MANILA — Employees will enjoy higher mid-year benefits starting June, with the effectivity of the implementing rules of the new law raising to Php82,000 the maximum amount of obtainable tax-free bonuses, House Deputy Majority Leader and Makati City Rep. Mar-Len Abigail Binay said Sunday.
“We expect an additional Php30 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,” Binay said.
“Many state agencies and private firms traditionally distribute these perks starting June, by way of mid-year bonuses, so the money should start coming soon enough,” she said.
Binay is one of principal authors of Republic Act 10653, which increases to Php82,000 from Php30,000 the ceiling for tax-exempt bonuses that may be received by State employees every year. Malacañang approved the new law on Feb. 12.
Revenue Regulation 3-2015, which sets the implementating rules of the law, takes effect on Apr. 1. The Bureau of Internal Revenue published the order on Mar. 16.
“We are hopeful the Php30 billion in incremental bonuses for salaried employees, coupled with the Php15 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.
The Makati solon has been batting for highly progressive taxation that would put more income at the disposal of Filipino families.
She is also the author of measures seeking to exempt from income tax all night shift differential and overtime pay received by employees.
As proposed by the Makati solon 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.