Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
Nineteenth Congress 
Second Regular Session 
House Bill No.   10534 
Introduced by Honorable Luis N. Campos, Jr. 
EXPLANATORY NOTE 
Article II, Section 9 of the Constitution provides that “[t]he State shall 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.” 
Article II, Section 18 of the Constitution further provides that “[t]he State affirms 
labor as a primary social economic force. It shall protect the rights of workers and 
promote their welfare.” 
In 2013, the revenues generated by the country’s business process outsourcing 
(BPO) industry amounted  to $10 Billion which contributed  largely to the Philippines’ 
7.2% GDP.  The success of the BPO industry is largely attributed to the high quality and 
dedicated  services  being  provided by the Filipino workers  in the industry, which has 
now reached  around 586,000 people.  In recognition of the contribution of Filipino 
workers  in the BPO industry and to promote  their welfare  as mandated by the 
Constitution, this bill seeks  to include  night shift differential under Section 32 (B) (7) of 
the  National Internal Revenue Code in order  to have the said item of income expressly 
excluded  in the computation of the gross income of the taxpayer. 
By allowing workers to bring home the pay of the additional labor in full and free 
from taxation, the State would not only promote the welfare of the worker but would also 
indirectly boost growth in the economy through the rippling effect of a financially 
stronger Filipino workforce.  
For the above given reasons the passage of this bill is earnestly sought. 
LUIS N. CAMPOS, JR. 
June 18, 2024
3:34 pm


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
Nineteenth Congress 
Second Regular Session 
House Bill No. 10534
____________________________________________________________________________ 
Introduced by:  Rep. Luis N. Campos, Jr. 
____________________________________________________________________________ 
AN ACT 
EXCLUDING NIGHT SHIFT DIFFERENTIAL  PAY FROM THE COMPUTATION OF 
TAXABLE INCOME AMENDING FOR THE PURPOSE SECTION 32 (B) (7) OF 
REPUBLIC ACT NO. 8424 OTHERWISE KNOWN AS 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. Section 32 (B) (7) (e) of Republic Act No. 8424, otherwise known as the 
“National Internal Revenue Code of 1997”, as amended is hereby further amended to read as 
follows: 
“Sec. 32. 
Gross Income.- 
“(A) 
General Definition. – x x x 
“(B) 
Exclusions from Gross Income. – x x x 
“(1) x x x 
“(2) x x x 
“(3) x x x 
“(4) x x x 
“(5) x x x 
“(6) x x x 
“(7) 
Miscellaneous items. – 
“(a) x x x 
“(b) x x x 
“(c) x x x 
“(d) x x x 
“(e) x x x 
“(F) NIGHT SHIFT DIFFERENTIAL 
– 
COMPENASTION 
DUE 
TO 
HOURS 
WORKED/PERFORMED 
BETWEEN 
10 
O’CLOCK IN HE EVENING 6 O’CLOCK IN 
THE MORNING 
“(G) [(f)] x x x 
“(H) [(g)] x x x. 
“(I) [(h)] x x x.” 


 
 
SEC.  3. 
Repealing Clause. – All other laws, decrees, orders, issuances and rules 
and regulations or parts thereof inconsistent with this Act are hereby amended or repealed 
accordingly. 
 
 
SEC.   4. 
Effectivity. – This Act shall take effect fifteen (15) days after its 
publication either in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
 
 
Approved,