Balmori Software Inc.

[ Article ]

Photo: Marcus Lenk                                                  Photo: National Cancer Institute

As the years pass, it's inevitable that the parameters governing the various mandatory deductions in everyone's payslip will change. The factors that cause these parameter changes are always in flux: inflation, demographic shifts, legislated revisions to the benefits packages. And even the level of corruption ("leakage," kurakot) that erodes the delivery (and kicks up the cost) of government services.

These changes in the computation of mandatory deductions mean that payroll systems - whether manual or computerized - become instantly obsolete at the stroke of a pen. And so all payroll systems need to constantly keep up; it's just the reality.

2024 brings two such changes.

The first increases Pag-IBIG contributions for both employees and their employers.

Starting January 2024, the Monthly Fund Salary (MFS) doubles from P5,000 to P10,000, at a contribution rate of 2% (double the previous 1% rate). For the majority, this translates to a doubling of their former PHIC contribution of Php100, to Php200. The same increase applies to employers' matching contribution.

This increase in Pag-IBIG contributions was originally meant to start in 2021; it was postponed on account of the Covid pandemic.

For PHIC (PhilHealth), the contribution rate is now 5% of basic salary - again effective January 2024. And at the same time, the Monthly Basic Salary range to which this 5% contribution rate will be applied has now grown by 25%, from P80,000 to P100,000.

Both changes have been much discussed in the press, both by private sector stakeholders and by senior officials of PHIC and Pag-IBIG; but you won't find any announcement in the Official Gazette.

But then again, the four statutory deductions agencies (BIR, PHIC, Pag-IBIG, SSS) have a well-documented history of springing major changes on the taxpaying public with (often) last-minute official notice.

Anticipating similar short notice, and wanting to spare our customers the stress of playing catch-up, Balmori Software is already ready with a new version of SURE! PayMaster, Version 7.10.7. The new version addresses the aforementioned expected changes in the PHIC and Pag-IBIG contribution formulas.

Old customers have been able to upgrade to this new version starting January 7th.

In the highly unlikely event that the government cancels these expected changes, Balmori Software will re-revise SURE! PayMaster at no charge to those who upgraded.







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