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Contributions to regulatory healthcare, social security, pension or other programs are automatically calculated in compliance with local regulations.

Contribution Wages

Contribution Wage is the basis by which contributions are calculated.   The Contribution Wage can be configured under Contribution Types for each statutory contribution required for your country.

Indonesia

Philippines

Other Payments can also be included in the Contribution Wage, as specified in the Other Payment Type settings.

Contributions may also be deactivated on an individual profile level in Employment Info.

Contribution Calculation

Contributions are calculated according to the following methodology:

• Contribution Wage - wages on each payslip that should be considered for contribution calculations are calculated based on the settings above
• Monthly Contribution Wage - Contribution Wage for every payslip that exists within a calendar month ("Contribution Month") are summed.
  Example: If your company is on Semi-Monthy Payroll. 
  

  1st Cut-off Contribution Wage	2nd Cut-off Contribution Wage	Monthly Contribution Wage
  10,000.00	20,000.00	30,000.00

• Monthly Contribution Amount - total contributions due to date are calculated based on the Monthly Contribution Wage.
• Contributions Paid - contributions that have been already deducted from previous payslips within the Contribution Month. 
• Contributions Due - represents the contribution amount that is due on the current payslip.
  This is calculated as Monthly Contribution Amount - Contribution Paid

The above methodology ensures that your contributions are always calculated exactly to the date of the current payroll and considers any other payroll batches that may exist during the Contribution Month.  It particularly ensures accurate calculation in partial payroll month situations due to hire or termination within the month.

Note: we advise to only maintain one pending payroll batch open per calendar month, as if calculations are being run in more than one batch at a time, they will impact each other.

Contribution calculation formulas are based on statutory regulations required by the Country and cannot be customized by users. 

Numeral Example