Binay renews call to tax exempt overtime pay, other bonuses

Makati City Mayor and senatorial aspirant Abby Binay on Thursday, May 1, renewed her call to tax exempt overtime pay and bonuses like the 13th month pay, to promote financial security among government and private sector workers and their families.

- By PATRICK GARCIA

In a statement, Binay said she will actively pursue the amendment of the tax code in the Senate to reclassify overtime pay and bonuses as "non-taxable income" to help workers cope with rising inflation and cost of living.

"Exempting minimum wage earners from income tax is not enough. Moreover, the current non-taxable income rates are no longer realistic given the present economic conditions in the country," she explained.

The Tax Reform for Acceleration and Inclusion (TRAIN) Law or Republic Act No. 10963 has set the threshold for non-taxable income at P20,833 per month or P250,000 per year.