Senator Sherwin Gatchalian proposed on Saturday, May 8, deductions to taxes imposed on workers who have been telecommuting to make up for their expenses for working at home.
Gatchalian issued the call as he cited the challenges faced by workers amid the work-from-home and hybrid work arragements, which he said "are likely to be in it for the long haul" due to the novel coronavirus disease (COVID-19) pandemic.
The senator specifically sought a reduction of P25 from the workers' taxable income from every hour of work rendered under a work-from-home arrangement.
He added that allowances or other benefits not exceeding P2,000 per month granted to workers can also be legislated as a non-taxable benefit.
“In providing for these allowable tax deductions, it will effectively increase the workers’ take-home pay and somehow, these would suffice to cover part of their electricity, internet connectivity fees and other work-related expenses. The amount will be substantial especially for cash-strapped individuals,” Gatchalian, vice chairperson of the Senate Economic Affairs Committee, said in a statement.
The said proposals were contained under Senate Bill No. 1706 or the "Tax Incentives for Individuals on a Work-From-Home or Telecommuting Program" filed by Gatchalian and Sen. Francis Tolentino in August last year.
Under the bill, the tax deductions shall be certified by the employer and filed as an attachment to the workers' income tax return.
As for employers, they will be entitled to an additional 50 percent income tax deduction for allowances granted within the specified ceiling.
This would encourage employers to provide the much-needed allowances to their employees, Gatchalian said.
“Mahalaga ang pagbibigay ng insentibo lalo na sa maraming mga empleyado na hanggang ngayon ay nag-a-adjust pa rin sa 'new normal' (Incentives are important especially for many workers who, until now, are still adjusting to the new normal)," the lawmaker pointed out.
"Malaking tulong na ito sa kanilang buwanang gastusin, pampalubag loob din ito sa mga nakakaramdam ng stress habang naka work-from-home (These would help them with their monthly expenses, and ease their stress while they work from home)," he added.
Last March, Microsoft released the findings of its first Annual Work Trend Index, which showed that 42 percent of employees saying that they still lack essential office supplies at home, and one in 10 do not have an adequate internet connection to do their job.
It also found that over 46 percent of workers said their employers do not help with remote work expenses.
In the Philippines, 63 percent of workers felt overworked while 31 percent said they were exhausted, the same survey said.
Another survey conducted by JobStreet.com Philippines last year showed that 75 percent of the respondents complained not receiving any reimbursement or allowance for their electricity and internet expenses from their companies, while 87 percent said employers should shoulder their work-from-home costs.