Publishing the Full Text of GSIS Branch Memorandum Circular No. 02-2002

August 22, 2002 REVENUE MEMORANDUM CIRCULAR NO. 35-02 SUBJECT : Publishing the Full Text of GSIS Branch Memorandum Circular No. 02-2002 Dated July 1, 2002 Entitled "Abolition of Average Monthly Compensation (AMC) Limit and the Revised Schedule of Contributions Under RA 8291 Effective January 1, 2003" TO : All Internal Revenue Officers, Employees and Others Concerned For the information and guidance of all internal revenue officers, employees and others concerned, quoted hereunder is the full text of GSIS BRANCH MEMORANDUM CIRCULAR NO. 02-2002 dated July 1, 2002: "REPUBLIC OF THE PHILIPPINES PASEGURUHAN NG MGA NAGLILINGKOD SA PAMAHALAAN (GOVERNMENT SERVICE INSURANCE SYSTEM) LUNGSOD NG QUEZON SANGAY II (SIBILYAN) Diliman, Lungsod ng Quezon "July 1, 2002 BRANCH MEMORANDUM CIRCULAR NO. 02-2002 TO : All Heads of Department and Commissions, President of State Universities and Colleges, Regional Directors and Chiefs of Bureaus and Offices, Managing Heads of Government-Owned and Controlled Corporations, Accounting, Finance, Collecting and/or Disbursing Officers, thereof, Auditors, Provincial Governors, City and Municipal Mayors and Treasurers, All GSIS Members and the Other Concerned. SUBJECT : ABOLITION OF AVERAGE MONTHLY COMPENSATION (AMC) LIMIT AND THE REVISED SCHEDULE OF CONTRIBUTIONS UNDER RA 8291 EFFECTIVE JANUARY 1, 2003. The GSIS Board of Trustees approved under its Board Resolution No. 10 dated June 5, 2002, the abolition of the average monthly compensation (AMC) limit under R.A. 8291 effective January 1, 2003. This is in line with the authority vested by R.A. 8291 to the Board of Trustees to set the AMC limit and adjust the rates of premium contributions (specifically under Section 2 and Section 41, paragraph E of R.A. 8291). Consequently, Rule III, Section 3.1 of the Implementing Rules and Regulations of R.A. 8291 is amended as follows: SECTION 3.1 Amount of Contribution. It shall be mandatory for the covered employee and the employer to pay the monthly contributions specified in the following schedule: a) For all Employers and Employees, except for those Members of the Judiciary and the Constitutional Commissioners: Monthly Employee's Share Employer's Compensation (MC) Share Effective June 24, 1997 P10,000.00 and below 9% of MC 12% of MC December 31, 1998 Over P10,000.00 9% of MC + 2% of (MC-10,000.00) 12% of MC Starting January 1, 1999 P11,000.00 and below 9% of MC 12% of MC December 31, 1999 Over P11,000.00 9% of MC + 2% of (MC-11,000.00) 12% of MC Starting January 1, 2000 P12,000.00 and below 9% of MC 12% of MC December 31, 2000 Over P12,000.00 9% of MC + 2% of (MC-12,000.00) 12% of MC Starting January 1, 2001 P14,000.00 and below 9% of MC 12% of MC December 31, 2001 Over P14,000.00 9% of MC + 2% of (MC-14,000.00) 12% of MC Starting January 1, 2002 P16,000.00 and below 9% of MC 12% of MC December 31, 2002 Over P16,000.00 9% of MC + 2% of (MC-16,000.00) 12% of MC Starting January 1, 2003 Regardless of Amount 9% of MC 12% of MC b) For members of the Judiciary and the Constitutional Commissioners, effective June 24, 1997: Monthly Compensation (MC) Employee's Share Employer's Share Regardless of Amount 3% 3% Please be guided accordingly. (SGD.) DOMINADOR P. EVANGELISTA Branch Manager" This Circular will take effect on January 1, 2003. (SGD.) ESTELITA C. AGUIRRE Deputy Commissioner Resource Management Group