Lawmakers from the Makabayan Bloc are pushing a measure in the House of Representatives to increase the income tax exemption ceiling for 13th-month pay, Christmas bonuses, and similar benefits from ₱90,000 to ₱150,000.

The proposal is contained in House Bill 7661, authored by ACT Teachers Party-list Rep. Antonio Tinio, along with Kabataan Party-list Rep. Renee Co and Gabriela Party-list Rep. Sarah Elago. Tinio said the measure aims to reduce the tax burden on workers’ benefits and ensure that more bonuses become fully tax-free.

Tinio explained that once enacted, the bill would benefit not only government employees but also workers in the private sector, as the higher exemption would apply across the board. He added that the proposal responds to the rising cost of living and the need to maximize workers’ take-home pay.

Rep. Co said making more bonuses tax-free would provide meaningful financial relief to employees, especially during the holiday season when expenses are typically higher. Meanwhile, Rep. Elago described the proposal as “long overdue,” stressing that workers continue to shoulder heavy taxes and fees amid persistent economic challenges.

If approved into law, the measure would amend existing tax provisions to allow workers to keep a larger portion of their year-end benefits without additional tax deductions.