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Roxas: Minimum wage earners' tax exemption is law on Tuesday

By Veronica Uy
INQUIRER.net
First Posted 16:34:00 06/16/2008


MANILA, Philippines -- The measure exempting minimum wage earners from paying income tax and increasing personal exemptions for other employees will be signed into law on Tuesday, Senator Manuel "Mar" Roxas II said Monday.

"This new law will provide relief and additional money to spend for our workers which is needed more than ever at this time of continued increases in prices of necessary goods," Roxas, one of the authors of the measure, said.

"We have fought for this for a long time. Many Labor Days have come and gone wherein we fought for this for our workers, and at last, income tax exemption of minimum wage earners is now a law," he added.

Roxas said the tax exemptions would provide additional take-home pay of P750 a month for minimum wage earners.

"A worker in Metro Manila earning P7,900 a month will now have an additional P750 of take-home pay per month, or P34 per day. He can now spend this additional money for his needs or for his family's needs, such as food, medicine, and the tuition fee of his children, among other uses," Roxas said in a statement.

The senator added that all holiday, night differential, hazard, and overtime pay will also be tax-exempt.

For other salaried workers, the measure would allow an employee earning P455 per day or P10,010 per month to have an additional take-home pay of P472.59 per month or P5,671.02 per year if unmarried; P678.50 per month or P8,142.04 per year as head of the family; and P580.92 per month or P6,971.02 per year for those married with four children.

An employee earning P683 per day or P15,026 per month would have an additional take-home pay of P545.26 per month or P6,543.10 per year if unmarried; P1,307.18 per month or P15,686.20 per year as head of the family; and P1,190.52 per month or P14,286.20 per year for those married with four children.

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