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Proposed Tax Break for OT, Night Shift Workers Gains more Support

by: Sarah Joson

Friday, July 11, 2014 | Outsourcing News |

Employees in Cebu and business process outsourcing (BPO) firms in the Philippines have joined forces in supporting the proposed House Bills 2836 and 4682. These are expected to enforce new rulings on tax exemption for employees who are assigned to work overtime and on graveyard shifts.

Three major organizations said they fully support the suggested bills: the Inter Call Center Association of Workers- Cebu (ICCAW), the Cebu Educational Development Foundation for Information Technology (CEDF-IT), and Qualfon Philippines, Inc.

House Deputy Majority Leader and Makati City Rep. Mar-Len Abigail Binay authored the bills which are intended to all overtime and graveyard shift wages which would be specifically let off from the gross taxable income of all employees, irrespective of their hourly pay rate.

According to Sylvio Dorig, ICCAW Vice-president for External Affairs, the BPO sector will greatly benefit from the bills. He is thankful that these types of concerns are now being discussed in Congress together with the pending Magna Carta for Call Center Workers proposed by Sen. Miriam Defensor-Santiago.

Dorig also suggested that call center workers with salaries below P25,000 should be given a tax break for two months.


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