SSS, PhilHealth and Pag-IBIG: An Employer Contributions Guide
Hiring staff in the Philippines means taking on the country’s payroll rules. SSS PhilHealth Pag-IBIG employer contributions are the three mandatory monthly deductions that every employer must handle. This guide explains what each scheme covers, who pays, and how the compliance work can be lifted off you entirely.
The three mandatory schemes at a glance
Filipino employees are covered by three government social insurance programmes. Each one is funded by both the employer and the employee. The employer deducts the employee share from pay, adds the employer share, and remits the combined amount every month.
| Scheme | What it covers | Who contributes |
|---|---|---|
| SSS | Retirement, disability, sickness, maternity and death benefits | Employer and employee |
| PhilHealth | National health insurance and hospital cover | Employer and employee |
| Pag-IBIG (HDMF) | Housing loans and a member savings fund | Employer and employee |
These are legal obligations, not optional perks. Missing them exposes your business to penalties and back payments.
SSS: retirement, disability and income protection
The Social Security System is the core social insurance fund for private sector workers. It pays benefits when a member retires, becomes disabled, falls sick, gives birth, or dies. Members build entitlements through their monthly contributions over their working life.
Both employer and employee contribute to SSS each month. The employer withholds the employee portion, adds its own larger share, and remits the total to the agency. The SSS sets the contribution rates and the salary brackets that determine each amount. These are reviewed and updated periodically, so employers must always work from the current official SSS contribution table.
PhilHealth: national health insurance
PhilHealth is the national health insurance programme. It helps members cover hospital stays, treatments and other medical costs. Enrolment is mandatory for employed workers, and coverage generally extends to their dependants.
As with SSS, PhilHealth contributions are shared between employer and employee. The premium is based on the employee’s salary, and PhilHealth publishes the applicable rate and any income ceiling. Those figures change from time to time under agency circulars. Always confirm the current PhilHealth premium schedule before running payroll rather than relying on last year’s numbers.
Pag-IBIG (HDMF): housing and savings
Pag-IBIG, formally the Home Development Mutual Fund, is a combined savings and housing fund. Members can access affordable home loans and build a savings balance that earns dividends and can be withdrawn on maturity or retirement.
Employers and employees both contribute to Pag-IBIG monthly. The fund sets the contribution rates and the salary threshold at which they apply, and it updates these periodically. Use the current official Pag-IBIG table so both shares are calculated correctly.
The employer’s monthly duties
Handling these three schemes is an ongoing operational task, not a one-off registration. For each pay period the employer must:
- Register the business and every new hire with SSS, PhilHealth and Pag-IBIG.
- Calculate the correct employer and employee share for each worker.
- Deduct the employee portion from net pay accurately.
- Remit the combined contributions to each agency by its deadline.
- File the supporting reports and keep records of every payment.
Do not forget 13th month pay. It is a separate legal requirement, distinct from these contributions, and it is covered in our 13th month pay explainer.
Why getting it wrong is costly
The three agencies run their own portals, forms and remittance deadlines. Rates and brackets shift, so a table that was right last year can quietly become wrong. Errors carry real consequences.
Late or missing remittances generally attract penalties, interest and surcharges. Under-deducting means you owe the shortfall, sometimes with your own funds. Failing to register staff can trigger assessments and disputes. For a foreign employer with no local entity, simply gaining access to these systems is a hurdle before compliance even begins. The administrative load is steady and unforgiving.
How ITVA Talent removes the burden
You can hire in the Philippines without ever touching a government portal. When ITVA Talent is the legal employer, we register your staff, deduct the employee shares, add the employer shares, and remit every contribution on time. We file the reports and keep the records too.
Two ITVA models cover this. Our Employer of Record service employs your existing staff on your behalf for a monthly fee per employee, so all statutory work sits with us. Our All Inclusive Solution combines recruitment and employment under one fixed monthly fee, letting you build a new team while we manage the compliance from day one.
Both approaches mean SSS, PhilHealth and Pag-IBIG are handled correctly, every month, by people who work with these systems daily. You keep control of the work; we carry the paperwork. If you are also weighing the total cost of a hire, our guide to the cost to hire an offshore developer puts these contributions in context.
Key points to remember
- SSS, PhilHealth and Pag-IBIG are three separate mandatory schemes.
- Both employer and employee contribute to each one every month.
- The employer must register, deduct, remit and file.
- Rates and brackets are set by each agency and change periodically, so always use current official tables.
- 13th month pay is a further, separate legal requirement.
Getting these contributions right protects your business and your people, and the simplest path is to let a local employer handle them through our Employer of Record service.