Gov’t workers entitled to ‘fatter’ bonus – Angara

Senator Sonny Angara reminded government employees yesterday that they are entitled to a “fatter” bonus this month since the law mandating tax exemption on the 13th month pay and other benefits are covered by Republic Act No. 10653.

Angara, chairman of the Senate Committee on Ways and Means, said that the law which

he authored and sponsored last year mandating tax exemption for bonuses not over 182,000 is applicable to the mid-year bonus scheduled to be given to state employees this year.

The law, he said, provides that the 13th month pay and other benefits, including productivity incentives and Christmas bonuses not exceeding 182,000 being given to both government and private sector employees should be tax-free.

“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 envelopes or your ATMs,” Angara said in a statement.

Before RA 10653 was signed into law in February last year, only bonuses not exceeding 130,000 were exempted from tax.

That is why, he said, Congress moved to pass the law raising the tax exemption cap on bonuses to ensure that workers would have a higher take home pay for their own families.

“The midyear bonus is equivalent to one month’s basic pay and will be given on top of the 13th month bonus employees are entitled to every December,” he pointed out.

The Department of Budget and Management (DBM) earlier announced that it has allotted a total of 132 billion — 126 billion for civilian personnel and 16 billion for uniformed and military personnel — for the payout this year of midyear bonus of government employees.

Under Budget Circular 2017-2 issued on May 8, the mid-year bonus will cover all civilian, uniformed and military personnel as long as they’ve been in government service for at least four months since July 2016.