cdn mobile

13th month pay, OT pay must be tax-free – Mayor Abby Binay

By: Faith Argosino - Reporter - Inquirer.net | January 23,2025 - 06:56 PM

13th month pay

Makati City Mayor Abby Binay (FILE PHOTO0

MANILA, Philippines — The 13th-month pay and overtime pay and of private and public sector workers should be free from tax, according to Makati City Mayor Abby Binay. 

Binay, in a statement on Thursday, said she would push for the tax exemptions, aiming to “bring relief to workers and their families in the form of disposable income for their basic needs.”

“Relieving the tax burden on workers will enable Filipino families, especially those in the low to middle-income sectors, to avoid falling deeper into poverty in the face of rising inflation,” she said.

READ:

DOLE urges employers to ensure 13th-month pay before Christmas

How do you calculate for your 13th-month pay? Read on!

‘Tis the season for 13th month pay

 

“May domino effect yan. Tataas ang consumer spending, sisigla ang mga negosyo, tataas ang revenue collection ng gobyerno. Na-offset whatever revenue is lost,” Binay added.

(It will have a domino effect. Increased consumer spending will drive sales and accelerate business growth, which will translate to higher revenue collection for the government. Whatever revenue is lost will be offset.)

The current Tax Code places a cap of P90,000 for the total amount of the 13th month pay and other additional benefits, including 14th month and performance bonus, to be considered non-taxable income.

Any amount in excess of P90,000 shall form part of the taxable income of employees.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Read Next

Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of Cebudailynews. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

TAGS: 13th month pay, OT pay, taxes
Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.