Senate approves S.B. 2437 in 2nd reading

Angara-SB2437Senate Ways and Means committee on Tuesday November 18 has approved the bill seeking to raise the cap of non-taxable amounts from 13th month pay and other bonuses.

Senate Bill 2437 which was sponsored by Sen. Sonny Angara with co-sponsors Sen. Ralph Recto, Sen. Lito Lapid, Sen. Cynthia Villar and Sen. Loren Legarda seeks to amend the current law under RA 7833 which caps non taxable 13th month pay and other bonuses to Php30,000.

During the plenary deliberations Tuesday night, the bill was approved on second reading with additional amendments proposed by its co-sponsor Sen. Ralph Recto. Recto to increase the ceiling from the previous proposed Php75,000 to Php82,000. The amendment was accepted and approved, thus when passed into law will also cover workers earning up to Php82,000.

Senate President Franklin Drilon also added amendment to the bill which states “the failure of the Secretary of Finance to promulgate the necessary rules and regulations shall not prevent the effectivity of the law.”

After the approval, it will now go the the 3rd and final reading and if also approved will then move to the bicameral committee before handing it over to the President for signature. Senator Angara hopes to make the bill into law in time for Christmas as the Senate’s Christmas gift to the millions of Filipino workers.

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