By Hannah Torregoza
Senator Joseph Victor “JV” Ejercito has filed Senate Bill No. 2341, a measure that would exempt workers earning up to ₱50,000 per month—or ₱600,000 annually—from paying income tax.
The proposal amends the National Internal Revenue Code by raising the current exemption threshold from ₱500,000 under the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
Ejercito said the bill is designed to ease the burden on millions of Filipino workers by increasing their take-home pay amid rising inflation and living costs.
“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 emphasized.
Under the measure, employees earning ₱50,000 or less per month will no longer pay income tax, while those above the threshold will continue to be taxed under a graduated schedule.
Based on the 2024 Labor Force Survey, about 17.6 million full-time wage and salary workers in the private sector stand to benefit.
Ejercito explained that the bill responds to stagnant wages, persistent inflation, and rising commodity prices that have eroded purchasing power.
By exempting middle-income earners, the measure aims to provide long-term relief and ensure families retain more of their hard-earned income.
“Our primary objective is not temporary relief, but to give Filipino families decent take-home pay. This measure acknowledges the value of middle-income earners and addresses their vulnerable position,” he said.
