Overview
- The proposal would eliminate income tax on the year-end bonus (aguinaldo), increase the statutory minimum to 40 days of pay, and require two installments due by December 15 and January 15.
- Lawmakers sent the initiative to the Finance and Labor committees for analysis, and no committee votes or executive assessments have been reported.
- Proponents say more than 30 million families would benefit and contend the budget impact would be about 0.2% of total spending, a figure that awaits independent fiscal review.
- Supporters argue that paying the aguinaldo in full would boost household liquidity in December and could lift VAT receipts through higher consumption.
- The initiative is part of a broader PAN package that also seeks to exempt ISR for monthly incomes under 18,000 pesos and repeal IEPS on diesel and gasoline.