lee P. Radaza

Practical Research 2 Teacher

Approved by:

Ricardo T. Cayacap Jr.

Secondary School Principal II
 34

APPENDIX C

Survey Questionnaire

THE IMPACT OF TRAIN LAW TO THE EMPLOYEES IN LAPU-LAPU CITY

The questions on this survey ask details and information about yourself also about your monthly

income, mandatory deductions, house budget and savings during this time and the past year/s.

The following questions in the table below will be rated on a Likert scale in which you will

put numbers 5-1 whereas 5 as the highest, 1 as the lowest.

Name (optional):

Put check mark (/) on the box that corresponds to your answer.

Marital Status: ____Single ____Married Others Please specify):

Daily income: ___________________

Have any mandatory deduction? Yes No

(If YES, please confirm the following) ___SSS ___PAG-IBIG ___ PHILHEALTH ___ GSIS

Rate the following questions with 5 (Strongly agree), 4 ( Agree), 3 (Neutral), 2 (Disagree), 1 (Strongly

Disagree).

RATINGS

QUESTIONS 5 4 3 2 1

1. The implementation of Republic Act 10963 known as the

“TRAIN Law”is favorable.

2. Your household expenses decreases on the basis of the TRAIN

law implementation

3. Monetary savings is evident prior to the Republic Act 10963

implementation.

4. Your salary wage is commendable to your daily needs after the

promulgation of Republic Act 10963 “TRAIN law”

5. The TRAIN Law provides convenience in your daily budget

compared to the previous years.

 35

6. The impact of TRAIN Law implementation is beneficial to all

the family members.

7. TRAIN Law Act could help the average income earner to

structure monthly household budget against basic commodities.

8. TRAIN Law is advantageous to marginalize wage earners,

average earners in terms of education and health care services

as to infrastructure programs in the government.

9. The TRAIN Law surely uplift Filipinos from extreme poverty

line from 26 percent to 17 percent

10. Republic Act 10963 provides equal economic opportunities thus

achieving high income status to all Filipinos.

 36

APPENDIX D

Graph for the FDT

FREQUENCY DISTRIBUTION
14
12
10
FREQUENCY

8
6
4
2
0
18-22 23-27 28-32 33-37 38-42

CLASSES
 37

APPENDIX E

Raw Data in Solving Pearson(r)

RESPONDENTS SCORES INCOME

1 26 386

2 32 376

3 33 376

4 26 386

5 28 266

6 25 160

7 32 386

8 29 280

9 31 266

10 37 376

11 23 386

12 18 150

13 24 386

14 18 150

15 25 600

16 32 376

17 26 386

18 29 1000

19 29 1000

20 24 386
 38

21 29 800

22 29 800

23 24 386

24 28 700

25 33 800

26 30 386

27 19 600

28 26 386

29 34 1000

30 38 1000
 39

BIBLIOGRAPHY

Online Sources

Damayanti1 ,Sutrisno T1 , Subekti1 &Zaki Baridwan1 (February 5, 2015) . Retrieved

September 16, from www.sciedu.ca/afr

De Guzman (June 2018). TRAIN law; Boom or Bane. Retrieved September 22, from

www.pressreader.com/the-philippine-star

Ellingsen (2014).A theoretical and empirical analysis of the impact of dual income

taxation on economic growth. Retrieved September 16, from

www.duo.uio.no/masteroppgave.pdf

Manasan (August 2017) Assessment of the 2017 Tax Reform for Acceleration and

Inclusion. Retrieved September 22, from www.pidswebs.pids.gov.ph/1727

Romer (2008). The macroeconomics effect of tax changes: estimates based on a new

measure of fiscal shocks. Retrieved September 22, from http://economics.mit.edu

 40

CURRICULUM VITAE

Contact Information

Name: ERICA MAE ANGEL K. REYES

Address: P. Rodriguez St., Looc, Lapu-Lapu City

Contact #: 0925 466 1179

Email address: ericamaeangel914@gmail.com

Date of Birth: September 14, 2000

Gender: female

Civil Status: Single

Citizenship: Filipino

Education

Pajo National High School

Senior High School

General Academic Strand

Affiliations

President, Supreme Students Government (S.Y. 2016-2017)

Secretary, Supreme Students Government (S.Y. 2017-2018)

2nd placer, Inter- regional Balagtasan Contest (S.Y. 2018-2019)

Seminar Attended

1stLapu-Lapu City Youth Congress

References

Ms.Leni C. Rebusit Teacher/Adviser 0928 930 9067

Mr. Earl Adrian C. Cejas Teacher 0933 930 4667

 41

CURRICULUM VITAE

Contact Information

Name: ANTHONY JAY YBANEZ

Address: Basak, 3H, Lapu-Lapu City

Contact #: 0921 814 9327

Email address: ajaybanez153@gmail.com

Date of Birth: June 28, 2000

Gender: Male

Civil Status: Single

Citizenship: Filipino

Education

Pajo National High School

Senior High School

General Academic Strand

Affiliations

Federation of Youth Organization in Barangay Basak (Youth Leader)

2nd placer, Inter- regional Balagtasan Contest (S.Y. 2018-2019)

Pajo National High School Performing Tribe (Dancer)

Editor-in-chief and Newsman English category (The Bridge, 2018-2019)

References

Ms.Leni C. Rebusit Teacher/Adviser 0928 930 9067

Mr. Earl Adrian C. Cejas Teacher 0933 930 4667

 42

CURRICULUM VITAE

Contact Information

Name: ROXANNE KENT JELLY D. REPORMADO

Address: Seawage, Pusok, Lapu-Lapu City

Contact #: 0949 608 4981

Email address: repormado.roxanne@gmail.com

Date of Birth: February 27, 2001

Gender: Female

Civil Status: Single

Citizenship: Filipino

Education

Pajo National High School

Senior High School

General Academic Strand

Affiliations

SSG President S.Y. 2017-2018

SSG Consultant S.Y. 2018-2019

3rd placer Regional ASEAN Quiz (S.Y. 2016-2017)

Pajo National High School Performing Tribe

References

Ms.Leni C. Rebusit Teacher/Adviser 0928 930 9067

Mr. Earl Adrian C. Cejas Teacher 0933 930 4667

 43

CURRICULUM VITAE

Contact Information

Name: ROBELYN PATIGDAS

Address: Pajo,Lapu-Lapu City

Contact #: 09092772729

Email address: robelynpatigdas10@gmail.com

Date of Birth: December 1o, 1999

Gender: Female

Civil Status: Single

Citizenship: Filipino

Education

Pajo National High School

Senior High School

General Academic Strand

Interest/s and Hobbies

Reading books and novels Watching Movies listening music

References

Ms.Leni C. Rebusit Teacher/Adviser 0928 930 9067

Mr. Earl Adrian C. Cejas Teacher 0933 930 4667

 44

CURRICULUM VITAE

Contact Information

Name: RALPH M. SIBUG

Address: Gun-ob - Kinalumsan, Lapu-Lapu City

Contact #: 0955 330 4741

Email address: RalphSibug75@gmail.com

Date of Birth: April 23, 2001

Gender: Male

Civil Status: Single

Citizenship: Filipino

Education

Pajo National High School

Senior High School

General Academic Strand

Interest/s and Hobbies

Reading Historical Books Watching Science Fiction Movies

References

Ms.Leni C. Rebusit Teacher/Adviser 0928 930 9067

Mr. Earl Adrian C. Cejas Teacher 0933 930 4667

 45

CURRICULUM VITAE

Contact Information

Name: CHARITY A.BATE

Address: BM .Dimataga St. Poblacion, Lapu-Lapu City

Contact #: 09254557039

Email address: charitybae2@gmail.com

Date of Birth: April 10, 2001

Gender: Female

Civil Status: Single

Citizenship: Filipino

Education

Pajo National High School

Senior High School

General Academic Strand

References

Ms.Leni C. Rebusit Teacher/Adviser 0928 930 9067

Mr. Earl Adrian C. Cejas Teacher 0933 930 4667