Senate of the Philippines approves on third and final reading a measure which will raise tax exemption ceiling on thirteenth month pay, productivity and other bonuses for PhP30,000 to PhP82,000. With this bill signed into law by President Aquino, employees from private and government sectors may take home bigger bonuses.
Bureau of Internal Revenue Commissioner Kim Hernares stated, in one of the previous hearing regarding the said measure, PhP30,000 in 1994 would be equivalent to PhP82,000 today.
Senate President Franklin Drilon said this is needed “to provide relief to state and private workers whose purchasing power has been shrinking for years due to inflation, but still have had to deal with the consequences of an outdated law.”
“Whatever is the revenue loss for the government is actually income gained for the workingman. And even if his 13th month pay is tax exempt upon receipt, it will be taxable when spent,” Senator Ralph Recto said.
“All reasons to increase the cap for the tax exemption on the 13th month and other benefits points to one thing: to enhance the welfare of the working class,” Senator Manuel “Lito” Lapid Jr. said.