Starting May 15, around 1.5 million government employees will receive bigger mid-year bonuses pursuant to the law that raised the ceiling of tax-free bonuses and benefits.
Under 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.
“Magandang balita ito para sa ating government employees lalung-lalo na sa mga magulang na naghahanda ngayon para sa enrollment ng kanilang mga anak. Malaking bagay ito na makatutulong sa pagtustos sa pag-aaral at iba pang gastusin ng pamilya,” said Senator Sonny Angara, chairman of the ways and means committee.
Prior the TRAIN law, Angara has pushed for the law that increased the tax exemption of 13th month pay and other benefits from P30,000 to P82,000 in 2015.
Previously, government workers received a yearend bonus or 13th month pay in two tranches – the first in May and the second in November.
Executive Order No. 201 mandates the grant of a midyear bonus or 14th month pay equivalent to one month’s salary to government employees who fit a criteria.
Previously, government workers received a yearend bonus or 13th month pay in two tranches – the first in May and the second in November.
Executive Order No. 201 mandates the grant of a midyear bonus or 14th month pay equivalent to one month’s salary to government employees who fit a criteria.
According to the Department of Budget and Management, those eligible to receive the 14th-month pay are employees who rendered a minimum of four months service between July last year and May 15 this year, who obtained a performance rating of “satisfactory” or better, and who were still working for the government on May 15.
The total amount allocated for the mid-year bonus of all government personnel this year is estimated at P36.2 billion.
“Mas malaki na ang maiuuwing bonus ngayon ng ating mga kawani ng pamahalaan dahil hindi na kakaltasan ng buwis ito kung hindi tataas sa P90,000. Buong-buo nang makukuha ng government employees ang kanilang mid-year bonus na mapakikinabangan na kani-kanilang pamilya,” Angara said.