A new Senate proposal is seeking to put more money directly into the pockets of Filipino workers by expanding tax exemptions on income and bonuses, as households continue to feel the pressure of rising prices linked to global fuel and supply shocks.
The new bill called “GINHAWA” bill, or the Granting Increase in Take-Home Pay for All Working Filipinos Act, aims to ease the burden on workers, especially those in the middle-income bracket, amid sustained inflationary pressures triggered in part by instability in the Middle East.
Under the measure, the annual income tax exemption threshold would be raised from P250,000 to P400,000, effectively increasing take-home pay for a wide range of salaried workers. The proposal also seeks to lift the tax-free bonus ceiling from P90,000 to P150,000.
Senator Sherwin Gatchalian, who chairs the Senate Committee on Finance, said the middle class has been disproportionately affected by rising fuel and commodity prices despite being a key driver of the domestic economy.
He stressed that easing their tax burden is both an economic relief measure and a way to sustain consumer spending, which supports overall growth and government revenues.
Beyond income and bonus adjustments, the bill also proposes removing taxes on service charges received by workers in the service sector. It likewise seeks to exempt various forms of additional compensation, such as overtime pay, holiday pay, night shift differential, and hazard pay.
The measure also covers honoraria and allowances for election workers, which would be made tax-free under the proposed reform.
If enacted, the “GINHAWA” bill is expected to significantly increase disposable income for millions of workers while providing targeted relief to sectors most affected by rising living costs.