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, said Senator Sonny Angara on Tuesday.
Angara said that under Republic Act 10963, or the Tax Reform for Acceleration and Inclusion 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.
“This is good news to our government employees especially to parents who are preparing today for the enrollment of their children,” he said.
Angara, chairman of the ways and means committee, said that the bonus would be a big help to finance the studies and other expenses of the families.
Before the TRAIN law was enacted, 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.
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.
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.
“Buong-buo nang makukuha ng government employees ang kanilang mid-year bonus na mapakikinabangan na kani-kanilang pamilya,” he said.