Manila: A Senate bill aimed at increasing the take-home pay for Filipino workers, particularly those in the middle-income bracket, is expected to provide tax relief and ease the impact of rising prices. The proposal, known as the Granting Increase in Take-Home Pay for All Working Filipinos (GINHAWA) Act, was filed by Sen. Sherwin Gatchalian.
According to Philippines News Agency, the bill, designated as Senate Bill 56, seeks to enhance workers' disposable income through tax adjustments. It proposes raising the annual income tax exemption threshold from PHP250,000 to PHP400,000, along with increasing the cap on tax-free bonuses from PHP90,000 to PHP150,000.
Sen. Gatchalian emphasized the necessity of supporting the middle class to alleviate the burdens of high oil prices and the rising cost of goods. He noted that the middle class plays a crucial role in driving domestic consumption and significantly contributing to government revenue.
The GINHAWA Bill also seeks to exempt additional compensation such as overtime pay, holiday pay, night shift differential, and hazard pay from taxes. Additionally, it aims to exempt service charges earned by workers in the service sector from taxation.
Further provisions in the bill include tax relief for small businesses and the exemption of honoraria and allowances for poll workers from taxation. Sen. Gatchalian, who chairs the Senate Committee on Finance and the PROTECT ad hoc panel, stated that the proposed measure is designed to offer workers more financial breathing room while sustaining domestic consumption amid economic pressures.
