By HANNAH TORREGOZA
Senator Juan Edgardo “Sonny” Angara on Wednesday reminded that workers stand to get bigger 13th month pay and Christmas bonus beginning this year.
Angara said this is pursuant to Republic Act 10963 or the law that raise the tax exemption cap on workers’ benefits and bonuses.
The senator reminded employers that they must pay their rank-and-file employees a 13th month pay regardless of the nature of their employment and whatever the method their wages are paid, provided they worked for at least one month during a calendar year.
“Hindi lamang mga regular na empleyado ang dapat makakuha ng 13th month pay. Kahit mga contractual, casual, fixed term, probationary, seasonal employees ay dapat din makatanggap ayon sa ating Labor Code (Not only regular employees are entitled to a 13th month pay. Even contractual, casual, fixed term, probationary, seasonal employees are also entitled to receive this in accordance to our Labor Code),” said Angara, who is a known advocate of labor reforms that ensure decent jobs in the country.
Under the 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.
“Buong-buo nang maiuuwi ng mga empleyado ang kanilang bonus sa kani-kanilang pamilya (Employees would be able to take home their bonuses in full),” said Angara, who is the primary author of the measure.
“Tiyak na makadaragdag ito sa kanilang panggastos para sa pagdiriwang ng Pasko at bagong taon (I am certain this will greatly help augment their expenses this coming Christmas and in New Year),” the lawmaker stressed.
It was Angara who was also responsible for the law that raised the tax exemption of 13th month pay and other benefits to P82,000 in 2015.
Before RA 10653 was signed into law three years ago, only bonuses not exceeding P30,000 were tax-exempt.
According to the Department of Budget and Management (DBM), government workers will receive their 13th month pay starting November 15.
On the other hand, private sector employees will receive their 13th month pay not later than December 24.
The 13th month pay must be equivalent to one-twelfth (1/12) of the basic salary of an employee within a calendar year.