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Republic of the Philippines 2
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HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TIME 42
‘TWENTIETH CONGRESS oe ty
First Regular Session Ky
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HOUSE BILL NO. _412}

Introduced by Representative Jan Rurik D. Padiernos, GP (Galing sa Puso) Party-List

EXPLANATORY NOTE

The 1987 Philippine Constitution emphasizes the need to promote a just and dynamic
social order that will ensure the prosperity and independence of the nation and free the people
from poverty through policies that provide adequate social services, promote full employment,
a rising standard of living, and an improved quality of life for all.

Amid the rising prices of food and basic necessities, several social amelioration
programs like the Pantawid Pamilyang Pilipino Program (4Ps), Tulong Panghanapbuhay sa
Ating Disadvantaged/Displaced Workers (TUPAD), Ayuda sa Kapos and Kita Program
(AKAP), Walang Gutom Program (WGP), and Assistance to Individuals in Crisis (AICS), all
commonly referred to as Ayuda under the programs of the Department of Social Welfare
Development (DSWD). The government has been heavily criticized for using government
funds that, although these ayuda directly go to the pockets of the poorest of the poor, this
bandage solution is not sustainable and, worse, is being used for political patronage.

The middle-income class which are mostly expressed in social media outcry for the
balance treatment of the government. In particular, the ayuda beneficiaries are mostly the
unemployed in the society that seemed to be coddled and taken care of by the government.
Meanwhile, the middle-income class, who are mostly in the working class and belong to the
large part of tax-paying population, have never received any of the assistance from the
government, even during pandemic.

This bill will be the solution to the appeal of the middle class by excluding from the
computation of the net taxable income their 13" month pay, Christmas bonus, and hazard pay.
This will yield to the higher take-home pay of every working class in the country. Any revenue
loss perceived will be recovered through multiplier effect in the economy due to increase
purchasing power.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

dis
ATTY. J: D. PADIERNOS

GP (Galing sa Puso) Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 4121

Introduced by Representative Jan Rurik D. Padiemos, GP (Galing sa Puso) Party-List

AN ACT
ENHANCING THE 13TH MONTH PAY AND OTHER BENEFITS,
AMENDING FOR THE PURPOSE SECTION 32{B){7) OF THE NATIONAL
INTERNAL REVENUE CODE OF 1997, AS AMENDED

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

Section 1. Short Title. - This Act shall be known as the "Enhanced 13" Month
Pay and Other Benefits Act".

See. 2. Section 32(8)(7) of the National Internal Revenue Code of 1997, as
amended, is hereby further amended to read as follows:

"SEC. 32. Gross Income. -

(A) General Definition. - xxx

"(B) Exclusions from Gross Income. - xxx
"() XXX

"xxx

"(1) Miscellaneous items. -

"(@) XXX

ox
"(e) 13th Month Pay, CHRISTMAS BONUS, AND HAZARD PAY fand-Other
Benefits). - [Gross-benefits] THIRTEENTH (13th) MONTH PAY, CHRISTMAS
BONUS OR ITS EQUIVALENT INCENTIVES, AND HAZARD PAY received by
[officials and] THE employees of public and private entities PURSUANT TO
EXISTING LAWS, RULES AND REGULATIONS. [: Provided-however, That the



"(F) OTHER BENEFITS. - GROSS BENEFITS RECEIVED BY
THE EMPLOYEES OF PUBLIC AND PRIVATE ENTITIES:
PROVIDED, HOWEVER, THAT THE TOTAL EXCLUSION UNDER
THIS SUBPARAGRAPH SHALL NOT EXCEED ONE HUNDRED
FIFTY THOUSAND PESOS (P150,000) WHICH SHALL COVER:

(i) BENEFITS RECEIVED BY THE EMPLOYEES OF THE
NATIONAL AND LOCAL GOVERNMENTS PURSUANT TO
REPUBLIC ACT NO. 6686;

(ii) BENEFITS RECEIVED BY OFFICIALS AND EMPLOYEES
NOT COVERED BY PRESIDENTIAL DECREE NO. 851, AS
AMENDED BY MEMORANDUM ORDER NO. 28, DATED AUGUST
13, 1986; AND

(ii) OTHER BENEFITS SUCH AS PRODUCTIVITY INCENTIVES,
"(G) XXX
"(A) XXX
"() XXX.

PROVIDED, THAT THE SECRETARY OF FINANCE SHALL ADJUST
ACCORDINGLY EVERY THREE (3) YEARS THE ABOVE CEILING
AMOUNT OF THE OTHER BENEFITS BASED ON THE CAPITAL PRICE
INDEX OF BASIC COMMODITIES AS MAY BE DETERMINED BY THE
PHILIPPINE STATISTICS AUTHORITY (PSA).

Sec. 3. Implementing Rules and Regulations (IRR). - Within thirty (30) days from
the effectivity of this Act, the Secretary of Finance, upon the recommendation of the
Commissioner of Internal Revenue, shall promulgate the necessary rules and
regulations for its effective implementation.

Sec. 4. Separability Clause. - If any provision or part hereof is declared

unconstitutional, the remainder of this Act or any provision not affected thereby shall
remain in full force and effect.

Sec. 5. Repealing Clause. - All laws, acts, decrees, executive orders, issuances, and


rules and regulations or parts thereof which are contrary to and inconsistent with this Act
are hereby repealed, amended or modified accordingly.

Sec. 6. Effectivity. - This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in a newspaper of general circulation.

Approved,