A Senate bill is seeking to raise the take-home pay of Filipino workers, particularly those in the middle-income bracket, is expected to provide tax relief and ease the impact of rising prices.

Sen. Sherwin Gatchalian, who filed Senate Bill 56, or the Granting Increase in Take-Home Pay for All Working Filipinos (GINHAWA) Act, on Tuesday said the measure shall increase workers’ disposable income through tax adjustments.

The bill proposes raising the annual income tax exemption threshold from PHP250,000 to PHP400,000 and increasing the cap on tax-free bonuses from PHP90,000 to PHP150,000.

“Kailangan din ng middle class ng tulong para maibsan ang pasakit na dulot ng mataas na presyo ng langis at mga bilihin (The middle class also needs support to ease the burden caused by high oil prices and the rising cost of goods). The middle class has been the lifeblood of the local economy, driving domestic consumption and contributing significantly to government revenue,” Gatchalian said.

The measure also seeks to exempt additional compensation such as overtime pay, holiday pay, night shift differential and hazard pay from taxes, along with service charges earned by workers in the service sector.

It further provides tax relief for small businesses and exempts the honoraria and allowances of poll workers from taxation.

Gatchalian, who also chairs the Senate Committee on Finance and the PROTECT ad hoc panel, said the proposed measure aims to give workers more financial breathing room while sustaining domestic consumption amid economic pressures. (PNA)