Workers to get bigger bonuses

Workers from both public and private sectors will be getting bigger 13th month pay and yearend bonuses because of the law that raised the tax exemption cap of bonuses and benefits.

Pursuant to Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law, the 13th month pay and other benefits, including productivity incentives and Christmas bonuses, are exempted from tax if they do not exceed P90,000.

"Buong-buo nang maiuuwi ng mga empleyado ang kanilang bonus sa kanikanilang pamilya. Tiyak na makadaragdag ito sa kanilang panggastos para sa pagdiriwang ng Pasko at bagong taon,” said Senator Sonny Angara.

Angara

is also responsible for the law that raised the tax exemption of 13th month pay and other benefits to P82,000 in 2015.

Before RA 10653 was signed into law in 2015, only bonuses not exceeding P30,000 were tax-exempt.

Angara said government employees will receive their 13th month pay today, November 15.

For private sector employees, on the other hand, the 13th month pay should be given not later than December 24.

The 13th month pay must be equivalent to onetwelfth (1/12) of the basic salary of an employee within a calendar year.

The senator, who is expected to visit Cebu tomorrow with Senators Nancy Binay and JV Ejercito, 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.

"Hindi lamang mga regular na empleyado ang dapat makakuha ng 13th month pay. Kahit mga contractual, casual, fixed term, probationary, seasonal employees ay dapat din makatanggap ayon sa ating Labor Code,” he said. —