Makati Mayor Abby Binay on Thursday has urged the national government to exempt overtime pay and 13th-month pay from income tax for both public and private sector workers.

Binay — who is gunning for a Senate seat in the 2025 midterm elections — said that the tax exemption would provide much-needed relief to workers and their families by increasing their disposable income.

“Exempting overtime pay and 13th-month pay from taxes will increase the disposable income of workers, which they can use to buy food and medicine, provide allowance for children going to school, and other basic needs,” Binay said in a statement.

“This 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,” she added.

The lady mayor also said the total exclusion of overtime pay and 13th-month pay from taxable income would help Filipino families in the low- to middle-income brackets cope better with rising inflation.

“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,” Binay said.