SSS, PhilHealth and Pag-IBIG Contributions: Employer Cost Guide

Under Republic Act No. 11199, the SSS contribution rate increased to 15% of the Monthly Salary Credit (MSC) effective January 2025. Employers pay 10% and employees pay 5%. The minimum MSC is ₱5,000 and the maximum is ₱35,000.

• Low salaries use the minimum MSC under the business-employer contribution schedule.
• Higher salaries use the applicable salary bracket, up to the ₱35,000 MSC ceiling.
• Use the official contribution table to select the MSC; a salary between brackets is not simply multiplied by 10% or 5%.

Formula: Employer SSS = 10% × applicable MSC. Employee SSS = 5% × applicable MSC. Add employer-only EC separately.

At ₱50,000 monthly compensation, the MSC is capped at ₱35,000. The employer pays ₱3,500 and the employee pays ₱1,750, or ₱5,250 combined before EC. The schedule includes regular social security and mandatory provident fund contributions; do not add another provident fund charge to these totals.

SSS contributions support retirement, disability, maternity and other benefits. EC adds ₱10 monthly at MSCs below ₱15,000 and ₱30 at MSCs of ₱15,000 or more, entirely paid by the employer. At ₱50,000 salary, the employer’s total SSS-related outlay is therefore ₱3,530. Register employees and remit both shares with EC through the required payment-reference process. See the official SSS contribution tables.

PhilHealth’s published premium schedule sets a 5% premium on monthly basic salary, split equally between employer and employee (2.5% each). Use the agency’s definition of monthly basic salary rather than assuming all gross earnings are included.

• ₱10,000 floor: Salaries below this amount produce a ₱500 total monthly premium, or ₱250 each.
• ₱100,000 ceiling: Salaries above this amount produce a ₱5,000 total premium, or ₱2,500 each.

Formula: Total premium = 5% × min(max(monthly basic salary, ₱10,000), ₱100,000). Each party pays half.

A ₱20,000 monthly basic salary produces ₱1,000 total (₱500 each). At ₱150,000, the ceiling limits the premium to ₱5,000 (₱2,500 each). Remit both shares monthly by the agency’s applicable deadline and submit the required employee report. Payroll payday alone does not determine the remittance deadline. See PhilHealth’s premium advisory.

The Home Development Mutual Fund requires an employer contribution of 2% of monthly compensation. Employees generally contribute 2%, reduced to 1% for monthly compensation of ₱1,500 or less. Circular No. 460 increased the maximum fund salary from ₱5,000 to ₱10,000 effective February 2024.

Formula: Employer Pag-IBIG = 2% × min(monthly compensation, ₱10,000). Employee Pag-IBIG uses the same capped base at 2%, or 1% when compensation is ₱1,500 or less.

At tech salary levels, the standard contribution is ₱200 per side per month. At ₱1,500 compensation, the employer pays ₱30 and the employee pays ₱15. These low-income illustrations explain the contribution rule; they do not establish a lawful full-time minimum wage.

Deduct the employee share and remit it with the employer share according to the employer’s assigned schedule. Late remittances can attract penalties; confirm the applicable rate and assessment with Pag-IBIG. See UP Diliman’s implementation of Circular No. 460.

These examples assume a constant monthly basic salary equal to each agency’s compensation base, 12 full months of employment and entitlement to one full month of 13th-month pay. Employer contributions are additional costs. Employee shares are withheld from gross wages and passed through to agencies, so they are not added again.

Annual employer cost = 12 × (monthly basic salary + employer SSS + EC + employer PhilHealth + employer Pag-IBIG) + annual 13th-month pay.

Monthly employer contributions including EC total ₱2,730 at ₱20,000 salary, ₱4,980 at ₱50,000 and ₱6,230 at ₱150,000. For example, ₱20,000 salary costs 12 × (₱20,000 + ₱2,730) + ₱20,000 = ₱292,760 annually.

Statutory 13th-month pay for covered rank-and-file employees is at least 1/12 of total basic salary earned during the calendar year. One full month applies when basic salary stays constant for a full year; partial years require prorating. Genuine managerial employees generally fall outside statutory coverage, although contracts or company practice may provide the benefit. Read our 13th-month pay guide.

These totals exclude overtime, holiday premiums, private insurance, equipment, recruitment fees and other benefits. The illustrated contributions plus 13th-month pay add approximately 22.0%, 18.3% and 12.5% to annual basic wages respectively. A wider employment budget depends on the benefits offered and working arrangements.

Use this sequence to manage registration, calculations, remittances and reporting:

1. Register the employer and new hire with SSS, PhilHealth and Pag-IBIG; verify membership numbers.
2. Process payroll and identify the correct monthly compensation base for each agency.
3. Calculate employer and employee shares using the applicable contribution schedules.
4. Withhold employee shares and record employer contributions, including EC, separately.
5. Remit combined contributions through each agency’s payment system by its deadline.
6. File required reports, reconcile posted payments and retain receipts and payroll records.

Each payroll cut-off should allocate monthly employee deductions consistently. Do not deduct a full monthly contribution twice when running semi-monthly payroll. Set aside the combined shares and reconcile them against agency records after payment.

Maintain an agency-specific deadline calendar. SSS business-employer contributions are generally due by the last day of the month following the applicable month; check the current schedule and any extensions. PhilHealth and Pag-IBIG have their own assigned schedules. Use the current electronic reporting and payment requirements, including SSS payment reference numbers, PhilHealth EPRS and applicable Pag-IBIG remittance records. Retain payment receipts and submission confirmations.

• Using outdated rates or ceilings: An old ₱30,000 SSS MSC cap or ₱5,000 Pag-IBIG base understates contributions. Keep effective dates with every payroll table.
• Applying SSS percentages directly to salary: Select the correct MSC bracket first and include employer-only EC.
• Forgetting 13th-month pay: Budget the benefit separately and calculate it from basic salary earned, not net take-home pay.
• Incorrect employee classification: Calling an employee a contractor does not remove employer obligations. Assess the actual working relationship; genuine independent contractors may have their own contribution obligations.
• Late or partial remittance: Under-withholding, underpaying or missing deadlines can create arrears and penalties. Check both shares against the agency schedule.
• Poor record-keeping: Missing receipts, employee reports or reconciliations make audits and benefit claims harder.

• Automate payroll: Use reliable software or a payroll provider that supports agency tables, salary brackets, EC and remittance reporting.
• Stay updated: Monitor agency circulars and have a local adviser check changes before their effective date.
• Reserve for 13th-month pay: Accrue 1/12 (about 8.33%) of monthly basic salary earned for covered employees and plan payment by December 24.
• Centralize communications: Assign one owner for contribution updates, deadlines, holiday adjustments and employee queries.
• Seek professional guidance: A local payroll specialist, adviser or Employer-of-Record provider can help validate employment arrangements and manage filings.

Correct agency bases, timely remittances and a separate 13th-month reserve make hiring budgets more predictable. For broader deductions and reporting, see our Philippine payroll guide for employers.

• SSS contribution schedules
• SSS employer obligations and remittances
• PhilHealth premium schedule
• Pag-IBIG Circular No. 460 implementation (UP Diliman)
• DOLE guidance on 13th-month pay