Profit-sharing bill approved; workers assured of 5%
A panel in the House of Representatives has approved a measure mandating private companies to give five percent of their net profit to their employees.
The House committee on labor and employment chaired by Northern Samar Rep. Emil Ong said that the profit-sharing scheme provided under House Bill 4972 would improve the purchasing power of the workingman and boost the economy.
He said the measure will complement the conditional cash transfer program of the government.
“Whether they are managerial, supervisory or rank and file, all regular employees shall annually receive five percent from the income of the company as their share,” Ong said.
Ong said productivity would be enhanced, as the additional income will boost the morale of the workingman.
Whatever the employer gives by way of profit sharing shall be deducted from the income tax liability of the said company, Ong said.
“The employers will now be more transparent and on time in submitting their income tax returns as their employees will be more vigilant so that they are not shortchanged, thus, will result in better tax collections for government,” Ong said.
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