HOUSE OF REPRIS|
RECEIVED

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

Seventeenth Congress

First Regular Session

House Bill No, 1002

REGISTRATION UNIT
BALLS AND INDEX SERVIC! 4

Introduced by Honorable Luis Jose Angel N. Campos

EXPLANATORY NOTE

Article II, Section 9 of the Constitution provides that “[t]he State shall promote a
and dynamic social order that will ensure the p 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 outsoureing
(BPO) industry amounted to $10 Billion which contributed largely to the Phi ;
7.2% GDP. ‘The success of the BPO industry is largely attributed to the high quality
dedicated services being provided by the Filipino workers in the industry, which
now reached around 586,000 people. In recognition of the contribution of Filipino
workers in the BPO industry and to promote their welfare 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.
1 } As
LUIS JOSE ANGEL N. CAMESSIR.

ENTATIVES



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

Seventeenth Congress
First Regular Session

House Bill No. 1002

Introduced by: Rep. Luis Jose Angel 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:

“See. 32. Gross Income.-

“(A)_ General Definition. — x x x

“(B) Exclusions from Gross Income. = x x x
“G) xxx

“(6) xxx

“(7) Miscellaneous items. —
“(a xxx

“(b) xxx

“(C) XXX

“(xxx

“(e) xxx

“(F) NIGHT SHIFT DIFFERENTIAL —
COMPENASTION DUE ‘0 ~HOURS
WORKED/PERFORMED BETWEEN 10
O’CLOCK IN THE EVENING 6 O’CLOCK
IN THE MORNING

“(G) [D1 xxx

CHD [(g)] xx x

«WD [I] xxx.”

SEC. 2. Implementing Rules and Regulations. — The Bureau of
Internal Revenue (BIR), Department of Finance (DOF), and Department of Labor and
Employment (DOLE) and Civil Service Commission (CSC) shall promulgate not later
than (30) days upon the effectivity of this Act the necessary rules and regulations for its
effective implementation.



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. Effeetivity. — 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,