It's almost the end of the year. Are you excited for 2018? There are two major changes starting next year: Republic Act 10963 or Tax Reform for Acceleration and Inclusion (TRAIN) will be effective and PhilHealth issues Circular No. 2017-0024 increasing the contribution rate.
TRAIN gives higher take-home pay for most employees. Those earning less than 250 thousand pesos annually will be exempted from paying income tax. Tax exemption for the 13th month pay and other bonuses was also increased from 82 thousand pesos to 90 thousand pesos. The tax schedule will reduce income tax for around 7.5 million people. It will also go down by 2023. Other provisions of the law include higher tax on sugar-sweetened drinks, higher taxes on fuels (gasoline, diesel, and gasoline, diesel, and liquefied petroleum gas), cars, tobacco, and coal, and taxing cosmetic surgeries.
The monthly PhilHealth contribution will be at 2.75% of the monthly salary (it was previously at 2.5%). Salary brackets will be removed and the floor and ceiling of the computation will be 10 thousand and 40 thousand pesos, respectively. You can learn more about this in Circular No. 2017-0024
These updates are available in https://www.sweldongpinoy.com, in version 4.0 of the Sweldong Pinoy Android app (rolling out now), and in all our apps. We'll still continue to update the apps. Email us at info@sweldongpinoy.com or send us a message if you have questions and suggestions about our apps
Originally published at the Sweldong Pinoy Blog
