Pinoys to receive half-month salary bonus this January

Pinoys to receive half-month salary bonus  this January

Here's an encouraging news to kick off 2023.

Rep. Joey Salceda of Albay's 2nd district reminded Filipinos on Saturday, December 31 that the Tax Reform for Acceleration and Inclusion (TRAIN) Law will provide them with a windfall of half a month's income.

Salceda referred to this extra revenue that will result from the lower personal income tax (PIT) rates under TRAIN in 2023 as "a 13.5th month bonus."

"The TRAIN Law PIT cut will result in increased take-home pay of about 5% of gross income. The head of the House Committee on Ways and Means claimed that the additional disposable income was equivalent to around half a month's worth.

The bill, officially known as Republic Act (RA) No. 10963, was mostly written and sponsored by Salceda. It becomes active on January 1st, 2018.

For those making between about P250,000 and P2 million, the new yearly income tax rates will result in a tax reduction of about 5%.

Personal income tax will reduce by 2% for those with taxable income exceeding P2 million but under P8 million. PIT will still not apply to income below P250,000.

According to our first projections, it will give Filipino families an extra P32 billion in disposable income.

That will increase consumer spending and also give room for homeownership savings, according to Salceda.

According to Salceda, the reduction will also protect workers from the effects of the 1% rise in SSS contributions and the 0.5 % increase in PhilHealth premiums.

The Bicolano claimed that "take home is still up 3.5 percentage points or so."