Makati City Mayor and senatorial aspirant Abby Binay announced on Thursday, Jan. 23, her plan to push for tax exemptions for the 13th month pay and overtime pay of workers working in both private and public sectors saying that this will help alleviate the financial burden of workers and their families.

“Kapag inalis mo yung tax sa overtime at 13th month, tataas ang disposable income ng manggagawa. Meron siyang dagdag na pambili ng pagkain, gamot, pambaon sa eskwela ng anak, yung basic needs (Exempting overtime pay and 13th month from taxes will increase the disposable income of workers which they can use to buy food and medicine, provide school allowance for their children, and other basic needs)," Binay said, citing that these exemptions will also bring long-term economic impact.

“May domino effect yan. Tataas ang consumer spending, sisigla ang mga negosyo, tataas ang revenue collection ng gobyerno. Na-offset whatever revenue is lost (It will have a domino effect. Increased consumer spending will drive sales and accelerate business growth, which will translate to higher revenue collection for the government. Whatever revenue is lost will be offset)," she explained.

The exclusion of overtime pay and 13th month pay from taxable income will also greatly benefit families belonging to the low to middle-income brackets as this may help them cope better with the rising inflation.

The mayor said the current Tax Code places a cap of P90,000 for the total amount of the 13th month pay and other additional benefits, including 14th month and performance bonus, to be considered non-taxable income.

Any amount in excess of P90,000 shall form part of the taxable income of employees.