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Gatchalian: GINHAWA a Tax Relief That Goes Beyond Minimum Wage

Senator Win Gatchalian vows that young professionals, minimum wage earners, and those earning above minimum wage alike stand to gain big from the GINHAWA bill, which raises the income tax exemption from ₱250,000 to ₱400,000, in effect putting more money back in their pockets.

“Kapag naging batas ang GINHAWA, para kang may dagdag isang buwang sahod kung kumikita ka ng P400,000 pababa taun-taon,” said Gatchalian.

As the “taxpayers’ voice,” Gatchalian said that under current tax rules, individuals with a net taxable income of ₱400,000 a year pay ₱22,500 in income tax. The GINHAWA Bill would remove this burden, freeing up ₱22,500 for essentials like food, education, and healthcare.

For call center operators earning ₱25,000 monthly or ₱325,000 annually, including 13th month pay, GINHAWA means zero income tax, translating to an additional income of ₱314 per month or ₱3,765 per year.

A private nurse earning ₱33,000 monthly or ₱429,000 annually with 13th month pay is currently taxed at ₱1,424 monthly or ₱17,085 a year. Under GINHAWA, this entire amount becomes savings.

A Teacher III earning ₱34,421 monthly or ₱447,473 yearly pays ₱1,414 per month or ₱16,973 annually in taxes. With GINHAWA, they would pay nothing. 

Photo by Mark Cayabyab/OS WIN GATCHALIAN