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Teachers to enjoy higher take-home pay

Teachers to enjoy higher take-home pay

Senator Sherwin Gatchalian said that teachers and other middle-income taxpayers can expect to have higher take-home pay starting this year because of the Tax Reform for Acceleration and Inclusion Law.

Gatchalian said that taxpayers earning more than P250,000 a year but not over P8 million will be subject to lower income tax rates ranging from 15 to 30 percent from 20 to 32 percent before, as provided by Republic Act 10963, also known as the TRAIN law.

For example, a Teacher 1 with a monthly salary of P27,000 or Salary Grade 13 who has an annual income of P351,000 will now have monthly tax savings of P420.83 or P5,050 for the entire year.

A public hospital nurse categorized as Nurse III or SG 17 who has an annual income of P559,390 or P43,030 monthly pay will now have monthly savings of P1,289.13 or annual tax savings of P15,469.5.

“Inaasahan natin na lalo pang lalakas ang domestic consumption na may malaking kontribusyon sa paglago ng ating ekonomiya. Dahil sa pinababang buwis, mas mataas ang take-home pay ng mga empleyado na magiging malaking tulong sa gitna ng mataas na presyo ng mga bilihin,” Gatchalian said.

“Dahil sa mas mataas ang kanilang kita, inaasahan din natin na magiging maganda itong insentibo para sa mga empleyado na lalo pa nilang paghusayin ang kanilang trabaho at magtulak sa kanila para mag impok o kaya ay mamuhunan,” he added.