Press Release
June 16, 2008

ROXAS: MINIMUM WAGE WORKERS NO LONGER TO PAY INCOME TAX SIGNING OF TAX EXEMPTION MEASURE SCHEDULED TOMORROW

Senator Mar Roxas expressed gladness that tomorrow, Tuesday, the President will finally sign into law a measure that exempts minimum wage earners from paying income tax and increases personal exemptions for other employees.

"This new law will provide relief and additional money to spend for our workers, which is needed more than ever at this time of continued increases in prices of necessary goods," said Roxas, principal author of the measure.

"We have fought for this for a long time. Many Labor Days have come and gone wherein we fought for this for our workers, and at last, income tax exemption of minimum wage earners is now a law," he added.

Roxas, said the tax exemptions would provide additional take-home pay of P750 a month for minimum wage earners.

"A worker in Metro Manila earning P7,900 a month will now have an additional P750 of take-home pay, per month, or P34 per day. He can now spend this additional money for his needs or for his family's needs, such as food, medicine and the tuition fee of his children, among other uses," he said.

The President of the Liberal Party added that all holiday, night differential, hazard and overtime pay will also be tax exempt.

The new law also increases personal exemptions for salaried workers. An employee earning P455 per day or P10,010 per month would have an additional take-home pay of:

- P472.59 per month or P5,671.02 per year if unmarried;

- P678.50 per month or P8,142.04 per year as head of the family; and

- P580.92 per month or P6,971.02 per year for those married with four children.

An employee earning P683 per day or P15,026 per month would have an additional take-home pay of:

- P545.26 per month or P6,543.10 per year if unmarried;

- P1,307.18 per month or P15,686.20 per year as head of the family; and

- P1,190.52 per month or P14,286.20 per year for those married with four children.

News Latest News Feed