DUMAGUETE CITY, Negros Oriental — Workers across the country could soon keep more of their hard-earned income. A new House measure aims to raise the annual income tax exemption threshold from P250,000 to P350,000, a move lauded by Negros Oriental 3rd District Rep. Janice Degamo as a significant relief for Filipino families.
A Boost for Workers' Take-Home Pay
The proposal, contained in House Bill No. 10345, was approved by the House Committee on Ways and Means on August 10. Filed by House Speaker Faustino 'Bojie' G. Dy III and Majority Leader Ferdinand Alexander 'Sandro' Marcos, the bill seeks to amend the National Internal Revenue Code. It aims to restructure the graduated income tax rates for Filipino citizens.
Under the measure, annual taxable income of up to P350,000 would fall under the zero-percent bracket. This represents an increase of P100,000 over the current ceiling. Income above P350,000 but not exceeding P400,000 would be taxed at 15 percent.
Tax Relief for Millions
The current P250,000 ceiling has been in place since 2018 under the Tax Reform for Acceleration and Inclusion (TRAIN) law. The proposed change is expected to significantly expand the number of tax-exempt workers. Finance Undersecretary Karlo Adriano stated that the bill would raise the number of income-tax-exempt compensation workers to 6.35 million.
This represents 77 percent of the country's 8.2 million compensation workers. Minimum wage earners would remain exempt from income tax on their taxable income, holiday pay, overtime pay, night shift differential pay, and hazard pay. The change directly benefits those in lower income brackets.
Responding to the Needs of Provinces
Rep. Degamo, vice chairperson of the House Committee on Visayas Development, emphasized the bill's broad impact. She spoke during the Visayas leg of LegisHear at Negros Oriental State University (NORSU) on August 14. She noted that this is not only a concern of her province but of people throughout the entire country.
Degamo highlighted that the legislative priorities of President Ferdinand R. Marcos Jr. and the House address real concerns felt by residents. The bill was filed just a day after the President called for the higher exemption ceiling in his fifth State of the Nation Address. This quick response shows alignment between national leadership and legislative action.
LegisHear Brings Lawmaking Closer to the People
The Dumaguete consultation was LegisHear's first stop in the Visayas. The program is designed to move legislation faster and improve the quality of laws through early public participation. House Speaker Dy emphasized this commitment in a video message, noting the importance of involving those the laws will affect.
The session brought together several local mayors and officials, showing strong regional engagement. Discussions centered on how national policies can directly improve conditions in provinces. It provided a platform for leaders to connect national laws with local needs.
Next Steps and Effective Date
If enacted, the new rates would take effect on January 1, 2027. The bill must still undergo further legislative processes before becoming law. However, its swift committee approval signals strong political will to provide tax relief to Filipino workers. The measure is seen as a key step toward easing the financial burden on ordinary citizens.
For workers, especially those in the lower and middle-income brackets, this change represents meaningful savings. It provides more disposable income for families to cover daily needs. The potential impact on household budgets and local economies is significant.
