@ Acapsoc MEMORANDUM DATE 16 SEPTEMBER 2021 To : ALLPH OFFICES AND PH OFFICE-BASED EMPLOYEES, FROM:THE MANAGEMENT SUBIECT CHANGE OF PAYROLL RELEASE SCHEDULE/FREQUENCY As part of the company’s business strategy of improving its financial ranagement and ‘operational efficiency, and in order to align PH payroll process with that of its foreign counterpart (Shenzhen head office and other offices overseas), and to help streamline the overall payroll process of the organization, a change Is being made to the frequency of releasing of payroll/salary forall employees of the company, from twice a ‘month to once a month. This change will take effect next month (October 2021), covering the payroll period of Oct. 1-31, 2021. To ilustrate: Payroll Period Frequency Releasing Sep. 01-15, 2024 “Twice a month Sep. 20, 2021 ‘Sep. 16-30, 2021 “Twice a month (Oct. 05,2021 (Oct. 1-34, 2021 ‘Once a month Nov. 05, 2024, Nov. 1-30, 2021, ‘Once a month Dec. 05, 2021 | Dec. 1-31, 2021 ‘Once a month Jan. 05, 2022 and so on, until further notice. Please refer to the attached FAQ for further information, ‘Thank you in advance for your patience, support and understanding és we make this important procedural change. For your guidance and information, The Management Ale coy Furished = Carport Head otce = PH Offices - PH OB Employees done hh peFREQUENTLY ASKED QUESTIONS (FAQ) Please read carefuly. 1, What is Acadsoc changing about the payroll process? ‘The company will change the frequency of salary releasing, from bi-weekly (vice a month) to once a month. 2. — What component of my salary is affected? ‘All earings including but not limited to monthly basic salary, bonuses and Incentives (Ir any), and allowances (if any), olay pay, and overtime pay, will be paid once a month. 3. Why is the company making this change? ‘This change is being made to align our payroll process with thet of our foreign counterpart (Shenzhen head office and other overseas operations), and to help streamline the overall payroll process of the organization. Furthermore, the ‘company’s business strategy of improving financial management and operational efficiency necessitates this shit. 4, Is this kind of change (i.e., frequency of payment) allowed? ‘Yes, Pertinent provisions of the law only prohibits the releasing of wages “with less frequency than once 2 month’, stating that: No empleyer shall make ‘payment with less frequency than once a month (Art. 103, Labor Code). We are ‘compliant withthe law as we will regularly release salary once a month. ‘Although It has been 2 common practice In the Philippines to release salaries every two (2) weeks or twice a month, this is not the case in al companies. In fact, many multinational companies operating in the Philippines (ie., BPO, TT, ‘onstruction firms) as well as several government agencies (Le., GOCCs), follow a once a month salary release schedule. 5. Who is affected by this change? This change will affect all employees: managerial, supervisory, rank and fle ‘employees; regular and probationary employees; tutors and admins, (Our independent service contractors (Le., home-based) are similry affected. 6. When will this change take effect? This change will take effect next month (October 2021), covering the payroll period of Oct. 1-31, 2021, ‘The company understands the impact this change may have on your budget, that is why we are notifying you ahead of time for you to make the necessary adjustment and planning. 7. Is this permanent? We envision that this change will benefit not only our employees but also the entire organization 5 a whole. This process will be reviewed periodically. Any ah odonz bh pe10. 1, 12. changes to the frequency of salary payment will be communicated to all stakeholders (.e., employees) ina timely manner. What do I need to do now? This change will momentarily disrupt your budget. Hence, it Is Important that You take the time to review the impact of this change and plan accordingly. That ‘way, you can adjust your finances and ensure you have enough money to cover bills and other expenses during this period of transition, We sincerely thank you in advance for your usual support, understanding and cooperation as we make this important procedural change. ‘When and how will I be paid then? For the September 2021 payroll, your salary will be pald as per 2ormal schedule (he, 5® and 20°. However, following the new frequency of salary release, your salary covering the period Oct. 1-31, 2021 will be pald on 05 Nov. 2021; and so on for the succeeding months. To illustrate: Payroll Period Frequency Releasing Sep. 01-15, 2021 | Twice a month Sep. 20, 2021 ‘Sep. 16-30, 2021 Twice a month (Oct. 05, 2021 ‘Oct. 1-31, 2021 | Once amonth | Nov. 05, 2021 Nov. 1-30, 2021 ‘Once a month Dec. 05, 2021 Dec. 1-31, 2021 ‘Once a month Jan. 05, 2022 ‘and so on, untl further notice. You will til receive your salary thru your BDO salary bank account. Will being paid once a month impact my take-home pay? No, not at all. You will get exactly the same pay as you would have on the bi- weekiy/twice @ month payrol; only that this time, you will get the sum total and paid to you once a month. Will my leave accruals/SIL and 13% month pay be affected? No. You wil stil earn the same amount of SIL accrual per month and 13% month pay for the calendar year as you would have if we had not made this change. How will my government contributions (SSS, PAG-IBIG, Philllealth) be affected? How about my loan with the company? ‘As government contributions are based on your monthly salary, this change will rot affect your personal contribution or employee share. This time however, Instead of deducting them from your salary twice a month, you wil be deducted the total monthly contribution once a month. Deduction for your aan with the company, if any, will flow the same schedule anion bo sove i odma dd pe