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BY PRINCE GOLEZ
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Saturday, May 20, 2017
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MANILA – According to Sen. Sonny Angara, the grant of midyear bonus to government workers is also covered by the tax exemption cap.
Bonuses amounting to P82,000 and below should be tax-free, said Angara, author and sponsor of Republic Act (RA) 10653.
RA 10653, signed into law in 2015, is a measure that increases tax exemption on 13th month pay and other benefits.
“Make no mistake about it. Even the midyear bonus is covered by this law. That’s why I’m reminding employees who are receiving the midyear bonus to carefully check your envelops or ATMs,” he said.
Prior to the signing of the law, bonuses and benefits not exceeding P30,000 are exempted from tax.
“Tinaasan natin ang tax exemption cap sa mga bonus para naman mas malaki ang maiuuwi nilang pera sa kanilang pamilya,” the chairman of the Senate Committee on Ways and Means added.
According to Angara, the midyear bonus is equivalent to one month’s basic pay, and will be given on top of the 13-month bonus employees are entitled to receive every December.
The Department of Budget and Management has appropriated a total of P32 billion for the midyear bonus of all government employees, including uniformed and military personnel./PN
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