Employers in the Philippines are required to register their employees with, deduct from their pay, and remit contributions to three government agencies: SSS, PhilHealth, and Pag-IBIG. Staying compliant protects your employees, helps you avoid penalties, and keeps payroll running smoothly.
Key Benefits
- SSS (Social Security System): Provides sickness, maternity, disability, retirement, and death benefits.
- PhilHealth: Provides health insurance coverage and medical benefits for employees and their dependents.
- Pag-IBIG (HDMF): Offers savings programs, affordable housing loans, and short-term loans.
Contribution Rates at a Glance (2026)
| Agency | Total Rate | Employer | Employee | Salary Basis |
|---|---|---|---|---|
SSS |
15% of MSC |
10% (plus EC) |
5% |
MSC ₱5,000–₱35,000 |
PhilHealth |
5% |
2.5% |
2.5% |
₱10,000–₱100,000 |
Pag-IBIG |
4% |
2% |
2% |
Capped at ₱10,000 (max ₱200 each) |
Rates and salary brackets are subject to change. Always confirm against the latest agency circulars.
Employer Responsibilities
- Register the business and every employee with each agency.
- Deduct the employee share from each payroll and add the employer share.
- Remit contributions and file reports by each agency’s deadline.
- Keep accurate, up-to-date employee records, including salary and employment status changes.
Conclusion
Proper management of government contributions protects employees and strengthens business compliance. XMC Asia helps businesses streamline payroll, maintain accurate records, and support long-term operational efficiency. Contact XMC Asia today to simplify your payroll and compliance.