Last Updated on April 13, 2017 by Marie Bautista
in the National Capital Region will be increased by P10.00. Labor groups
insisted that the increase was so low (in Baguio where I live, there is no
increase and at P280.00 per day minimum wage, it is a whole lot lower than the
National Capital Region’s).
Tables below revised as of March 20,2015.
Some comments in a television show included:
minimum wage earners is not taxable.
exempted from withholding tax since January 1, 2006 as a form of focused
support by the government for low income earners. They were, however, subject to income
tax. This means that every payday, the company they work with does not deduct withholding taxes, but at year-end, if their taxable compensation are subject to income tax, they still have to pay the income tax due.
finally became exempt from income tax, making them, likewise, exempt from
not subject to withholding income tax.
The following are also exempt from income tax:
- Holiday pay,
- Overtime pay,
- Night shift differential pay, and
- Hazard pay.
statutory minimum wage.
workers in the National Capital Region as of March 20, 2015 is P466.00 plus P15.00 COLA.
Regional Tripartite Wage and Productivity Board (RTWPB), as defined by the
Bureau of Labor and Employment Statistics of the Department of Labor and
Employment (DOLE). The RTWPB of each
region shall determine the wage rates in the different regions based on the
established criteria and shall be the basis of exemption from income tax for
as commissions, honoraria, fringe benefits, benefits in excess of the allowable
statutory amount of P30,000.00 (now P82,000 under R.A. 10653), taxable allowances and other taxable income other than the STATUTORY
MINIMUM WAGE, HOLIDAY PAY, OVERTIME PAY, HAZARD PAY AND NIGHT SHIFT
DIFFERENTIAL PAY shall not enjoy the privilege of being a MINIMUM WAGE EARNER
and therefore, HIS/HER ENTIRE EARNINGS ARE NOT EXEMPT from income tax and
consequently, from withholding tax.
EARNER RECEIVING MIXED INCOME
from the conduct of trade, business, or practice of profession, except income
subject to final tax, in addition to compensation income are not exempted from
income tax on their entire income earned during the taxable year. This rule, notwithstanding, the statutory
minimum wage, holiday pay, overtime pay, night shift differential pay and
hazard pay shall still be exempt from withholding tax.
AND THE TAX RULE THEREON?
minimum wage earners who were actually assigned to danger or strife-torn areas,
disease-infested places, or in distressed or isolated stations and camps, which
expose them to great danger of contagion or peril to life. Any hazard pay paid to minimum wage earners
which does not satisfy the above criteria is deemed subject to income tax and
consequently, to withholding tax.
INCOME EARNERS WITH INCOME NOT EXCEEDING THE MINIMUM WAGE THRESHOLD ARE SUBJECT
TO INCOME TAX.
were exempted from income tax.
Self-employed and non-compensation income earners earning an amount equal or less than the
minimum wage rate are required to pay income tax. Is this a violation of the “ability-to-pay”
principle and a violation of the equal
the minimum wage on a monthly basis