Benhur Abalos honors workers, pushes for higher income tax exemption
Occidental Mindoro endorses Abalos, led by Governor Eduardo Gadiano, Congressman Odie Tarriela, and the province’s mayors and ABC presidents.
Former Interior Secretary and senatorial candidate Atty. Benhur Abalos Jr. on Labor Day called for a higher income tax exemption to help Filipino workers cope with rising prices and boost their take-home pay.
Abalos said the current law, which exempts workers earning ₱250,000 or less per year from paying income tax, was set in 2018 and may no longer be enough today because of inflation and the rising cost of living.
“We could review this in the light of inflation and other factors,” Abalos said. “So that our threshold of exemption can be increased.”
“We need to increase the income tax exemption threshold, because the current rate no longer reflects the economic realities faced by Filipino workers. Prices are too high. Our electricity rates are the second most expensive in Southeast Asia,” he added.
Under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, which took effect in 2018, individuals do not have to pay income tax if they earn no income for the year, if they are minimum wage earners, or if their annual taxable income does not exceed ₱250,000.
In addition, the law exempts the 13th month pay and other benefits up to ₱90,000 from being taxed, according to Abalos, a lawyer and former award-winning local chief executive. However, Abalos pointed out that this threshold, established in 2018, may no longer be sufficient given the current economic climate.
Abalos said raising the tax exemption ceiling would offer immediate relief to low- and middle-income workers and boost their take-home pay.
He committed to review the current law if elected to the Senate.
“I will thoroughly review this to see if we can raise it, so that we can increase our threshold of exemption. We should review this in the light of inflation and other factors,” he said in Filipino.
Abalos also paid tribute to Filipino workers, calling them the backbone of the nation’s economy and everyday life.
“The economy cannot move forward without the Filipino worker — they are the backbone of every industry, from farms to factories, from hospitals to schools,” Abalos said. “That’s why today, we not only express our gratitude to them — we also fight for the benefits they rightfully deserve. It is time to elevate the level of care for our workers,” he said in Filipino.
Aside from tax reforms, Abalos said he wants to push for bonuses or gratuity pay for job order and contract workers in government who currently don’t get benefits like regular employees.
“Job order and service contractual workers don’t receive any benefits. Even if you want to give them a small bonus, it’s not allowed,” he said. “So if I’m fortunate enough to win, this is one of the things I’ll push for — they should at least receive some form of incentive.”
“There are four kinds of laborers: regular, casual, service contractual, and job order. “The last two — job order and service contractual workers — don’t receive any benefits,” he explained. “Back when I was mayor, I wanted to give them even just a small bonus, but it wasn’t allowed. That’s why it’s one of the things I will file — they should, at the very least, be entitled to a gratuity incentive.”
Abalos also urged a broader review of labor benefits, particularly in the context of changing work patterns following the COVID-19 pandemic.
former Interior Secretary and senatorial candidate Benhur Abalos with Pola, Oriental Mindoro officials led by Mayor Ina Alegre, whom he assisted during the 2023 oil spill crisis.
Policies on leave credits, telework arrangements, and insurance coverage, Abalos said, should be recalibrated to reflect the current needs of the labor force.
“Well, these kinds of things dapat talaga dahil nagbabago ang panahon. Kamukha noong araw nga after COVID, meron na tayong mga online. Itong mga polisiyang ito dapat tingnan din natin ito kung pwedeng i-adapt na sa workforce natin ngayon,” Abalos said.
