A veteran congressman is eyeing the tax exemption of employees' 14th month pay and other bonuses in a bid to provide financial relief for workers amid the rising cost of living.

Kabayan Party-list Rep. Ron Salo on Thursday, May 8, says he is preparing to file a bill seeking to exempt all forms of bonuses from income tax, including the 14th month pay, mid-year bonuses, and other performance-based or incentive bonuses up to a maximum of ₱150,000.

Under current laws, only the 13th month pay and other benefits not exceeding P90,000 are tax-exempt.

For Salo, the coverage of tax exemption must be expanded to include other legitimate bonuses granted by employers in good faith.

"Our workers should be able to enjoy the full value of their hard-earned bonuses," Salo said.

"These are not luxuries. They are rewards for service, loyalty, and productivity. It's only right that we do not reduce them through taxation," he added.

Salo believes that by sparing these bonuses from taxes, the government could increase the workers' savings capacity and purchasing power, "which ultimately supports the economy".

He said that government employees, many of whom receive bonuses based on performance or agency savings, should be granted the same benefit.

"Public servants work just as hard and should not be left out," he said.

Salo is hoping that such a proposal would gain bipartisan support in Congress, as it offers direct benefits to millions of Filipino workers and their families.

“This is a practical way to support our workforce. They deserve to keep more of their bonuses and spend them where it matters most, whether on daily expenses, family needs, or savings," he said.