Two lawmakers are advancing separate legislative proposals aimed at alleviating the financial strain on Filipino workers as the country grapples with rising prices and decelerating economic growth.
Higher Tax Exemption Proposed
Senator Mark Villar has filed Senate Bill 2137, which seeks to increase the annual income tax exemption ceiling to PHP 360,000 from the current PHP 250,000. Villar argued that the measure would help workers cope with the increasing cost of living and stimulate household spending.
Under the proposed bill, individuals earning up to PHP 360,000 annually would be exempted from paying income tax. Additionally, the graduated income tax brackets would be adjusted to reflect inflation and prevailing economic conditions.
Villar noted that Filipino households continue to struggle with rising prices of food, fuel, electricity, transportation, and other essential goods. The Bangko Sentral ng Pilipinas earlier projected inflation to average 3.6 percent this year, exceeding the government's three-percent target.
“As the prices of basic goods and services continue to rise, it is only right that we provide additional relief to our workers. Through this measure, they will be able to bring home a larger portion of their income for their families’ daily needs,” Villar said in a statement.
Subsidy for Minimum Wage Earners
Meanwhile, Senator Sherwin Gatchalian renewed his call for a PHP 1,500 monthly subsidy for approximately five million minimum wage earners. This proposal comes amid higher inflation, slower first-quarter economic growth, and forecasts of persistently elevated prices.
“Lest we forget, the country is still in a crisis amid all the political noise. Our people, particularly the vulnerable sectors, are suffering from high prices of basic commodities and need a little respite,” Gatchalian said in a separate statement.
He highlighted that inflation at 7.2 percent had significantly eroded purchasing power. Using PHP 1,000 in 2018 as the base value, purchasing power dropped to PHP 732.60 for the total population and PHP 715.82 for the bottom 30 percent of households.
Gatchalian emphasized that the proposed subsidy would help minimum wage earners cover daily expenses while supporting domestic consumption and economic activity.
“A large portion of the salaries of minimum wage workers goes to daily expenses such as food and transportation. We need to help them overcome the crisis we continue to face,” he added.
The PHP 1,500 monthly subsidy was among the recommendations of the Senate Protect ad hoc panel. If implemented, it is estimated to cost the government approximately PHP 7.5 billion per month.
