Senate Senior Deputy Majority Leader JV Ejercito has filed a bill seeking to exempt employees earning up to ₱50,000 a month, or ₱600,000 annually, from paying income tax, saying the measure would increase the take-home pay of millions of Filipino workers amid rising living costs.

Under Senate Bill No. 2341, Ejercito proposes amending the National Internal Revenue Code to raise the income tax exemption threshold to ₱600,000 a year from the current ₱250,000 under the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

"This is not just a tax reform measure. It is for our middle-income earners who work hard, pay taxes, and continue contributing to the economy despite rising prices. They are the backbone of our economy," Ejercito said.

The senator said the country's income tax system should reflect today's economic realities, citing persistent inflation, rising fuel prices, and increasing costs of basic goods that have eroded workers' purchasing power.

He noted that while the TRAIN Law restructured the income tax system in 2017, many middle-income earners continue to face stagnant wages and shrinking disposable income while remaining ineligible for government assistance programs.

If enacted, workers earning ₱600,000 or less annually would no longer pay income tax, while those earning above the threshold would continue to be taxed under a revised graduated income tax schedule.

Citing the 2024 Philippine Statistics Authority Labor Force Survey, Ejercito said an estimated 17.6 million full-time private-sector wage and salary workers earning below ₱600,000 annually could benefit from the proposal.

He said the measure is intended to reduce the tax burden on middle-income workers, strengthen their purchasing power, and provide Filipino families with higher take-home pay over the long term.

Ejercito added that the proposal also supports President Ferdinand Marcos Jr.'s call during his fifth State of the Nation Address to expand income tax exemptions and ease the financial burden on Filipino workers amid rising living expenses.