Senatorial candidate and Makati Mayor Abby Binay is renewing her push to make overtime pay and bonuses — like the 13th month pay — tax-free, saying Filipino workers deserve a fairer deal to help ease their financial burdens.

Binay vowed that, if elected, she’ll push to amend the tax code in the Senate to classify overtime pay and bonuses as “non-taxable income,” giving workers much-needed relief amid rising inflation and living costs.

“Exempting minimum wage earners from income tax isn’t enough anymore,” Binay said. “The current non-taxable income rates just don’t make sense with how expensive life has become.”

Right now, under the TRAIN Law (Republic Act 10963), income up to P20,833 per month — or P250,000 a year — is tax-free. The law also exempts the 13th month pay and bonuses up to P90,000, but anything above that is taxed.

Binay believes that’s unfair. “Workers deserve to enjoy their overtime pay and bonuses in full,” she said. “They’ve worked hard for it, often sacrificing their rest and family time just to make ends meet.”

She added that making overtime pay tax-exempt would boost workers’ take-home pay and give families more money for daily needs — things like food, clothing, housing, utilities, and transportation to work or school.

And when it comes to the holidays, Binay said tax-free bonuses would allow families to fully enjoy the season.

“Christmas will be much happier for every Filipino family if they can receive their year-end bonuses in full,” she said. “Many of them might even be able to pay down debts, and they’ll have a more joyful New Year celebration.”

Binay stressed that bigger take-home pay benefits not just families but the wider economy, too. “When people have more money to spend, businesses see stronger sales, and in turn, the government collects more revenue. It’s a cycle that benefits everyone.”

She also pointed out that the government can tap other revenue sources to make up for any short-term tax losses — particularly through tourism.

“We have so many natural resources that haven’t been fully developed yet,” Binay said. “If we focus on boosting tourism and other industries, over 50 million Filipino workers won’t have to bear the burden of unfair taxes just to give their families a decent life.”