The Department of Labor and Employment (DoLE) expressed full support Tuesday for President Ferdinand Marcos Jr.’s proposal to raise the income tax exemption threshold, a move aimed at providing financial relief to middle-class workers.

In his fifth State of the Nation Address (SoNA), Marcos urged Congress to amend the tax code so individuals earning up to P350,000 annually would be exempt from income tax, allowing them to retain a larger portion of their earnings.

“Let us increase the number of workers exempt from paying income tax,” Marcos said, proposing to include those earning up to P350,000 per year to support the middle class amid economic challenges.

“We will pursue tax relief measures that promote growth, generate revenue, and advance equity toward socio-economic sustainability,” he added.

Labor Secretary Francis Tolentino praised the initiative, noting that the expanded cap would benefit workers earning above the minimum wage who currently fall into tax brackets.

“If it is set at P350,000 and below, definitely more people will be helped — not just minimum wage earners, but also those earning slightly above the minimum wage,” Tolentino said.

Tolentino called on lawmakers to prioritize urgent amendments to the National Internal Revenue Code, expressing optimism that Congress could pass the legislation before the end of the year to deliver immediate relief to Filipino workers.