Overtime pay, 13th month should be tax-free -Mayor Abby Binay

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Makati Mayor and senatorial candidate Abby Binay announced her intention to advocate for tax exemptions on the 13th month pay and overtime pay for workers in both the private and public sectors. She believes these exemptions will significantly increase disposable income, providing much-needed relief for workers and their families.

Exemting overtime pay and the 13th month from taxes will increase workers’ disposable income,enabling them to purchase food, medicine, school allowances for their children, and other basic necessities,” Binay stated.

Binay highlighted the broader economic benefits of such tax reforms. “This will have a domino effect: increased consumer spending will stimulate businesses and enhance government revenue collection, offsetting any lost revenue,” she explained.

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The mayor emphasized that exempting these earnings would particularly assist Filipino families in low to middle-income brackets as they face 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.

Currently, the Tax Code caps the non-taxable amount for the 13th month pay and other benefits at P90,000. Any amount exceeding this threshold is subject to taxa-tion.

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