MANILA – Employees will enjoy higher mid-year benefits starting June following the implementation of new a law raising to P82,000 the maximum amount of obtainable tax-free bonuses, House Deputy Majority Leader Rep. Mar-Len Abigail Binay said Sunday.
“We expect an additional P30 billion to be put into the pockets of public and private sector employees, in terms of productivity and performance incentive pay, loyalty award, gifts in cash or in kind, 13th month pay, Christmas bonus and other benefits of similar nature.”
“Many state agencies and private firms traditionally distribute these perks starting June, by way of mid-year bonuses, so the money should starting coming in soon enough,” Binay said in a statement sent to the regional newspaper Mindanao Examiner.
Binay is one of principal authors of Republic Act 10653, which increased to P82,000 from P30,000 the ceiling for tax-exempt bonuses that may be received by employees every year. Malacañang approved the new law on February 12.
Revenue Regulation 3-2015, which sets the implementation rules of the law, takes effect on April 1. The Bureau of Internal Revenue published the order on March 16.
“We are hopeful the P30 billion in incremental bonuses for salaried employees, coupled with the P15-increase in the mandatory minimum wage of workers in Metro Manila starting next month, will help drive household consumption spending and sustain economic growth in the months ahead,” Binay said.
Binay has been batting for highly progressive taxation that would put more income at the disposal of Filipino families. She is also author of bills seeking to exempt from income taxes all night shift differential and overtime pay received by employees.
As proposed by Binay in House Bills 2836 and 4682, all overtime and graveyard shift wages will be expressly excluded from the computation of the gross taxable income of all workers, regardless of their hourly pay rate. (Mindanao Examiner)
Like Us on Facebook: https://www.facebook.com/mindanaoexaminer
Follow Us on Twitter: https://twitter.com/MindanaoExamine
Read Our News on: http://www.mindanaoexaminer.com/ and http://www.mindanaoexaminer.net/
Share The News
20
