Workers from the public and private sectors will get a bigger 13th-month pay and Christmas bonus because of the law that raised the tax exemption cap on bonuses and benefits.
Beginning this year, the 13th-month pay and other benefits, including productivity incentives and Christmas bonuses, will not be taxed if they do not exceed P90,000.
“Buong-buo nang maiuuwi ng mga empleyado ang kanilang bonus sa kani-kanilang pamilya. Tiyak na makadaragdag ito sa kanilang pang-gastos para sa pagdiriwang ng Pasko at bagong taon,” Senator Sonny Angara said.
Meanwhile, all government workers will receive their Christmas gift and 14th- month bonus starting Nov. 15, Malacañang said Wednesday.
Budget Secretary Benjamin Diokno said the 14th-month bonus is equivalent to a full month’s salary while the cash gift amounts to P5,000.
The Budget department has allocated P29.7 billion for the year-end bonus of civilian personnel and another P6.5 billion for the year-end bonus of military and uniformed personnel.
Angara is responsible for the law that raised the tax exemption on the 13th-month pay and other benefits to P82,000 in 2015.
Before RA 10653 was signed into law three years ago, only the bonuses not exceeding P30,000 were tax-exempt.
According to the Budget department, government workers will receive their 13th-month pay starting Nov. 15.
Meanwhile, for private sector employees, the 13th-month pay should be given not later than Dec. 24.
The 13th-month pay must be equivalent to one-twelfth (1/12) of the basic salary of an employee within a calendar year.
The senator reminded employers that they must pay their rank-and-file employees a 13th-month pay regardless of the nature of their employment and whatever the method their wages are paid, provided they worked for at least one month during a calendar year.
Angara said it was not just regular employees who should get the 13th-month pay.
“Even contractual, casual, fixed term, probationary, seasonal employees should also receive it under the Labor Code,” Angara said. With Vito Barcelo