Employment Insurance in Philippines

Statutory Contributions for Philippine Employees

• SSS – Minimum Monthly Salary Credit (MSC): ₱4,000 | Maximum MSC: ₱30,000 (2025)
  • Total contribution rate: 14% (Employee: 4.5% + Employer: 9.5%)
• PhilHealth: 5% of monthly basic salary (employee: 2.5%, employer: 2.5%) | Salary ceiling: ₱100,000/month
• Pag-IBIG: 1%–2% employee + 2% employer | Maximum employee contribution: ₱200/month

Important Notes on Statutory Contributions

• All employees, regardless of employment status or number of hours worked, are generally covered by SSS, PhilHealth, and Pag-IBIG.
• SSS Contributions based on Monthly Salary Credit (MSC) brackets (₱5,000–₱35,000) for employed members. The employer remits both the employer and employee shares to SSS.
  • PhilHealth: 5% of monthly basic salary (2025), equally shared. Minimum contribution: ₱500/month for salary ≤ ₱10,000.
  • Pag-IBIG: Mandatory for employees earning ≥ ₱1,000/month. Employee max contribution ₱200/month; voluntary additional contributions allowed.
  • Late payment penalty – SSS: 3% per month. PhilHealth: 3% per month. Pag-IBIG: 1/10th of 1% per day.

Employers must remit contributions on time and issue payslips showing deductions each pay period.

• • Foreign nationals working in the Philippines on valid AEPs are generally required to contribute to SSS and PhilHealth.
  • Kasambahays (household workers) are covered under RA 10361 (Domestic Workers Act) – employer pays both shares if kasambahay earns below ₱5,000/month.
  • Records of all contributions and remittances must be kept for at least 10 years for audit purposes.

Salary Used As The Basis For Statutory Contributions

The monthly salary used as the basis for SSS, PhilHealth, and Pag-IBIG contributions includes:

Salary components:

• Based on job position/title
• Fixed monthly allowances that are part of the compensation package(e.g. cost of living allowance, transportation if fixed and regular)

Contribution rules:

• SSS: Contribution based on the gross pay except reimbursements
• PhilHealth: Contribution based on actual monthly basic salary
• Pag-IBIG: Contribution based on actual monthly basic salary

Self-employed / Voluntary members:

• May choose their declared monthly income as the basis for SSS contributions
• May update contribution bracket every year

Statutory Contribution Rules & Deadlines

Remittance Deadlines for Employers:

• SSS:
  • Monthly:
    • Last day of the following month.
• PhilHealth:
  • Monthly:
    • Employers with PEN ending in 0-4: 11th to 15th day of the month following the applicable period.
    • Employers with PEN ending in 5-9: 16th to 20th day of the month following the applicable period.
• Pag-IBIG:
  • Monthly:
    • A-D 10th to the 14th day of the following month.

       

    • E-L 15th to the 19th day of the following month.

       

    • M-Q 20th to the 24th day of the following month.
    • R-Z, numeral 25th to the end of the following month.

** For Pag-ibig Loans – On or before the 15th day of each month.

Late / Non-Remittance of Statutory Contributions

• Delayed Payment

Employer fails to remit within the deadline: SSS 2%/month; PhilHealth 3%/month; Pag-IBIG 1/10th of 1%/day interest accrues from due date.

• Non-Remittance / Evasion
  • Employer deducts contributions from employee wages but does not remit to the fund
  • Underreporting of compensation to reduce contribution amounts
  • Failure to register employees within 30 days of employment
  • Exceptions: Force majeure situations may be considered upon application to the relevant agency

• Penalties & Enforcement
  • Full overdue amount + applicable interest/penalties
  • SSS: Criminal prosecution under RA 11199; employer officers may face imprisonment
  • PhilHealth/Pag-IBIG: Administrative sanctions + civil/criminal liability for responsible officers

Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Philippines employment laws and regulations, please visit the official governmental websites.

Updated on: June 2026