payroll

EVERY March, I fall into a familiar routine—one that feels almost comforting. Before the rest of the office starts buzzing, I’m already at my desk with a warm cup of coffee, staring at the payroll calendar like it’s an old friend I know a little too well.

Payroll has never been just a collection of numbers for me. It’s rent payments. Grocery budgets. Tuition fees. Quiet hopes. Private struggles. In many ways, it’s the heartbeat of people’s everyday lives.

And in 2026, with all the changes happening around us, that responsibility feels even heavier—but also more meaningful.
The calm after the tax storm

TRAIN Law continues to shape the tax landscape, and at this point, it feels like second nature. The updated tax tables still reflect the same progressive structure—relief for those earning less and precision demanded from those of us doing the computations. The taxexempt ceiling of ₱250,000 per year and the 35% highest bracket remain untouched.

I often tell new HR staff, “Before anything else, separate taxable from non-taxable earnings.”

It’s amazing how a small misclassification—night diff here, a holiday premium there—can snowball into bigger problems by yearend. You don’t just risk BIR penalties; you risk losing people’s trust.

But what’s taking centre stage this year is the Ease of Paying Taxes (EOPT) Act. And honestly, it feels like a breath of fresh air. No more annual registration fee. A cleaner invoicing system. The freedom to file anywhere without worrying about wrong venue penalties is a game changer. It means more coordination with accounting, yes — but fewer headaches. And in payroll, that’s a victory worth celebrating.

The big three: SSS, PhilHealth, and PagIBIG

The big three: SSS, PHilHeath, and PagIBIG

The 15% contribution rate stays the same for 2026. No surprises, no new rules—and in our line of work, that’s rare. The familiar MSC range of ₱5,000 to ₱35,000 is still our guide.

Employees often notice the MySSS Pension Booster, especially those whose Monthly Salary Credit (MSC) is above ₱20,000. This program is actually the same as the old WISP or WISP Plus—only the name has changed. Its main purpose remains the same: to help members build a bigger retirement fund on top of their regular SSS pension.

I’ve seen how people react when they understand it better—shoulders relax, and suddenly savings for the future doesn’t feel like a burden but a quiet reassurance.

Meanwhile, after years of incremental increases, PhilHealth is finally taking a breather. The premium stays at 5% of the monthly salary, shared equally between employer and employee, with the same ₱10,000 floor and ₱100,000 ceiling.

In a world where everything keeps getting more expensive, this kind of stability feels like a small gift.

PagIBIG remains steady too. Since Circular 460 raised the maximum fund salary to ₱10,000, workers and employers have been contributing ₱200 each — and that continues in 2026.

Sometimes employees would ask, “Ma’am, will PagIBIG increase again?”

And I’d tell them, “Not this year.”

You’d be surprised how much relief those four words can bring.

The ever-evolving wage story

Wage Order NCR26 has been our guide since July, and it continues to shape the 2026 salary structure. The ₱50 increase, setting the nonagriculture daily rate at ₱695—or ₱658 for agriculture, retail, service, and small manufacturing—remains in place.

Then February brought something new for kasambahays: Wage Order NCRDW06, raising their monthly minimum to ₱7,800. Domestic workers often get overlooked in compliance discussions, but their rights matter just as much.
On paper, these adjustments may look small. In real life, they’re dignity translated into pesos.

Holidays: February’s reminders, March’s quiet

February kept payroll teams like ours busy. Chinese New Year on February 17 demanded the usual “no work, no pay” calculation unless company policy said otherwise. A week later, on February 25, the EDSA anniversary was tagged as a special working day — meaning regular pay only.

These sound simple, but holiday pay rules always manage to confuse someone, somewhere. DOLE’s Labour Advisory No. 012026 helped, but vigilance still wins the day.

13th month reflections: what it all means

Even though the rush ended in December, its echoes always follow us into January and February. DOLE required all employers to submit their 13thmonth reports by January 15. No exemptions. No shortcuts.

Every time I compute (Total Basic Salary Earned ÷ 12), I remember how much families count on this benefit. It arrives right when people need it most—and every peso counts.

Payroll will never be glamorous. It won’t trend on social media or make frontpage news. But it’s quiet work that keeps everything else moving.

Behind every payslip is a person.
Behind every deduction, a safeguard.
Behind every rule, a responsibility.

And as I step forward into March 2026—with its computations, reconciliations, and countless checks—I hold onto the truth that grounds me:

Payroll is service. Payroll is trust. Payroll is care.

And that makes all the difference.

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Menchie Mendiola is a Senior Payroll Manager for the Business Process Solutions Practice Area at P&A Grant Thornton. One of the leading audit, tax, advisory, and outsourcing firms in the Philippines, P&A Grant Thornton is composed of 29 Partners and 1,500 staff members. We’d like to hear from you! Connect with us on LinkedIn and like us on Facebook: P&A Grant Thornton and email your comments to business.development@ph.gt.com. For more information, visit our website: www.grantthornton.com.ph.