A SENATE BILL is seeking to provide a tax exemption for government workers’ performance incentive bonuses.
Senate President Pro-Tempore Ralph G. Recto filed Senate Bill 602 which proposes tax exemptions for performance-based bonuses of public sector workers.
“The bill could serve as a motivational tool for agencies and employees rated ‘poor’ to improve their performance,” he said.
If passed, performance-based bonuses will be included in the list of items excluded from gross income tax under Section 32 (B) of Republic Act No. 8424 or the National Internal Revenue Code of 1997.
It also provides for a P5,000 productivity enhancement incentive (PEI) for which all civil servants will be eligible.
Mr. Recto said the intention is to improve services rendered by all government agencies.
“The best-crafted strategic development plans will be for naught if civil servants who will implement these are not inspired and committed to achieve the plans,” he said. — Gillian M. Cortez