Introduction
In the Philippines, employers are obligated to contribute to three primary social security programmes: SSS (Social Security System), PhilHealth (Philippine Health Insurance), and Pag-IBIG (Home Development Mutual Fund). This guide covers the latest 2024-2025 rates and salary credit caps.
SSS (Social Security System)
SSS total contributions are 14% of monthly salary credit: 9.5% employer and 4.5% employee. The maximum monthly salary credit is PHP 30,000 for 2024, scheduled to increase to PHP 35,000. SSS provides sickness, maternity, disability, retirement, death, and funeral benefits.
PhilHealth and Pag-IBIG
PhilHealth premium is 5% of monthly salary, split equally (2.5% each), capped at PHP 100,000/month. Pag-IBIG requires 4% total (2% employer + 2% employee), capped at PHP 5,000 per month. Pag-IBIG provides housing loans and provident benefits.
Summary of Employer Costs
Total employer statutory costs in the Philippines are approximately 14% of gross salary: SSS 9.5% + PhilHealth 2.5% + Pag-IBIG 2% = 14%. This is moderate compared to other ASEAN nations. Employers should also account for the mandatory 13th-month pay (equivalent to one month's basic salary), service incentive leave (5 days for employees with less than 1 year), and holiday premium pay.
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