Mayor Abby to push for tax exemptions on 13th month, overtime pay

Makati Mayor and senatorial aspirant Abby Binay said Thursday she will push for tax exemptions for the 13th month pay and overtime pay of workers in both the private and public sectors.

Binay said the tax exemptions would bring relief to workers and their families by increasing disposable income for basic needs.

“Kapag inalis mo yung tax sa overtime at 13th month, tataas ang disposable income ng manggagawa. Meron siyang dagdag na pambili ng pagkain, gamot, pambaon sa eskwela ng anak, yung basic needs,” Binay said. (Exempting overtime pay and 13th month 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.)

She also cited the long-term economic impact of these exemptions.

“May domino effect yan. Tataas ang consumer spending, sisigla ang mga negosyo, tataas ang revenue collection ng gobyerno. Na-offset whatever revenue is lost,” Mayor Abby said. (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 mayor also said excluding overtime pay and 13th month from taxable income would help Filipino families in 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,” she said.

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