SECTION 2: EMPLOYMENT POLICIES

IV. Breakdown of Employee Deductions and Employer Share

A. Withholding Tax (BIR Compliance)
• Employees are required to pay withholding tax based on their salary bracket under RA 10963 (TRAIN Law).
• AVCI expects the government to:
   ◦ Ensure accurate tax computations based on employee salary.
   ◦ Process tax refunds for overpaid withholding tax.
   ◦ Issue BIR Form 2316 (Certificate of Tax Withheld) annually for employee tax filing.

Employee Responsibility: Employees must submit an updated BIR Form 1902 (for new hires) or Form 2305 (for updates) to ensure correct tax computations.

B. Social Security System (SSS) Contributions
• SSS contributions secure retirement, disability, sickness, and other social benefits for AVCI employees.
• Employee Share: 4.5% of their monthly salary (up to a maximum salary of ₱30,000).
• Employer Share (AVCI): 9.5% of the employee’s monthly salary.
• Total Contribution: 14% of the employee’s salary.

Government Expectation:
• AVCI expects the SSS to provide the following benefits:
   ◦ Sickness and maternity benefits.
   ◦ Retirement and disability pensions.
   ◦ Loan and salary assistance programs.

Employee Responsibility: Employees must update their SSS records and submit required documentation for benefit claims.

C. PhilHealth (PHIC) Contributions
• All AVCI employees are entitled to health insurance coverage under RA 11223 (Universal Health Care Act).
• Employee Share: 2.75% of their monthly salary (shared 50-50 with employer).
• Employer Share (AVCI): 2.75% of the employee’s salary.
• Total Contribution: 5.5% of the employee’s salary.

Government Expectation:
• AVCI expects PhilHealth to provide:
   ◦ Hospitalization discounts and reimbursements.
   ◦ Preventive healthcare services.
   ◦ Medical support for emergency treatments.

Employee Responsibility: Employees must ensure their PhilHealth Member Data Record (MDR) is updated for proper claims processing.

D. PAG-IBIG Fund (HDMF) Contributions
• All AVCI employees must contribute to the PAG-IBIG Fund for housing and financial assistance.
• Employee Share:
   ◦ 1% of monthly salary for salaries below ₱1,500.
   ◦ 2% of monthly salary for salaries ₱1,500 and above.
• Employer Share (AVCI): 2% of monthly salary.
• Total Contribution: 3-4% of the employee’s salary.

Government Expectation:
• AVCI expects PAG-IBIG to provide:
   ◦ Housing loans and financial assistance.
   ◦ Multi-purpose loans for emergencies.
   ◦ Provident savings with annual dividends.

Employee Responsibility: Employees must ensure their PAG-IBIG membership records are updated for loans and housing benefits.

V. Employment Regularization Policy

A. Probationary Period
• Newly hired employees will undergo a six (6)-month probationary period under Article 296 of the Labor Code.
• Employees will be evaluated on:
   ◦ Performance, attendance, and professionalism.
   ◦ Compliance with AVCI’s policies and veterinary standards.
   ◦ Teamwork and workplace behavior.

B. Regularization Criteria
• Employees will be automatically regularized after six (6) months if they:
   ◦ Meet performance expectations.
   ◦ Adhere to AVCI’s Code of Conduct.
   ◦ Exhibit reliability and professionalism.

Employee Rights Upon Regularization:
• Full entitlement to SSS, PhilHealth, PAG-IBIG, and tax deductions.
• Protection against wrongful termination.
• Eligibility for additional AVCI benefits (paid leaves, bonuses, promotions).

VI. Policy Review and Amendments

• This policy will be reviewed annually to ensure compliance with updated government regulations.
• Updates will be communicated to employees and included in the AVCI Employee Handbook.

VII. Compliance and Legal Obligations

Failure to comply with government-mandated contributions may result in:
• Legal penalties for AVCI under SSS, PhilHealth, and PAG-IBIG laws.
• Delayed processing of employee benefits.

Government Expectation:
• AVCI expects the Philippine government to ensure efficient processing of employee benefits and fair tax regulations.