THE proposal of President Ferdinand Marcos Jr. for Congress to increase the annual income tax exemption threshold from P250,000 to P350,000 would benefit not just minimum wage earners but also those earning higher than the floor pay, according to the Department of Labor and Employment (DOLE).
In a statement on Wednesday, July 29, 2026, Labor Secretary Francis Tolentino said he fully supports Marcos’ proposal made during his fifth State of the Nation Address (Sona), stressing more workers will benefit from it.
"The President's call for higher tax exemption limits will greatly benefit workers across the country," said Tolentino.
“If it is made P350,000 and below, more people will benefit, definitely. It is not just the minimum wage earners, but also those getting above the minimum wage," he added.
The labor chief, then, urged Congress to strongly consider making amendments to the National Internal Revenue Code (NIRC).
“The amendment to the NIRC needs to be done ASAP. That was the call made during the Sona. It requires a congressional act, a legislation. So, if it is made a priority, it can be done very quickly," said Tolentino.
On the other hand, the proposal of Marcos has failed to satisfy the labor sector.
This as the Trade Union Congress of the Philippines (TUCP) said Wednesday, July 29, that it will continue to push for the passage of the proposed P200 legislated wage hike in Congress.
"No tax reform, no matter how significant and meaningful for middle-income earners, can ever substitute for the urgent need to raise workers' wages through a P200 legislated wage hike towards a national living wage," said the TUCP in a statement.
"Without higher wages, tax cuts alone cannot restore purchasing power for those whose incomes remain trapped not only below the constitutionally guaranteed living wage but even the official government poverty threshold,” it added.
The labor leader said it would have been better had Marcos pushed for both the raising of the tax-free income ceiling and the legislated pay hike.
"What would truly deserve the applause of every Filipino worker is for the President to certify as urgent not only higher income tax exemption but likewise the pending P200 legislated daily wage hike," said TUCP. (Anton Banal/SunStar Philippines)
