Minimum wage earners exempt from payment of income tax on their taxable income.

Holliday pay,
Overtime time pay, nigh shift differential, and hazard pay are exempt from income tax.

The law exempts those individuals earning P250,000 or less annually in paying the income tax.

Taxable for compensation earners = Gross compensation income less nontaxable income/benefits such
as but limited to the 13th month pay and other benefits, de minimis benefit, and employee’s share in the
SSS, GSIS, Philhealth, Pag-Ibig contributions and union dues.

60 years old is exempt from the payment of individual income taxes if he/she is considered to be a
minimum wage earner.