Small or big preparing payroll is a burden. I you don't have any computerized payroll/accounting system, you'd better at least create a Excel format which automatically calculate each payroll.
Since it should be release twice every month while there are things to do before finalize payroll, companies usually adopt "Grace Period" and "Cut-off Period". For example, a company may set cut-off period, every 1 to 15 and 16 to end of the month. You may ask all employees to file any documents that might affect payroll like reimbursement, etc before the cut-off date.
The 1st salary will be release on every 20th of the month and the 2nd salary will be released on every 5th of the following month, since you need time to prepare.
Payroll Computation Rates
|
Normal Day
|
Rest Day
|
Special Non Working Day
|
Regular Holiday
|
|
|
No Work
|
0%
|
0%
|
0%
|
100%
|
|
Normal Work
|
100%
|
130%
|
130%
|
200%
|
|
Overtime (OT)
|
125%
|
169%
|
169%
|
260%
|
|
Night Shift Differential
(NSD)
|
110%
|
143%
|
143%
|
220%
|
|
OT + NSD
|
143%
|
185.9%
|
185.9%
|
286%
|
Sample
Salary Calculation (Day Factor = 261)
|
Time
|
Calculation
|
Amount
|
|
|
Monthly Salary
|
P15,000
|
||
|
Salary Rate
|
Daily = P689.66
Hourly = P86.21 |
||
|
Undertime
|
2 Hours
|
P86.21 × 2 =
|
– P172.42
|
|
Absences
|
1 Day
|
P689.66 × 1 =
|
– P689.66
|
|
Overtime on Normal Day
|
4 Hours
|
P86.21 × 4 ×
125% =
|
+ P431.05
|
|
Night Shift Differential
|
4 Hours
|
P86.21 × 4 ×
10% =
|
+ P34.48
|
|
Rest Day Work
|
1 Day
|
P689.66 × 130% =
|
+ P896.56
|
|
Special Non Working Day
Work
|
1 Day
|
P689.66 × 30% =
|
+ P206.90
|
|
Gross Salary
|
P15,913.81
|
||
|
Gross Salary
|
P15,913.81
|
||
|
SSS Contribution
|
– P581.30
|
||
|
Philhealth Contribution
|
– P187.50
|
||
|
HDMF Contribution
|
– P100.00
|
||
|
Withholding Tax
|
– P1,717.33
|
||
|
Loan (SSS Loan, HDMF Loan
if any)
|
0
|
||
|
Net Salary
|
P13,327.68
|
||
Notes: Starting 2018, basic salary of P15,000 per month is exempted from income tax.