legal environment summarized

8/9/2019 Legal Environment Summarized

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PHILIPPINE ECONOMIC ZONE AUTHORITY (PEZA)

is a government agency in thePhilippinesunder theDepartment of Trade andIndustrcreated to help promote investments in the export-oriented manufacturing industry intothe country by assisting investors in registering and facilitating their business operations andproviding tax incentives.

The PEZA is governed by the R.A 7!" but some of its provisions #ere amended by theR.A $7%$.

!"s#a$ In#ent"%es to PEZA&Re'"stered E#onom"# Zone Enterpr"ses

Informat"on Te#no$o' Enterpr"se

&ncome Tax 'oliday (&T') * !++, exemption from corporate income tax

o % years &T' for on-pioneer pro/ect

o " years &T' for Pioneer pro/ect

&T' Extension year may be granted if Pro/ect complies #ith the follo#ing criteria(one criterion is e0uivalent to one &T' extension year1)1 provided that the total&T' entitlement period shall not exceed eight ($) years

2 The average net foreign exchange earnings of the pro/ect for the first three (3)years of operations is at least 456++1+++.++ and1

2 The capital e0uipment to labor ratio of the pro/ect does not exceed

456!+1+++.++ to ! for the year immediately preceding the &T' extension yearbeing applied for.

o 3 years &T' for Expansion pro/ect (&T' applies to incremental sales)

4pon expiry of the &ncome Tax 'oliday - , 5pecial Tax on 8ross &ncome

and excemption from all national and local taxes. (98ross &ncome: refers to gross salesor gross revenues derived from the registered activity 1 net of sales discounts1 salesreturns and allo#ances and minus cost of sales or direct costs but before any deduction ismade for administrative expenses or incidental losses during a given taxable period)

Tax and duty free importation of e0uipment and parts.

Exemption from #harfage dues on import shipments of e0uipment.

;AT


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Exemption from payment of any and all local government imposts1 fees1

licenses or taxes. 'o#ever1 #hile under &ncome Tax 'oliday1 no exemption from realestate tax1 but machineries installed and operated in the economic


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MINIMUM -A.E

Co%era'e

All covered employees are entitled to receive minimum #ages regardless of the follo#ing

a. their positions

b. designations

c. employment statusD and

d. the method by #hich their #ages are paid

Te M"n"mum -a'e ,tru#ture

The ne# minimum #age structure1 incorporating the P!+ increase as mandated by age Frder

o. CR-!$is as follo#s

DAILY MINIMUM -A.E RATE,

Nat"ona$ Cap"ta$ Re'"on (NCR)

Per -a'e Order No0 NCR&34

(Effe#t"%e 1 O#to/er 2536)

Upon Effe#t"%"t

5ector&ndustry =asic age =asic age

&ncrease

e# =asic

age

CFBA e#

ag

on-Agriculture P %G".++ P!+.++ P%3".++ P3+.++ P %"

Agriculture (Plantation andon Plantation)

P 3$.++ P!+.++ P3.++ P3+.++ P %G

Private 'ospitals #ith bed

capacity of !++ or less

P 3$.++ P!+.++ P3.++ P3+.++ P %G

Retail5ervice Establishments

employing ! #orHers or less

P 3$.++ P!+.++ P3.++ P3+.++ P %G

@anufacturing

Establishments regularly

employing less than !+

#orHer

P 3$.++ P!+.++ P3.++ P3+.++ P %G

Effe#t"%e 53 7anuar 2531

5ector&ndustry e# =asic

age

CFBA

&ntegration

Effective

+! Ianuary

G+!%

=asic age

After

&ntegration

CFBA e#

@ini

ag

Effec

+! Ia
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G+!%

on-Agriculture P %3".++ P!.++ P %!.++ P!.++ P %"

Agriculture (Plantation and

on Plantation)

P 3.++ P!.++ P %!%.++ P!.++ P %G

Private 'ospitals #ith bed

capacity of !++ or less

P 3.++ P!.++ P %!%.++ P!.++ P %G

Retail5ervice Establishments

employing ! #orHers or less

P 3.++ P!.++ P %!%.++ P!.++ P %G

@anufacturing

Establishments regularly

employing less than !+

#orHers

P 3.++ P!.++ P %!%.++ P!.++ P %G

ational Capital Region (RC) covers the Cities of Caloocan1 Bas PiJas1 @aHati1 @alabon1

@andaluyong1 @anila1 @ariHina1 @untinlupa1 ParaJa0ue1 Pasay1 Pasig1 Kueistressed establishmentsD

Retail5ervice establishments regularly employing not more than Ten (!+) #orHersD


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Establishments #hose total assets (ETA) including those arising from loans but exclusive

of land on #hich particular business entityLs office1 plant and e0uipment are situated1 are notmore than P3 millionD and

Establishments adversely affected by natural calamities

ithin one year1 from the grant of exemption to a 0ualified ETA1 said ETA is encouraged to

register as =@=E.

Oter Important Matters

Private educational institution #hich have not increased their tuition fees for the school

year G+!3-G+!% may defer compliance until the beginning of school year G+!%-G+!

&ncrease granted by employer #ithin 3 months prior to the effectivity of the #age order

shall be credited as compliance provided forged bet#een the party or a C=A allo#ingcreditability.

Entities should correct any #age structure distortion (meaning in higher level of

employees #ere close to minimum #age1 then an increase to them #ould be effected)

5ee other relevant provision of theage Frder o. CR-!$1 ClicH 'ere.

+as"s for M"n"mum -a'e

The normal #orHing hours #hich shall not be more than eight ($) hours a day shall be the

basis for the minimum #age rates prescribed by la#.

-or9ers Pa"d / Resu$t

All #orHers paid by results1 including those #ho are paid on piece#orH1 taHay1 paHya#1 or

tasH basis1 shall receive not less than the applicable statutory minimum #age rates prescribedunder the Act for normal #orHing hours #hich shall not exceed eight ($) hours a day1 or a

proportion thereof for #orH of less than the normal #orHing hours.

Effe#t of -a'e D"stort"on

age distortion is 9a situation #here an increase in prescribed #age rates results in the

elimination of severe contraction of intentional 0uantitative differences in #age or salary

rates bet#een and among employee groups in an establishmentM:

Effe#t of te Redu#t"on of -or9das on -a'es
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&n situations #here the reduction in the number of regular #orHing days is resorted to by the

employer to prevent serious losses due to causes beyond his control such as #hen there is a

substantial slump in the demand for his goods or services or #hen there is lacH of ra#

materials1 te emp$oer ma dedu#t te :a'es #orrespond"n' to te das ta9en off from

te :or9:ee9; #ons"stent :"t te pr"n#"p$e of


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&f overtime #orH (or #orH in excess of $ hours fall #ithin the aforesaid period1 premiums for

overtime #orH should first be integrated into the regular hourly rate of the employees before

computing night shift pay.

HOLIDAY PAY

The 'oliday Pay Rule stipulates that an employee is entitled to at least !++, of his basic #age

even if he did not report for #orH1 provided heshe is present or is on leave of absence #ith pay

on the #orH day immediately preceding the holiday. @oreover1 #hen the holiday falls on the

scheduled #orHday of the employee1 #orH performed on that said day merits an additional 3+,

of the employeeLs regular holiday rate of G++, or a total of G"+,.

There are no# eleven (!!) regular holidays as provided under EF G+3 (incorporated in EF GG)

as amended by R0A0 @1@2approved on Iuly G1 G++71 ate

Ara: n' a'"t"n'an @onday nearest April

La/or Da @onday nearest @ay !

Independen#e Da @onday nearest Iune !G

Nat"ona$ Heroes Da Bast @onday of August

+on"fa#"o Da @onday nearest ovember 3+

E"du$ !"tr @ovable >ate

Cr"stmas Da >ecember G

R"a$ Da @onday nearest >ecember 3+

,pe#"a$ Das

The principle of


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N"no AFu"no Da @onday nearest August G!

A$$ ,a"nts Da ovember !

Last Da of te Year >ecember 3!

&n addition to these three national special days1 t#o special days #ere also declared for the

province---7ose A/ad ,antos Daevery 7th day of @ay and Pampan'a Da every !!th

day of >ecember.

36t MONTH PAY

The !3th month pay re0uired by Presidential >ecree $! is additional income based on #age but

not part of the #age. &t is !!G of the total basic salary earned by an employee #ithin calendar

year. All ranH-and-file employees regardless of their designation or employment status and

irrespective of the method1 by #hich their #ages are paid1 are entitled to this benefit1 provided

that they have #orHed for at least one month during the calendar year. &f the employee #orHed

for only a portion of the year1 the !3th month pay is computed pro rata.

The 9basic salary: of an employee for the purpose of computing the !3th month pay shall

include all remuneration or earnings paid by the employer for services rendered. 'o#ever1 this

does not include allo#ances and monetary benefits #hich are considered or integrated as part of

the regular or basic salary1 such as cash e0uivalent of unused vacation and sicH leave

credits1 overtime1 premium1 night differential and holiday pay1 and cost-of-living

allo#ances. 'o#ever1 those salary-related benefits may be included as part of the basic salary in

the computation of the !3th month pay if by individual or collective agreement1 company

practice or policy1 the same are treated as part of the basic salary of an employee.

T"me of Pament

Te reFu"red 36t mont pa sa$$ /e pa"d not $ater tan De#em/er 31 of ea# ear0 An

employer1 ho#ever1 may give to his employees one half (N) of the re0uired !3th pay before

the opening of the regular school year and the other half on or before the G%th of >ecember

of every year. The fre0uency of payment of this monetary benefit may be the sub/ect ofagreement bet#een the employer and the recogni


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Every employee #ho has rendered at least one (!) year of service is entitled to a yearly service

incentive leave of five () days #ith pay. The service incentive leave may be

PATERNITY LEA*E

Paternity Beave refers to leave credits granted to all married male employees to allo# him toearn compensation for seven (7) #orHing days #ithout reporting for #orH1 provided that his

spouse has delivered a child or had a miscarriage or an abortion for the purpose of lending

support to his #ife during her period of recovery andor the nursing of the ne#ly born child.

MATERNITY +ENE!IT,

!. Every pregnant #oman in the private sector1 #hether married or unmarried is entitled to thedaily maternity benefit of !++, of the average daily salary credit for a compensable for thefollo#ing periods

,"8t (B5)days in case of normal delivery1 abortion or miscarriageD

,e%ent&e"'t (4)days in case of cesarean delivery

G. To be entitled to the maternity benefit1 the employee

must be an 555 member employed at the time of delivery1 miscarriage or abortionD

must have given the re0uired notification to the 555 thru her employersD and

her employers must have paid at least three (3) months of maternity contributions #ithin

the t#elve-month period immediately before the date of contingency.

PA.&I+I. !UNDor HOU,IN. DE*ELOPMENT MUTUAL !UND

The coverage of the Pag-&=&8 ?und or 'ousing >evelopment @utual ?und ('>@?) shall be

mandatorupon all employees covered by the 5ocial 5ecurity 5ystem (555) andor the

8overnment 5ervice &nsurance 5ystem (85&5)1 and their respective employers. 'o#ever1 the

coverage of the employees #hose monthly compensation is less than four thousand

pesos (P%1+++) shall be %o$untar.

4pon membership1 employers and employees shall contribute an amount according to the

follo#ing percentages but not exceeding one hundred pesos (P!++)


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a. Employees earning not more than one thousand five hundred pesos (P!1++) per monthshall contribute one percent (!,)

b. Employees earning more than one thousand five hundred pesos (P!1++) per month shallcontribute t#o percent (G,)

c. All employers --- t#o percent (G,) of the monthly compensation of the covered

employees.

TERMINATION PAY

The amount of separation pay an employee is by la# entitled to receive depends on the reason

and grounds for the termination of his services.

One (3) or One Ha$f (3G2) mont Pa Per Year of ,er%"#e

An employee is entitled to receive as termination pay the e0uivalent of one (!) or

one-half (!G) month pay for every year of service1 a fraction of at least six (") months being

considered as one #hole year1 if his separation from service is due to any of the follo#ing

causes

RETIREMENT PAY

Co%era'e

All employees regardless of their position1 designation or status and irrespective of the

method by #hich their #ages are paid are entitled to retirement benefits provided under

Republic Act 7"%! upon compulsory retirement at the age of sixty-five (") or upon optional

retirement at sixty ("+) or more but not ".

This benefit does not apply to the follo#ing

a. 8overnment Employeesb. >omestic helpers and persons in the personal service of anotherc. Employees of retail1 service and agricultural establishments or operations regularly

employing not more than ten (!+) employeesd. Fther benefits that may be agreed upon by employer and employee for inclusion


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M"n"mum Ret"rement PaO o. Ff ears in service x Fne 'alf @onth salary

?or covered employees #ho are paid by result1 the basis for computing their salary for fifteen

days shall be their Average >aily 5alary (A>5). The A>5 may be derived by dividing the

total salary or earnings for the last !G months by the number of actual #orHing days.

Compu$sor

&n the absence of a retirement plan or applicable agreement in an establishment1 an employee

shall be retired upon reaching the age of sixty five (") an shall be entitled to the retirement

pay illustrated above.

Opt"ona$

An employee belo# sixty five (") years of age may retire and shall be entitled to retirement

pay under RA 7"%! if

a. there is no retirement plan or applicable agreement on retirement benefits in anestablishment

b. he has reached sixty ("+) years or moreD and

c. if he has served for at least five () years in the said establishment

from the employer is less1 the employer shall pay the deficiency.

EMPLOYMENT ,TATU,

Re'u$ar Emp$oment

Article G$+ of the Babor Code on Regular and Casual Employment specifies that the

provisions of a #ritten agreement to the contrary not#ithstanding and regardless of the oral

agreement of the parties1 an employment shall be deemed to be regular #here the employee

has been engaged to perform activities #hich are usually necessary or desirable in the usual

business or trade of the employer. An exception is #hen the employment has been fixed for a

specific pro/ect or undertaHing the completion of #hich has been determined at the time of

the engagement of the employee or #here the #orH or services to be performed is seasonal in

nature and the employment is for the duration of the season.

Casua$ Emp$oment

An employment is deemed to be casual if it is not covered by the preceding paragraph

Provided1 that1 any employee #ho has rendered at least one year of service1 #hether such

service is continuous or broHen1 shall be considered a regular employee #ith respect to the

activity in #hich he is employed and his employment shall continue #hile such activity

exists.


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-at determ"nes re'u$ar"t or #asua$ness "s not te emp$oment #ontra#t; :r"tten or

oter:"se; /ut te nature of te o/.

Pro/at"onar Emp$oment

Article G$! of the Babor Code stipulates that probationary employment shall not exceedsix (") months from the date the employee started #orHing unless it is covered by an

apprenticeship agreement stipulating a longer period. The services of an employee #ho has

been engaged on a probationary basis may be terminated for a /ust cause or #hen heshe fails

to 0ualify as a regular employee in accordance #ith reasonable standards made Hno#n by the

employer to the employee at the time of his engagement. An emp$oee :o "s a$$o:ed to

:or9 after a pro/at"onar per"od sa$$ /e #ons"dered a re'u$ar emp$oee .

TERMINATION

Term"nat"on / Emp$oer

.rounds for Term"nat"on

An employer may terminate an employment for any of the follo#ing causes

a. 5erious misconduct or #illful disobedience by employee of the la#ful orders of hisemployer or representative in connection #ith hisher #orHD

b. 8ross and habitual neglect by the employee of his dutiesDc. ?raud or #illful breach by the employee of the trust reposed in him by his employer or

duly authori


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14/38

-en emp$oment "s not deemed term"nated

The bona fide suspension of the operation of a business or undertaHing for a period not

exceeding six (") months1 or the fulfillment by the employee of a military or civic duty shall

not terminate employment. &n all such cases1 the employer shall reinstate the employee to hisformer position #ithout loss of seniority rights if he indicates his desire to resume his #orH

not later than one (!) month from the resumption of operations of his employer or from his

relief from the military or civic duty.

CONTRACTIN. AND ,U+&CONTRACTIN. (DEPARTMENT ORDER 34&2552)

Contracting and subcontracting arrangements are expressly allo#ed by la#1 but may be sub/ect

to regulations consistent #ith the promotion of employment1 protection of #orHersL #elfare1 and

enhancement of industrial peace and the rights of the #orHers to self-organi


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G. Partners and single proprietors of businesses.

3. Actors and actresses1 directors1 script#riters and ne#s correspondents #ho do not fall

#ithin the definition of the term employee in section eight (d) of this Act.

%. Professionals athletes1 coaches1 trainers licensed by the 8ames and Amusement =oardas #ell as /ocHeys and trainers licensed by the Philippine Racing Commission.

,,, Re'"strat"on

ou are also re0uired to enroll your employees under the 5ocial 5ecurity 5ystem (555)program1 #hich provides insurance and protection for private-sector employees1including resident foreign employees. 555 benefits include disability pension1retirement1funeral benefit1 sicHness allo#ance1 maternity and paternity leave and loans.

&f you are the o#ner of a single proprietorship business1 you should accomplish andsubmit 555 ?orms R-! (EmployerQs >ata Record) and R-!A (&nitial or 5ubse0uent Bist ofEmployees). &f your business is a partnership or a corporation1 you also need to submityour articles of partnership or incorporation.

ou should also re0uire your employees to secure an 55 number and that that they arereported for coverage under the 555D

ou must report all employees for 55 coverage #ithin thirty (3+) days from the date ofemployment by submitting an accomplished 555 ?orm R-!A (Employment Report) at thenearest 555 office. ou are also re0uired to deduct from your employees salariesL the

monthly 55 contributions based on the schedule of contributions and remit thesecontributions to any 555-accredited banH555 'ead Fffice 555 selected branches on orbefore the !+th day follo#ing the month #hen said contributions are due and applicable.

,,, +enef"ts

The 5ocial 5ecurity 5ystem (555) provides insurance and protection for private-sectoremployees1 including resident foreign employees. 555 benefits include disability pension1retirement1 funeral benefit1 sicHness allo#ance1 maternity and paternity leave and loans.

PA. I+I. !UND

Pag-&=&8 is an acronym #hich stands for Pa'tutulungan sa

SinabuHasan IHa#1 +angHo1 Industria at .obyerno. &n effect1 Pag-&=&8 harnesses these four


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sectors of our society to provide its members #ith ade0uate housing through as effective savings

scheme.

Co%era'e

These guidelines shall cover the development and construction of lo# cost housing units in

@etro @anila and highly urbani


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MANDATORY MEM+ER,

These are the follo#ing people #ho are re0uired or mandate by la# to become a member

under R.A "7

All employees1 #orHers1 professionals1 officers and companies #ho are compulsorily

covered by the 555 and 85&5

4niformed members of the Armed ?orces of the Philippines1 the =ureau of ?ire

Protection1 the =ureau of Iail @anagement and Penology1 and the Philippine ational

Police

Fverseas ?ilipino orHers (F?)

?ilipinos employed by foreign-based employers1 #hether deployed locally or abroad

*OLUNTARY MEM+ER,

&ndividuals #ho are not regularly employed and #ho belong to other #orHing groups can

/oin the Pag-&=&8 ?und on a voluntary basis. The follo#ing are the example of people #ho

are not compulsory to be a member of Pag-&=&8 ?und

on-#orHing spouses of Pag-&=&8 members

?ilipino employees of foreign government or international organi


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?ilipinos naturaliata ?orm (@>?) of the employees

&f private employer1 Certificate of 555 Coverage and Compliance (for the current

year)

&f government employer1 85&5 Certificate of @embership

For Sole Proprietorship

>T& Registration

@ayorLs Permit=usiness Permit

For Partnership/Corporation

5EC Registration

Articles of Partnership&ncorporation and by-la#s

For first-time member companies

T#o copies of the @embership Contribution Remittance ?orm (@CR?)

T#o photocopies of 5EC registration>T& and 555 registration

ndividual payers/voluntary members


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T#o copies of @embers >ata ?orm (@>?)

Payment Frder ?orm (PF?)

For self-paying !waived company"

Certificate of Employment and Compensation

Batest pay slip

Company &>

For self-employed

Batest &ncome Tax Return

T#o ! x ! &> pictures

5EC or >T& Registration

=usiness Permit or @ayorLs Permit

#perators or franchise holders

?ranchise Permit (under the memberLs name)

Batest &ncome Tax Return

;alid Contract of Employment

Passport or any valid &>


$nemployed Spouse

ritten consent from spouse

Affidavit of 4nemployment



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-"t te s"'n"n' of Repu/$"# A#t No0 @B@; mem/ers"p to te !und sa$$ /e mandator for

te fo$$o:"n'

@onthly Compensation

Percentage of

@onthly

Compensation Employee 5hare Employer 5hareP!1++ and belo# !, G,Fver P!1++ G, G,

Te ma8"mum mont$ #ompensat"on used "n #omput"n' te emp$oee #ontr"/ut"ons "s

#urrent$ set at P?;5550 T"s means tat te ma8"mum mem/er #ontr"/ut"on and emp$oer

#ounterpart per mont are /ot #urrent$ P3550

Te !und offers "ts mem/ers te fo$$o:"n' /enef"ts

!. 5avings

G. 5hort Term Boans

3. Access to 'ousing Programs

A mem/er ma a$so :"tdra: "s sa%"n's under an of te fo$$o:"n' %a$"d 'rounds

a. Retirement

Early retirement at age %

Fptional retirement at age "+

@andatory retirement at age "

b. Permanent departure from the country

c. Permanent or total physical disability

d. &nsanity

e. Termination from service by reason of health

f. >eath of the member

g. Fptional #ithdra#al at !+ or ! continuous years of membership


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A member #ho registered under RA77%G may be allo#ed to #ithdra# his TA; after

!+ or ! years of continuous membership.

A member #ho registered under RA"7 may be allo#ed to #ithdra# his TA; after

! years of continuous membership.

h. Fther causes as may be provided by the =oard of Trustees

Pa'&I+I. !unds ,ort&term $oan pro'rams are meant to pro%"de ass"stan#e to "ts

mem/ers; pro%"ded te are a#t"%e and a%e made at $east 21 mont$ #ontr"/ut"ons0

Tere are t:o sort&term $oan pro'rams tat a mem/er ma a%a"$ of :en te need ar"ses0

Te Mu$t"&Purpose Loan Pro'ram :as des"'ned to e$p f"nan#e mem/ers "mmed"ate

med"#a$; edu#at"ona$ or $"%e$"ood needsJ m"nor ome "mpro%ement; pur#ase of app$"an#e

and furn"ture; and oter re$ated needs0

Mean:"$e; te Ca$am"t Loan Pro'ram "s e8tended to mem/ers :o a%e /een affe#ted

/ a re#ent #a$am"t; as pro%en / a de#$arat"on of #a$am"t "n te"r area of res"den#e0

An e$"'"/$e mem/er ma a%a"$ of a ous"n' $oan under e"ter te End&User !"nan#"n'

Pro'ram or te Ma'aan' Pa/aa; D"senten' +ua Pro'ram0 Under te End&User

!"nan#"n' Pro'ram; a mem/er ma a%a"$ of a $oan to f"nan#e an of te fo$$o:"n' (C"r#u$ar

21)

a. Purchase of a fully developed lot not exceeding one !1+++ s0uare meters1 #hich should be

#ithin a residential areaD

b. Purchase of a residential house and lot1 to#nhouse or condominium unit1 inclusive of a

parHing slot. The unit may be

Fld or brand ne#D

A property mortgaged #ith the ?undD or

An ac0uired asset1 #hich is disposed of through sealed public bidding1 negotiated


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sale1 or the Rent-to-F#n Program.

c. Construction or completion of a residential unit on a lot o#ned by the memberD

d. 'ome improvement1 i.e. any alteration in an existing residential unit intended by a

homeo#ner to be a permanent integral part of the

property1 #hich #ill enhance its durability and material valueD

e. Refinancing of an existing mortgage #ith an institution acceptable to the ?und1 provided

that

The loan is not in default #ithin the !G months prior to the date of applicationD

The said loan has a repayment history of at t#o years #ith the original mortgagee

f. Combination of loan purposes1 #hich shall be limited to the follo#ing

Purchase of a fully developed lot not exceeding !1+++s0uare meters and construction

of a residential unit thereonD

Purchase of a residential unit1 #hether old or ne#1 #ith home improvementD

Refinancing of an existing mortgage #ith home improvementD

Refinancing of an existing mortgage1 specifically a lot loan1 #ith construction of a

residential unit thereon.

Under te Ma'aan' Pa/aa; D"senten' +ua Pro'ram; a Fua$"f"ed mem/er ma

pur#ase an a#Fu"red asset of te !und e"ter "n #as or trou' a ous"n' $oan at %er

reasona/$e pr"#es0 A /uer :o pur#ases an a#Fu"red asset "n #as "s ent"t$ed to a 25>

d"s#ount on te properts sa$es pr"#e; :"$e a /uer :o pur#ases trou' a ous"n' $oan

"s ent"t$ed to a 3?> d"s#ount on te properts sa$es pr"#e0

To Fua$"f for a Pa'&I+I. ous"n' $oan; a mem/er must sat"sf te fo$$o:"n'

reFu"rements

a. @ust be a member under the Pag-&=&8 for at least G% months1 as evidenced by the

remittance of at least G% monthly contributions at the time of loan application.

b. ot more than " years old at the date of loan application and must be insurableD

provided further that he is not more than 7+ years old at loan maturityD


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c. 'as the legal capacity to ac0uire and encumber real propertyD

d. 'as passed satisfactory bacHgroundcredit and employmentbusiness checHs conducted

by the developer and the Pag-&=&8 ?undD

e. 'as no outstanding Pag-&=&8 housing loan1 either as a principal borro#er or co-

borro#erD

f. 'as not availed of a Pag-&=&8 housing loan that #as foreclosed1 cancelled1 bought

bacH due to default1 or sub/ected to dacion en pago1 #hich shall include cases #here the

borro#er is no longer interested to pursue the loan and surrenders the propertyD

g. @ay have an outstanding Pag-&=&8 multi-purpose loan but #hich is updated in

payments at the time of loan application. A member #hose multi-purpose loan is in arrears shall

be re0uired to pay his arrears over the counter to update his account.

PHILHEALTH

The ational 'ealth &nsurance Program #as established to provide health insurance

coverage and ensure affordable1 acceptable1 available and accessible health care services for all

citi


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a) To administer the ational 'ealth &nsurance ProgramD

b) To formulate and promulgate policies for the sound administration of the ProgramD

c) To supervise the provision of health benefits and to set standards1 rules and regulations

necessary to ensure 0uality of care1 appropriate utili


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o) To submit to the President of the Philippines and to both 'ouses of Congress its AnnualReport #hich shall contain the status of the ational 'ealth &nsurance ?und1 its totaldisbursements1 reserves1 average costing to beneficiaries1 any re0uest for additionalappropriation1 and other data pertinent to the implementation of the Program and publish asynopsis of such report in t#o (G) ne#spapers of general circulationD

p) To Heep records of the operations of the Corporation and investments of the ational 'ealth&nsurance ?undD

0) To establish and maintain an electronic database of all its members and ensure its security tofacilitate efficient and effective servicesD

r) To invest in the acceleration of the CorporationLs information technology systemsD

s) To conduct information campaign on the principles of the '&P to the public and to accreditedhealth care providers. This campaign must include the current benefit pacHages provided by the

Corporation1 the mechanisms to avail of the current benefit pacHages1 the list of accredited anddisaccredited health care providers1 and the list of officesbranches #here members can pay orchecH the status of paid health premiumsD

t) To conduct post audit on the 0uality of services rendered by health care providersD

u) To establish an office1 or #here it is not feasible1 designate a focal person in every PhilippineConsular Fffice in all countries #here there are ?ilipino citi


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aa) To perform such other acts as it may deem appropriate for the attainment of the ob/ectives ofthe Corporation and for the proper enforcement of the provisions of this Act.

3) !ORMAL ECONOMY MEM+ER,

Government Employee

An employee of the government1 #ho renders services in any of the governmentbranches1 military or police force1 political subdivisions1 agencies or instrumentalities1 including

government-o#ned and-controlled corporations1 financial institutions #ith original charter1

Constitutional Commissions1 and is occupying either an elective or appointive position1

regardless of status of appointment.

Private Employee

i. Corporations1 partnerships1 or single proprietorships1 8Fs1 cooperatives1 non-profit

organi


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5ubmit to the 'R >epartment for them to for#ard the above documents to Phil'ealth

together #ith ERG ?orm (Report of Employee-@embers).

Phil'ealth #ill send the Phil'ealth &dentification Card or P&C and a copy of the @ember

>ata Record to the member1 through the employer

!or Ne:$ H"red Emp$oees -"t PIN

Report your P& to your employer for them to indicate the same in their ERG

Prem"um ReFu"rements

Premium contributions are shared by the employee and the employer1 the amount of

#hich is determined using the table of contributions. After deducting half of the premiumre0uirement from your monthly salary1 total premiums are remitted by your employer toPhil'ealth.

2) MEM+ER, IN THE IN!ORMAL ECONOMY

!igrant (orkers

- documented or undocumented ?ilipinos #ho are engaged in a remunerated activity in another

country of #hich they are not citi


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*iti+ens of other countries working andor residing in the Philippines

- foreign citiepartment of 5ocial elfare and

>evelopment (>5>)1 based on specific criteria. All indigents identified by the >5> under

the ational 'ousehold Targeting 5ystem ('T5) for Poverty Reduction and other such

acceptable methods1 shall automatically be enrolled and covered under the Program. The female

spouse of the families identified by >5> may be designated as the primary member of the

Program.

1) LI!ETIME MEM+ER,

&ndividuals aged "+ years and above and have paid at least !G+ monthly contributions #ithPhil'ealth and the former @edicare Programs of 555 and 85&5D

4niformed personnel aged " years and above and have paid at least !G+ monthly contributions#ith Phil'ealth and the former @edicare Programs of 555 and 85&5D

555 underground miner-retirees aged years above and have paid at least !G+m monthlycontributions #ith Phil'ealth and the former @edicare Programs of 555 and 85&5D

555 and 85&5 pensioners prior to @arch %1 !?) OTHER INCLUDED IN THE CATER.ORY

- @embers of the informal economy from the lo#er income segment #ho do not 0ualify for fullsubsidy under the means test rule of the >5>1 #hose premium contribution shall be subsidi5>1 orphanages1 churches and other institutions) andabused minors1 out-of-school youths1 street children1 persons #ith disability (P>)1 seniorciti5>1 or any of its accredited institutionsrun by 8Fs or any non-profit private organi5>D

- =arangay health #orHers1 nutrition scholars1 barangay tanods1 and other barangay #orHers andvolunteers1 #hose premium contributions shall be fully borne by the B84s concernedD and


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UALI!IED A, DEPENDENT,

The follo#ing also en/oy Phil'ealth coverage #ithout additional premiums

Begitimate spouse #ho is not a memberD

Child or children - legitimate1 legitimated1 acHno#ledged and illegitimate (as appearingin birth certificate) adopted or stepchild or stepchildren belo# G! years of age1 unmarried andunemployed.

Children #ho are t#enty-one (G!) years old or above but suffering from congenital

disability1 either physical or mental1 or any disability ac0uired that renders them totally dependenton the member for support1 as determined by the CorporationD

?oster child as defined in Republic Act !+!" other#ise Hno#n as the ?oster Care Act of

G+!GD

Parents #ho are sixty ("+) years old or above1 not other#ise an enrolled member1 #hose

monthly income is belo# an amount to be determined by Phil'ealth in accordance #ith the guidingprinciples set forth in the '& Act of G+!3D and1

Parents #ith permanent disability regardless of age as determined by Phil'ealth1 that

renders them totally dependent on the member for subsistence.

Kualified dependents shall be entitled to a separate coverage of up to % days per calendar year.

'o#ever1 the % days allo#ance shall be shared among them.

EMPLOYER RE.I,TRATION

All government and private sector employers are re0uired to register #ith Phil'ealth to

enable them to provide social health insurance coverage to their employees.

Private sector employers (including those of household helps) #ho have registered #iththe 555 prior to Iuly !1 ! are automatically registered but are re0uired to update their

records #ith Phil'ealth.

Procedures and re.uirements

.o%ernment ,e#tor

5ubmit the follo#ing at any Phil'ealth Fffice


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Employer >ata Record (ER!) ?orm!in duplicate"

Phil'ealth @embership Registration ?orm (P@R?)

for each employee !in duplicate"

Pr"%ate ,e#tor!. 5ubmit the follo#ing at any Phil'ealth Fffice

Employer >ata Record or ER! ?orm !in duplicate"

=usiness permitlicense to operate

G. After processing1 the employer #ill be issued the follo#ing

Phil'ealth Employer umber (PE) and the Certificate of Registration

Phil'ealth &dentification umber (P&) and @ember >ata Record (@>R) of registered

employees

3. Employers are re0uired to display the Certificate of Registration in conspicuous area of

their offices.

+ENE!IT,

This is a summary of the philhealth benefits and coverage given by Philhealth to itsmembers and beneficiaries

The said office en/oins all ?ilipinos to be a member. As such1 the readers are encourage tolearn more of the services offered by the company and the contribution to maintain it.

utpatient coverage/

>ay surgeries1 dialysis and cancer treatment

procedures such as chemotheraphy and radiotheraphy in accredited hospitals and free-standing

clinics.

Special benefit pac.ages

Enhanced Futpatient =enefit PacHage

Coverage for up to the fourth normal deliveryU

e#born Care PacHage

T= treatment through >FT5
http://www.philhealth.gov.ph/downloads/employer/er1.pdfhttp://www.philhealth.gov.ph/downloads/membership/pmrf_revised.pdfhttp://www.philhealth.gov.ph/downloads/employer/er1.pdfhttp://www.philhealth.gov.ph/downloads/membership/pmrf_revised.pdf


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5AR5 and Avian &nfluen ofthe first four births done either in hospital or non-hospital settings.

Enhanced Futpatient =enefit PacHage

En/oy a comprehensive pacHage of benefits designed to ensure the health of our ne# heroes andtheir families.

A. Consultation

=. >iagnostic services

Complete blood count (C=C)

Routine urinalysis

?ecalysis

?asting blood sugar

=lood typing

'emoglobin'ematocrit

Electrocardiogram (EC8)

Anti-streptolysin F (A5F-Titer)

'epatitis = 5creening Test

Treponema pallidum hemaglutination assay (TP'A)

Potassium hydroxide (SF')

Erythrocyte sedimentation rate (E5R)

Pregnancy test

V-ray (5Hull1 Chest1 Bo#er and 4pper Extremities)

5putum @icroscopy

Pap 5mear

C. ;isual acuity examination

>. Psychological evaluation and debriefingE. Promotivepreventive health services

;isual acetic acid screening for cervical cancer

Periodic digital rectal examination

Periodic clinical breast examination (C=E)

Counseling for cessation on smoHing


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Bifestyle modification (regular blood pressure measurement and nutritional or dietary

counseling)

Counseling for reproductive health particularly breastfeeding

utritional or dietary counseling

?. Auditory evaluation8. Treatment of the follo#ing diseases based on Phil'ealth-adopted clinical practice guidelines

4rinary tract infection (4T&)

4pper respiratory tract infection (4RT&)

Acute gastroenteritis (A8E)

1etails of coverage

Amount ofcoverage

Php %1+++

5ervicesincluded

>iagnostic #orH-up1 consultation services and anti-T= drugs re0uired in anoutpatient set-up.

Providers >uly accredited T=->FT5 Centers!available in the Philippines only"

Eligibility e# cases only1 i.e.1 patient has never had treatment for T= or #ho has taHenanti-T= drugs for less than one month.Enrolment #ith T=->FT5 center falls #ithin the validity period as stated in the@ember >ata Record.

Exclusions ?ailure cases - a patient #ho1 on previous treatment1 is sputum smear positive atfive months or later during the course of treatment.

Relapse case - a patient previously treated for T= #ho has been declared curedor treatment completed1 and is diagnosed #ith bacteriologically positive !smearor culture"T=.Return after default (RA>) cases - a patient #ho returns to treatment #ithpositive bacteriology (smear of culture) follo#ing interruption of treatment

5AR5 and Avian &nfluen


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Providers Patients must be admitted only in accredited >F'-designated 5AR5or A&&P hospitals.Confinements abroad shall be paid compensated provided acertification from the attending physician is submitted.

Eligibility @ust be certified by the >F' as 5AR5 or avian influen


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Exclusions

The follo#ing are not being compensated yet except #hen1 after actuarial studies1 Phil'ealth

recommends their inclusion sub/ect to approval of its =oard of >irectors

?ifth and subse0uent normal obstetrical deliveries

on-prescription drugs and devices

Alcohol abuse or dependency treatment

Cosmetic surgery

Fptometric services

Fther cost-ineffective procedures as defined by Phil'ealth

Availment conditions and procedures

%vailment conditions

The follo#ing must first be met to avail of your Phil'ealth benefits

Availment must be #ithin the validity period as stated in your @ember data record or

@>R or in the payment receipt.

The % days allo#ance for room and board of the member and the separate % days

allo#ance shared among the dependents have not been consumed yet.

7enefit availment procedures

For outright/automatic deduction of benefits

5ubmit to the billing section the follo#ing prior to discharge from the hospitalo >uly accomplished Phil'ealth Claim ?orm ! (original)

o Clear copy of @>R.

&f @>R is not available1 submit official receipt of applicable premium

payment

&f 0ualified dependent is not listed in the @>R - submit applicable proof

of dependency

Agree #ith your attending physicians on ho# much is left to be paid for their services

over the professional fee (P?) benefit.

4pon submission of all applicable documents1 the billing section #ill compute anddeduct your benefits from your total hospital bill.

For direct filing/reimbursement

5ubmit the follo#ing to Phil'ealth or through the hospital in addition to the documentsmentioned earlier #ithin "+ calendar days after discharge

Phil'ealth Claim ?orm G (to be filled up by the hospital and attending physicians)

Ffficial receipts or hospital and doctorQs #aiver


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Fperative record for surgical procedures performed

For confinements abroad

5ubmit the follo#ing #ithin !$+ days after discharge. Fverseas confinements shall be paid basedon Bevel 3 hospital benefit rates.

Phil'ealth Claim ?orm !

@>R or supporting documents

Proof of applicable premium payments

Friginal official receipt or detailed statement of account (#ritten in English)

@edical certificate (#ritten in English) indicating the final diagnosis1 confinement period

and services rendered.

Post availment reminders

After the automatic deduction or reimbursement of your benefits1 Phil'ealth #ill send you !tothe address you have indicated in your claim form"a benefit payment notice or =P. The =P isa report of actual payments made by Phil'ealth relative to your confinementavailment.5hould there be discrepancies or if you have other concerns pertaining to your benefitavailments1 you may contact Phil'ealth or your health care providers and bring the =P asreference document.

Kualified >ependents

The follo#ing also en/oy Phil'ealth coverage #ithout additional premiums for each 0ualifieddependent

Begal spouse !non-member or membership is inactive" Children - legitimate1 legitimated1 acHno#ledged and illegitimate (as appearing in birth

certificate) adopted or step belo# G! years of age1 unmarried and unemployed. Also covered arechildren G! years old or above but suffering from congenital disability1 either physical or mental1or any disability ac0uired that renders them totally dependent on the member for support.

Parents !non-members or membership is inactive"#ho are "+ years old1 including

stepparents !biological parents already deceased"and adoptive parents !with adoption papers".

All of your 0ualified dependents shall be entitled to a separate coverage for up to % days percalendar year. 'o#ever1 their % days allo#ance #ill be shared among them.&mportant

our dependents need to be declared andor updated #ith Phil'ealth to include them in your@ember >ata Record or @>R1 your official membership profile #ith Phil'ealth. our updated@>R #ill maHe your benefit availments easier and convenient.


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+UREAU O! INTERNAL RE*ENUE

The +ureau of Interna$ is an attached agency of >epartment of ?inance. =&Rcollects more than one-half of the total revenues of the government.

Te fo$$o:"n' are pro%"ded "n te R0A 4121

Ind"%"dua$s en'a'ed "n /us"ness or pra#t"#e of profess"on and ur"d"#a$ ent"t"es; un$ess

oter:"se e8empted; sa$$!. Pay Annual Registration ?ee1 if applicableDG. 5ecure CFRD3. Proceed to 5econdary RegistrationD%. 8et 9AsH for Receipt: notice1 if applicableD and. Attend the taxpayerLs initial briefing to be conducted by the =&R district office

for ne# registrants in order to apprise them of their rights and dutiesresponsibilities. &nlieu of the briefing1 the =&R district office may distribute information materials onregistration to its ne# applicants in C> format to be developed by the Taxpayer

Assistance 5ervice (TA5).Procedures and Policies on secondary registration shall be prescribed in a separate

Regulation.

PRE,CRI+ED PERIOD, TO COMPLETE PRIMARY RE.I,TRATION*Every person sub/ect to any internal revenue tax to be filedpaid periodically shallcomplete its registration #ith the =&R as follo#s

!. Fn or before the commencement of businessG. =efore payment of any tax due3. =efore or upon filing of any applicable tax return1 statement or

declaration as re0uired by the Code1%. ithin ten (!+) days from date of employmentC"t Ha$$

+us"ness Perm"ts and L"#ens"n' or Maors Perm"t

The business permit and licensing is one of the ma/or tax collection functions ofthe Bocal 8overnment 4nit. The collection on business permits and licenses1 being theprimary source of the @unicipalityQs income lay the benchmarH from #hich the plans andprograms is established. The tax computation is based on the gross annual income of abusiness entity and some other fees. A ne#ly established business tax due computation isbased on their capital outlay. They can choose from annual1 semi-annual and 0uarterlypayments of tax dues. This function is being given to the local government code as beingprovided to the provisions of R.A 7!"+ or Hno#n as Bocal 8overnment Code.

+aran'a Ha$$

The barangay is part of the procedure in getting business permit and licensing.Fnce a person seeHing to build or start business1 the one of the first thing to do is to havea business permit #here you can get it in the @unicipal hallCity 'all. The barangay /ust
http://en.wikipedia.org/wiki/Department_of_Finance_(Philippines)http://en.wikipedia.org/wiki/Department_of_Finance_(Philippines)


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on-stocH corporations (?oundations1 associations1 non-government organi

legal environment summarized

Documents