Lawmaker eyes tax breaks for overtime, bonuses, medical expenses

4Ps Rep. JC Abalos
Congressman JC Abalos of the 4Ps Party-list aired the need to further strengthen government efforts to ease the burden on Filipino workers, citing a recent study showing that 58.7 percent of the population remains vulnerable to poverty.
The young solon made the statement following the release of a study by the Philippine Institute for Development Studies (PIDS), which noted that sustained national policies on reducing economic vulnerability would help achieve a predominantly middle-class Philippines by 2040.
In response, Rep. Abalos revisited three tax relief measures he filed in August 2025. The bills aim to increase workers’ take-home pay by reducing tax burdens, allowing families to better afford basic necessities and daily expenses.
The measures include House Bill 3782, which proposes making medical expenses for critical illnesses deductible from income tax.
House Bill 3783 seeks to exclude compensation from overtime pay, night shift differential and hazard pay from income tax.
Meanwhile, House Bill 3784 proposes raising the tax-exempt ceiling for the 13th-month pay and other bonuses from P90,000 to P120,000 to ensure these year-end incentives are excluded from income tax computations.
Abalos underscored that taxes should not place an undue burden on Filipino workers. He stressed that the tax relief bills would result in higher take-home pay, greater purchasing power and, ultimately, help reduce poverty in the country.
He appealed to his colleagues in Congress to support the proposed measures toward their enactment into law.
