Imee pushes tax perks for worker wellness

Senator Imee Marcos is proposing tax incentives for companies that invest in employee health and wellness programs, saying healthier workplaces translate to stronger productivity and better workforce performance.

Under Senate Bill No. 1928, or the “Workers Health and Wellness Act,” employers that implement approved wellness initiatives may qualify for tax credits of up to ₱1,000 per employee for firms with fewer than 200 workers, and up to ₱500 per employee for larger companies.

Marcos said the measure is intended to encourage businesses to prioritize employee well-being, especially amid rising operational pressures on firms.

“Studies have shown that workplace wellness programs and improved working environments can significantly reduce health risks, lower absenteeism, improve employee engagement, and enhance productivity,” she said.

She acknowledged, however, that many micro, small, and medium enterprises (MSMEs) may struggle to fund such programs without government support.

“However, many enterprises, particularly micro, small, and medium enterprises (MSMEs), face financial constraints that prevent them from implementing comprehensive wellness programs or workplace improvements,” she added.

The bill defines eligible wellness initiatives to include regular health screenings, mental health programs, employee engagement activities, and flexible work arrangements. It also covers workplace upgrades such as improved ventilation systems, energy-efficient technologies, and smart building systems.

Aside from tax credits, the proposal allows businesses to claim an additional 30 percent deductible depreciation for qualifying workplace improvements, with an option for accelerated depreciation.

“If business enterprises can avail of incentives to bring down their tax liabilities, they will be encouraged to prioritize and focus on the wellness of their workers,” Marcos said.

The proposal aligns with existing policies such as the Mental Health Act and broader occupational health standards, while promoting stronger collaboration between government and the private sector in advancing employee welfare.