A half-month SALARY bonus is forthcoming in January

 Albay 2nd district Rep. Joey Salceda reminded Filipinos, that half a month’s worth of salary awaits them as part of the windfall from the Tax Reform for Acceleration and Inclusion or TRAIN Law.

“A 13.5th month bonus” was how Salceda described this additional income, which will stem from the cuts to personal income tax (PIT) rates in 2023 via TRAIN.

“The TRAIN Law  PIT cut will be equivalent to around 5 percent in gross income in added take home pay. That’s around half a month’s worth of additional disposable income,” said the solon.

Salceda principally authored and sponsored the law, which is also known as Republic Act (RA) No.10963. It took effect on Jan. 1, 2018.

“It will increase disposable income for Filipino families by around P32 billion by our emerging estimates.That will boost consumer spending and also leave some room for savings for homeownership,” noted Salceda.

The new annual income tax rates will reduce taxes by around 5 percent for those earning between over P250,000 and P2 million.

“Take home is still up 3.5 percentage points more or less,” he added.