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How to Exclude Government Contributions for Retirees or Senior Citizens

In the Philippines, retirees generally have different requirements for paying into social security systems such as SSS (Social Security System), PhilHealth (Philippine Health Insurance Corporation), and Pag-IBIG (Home Development Mutual Fund). Here's a breakdown of each:

1. SSS (Social Security System):

    • Retirees who are already receiving their monthly pension are no longer required to contribute to SSS.
    • However, A member who is 60 years old and above, but not yet 65, with 120 contributions or more may continue paying as VM up to 65 years old to avail of the higher amount of benefit.

      Source: SSS Website

2. PhilHealth (Philippine Health Insurance Corporation):

    • Retirees who are receiving a monthly pension from SSS are automatically covered by PhilHealth under the Lifetime Member Program.
    • They are not required to pay further contributions, provided they have met the required 120 months (10 years) of premium contributions.

Source: Philhealth Website

3. Pag-IBIG (Home Development Mutual Fund):

    • An individual at least 18 years old but not more than 65 years old may register
      with the Fund under voluntary membership. However, said individual shall be
      required to comply with the set rules and regulations for Pag-IBIG members
      including the amount of contribution and schedule of payment. In addition, they
      shall be subject to the eligibility requirements in the event of availment of loans
      and other programs/benefits offered by the Fund.

Source: HDMF Circular No 460

These details provide a general overview of the contributions and benefits for retirees under SSS, PhilHealth, and Pag-IBIG Fund. For specific cases, it's recommended to contact these agencies directly or visit their official websites

 

In case the retiree opts to stop paying contributions, this can be set up in Sprout Payroll:

For Synced accounts.

1. Go to Sprout HR Employee Profile, then Current Payroll information.

2. Under Government Contribution, set the SSS. HDMF and Philhealth to 0

3. Then save the changes made.

 

For Non-Synced Accounts or Payroll only accounts 

1. In Sprout Payroll, Go to Employees Tab.

2. Hit View Button beside on the same row of the Employee you wish to update the  Employee Information 

3. Change the Philhealth, SSS, and Pag ibig contribution to "Zero"

 

4. Then save the changes made.

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