Press Release
February 12, 2015


Senator Sonny Angara has expressed his gratitude to President Benigno Aquino III for signing into law a measure that would raise the take-home pay of Filipino workers by increasing the tax exemption cap for 13th month pay and other benefits.

"I congratulate both houses of Congress and the President for working together in granting our Filipino workers this long overdue tax relief and letting them benefit more from their hard-earned money. Belated Christmas present man, perfect Valentines gift pa rin para sa ating mga kababayan," said Angara, chair of the Senate ways and means committee and one of the authors of the measure.

With the signing of the law, the 13th month pay and other benefits, including productivity incentives and Christmas bonuses, not exceeding P82,000 given to both government and private sector employees will be exempted from tax.

This sought to amend Republic Act 7833 which set the tax exemption ceiling at P30,000 way back in 1994.

The newly enacted law has provided for the automatic adjustment of the ceiling every three years, taking into account inflation, to ensure that the tax ceiling won't be left unchanged again for more than two decades.

"Again, I thank the President for signing our bill despite strong opposition from the Finance Department. It's a wonderful indication that the government is open to amending our outdated tax system and making it more fair and equitable to all our taxpayers. I hope our government would be one with our goal of not overtaxing what Juan Dela Cruz has earned for himself and his family," said Angara, who also filed a bill that seeks to lower individual income tax rates and adjust the brackets across-the-board.

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