Due to the new tax reform program, take-home pay will increase for most Filipino workers. This is depending on the corresponding amount they get each month.
Workers Get Higher Take-Home Pay
this 2018 with New Tax Reform Law
Minimum Wage Earners Now Tax Exempt
MANILA, 29 January 2018 — A Philippine worker earning P21,800 (US$427.50) monthly or less will now get a higher take-home pay starting 2018.
Before lawmakers passed the new tax reform law, that worker would have to pay P3,130.72 (US$61.39) per month in taxes. Now, he or she is exempted from paying any tax under the Tax Reform for Acceleration and Inclusion (TRAIN) law.
Reduction of the income tax began on 1 January 2018 due to the government’s comprehensive tax reform program. As a result, take-home pay will increase for most Filipino workers, depending on the amount they get each month.
However, with the increase in take-home pay also comes an increase in the price of sugar, fuel and cars. Earlier, President Rodrigo Duterte signed TRAIN on 19 December 2017.
Take-Home Pay Calculator
Learn how the tax reform can affect you with the Pinoy Tax Reform Calculator from ABS-CBN. In its website, the network said the Bureau of Internal Revenue (BIR) has reviewed this interactive tool.
Meanwhile, the tax reform calculator does not cover government workers, since they fall under the Government Service Insurance System (GSIS). The tool uses only deductions for private workers under the Social Security System (SSS).
Moreover, the calculator includes old and new PhilHealth tables. Further, it includes 13th-month pay but does not include other bonuses.
In an earlier version of its Pinoy Tax Calculator, ABS-CBN cited three inspirations for the project. It said Fred Chasen’s Tax Day, Code for Kenya’s Everyday is Tax Day, and Code for South Africa’s Tax Schedule inspired the Pinoy Tax Calculator project.
For more info about payroll services, please contact TeleDevelopment at firstname.lastname@example.org or dial (02)631-8230/(+632)631-8230.