Payroll and Compliance - The Quarterly Chronicle

 
 

ADP proudly introduces its first newsletter for ASEAN, with a focus on the Philippines, Indonesia and Singapore. This newsletter will provide you with expert insights into the latest legislative updates on payroll and income tax regulations. ADP will release this newsletter every quarter.

For this inaugural issue, we are including consolidated articles for two 2 quarters: Jan - Mar 2018 and Apr – Jun 2018. From the next quarter onwards, we will release quarterly news in the first week of the following quarter. Please subscribe to receive this ASEAN newsletter in your inbox every quarter.

 
 

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PH Government Proposes 100 Days Maternity Leave for Female Employees The House of Representatives passed on second reading a measure that seeks to grant a 100-day paid maternity leave to both government and private sector workers.

The major highlights of the Bill are as follows:
  • It increases the maternity leave period to 100 days for female workers in the government service as well as in the private sector, regardless of her civil status, legitimacy of her child, and whether she gave birth via caesarian section or natural delivery.
  • An additional maternity leave of 30 days, without pay, can be availed, at the option of the female worker.
  • Female members of the SSS who have paid at least three monthly contributions in the 12-month period immediately preceding the semester of her childbirth or miscarriage shall be paid her daily maternity benefit, which shall be computed based on the average monthly salary credit, for 100 days, regardless if the delivery was normal or caesarian.
  • Female workers in the private sector availing of the maternity leave period and benefits must receive not less than two-thirds of their regular monthly wages.
  • Employers shall be responsible for the salary differential between the actual cash benefits received from the SSS and their average weekly or regular wages, for the entire duration of the ordinary maternity leave.
  • Nothing in this Act shall be construed as to diminish existing maternity benefits currently granted by employer with or without collective bargaining agreements (CBA), or under present laws, if more beneficial to the female employee.
  • Maternity leave of 60 days, with full pay based on her average weekly or regular wages, shall be granted for miscarriage.


To read more, please visit the official link: http://congress.gov.ph/press/details.php?pressid=10876&key=4113



 
 
 
Official Holiday List for 2019 Released You may refer to this link to check the official holiday list for 2019 public leaves in the Philippines: http://www.officialgazette.gov.ph/downloads/2018/08aug/20180815-PROC-555-RRD.pdf  
 
 
Pay Rules on Regular Holidays and Special Non-Working Holidays for 2019 Pursuant to Proclamation Number 555 issued by the President of the Philippines on August 15, 2018, the following rules for pay on regular holidays and special days shall apply:
 
 

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Regular Holidays - January 1, April 9, April 18, April 19, May 1, June 12, August 26, November 30, December 25, December 30, Eidul Fitr and Eidul Adha
  • If the employee did not work, employee shall be paid 100% of their wage for that day [(Basic wage + COLA) x 100%]
  • For work done during the regular holiday, the employee shall be paid 200% of their wage for that day for the first eight hours [(Basic wage + COLA) x 200%]
  • For work done in excess of eight hours (overtime work), employee shall be paid an additional 30% of his/her hourly rate on said day [Hourly rate of the basic wage x 200% x 130% x number of hours worked]
  • For work done during a regular holiday that also falls on their rest day, employee shall be paid an additional 30% of his/her basic wage of 200% [(Basic wage + COLA) x 200%1 + [30% (Basic wage x 200%)]
  • For work done in excess of eight hours (overtime work) during a regular holiday that also falls on their rest day, employee shall be paid an additional 30% of their hourly rate on said day (Hourly rate of the basic wage x 200% x 130% x 130% x number of hours worked)
 
 
Special (Non-Working) Days - February 5, February 25, April 20, August 21, November 1, November 2, December 8, December 24 and December 31
  • If the employee did not work, the "no work, no pay" principle shall apply unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment on a special day
  • For work done during the special, employee shall be paid an additional 30% of their basic wage on the first eight hours of work [(Basic wage x 130%) + COLA]
  • For work done in excess of eight hours (overtime work), employee shall be paid an additional 30% of their hourly rate on said day (Hourly rate of the basic wage x 130% x 130% x number of hours worked)
  • For work done during a special day that also falls on their rest day, they shall be paid an additional 50% of their basic wage on the first eight hours of work [(Basic wage x 150%) + COLA]
  • For work done in excess of eight hours (overtime work) during a special day that also falls on their rest day, employee shall be paid an additional 30% of their hourly rate on said day (Hourly rate of the basic wage x 150% x 130% x number of hours worked).
Further details are available at this link: https://goo.gl/6gF4Rx
 
 
 
Members are Requested Not to Disclose PhilHealth Information PhilHealth has received reports about certain lending agencies requesting for PhilHealth information specifically the applicant’s name and PhilHealth Identification Number in order to expedite the process of loan applications. Upon verification, PhilHealth has noted that such information are being used not for its intended purpose, but rather to access members’ records through its Member Inquiry Facility.

As such, members are called to exercise extreme caution when being asked for their PhilHealth-related information, and to immediately report the matter to the nearest PhilHealth Regional or Local Health Insurance Office.

Report on Non-Remittance and Non-Reporting is available in PhilHealth Portal Pursuant to Section 6.f of the Revised Implementing Rules and Regulations (IRR) of the National Health Insurance Act of 2013, PhilHealth is mandated to establish and maintain an updated membership and contribution database. Section 15 of the same IRR provides for the Obligations of the Employer which include the registration of their employees, payment of contributions and the submission of remittance reports. As such, employers who have not had any premium remittance and/or have not submitted their reports on premium payments are therefore considered non-compliant.

The complete list of non-remitting and non-reporting for employers is available at the PhilHealth site (as of June 2018).

New Format of the State of Premium Account PhilHealth has introduced a new format for the Statement of Premium Account (SPA) generated through the Electronic Premium Remittance System (EPRS). The revised SPA now includes a barcode as an additional security feature, as well as detailed reminders on account deficiencies. The previous format generated prior to July 2018 may still be accepted for premium payments.







 
 
 
PhilHealth Advisory Calculation The PhilHealth organization has revised its rate of contribution to 2.75% Computed straight based on the monthly basic salary, with a salary floor of P10,000.00 and a ceiling of P40,000.00 to be equally shared by the employees and their employer. The said change was applicable from January 2018.

With the removal of the salary brackets, the computation shall be based on the following table:

Monthly Basic Salary * 2.75% Monthly Premium Personal Share Employer Share PHP 10,000.00 and below PHP 275.00 PHP 137.50 PHP 137.50 PHP 10,000.01 to P 39,999.99 PHP 275.00 upto 1099.99 PHP 137.50 upto 549.99 PHP 137.50 upto 549.99 PHP 40,000.00 and above PHP 1,100.00 PHP 550.00 PHP 550.00

Source: PhilHealth sample calculation





 
 

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