All current payroll solutions rendered obsolete once more
New, higher PhilHealth contributions take effect: PhilHealth Circular No. 027, Series of 2013

A second increase in PHIC contributions in two years takes effect on New Year's day 2014.

Philhealth Circular No. 027, Series of 2013 (027, s-2013) signed 30 September 2013 by PhilHealth President and CEO Alexander Padilla,

1. Revises the PHIC Contribution rates for the second time in two years, and
2. These rates are effective 01 January 2014.

View the new rates here.


Implications of PhilHealth Circular No. 027, Series of 2013

Apart from the latest rates being different from the rates prescribed by the older Circular 011, s-2012, Circular 027, s-2013 also effects an important change that requires yet another rewrite of all payroll software in the Philippine market: PHIC contributions are reverting to a look-up table basis, and discarding the algorithmic basis that Circular 011 instituted in 2012. (Prior to Circular 011, the contribution rates were originally in look-up table basis, and had been for years.)
The logic built into PayMaster Version 7.7, (and, for that matter, the logic of all other payroll systems from all software vendors that complied with Circular 011), is rendered obsolete by this latest circular.

SURE! PayMaster Ver. 7.7 will no longer be compliant with PHIC Circular 027, s-2013 come New Year's Day 2014. SURE! PayMaster clients now using SURE! PayMaster Version 7.7 and lower versions should upgrade to Version 7.8 to conform to Circular 027, s-2013 and to correctly compute and implement the prescribed contributions.


Upgrading to SURE! PayMaster Version 7.8

Balmori Software has responded to this latest change in PHIC deductions structure by releasing SURE! PayMaster Version 7.8.

SURE! PayMaster clients who are currently using Version 7.7 can upgrade to Version 7.8 for a minimal fee. (Please get in touch with us for an upgrade proposal. Telephones 890-1976 or 77; email: balmori@balmorisoftware.com)

Clients upgrading from versions older than Ver. 7.7 - we take this opportunity to point out that these older versions have been obsolete for years and therefore now produce incorrect outputs from the point of view not only of PhilHealth but also very importantly the Bureau of Internal Revenue - will pay slightly more in upgrade fees. Clients who have version 7.6 and lower versions, please contact us for the investment requirements for upgrading to Version 7.8.

A little background

Confused? Irritated? For those who wish to understand this latest development more completely, you need to know about

1. Circular 011, s-2012, originally meant to take effect 2013 January 01; and
2. Circular 057, s-2012, originally meant to take effect 2014 January 01

We have created a special page on our website that expands on the these relevant precursors to Circular 027, s-2013. (Click on the circular names above to go to that page.)

Thus, bottom line: the rates prescribed by 011, s-2012, initially prescribed to take effect 01 January 2013, then deferred to 01 January 2014 by PhilHealth Circular No. 0057, s.2012, are no longer the rates to be implemented come 01 January 2014.