A lawmaker is pushing to exempt night shift differential pay from taxes so that workers may fully enjoy the additional compensation earned from work performed between 10 p.m. and 6 a.m.

Makati City 2nd district Rep. Luis Campos Jr. has filed House Bill No. 10534, seeking the exclusion of the night shift differential pay from the computation of the gross taxable income of employees.

“Our bill seeks to further augment the take home pay of workers and help them cope with the soaring cost of living. This will also give more meaning to the mandates of the Constitution for the state to provide full protection to labor, promote the welfare of workers, and to assure them a rising standard of living,” said Campos.

Under the Labor Code, employers are required to provide extra remuneration to their workers for labor rendered anytime between 10 p.m. to 6 a.m.

The night shift differential is equivalent to 10 percent of the employee’s hourly pay and is given for each hour worked.

This is still subject to income taxes, especially for employees who already earn more than P250,000 in gross compensation per year.IMT