JV Ejercito pushes to make P50,000 monthly salary tax-free for Filipino workers
Philippine Senator JV Ejercito has filed a bill to exempt workers earning P50,000 or less per month from income tax. The proposal aims to help middle-income earners cope with inflation and rising costs of living.
Why it matters
The bill addresses the economic strain on the middle class in the Philippines, potentially impacting national fiscal policy and household disposable income.
Senator Joseph Victor “JV” Ejercito is now pushing for a bill seeking to exempt workers and employees earning up to P50,000 per month—or P600,000 annually—from income tax.
Ejercito, in filing Senate Bill No. 2341, which seeks to amend the National Internal Revenue Code to exempt individuals earning P600,000 or less per year from income tax, said the measure aims to increase the take-home pay of millions of Filipino workers in the face of inflation.
SB No. 2341 primarily raises the threshold from the current P500,000 set under Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
“This is not merely a simple tax reform. It is for our middle-income earners who work honorably, pay taxes, and contribute to the economy despite the high cost of goods. They are the true backbone of our economy,” Ejercito said.
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