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House ratifies bill raising tax exemption cap on 13th month pay, bonuses
By XIANNE ARCANGEL, GMA News
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(Updated 8:57 p.m.) The bill seeking to raise the tax exemption cap on employees’ 13th month pay and bonuses is only one signature away from becoming a law after the House of Representatives ratified the Senate's version of the measure.
A total of 199 House members voted for the ratification of the bill.
According to Marikina Rep. Romero Quimbo, who chairs the House ways and means committee, there will no longer be a bicameral conference committee since the House adopted the Senate’s version of the measure, which calls for an increase in the ceiling on tax-exempt bonuses to P82,000 from the current P30,000.
The House earlier approved on third and final reading its version of the bill, which indicated a P70,000 ceiling.
Asked if the measure still needs the ratification of the Senate, Quimbo said: "No more. Kung ano yung lumabas na version sa Senado, nira-ratify na namin."
At least half a million employees, both from the government and private sectors, are expected to benefit once the bill is enacted into law.
However, employees will still have to wait for the middle of 2015 before enjoying the benefits of a higher take-home pay as the bill’s implementation has been put off for next year.
“With this initiative from the House, we are now even more certain that this measure, which the House has diligently worked on the past months, will become a law before the year ends and its envisioned benefits will be felt by the people as early as June 2015, when the first half of the 13th month pay is received by employees,” Quimbo said.
The Senate version of the measure includes a provision for the mandatory adjustment of the ceiling every three years to coincide with major surveys conducted by the Philippine Statistics Authority such as the Family and Income Expenditure Survey.
By Quimbo’s estimates, the government is expected to lose a maximum of P5 billion in revenues yearly once the bill has been enacted into law. But he believes the economy stands to grow more if employees will have more control over how their disposable income from bonuses is spent. —KBK, GMA News
A total of 199 House members voted for the ratification of the bill.
According to Marikina Rep. Romero Quimbo, who chairs the House ways and means committee, there will no longer be a bicameral conference committee since the House adopted the Senate’s version of the measure, which calls for an increase in the ceiling on tax-exempt bonuses to P82,000 from the current P30,000.
The House earlier approved on third and final reading its version of the bill, which indicated a P70,000 ceiling.
Asked if the measure still needs the ratification of the Senate, Quimbo said: "No more. Kung ano yung lumabas na version sa Senado, nira-ratify na namin."
At least half a million employees, both from the government and private sectors, are expected to benefit once the bill is enacted into law.
However, employees will still have to wait for the middle of 2015 before enjoying the benefits of a higher take-home pay as the bill’s implementation has been put off for next year.
“With this initiative from the House, we are now even more certain that this measure, which the House has diligently worked on the past months, will become a law before the year ends and its envisioned benefits will be felt by the people as early as June 2015, when the first half of the 13th month pay is received by employees,” Quimbo said.
The Senate version of the measure includes a provision for the mandatory adjustment of the ceiling every three years to coincide with major surveys conducted by the Philippine Statistics Authority such as the Family and Income Expenditure Survey.
By Quimbo’s estimates, the government is expected to lose a maximum of P5 billion in revenues yearly once the bill has been enacted into law. But he believes the economy stands to grow more if employees will have more control over how their disposable income from bonuses is spent. —KBK, GMA News
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