Senator Win Gatchalian on Tuesday pressed for the swift approval of a legislative measure designed to boost the take-home income of middle-class laborers, as the economic fallout from the ongoing Middle East crisis continues to burden household finances.
The proposed legislation seeks to elevate the annual income tax exemption cap from ₱250,000 to ₱400,000, a strategy that the lawmaker notes will provide vital financial relief to salaried individuals.
Known as the GINHAWA bill, or the Granting Increase in Take-Home Pay for All Working Filipinos Act, the measure also proposes raising the ceiling on tax-free bonuses to ₱150,000 from the current ₱90,000, enabling employees to keep a greater share of their earnings.
“Kailangan din ng middle class ng tulong para maibsan ang pasakit na dulot ng mataas na presyo ng langis at mga bilihin,” Gatchalian said, recognizing that the middle class “has been the lifeblood of the local economy.”
In addition to shifting income tax brackets, the bill aims to eliminate taxes on service charges collected by employees within the service industry.
The proposal further pushes to shield various forms of supplemental income from taxation, encompassing overtime earnings, holiday pay, night shift differentials, and hazard pay, alongside the honoraria and allowances distributed to election workers.
Gatchalian emphasized that this comprehensive tax relief program is strategically engineered to mitigate the severe impacts of escalating fuel costs and inflation, which have disproportionately strained middle-class wage earners.