Discussion on Whether or Not Holiday Pay Is Taxable in the Philippines — What Workers Must Know
IS HOLIDAY PAY TAXABLE IN THE PHILIPPINES – Here is a guide for the employees who are wondering is taxes apply on the holiday tax.
Countless individuals in the Philippines are part of the labor workforce. They are employed in either the private or public sectors in the country and many of these people observe a Monday to Saturday work schedule.
Undeniably, due to the very hectic schedule observes in most companies in the country, a lot of workers really look forward to holidays. Meanwhile, there is a long list of regular holidays and special non-working days in the country this year.
During a holiday, the worker may be allowed to be absent at work but will still receive the pay for the day or work with an added pay on top of the daily salary. The former usually happens in the case of government employees while the latter often works on employees of private companies.
Undeniably, the extra pay that the workers get during holidays can help augment a lot of personal and household financial needs of many people.
During a regular holiday, a worker on duty may get at least an additional pay that is worth 100% of his/her basic daily salary. During a special non-working day, the employee is entitled to an additional pay that is worth 30% of the basic daily salary of the worker for the first eight (8) hours of work.
Is holiday pay taxable in the Philippines? Yes, the holiday pay is subject to the tax rules in the country except in the case of minimum-wage earners. The wage of MWEs are exempted from tax deductions.
Aside from the holiday pay, other pays that are also taxable in the Philippines except in the case of the MWEs are the following:
- overtime pay
- night differential pay
- hazard pay
