Senator JV Ejercito on the Public Order Committee hearing on Jan. 21, 2026 – Photo courtesy of JV Ejercito/Facebook.
Senator JV Ejercito filed a bill seeking to exempt employees earning up to Php 600,000 a year from income tax as workers continued to face rising living costs.
Senate Bill No. 2341 proposed raising the annual tax-exempt income ceiling from Php 250,000 to Php 600,000, or the equivalent of Php 50,000 in monthly earnings.
Ejercito said the measure was intended to increase workers’ take-home pay and strengthen the purchasing power of middle-income households.
He argued that the tax system should adjust to changing economic conditions and provide more meaningful relief to families coping with higher prices.
Citing the Philippine Statistics Authority’s 2024 Labor Force Survey, Ejercito said about 17.6 million full-time private sector employees earned below Php 600,000 annually and could benefit from the proposal.
The senator said the bill recognized the contribution of middle-income earners, whom he described as a key part of the economy despite their vulnerability to inflation and other financial pressures.
He added that the proposed exemption was designed as a long-term reform rather than a temporary response to inflation.
The measure followed President Ferdinand Marcos Jr.’s call during his State of the Nation Address to broaden income tax exemptions and ease the financial burden on Filipino workers.
