Glossary of Terms

A reference guide for commonly used terms in the Payroll module.

Payroll Structure

Term	Description
Payroll Run	A single payroll processing cycle for a specific pay period
Payroll Type	Template defining the structure and items included in a payroll
Payroll Item	Individual line item on a payslip (earnings, deductions, benefits)
Roster	Group of employees assigned to a specific payroll type
Employee Setup	Annual payroll configuration for an individual employee
Payroll Entry	Individual employee record within a payroll run
Entry Item	Single line item amount within a payroll entry

Payroll Item Categories

Category	Description
Constants	Fixed reference values used in calculations (e.g., minimum wage, tax brackets)
Gross Pay	Base salary and allowances before deductions
Statutory Deductions	Government-mandated contributions (GSIS, PhilHealth, Pag-IBIG, BIR)
Other Deductions	Additional deductions beyond statutory (loans, advances, fees)
Other Benefits	Additional compensation beyond base pay
De Minimis Benefits	Tax-exempt benefits up to specified thresholds
Employer/Government Share	Employer contributions to government agencies
Loans	Employee loan deductions (GSIS, Pag-IBIG, salary loans)

Calculation Types

Type	Description
Fixed	A constant amount that does not change
Reference	Value pulled from another payroll item or employee data
Percentage	Calculated as a percentage of another item
Formula	Computed using a defined calculation formula

Limit Types

Type	Description
None	No limit applied to the amount
Fixed Amount	Maximum peso amount allowed
Percentage	Maximum percentage of another item

Limit Periods

Period	Description
Per Payroll	Limit applied per payroll run
Monthly	Limit applied per calendar month
Annually	Limit applied per calendar year

Statutory Deductions

GSIS (Government Service Insurance System)

Term	Description
GSIS RLIP (Employee)	Retirement and Life Insurance Premium - employee share
GSIS RLIP (Employer)	Retirement and Life Insurance Premium - employer share
GSIS ECIP	Employees Compensation Insurance Premium
GSIS Optional	Optional life insurance premium
GSIS Loan	Housing, consolidated, or policy loans from GSIS

PhilHealth (Philippine Health Insurance Corporation)

Term	Description
PhilHealth (Employee)	Health insurance premium - employee share
PhilHealth (Employer)	Health insurance premium - employer share

Pag-IBIG (HDMF - Home Development Mutual Fund)

Term	Description
HDMF (Employee)	Mandatory savings contribution - employee share
HDMF (Employer)	Mandatory savings contribution - employer share
HDMF Loan	Housing loan or multi-purpose loan deductions
HDMF MP2	Modified Pag-IBIG 2 voluntary savings

BIR (Bureau of Internal Revenue)

Term	Description
Withholding Tax	Income tax withheld from salary
Tax Bracket	Income range determining tax rate
Taxable Income	Income subject to withholding tax
Tax Exempt	Income not subject to withholding tax

Gross Pay Components

Term	Description
Basic Salary	Base monthly compensation
PERA	Personnel Economic Relief Allowance
ACA	Additional Compensation Allowance
Longevity Pay	Additional pay based on length of service
Hazard Pay	Additional pay for hazardous work conditions
Subsistence Allowance	Food allowance
Laundry Allowance	Uniform maintenance allowance
Clothing Allowance	Annual clothing/uniform allowance
Overtime Pay	Compensation for work beyond regular hours
Night Differential	Additional pay for night shift work
Holiday Pay	Compensation for work on holidays

De Minimis Benefits

Tax-exempt benefits subject to annual limits:

Benefit	Description
Rice Subsidy	Monthly rice allowance (up to limit)
Uniform/Clothing	Annual uniform allowance (up to limit)
Medical Cash	Medical benefits not exceeding limit
Laundry Allowance	Monthly laundry allowance (up to limit)
Achievement Awards	Recognition awards (up to limit)
Christmas Gifts	Annual Christmas bonus (up to limit)
Daily Meal Allowance	Per-day meal allowance during overtime

Note: De minimis benefits exceeding the tax-exempt threshold are treated as taxable income.

Payroll Status

Status	Description
Pending	Payroll run initiated but entries not yet generated
Draft	Entries generated and under review
Published	Finalized and locked for payment
Cancelled	Voided payroll run

Financial Terms

Term	Description
Gross Pay	Total earnings before deductions
Total Deductions	Sum of all deductions (statutory + other)
Net Pay	Take-home pay (Gross Pay - Total Deductions)
Government Share	Total employer contributions to government agencies
Total Loans	Sum of all loan deductions
Total Earnings	Sum of all additional earnings/benefits

Account Codes

Term	Description
Account Code	Unique identifier for financial classification
Expense Class	Category of expense (PS, MOOE, CO)
Old Account Code	Legacy account numbering
New Account Code	UACS-compliant account numbering

Expense Classes

Code	Name	Description
PS	Personal Services	Salaries, wages, and personnel benefits
MOOE	Maintenance and Other Operating Expenses	Operating costs
CO	Capital Outlay	Capital expenditures

Report Types

Report	Description
Payroll Register	List of all employees with pay details
Payslip	Individual employee pay statement
Payroll Recapitulation	Summary by payroll item
Payroll Ledger	Detailed accounting ledger
Remittance Report	Summary for agency remittances
Tax Report	BIR withholding tax summary

Signatory Types

Box	Typical Role
Box A	Prepared By
Box B	Certified Correct
Box C	Reviewed By
Box D	Approved By
Box E	Recommending Approval
Box F	Approved for Payment

Document References

Term	Description
Control Number	System-generated unique identifier for payroll run
Reference Number	External reference or voucher number
Pay Period	Date range covered by the payroll run

Common Abbreviations

Abbreviation	Full Term
SG	Salary Grade
GSIS	Government Service Insurance System
PHIC	Philippine Health Insurance Corporation (PhilHealth)
HDMF	Home Development Mutual Fund (Pag-IBIG)
BIR	Bureau of Internal Revenue
PERA	Personnel Economic Relief Allowance
ACA	Additional Compensation Allowance
RATA	Representation and Transportation Allowance
RLIP	Retirement and Life Insurance Premium
ECIP	Employees Compensation Insurance Premium
UACS	Unified Accounts Code Structure
YTD	Year-to-Date