Workers earning ₱50,000 and below per month may be given exemption from income tax under a proposed reform that also imposes new levies on billionaires and corporations to ease the burden on ordinary earners and rebalance the tax system.
The proposal, filed as House Bill No. 8860 or the Patas na Ambag sa Tax para sa Angat-Sahod (PATAS) Act by the Trade Union Congress of the Philippines (TUCP) through its party-list representative, seeks to raise the annual income tax exemption to ₱600,000 and increase the tax-free ceiling for 13th-month pay and other benefits.
HB 8860 also introduces a 1–3 percent solidarity wealth tax on billionaires and a 15–35 percent tax on corporations with extraordinary gains, particularly in the oil and power sectors.
House Deputy Speaker and TUCP party-list Rep. Raymond Democrito Mendoza said the bill aims to address what labor groups describe as an uneven tax burden on workers.
“For far too long, the middle class has been squeezed dry and taken for granted by our tax system: pinipiga ang karaniwang manggagawa na bihirang makinabang sa ayuda, habang ang tunay na malalaki ang kinikita ay nakakalusot,” Mendoza said.
Under the proposal, employees earning ₱50,000 and below monthly would pay zero income tax, allowing them to retain their full earnings, including overtime and holiday pay.
To offset potential revenue losses from the tax exemption, the bill proposes additional taxes on high-net-worth individuals and corporations with extraordinary gains.
“By imposing a modest yet progressive 1–3% tax on Filipino billionaires, we can already generate close to half a trillion pesos in additional revenues annually,” Mendoza said.
He added that the proposed tax targets firms that “profit outrageously while the public pays the price and everyone else tightens their belts.”
The Federation of Free Workers (FFW) echoed the call, urging Congress to revive wealth tax proposals and adopt measures to cushion workers from rising costs.
FFW President Sonny Matula said those who have benefited most from the economy “are in the strongest position to give more” and should contribute more to national relief efforts.
The group also pushed for a legislated ₱200 wage hike, immediate regional wage reviews, and temporary relief measures such as loan payment suspensions for members of state-run funds and a moratorium on housing foreclosures and evictions.
“Workers do not need crumbs dressed up as a banquet,” the group said, adding that workers should be involved in policy decisions.
The proposed PATAS Act remains pending in Congress.
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