Statutory Contribution Rules in the Philippines
Every formal employer and employee in the Philippines is required by law to remit monthly mandatory contributions to three government agencies:
1. SSS (Social Security System)
Under Republic Act No. 11199 and SSS Circular No. 2024-006, the total contribution rate is 15.0% (10.0% Employer, 5.0% Employee). Compensation is mapped to the Monthly Salary Credit (MSC) in steps of ₱500:
- Minimum MSC: ₱5,000.00 (Minimum monthly contribution: ₱250 EE, ₱510 ER including ₱10 EC).
- Regular MSC Ceiling: ₱20,000.00. Portions exceeding ₱20,000 up to ₱35,000 are allocated to the Mandatory Provident Fund (WISP / MySSS Pension Booster).
- Maximum MSC: ₱35,000.00 (Maximum monthly contribution: ₱1,750 EE, ₱3,530 ER including ₱30 EC).
2. PhilHealth (Universal Health Care)
Under Republic Act No. 11223 and PhilHealth Circular No. 2024-0002, the premium rate is 5.0%, split equally (50-50) between employee (2.5%) and employer (2.5%):
- Income Floor: ₱10,000.00 (Minimum premium: ₱250.00 EE, ₱250.00 ER).
- Income Ceiling: ₱100,000.00 (Maximum premium: ₱2,500.00 EE, ₱2,500.00 ER).
3. Pag-IBIG Fund (HDMF)
Under Pag-IBIG Circular No. 460, the Maximum Fund Salary (MFS) is ₱10,000.00:
- Monthly income ₱1,500 or below: 1.0% EE, 2.0% ER.
- Monthly income above ₱1,500: 2.0% EE, 2.0% ER. Capped at ₱10,000 MFS, resulting in a maximum mandatory monthly contribution of ₱200.00 EE and ₱200.00 ER (₱400.00 total).