Capitol employees get Christmas cash incentive

CEBU, Philippines - While the second floor was filled with people wearing elegant costumes and preparing for their presentation for the Christmas Party, long lines also occupied the ground floor of the Capitol main building where automated teller machines are mounted.

This as the Christmas bonus had been released to 1,547 Capitol employees yesterday noon.

Provincial accountant Marieto Ypil said the incentives were sent directly to the respective bank accounts of the employees.

The Provincial Board approved on Monday Supplemental Budget No.3 that covers the incentives for the employees totaling to P38.5 million.

Each worker received P22,000 or one-month salary, “whichever is higher.” Only those who were employed as of October 31 this year or have rendered four months of service were entitled to the bonus.

However, the bonus was also heavily taxed. Some Capitol employees shared to The FREEMAN that a large amount was deducted from their bonuses.

A Capitol official, when interviewed over the phone, said around 40 percent was deducted from his bonus.

Ypil explained that tax deductions would depend on the salary grade the employee belongs - the higher the income, the higher the tax.

“Ang total nga madawat nato in one year, subject to tax g’yod na siya,” he said.

The Bureau of Internal Revenue had ruled that taxes will be imposed on all bonuses that exceed P30,000.

The 13th month pay and other benefits not exceeding P30,000, accrued during the year, are non-taxable compensation income.

This was the second time that Capitol employees received incentives this year. During the founding anniversary of the province last August, a total of P23 million cash incentive under the Collective Negotiation Agreement was released to Capitol employees, who  received P15,000 each.

On top of the CNA, employees who rendered at least one year of service as of August 6, 2014 received an additional P3,000 as anniversary bonus. — Michael Vencynth H. Braga/NSA (FREEMAN)