How to Process the New PHIC Contribution for December 2019

In accordance with Implementing Rules and Regulations of the Universal Health Care Law, premium contributions for PhilHealth are to increase according to the schedule in the law.

Please see reference; here

Since the first increase is only effective for 1 month until December 2019, Sprout decided to focus our development on preparing the rates ready for 2020. The change in rates will not be coded into the system for the remainder of the year (2019).

Here are the steps on how to process the PhilHealth for December 2019 using Sprout Payroll:

• For those employees with Basic Pay amounting to 40,001.00 and above, they need to change the PHIC contribution from “Let the System Decide” to “0” in the employee profile.
• Synced Account – User will update the government contribution in Sprout HR, using Bulk Upload: Edit Employee Information and edit the Philhealth contribution of the affected employees from “Blank” to “0”.

• Half Synced / Sprout Payroll only – User will update the government contribution using Employee Bulk Edit upload template in Sprout Payroll and edit the Philhealth contribution of the affected employees from “Blank” to “0”.

Users need to manually compute the PHIC contributions of those affected employees by using the formula below :

PHIC = (Basic Pay * 2.75%) / 2

Example:

EE Monthly Basic Pay: 45,000.00

PHIC Rate: 2.75%

PHIC Contribution: 1,237.50

PHIC EE/ER Contri: 618.75

Note: The PHIC contribution for employees with 50k and above salary will automatically be Php687.50

They can apply the computed amount in payroll run using a one-time adjustment. Please refer to the link below on how to upload one-time adjustment using bulk upload:

How to Set-up One Time Adjustment using Mass Upload

For reference, here is the sample the filled out one-time adjustment template. Take note of the adjustment type to be used for this workaround for proper tagging on the statutory report