Senator Ralph Recto urged President Benigno Aquino III to revise taxes on bonuses and overtimes instead of looking at a wage increase for workers on Labor Day. Traditionally, Philippine Presidents announce wage increases on Labor day as a gift to workers. Recto is a member of the Senate committee on labor, employment and human resources development. He was also a former NEDA director-general.
According to Recto, exempting Christmas and 13th month bonuses, or increasing the tax ceiling on these bonuses, as well as exempting taxes on overtime pay would effectively increase the take home pay of workers. Malacanang, however said that the proposal would require legislation and would also lead to tax revenue loss of around 60 billion pesos, Interaksyon.com reported.
