Overview

The calculation of Basic Pay for statutory contributions (SSS, HDMF, and PhilHealth) in reports is based on the configured statutory schedule in your payroll system. This article outlines how Basic Pay is computed for each schedule type to ensure proper contribution reporting and compliance with Philippine government regulations.


Statutory Schedule and Basic Pay Calculation Logic

  1. Default

    • Description: Statutory contributions are calculated based on the Basic Pay (Every Payroll)

  2. Every Payroll

    • Description: Basic Pay is taken from every payroll period, and corresponding statutory contributions are computed for every period within the month (e.g., for semi-monthly payroll: both 1st and 2nd period).

    • Effect: Contributions are deducted in each payroll period.

  3. First Payroll

    • Description: The Basic Pay used in the statutory computation includes:

      Basic Pay = Basic Pay (Previous Semi 2) + Basic Pay (Current Semi 1)

    • Effect: Statutory contributions are reported and deducted during the first payroll of the current month, including earnings from the end of the previous month.

  4. Last Payroll

    • Description: The Basic Pay used is the total of the current month’s 1st and 2nd payroll runs:

      Basic Pay = Basic Pay (Current Semi 1) + Basic Pay (Current Semi 2)

    • Effect: Contributions are computed and reported only in the second payroll of the month, based on the complete month’s Basic Pay.


Purpose and Compliance

These schedule options allow for flexible payroll configurations while ensuring monthly statutory contribution requirements are met. The chosen schedule affects the timing of deduction and reporting, but the total monthly contribution remains accurate.


Important Reminders

  • Payslips will reflect contribution amounts according to the selected schedule.

  • Ensure consistency in schedule settings to avoid discrepancies in reporting.