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January 15 is so near na!
It is sweldo time again!
It is sweldo time again!
I bet most of you can’t wait (I can’t. I practically squandered mine – just a little percentage lang naman, honestly…)and are itching to go to the nearest mall and withdraw
at an ATM Machine.
at an ATM Machine.
But have you ever wondered about those confusing numbers and
shocking deductions from your hard-earned salary or you are contented with what you can withdraw?
shocking deductions from your hard-earned salary or you are contented with what you can withdraw?
It is time to figure out your payslip amidst the number
jumble.
jumble.
Payslips are more than twice-a-month reminder of how much
you are earning. Besides stating your
salary for that payroll period, it also contains other income not included in
your basic monthly salary, such as unused vacation leaves, deductions that are
dependent on company policy and deductions that are mandated by the Philippine
government such as Philhealth, Social Security System, and Pag-IBIG
contributions.
you are earning. Besides stating your
salary for that payroll period, it also contains other income not included in
your basic monthly salary, such as unused vacation leaves, deductions that are
dependent on company policy and deductions that are mandated by the Philippine
government such as Philhealth, Social Security System, and Pag-IBIG
contributions.
Your payslip may also be used as documentation when applying for loans or credit accommodation,
insurance and other purposes where proof of income is required.
insurance and other purposes where proof of income is required.
WHAT ARE THE COMPONENTS OF A PAYSLIP?
- Basic gross pay for the payroll period
- Overtime
- Vacation and sick leaves
- Thirteenth month pay (if included in that month
- Bonuses, if any
- Deductions
a. Philippine Health Insurance
(Philhealth) contributions*
(Philhealth) contributions*
b. Social
Security System (SSS) contributions*
Security System (SSS) contributions*
c. Pag-IBIG (Pagtutulungan sa
Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno) Fund contribution*
Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno) Fund contribution*
d. Loan Payments (if any)
e. Withholding tax
f. Deductions brought about by company
policy (such as stock option payments, company loans, union dues, etc.)
policy (such as stock option payments, company loans, union dues, etc.)
*GOVERNMENT-MANDATED BONUSES
A member of any of these government programs can be assured
of financial benefits arising from possible events that result from loss of
income. Opportunities to avail of
housing, medical, and financial aid are open to members provided that proper
contributions and eligibility requirements are complied with.
of financial benefits arising from possible events that result from loss of
income. Opportunities to avail of
housing, medical, and financial aid are open to members provided that proper
contributions and eligibility requirements are complied with.
Pag-IBIG MEMBERSHIP
With
the signing of Republic Act No. 9679, membership to the Fund shall be mandatory
for the following:
a. All employees, workers, professionals, officers and companies who are
compulsorily covered by the SSS and GSIS
the signing of Republic Act No. 9679, membership to the Fund shall be mandatory
for the following:
a. All employees, workers, professionals, officers and companies who are
compulsorily covered by the SSS and GSIS
b. Uniformed members of the Armed Forces of the Philippines, the Bureau of Fire
Protection, the Bureau of Jail Management and Penology, and the Philippine National Police;
c. Overseas Filipino Workers (OFWs)
d. Filipinos employed by foreign-based employers, whether deployed locally or
abroad.
Membership
to the Fund is also open to the following:
to the Fund is also open to the following:
a. Non-working spouses of Pag-IBIG members;
b. Filipino employees of foreign government or international organization, or
their wholly- owned instrumentality based in the Philippines, in the absence of an administrative agreement with the Fund;
c. Employees of an employer who is granted a waiver or suspension of coverage
by the Fund under RA 9679;
d. Leaders and members of religious groups;
e. A member separated from employment, local or abroad, or ceased to be
self-employed but would like to continue paying his/her
personal contribution;
f. Public officials or employees who are not covered by the GSIS such as
barangay officials; and
g. Filipinos naturalized in other countries.
How much
is the monthly Pag-IBIG contribution?
is the monthly Pag-IBIG contribution?
The maximum monthly compensation used in computing the
employee contributions is set at PHP 5,000.00.
This means that the maximum member contribution and employer counterpart
per month are both currently PHP 100.00.
employee contributions is set at PHP 5,000.00.
This means that the maximum member contribution and employer counterpart
per month are both currently PHP 100.00.
While being a member
of Pag-IBIG is usually associated with housing loans, it also offers savings
benefits and short-term loans.
of Pag-IBIG is usually associated with housing loans, it also offers savings
benefits and short-term loans.
PHILHEALTH MEMBERSHIP
Every employee is mandated to join Philhealth through his
employer. Philhealth provides financial
assistance for medical emergencies.
Membership is also extended to the following :
employer. Philhealth provides financial
assistance for medical emergencies.
Membership is also extended to the following :
- Self
employed individua - Retirees
and pensioners of the GSIS and SSS - Retirees
and members who have reached the retirement age - Other
eligible members are dependents, such as non-members, legitimate spouses,
children below 21 years old who are unmarried and unemployed and parents 60
years old and above.
*Employee share represents half of the total monthly premium
while the other half is shouldered by the employer.
while the other half is shouldered by the employer.
The amount deducted by Philhealth is the first to be used up
during a medical emergency. This
includes both in-patient and out-patient hospital care. For confinement, you must have paid at least
three consecutive contributions prior to your confinement to avail of the
benefit.
during a medical emergency. This
includes both in-patient and out-patient hospital care. For confinement, you must have paid at least
three consecutive contributions prior to your confinement to avail of the
benefit.
SSS MEMBERSHIP
SSS membership is compulsory for the following Filipinos:
- A private employee who is 60 years old and below
- A household helper earning at least PHP 1,000.00
- Seafarers, foreign government employees, a parent, a spouse
or child below 21 years old of the owner of single proprietorship business - Self-employed individuals.
Computation of SSS Contribution
The wide range of SSS benefits and loans mainly covers the
following points: In case of death, sickness, disability, maternity. In other cases wherein the loss of income
might occur, SSS is of service to help out its members.
following points: In case of death, sickness, disability, maternity. In other cases wherein the loss of income
might occur, SSS is of service to help out its members.
How about GSIS contributions sis? Yun yung masakit-sakit talaga sa bulsa eh, ang laki-laki ng kaltas pero parang wala naman talagang tangible benefits. :/
Yup sis i will do a post on it 🙂
One thing I really want to know is how they compute for the witholding tax. Ang laki kasi ng kaltas. Yung ibang kasama ko, halos lahat lang ng OT pay nila sa tax napupunta.
Allan (www.chemistdad.com)
Yup, I will do a post on it. Medyo madugo kasi kaya I will be discussing it in another post. I bet marami sa inyo ang biglang lumiit or lumaki ang sweldo this december? Yun ang effect ng year-end adjustment para masigurado ng bir na your tax due was properly withheld.
Very useful post, Marie! 🙂 Yeah, asar ang tax! Especially if your pay gets higher. Hehehe
Interesting to read about how taxation is in Philippines. It really looks complicated.
This is very useful! I should take a closer look kasi it seems like mostly sa sahod ko prang tax lahat heheheh..:)
Ang daming nagreklamo about the 13th month pay release namin, kasi bakit daw na tax haha. Kaya important talagang conversation ang witholding tax. 🙂
Happy New Year, Marie!
My tax didn't change kahit may anak na ako, huhu… Sabi naman nila kasi daw na kay Daddy A naka-under sa dependent si Matt. So I look forward to your tax computation. Sana lang un overtime non taxable din, hehe…
Mommy Maye
http://www.ourfamilyblogsabout.info
Hi Marie, I love your detailed post about these. Thanks for this useful info. Would you know how to continue paying for personal contribution both for Pag-ibig and Philhealth? Where are their offices? Pag-ibig would be P200 right while Philhealth would be based on the salary range? Thanks! 🙂
Hi, this question is kind of unrelated,but i've been looking in the net for answers on whether a company who is employing a minimum wage earner needs to file income tax return for this also if the company need to file compensation tax return for the employee?
The Minimum Wage Earner's company will give him BIR Form 2316 – Certificate of Tax Withheld – (since MWE will be included in the alphalist that company will submit to the BIR). The BIR Form 2316 will contain his data as an MWE under items 12,13 and 14. This Form will serve as "substituted filing" The BIR Form 1604C/F with the alphalist which the company will file to the BIR shall consititute as the MWE's Income Tax Return and the BIR Form 2316 shall serve the same purpose as if the Employee's ITR has been filed. If some agencies or offices or banks require the MWE to submit the ITR, the BIR Form 2316 will do. Here's how the Form looks like: ftp://ftp.bir.gov.ph/webadmin1/pdf/16992316.pdf
Hi… this is so helpful, would like to ask lang po regarding payslips? When should they be given to the emplyees? Is there any law in our labor code regarding this po? Hope you could enlighten us on this matter. God bless and thanks in advance. 🙂
Hello po… this blog is so helpful for us, thanks for this. Would like to ask regarding payslips po. Hope you could enlighten us on this. When should be payslips be given out po? Is there a law sa labor code po natin regarding this? Our company po kasi late magbigay ng payslips, a month to month and a half, then sometime you need to request for it. Thanks in advance and God bless. 🙂
ang witholding tax po bah kailangan ng minimum wage as a basis para sa deduction?
If pasok sa minimum wage ang sahod mo, exempt ka sa withholding
Hi! I just want to ask, if I have SSS loan and Pag IBIG loan, do they affect my tax?
Nope. Your withholding tax will be based on your taxable compensation income (and hindi nabawas doon ang mga hulog mo sa loan mo)
What is the percentage of the the tax withheld to the overall compensation?
The income tax system in our country is progressive, meaning the tax is dependent on your taxable income. the higher your income is, the higher is your tax.
hi how can I be sure kung hinuhulog ng company namin ung monthly contribution namin sa Philhealth or SSS? thanks in advance po.
Can you withdraw the Payment/Tax Withheld in BIR? The Total Taxable Compensation Income?
Just asking? Cause I only recieved 1,034 peso in my Company benefit… though it's only 2 months.. I just resigned .. and recieved this reference of Payment/Tax Withheld I don't have knoledge about the Tax thanks in advance…
The tax credit/refund will show in your bir form 2316. If you are going to have a new job, you need this 2316. Income tax kasi is due annually. for example, for year 2014, your total income for 2014 will be taxable on april 15. ang ginawa sana ng company mo is to refund the tax withheld after the computation of your tax due.
Yes po I have that form 2316 recieved from my company I just resigned po last year may 2014.. yung naka lagay po sa Total Taxable Compensation Income amount is 16,027 peso so.. pwede ko po ba ma withdraw yun o hindi na po? Thanks po in advance..
Yes or no lang po kung ung Taxable is not a withdrawal or the Non-Taxable is a withdrawal?
May makukuha pa po ba ko mam? Tnx in advance.
Yung taxable compensation income is yung total income mo subject to tax. Tax due is the tax on that taxable compensation income. tax withheld is the amount na nawithhold sa kumpanya. if nawithholdan ka ng tama, even or 0 ito (halimbawa: tax due-2000, tax withheld 2000, tax still due – 0).i don't understand what you mean by withdraw? total taxable compensation income kasi is your income/sweldo. naibgay na sa yo ng kumpanya mo. if mas malaki yung tax withheld sa 2316 mo, that means nasobrahan ka ng withholding. if magtatrabaho ka ulit, give the 2316 sa new employer mo para come end of the year, icoconsolidate nila yung income mo from your previous company para magzero out. if di ka naman nagkatrabaho after may 2014 and may tax withheld sa 2316 mo, file bir form 1700 http://www.bir.gov.ph/images/bir_files/old_files/pdf/82202BIR%20Form%201700.pdf attach your 2316. If tax due is less than tax withheld (ex tax due 2000, tax withheld – 3000, overpayment 1000), your return will also serve as an application for tax refund in which case the bir will need to give back the overpayment within 2 years
Mai deduction na po ba sa salary kahit d kapa member sa SSS at philhealth? Kasi mai mga deduction na po sa payroll ko..tapos pag check ko sa SSS at philhealth ko..d pa ako member parang hindi nag submit ng report for employee coverage ang employer ko..thanks
Hi, Harizon. Baka yung deduction from your payroll is Income Withholding tax. SSS and philhealth deductions are different but check your payslip on what your employer is deducting and ask them 🙂
Hello mam.magkanu po ang mandatory deduction s pagibig pagnagcompute ng tax is it 100 or 2% of d basic.thank u and
God bless.
hi mam, ask lang is Payslip a mandatory requirement for an employer to give to it his employee ?