Congress pushes bill raising tax exemption limit on workers’ bonuses from P30,000 to P75,000
Workers of the Philippines, cross your fingers!
Louis Bacani of Philstar.com reports that "both chambers of Congress have agreed to pass Senate Bill No. 256, which aims to "raise the exclusion limit on an individual’s work bonuses from income taxation from the current imposed limit of P30, 000 to P75,000."
The report quoted Senate President Franklin Drilon who said that "both chambers are aware of the need to revisit the provisions of Republic Act No. 7833." He explained, "The law was passed 20 years ago, and obviously, things have greatly changed - making such figures no longer reflective of current economic realities, thus making it even more difficult for the average Filipino worker to make both ends meet for him and his family."
The report noted: "The law imposed the P30,000 cap on bonuses back in 1994 when the lowest monthly basic salary for government employees (Salary Grade 1, Step 1) was tagged at P2,800, while the President of the Philippines (Salary Grade 33) received P25,000 per month."
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