The Three Agencies Every Philippine Employer Must Register With
Foreign-owned companies with Philippine employees are required to register as employers with — and remit monthly contributions to — three agencies: the Social Security System (SSS), PhilHealth, and the Pag-IBIG Fund. Contributions are shared between employer and employee; the employer deducts the employee share from salary and remits the combined total.
Failing to register, under-remitting, or missing remittance deadlines exposes the company to surcharges, penalties, and potential personal liability for company officers.
SSS — Social Security System
As of 2026, the SSS contribution structure is:
| Parameter | Rate / Amount |
|---|---|
| Total contribution rate | 15% of Monthly Salary Credit (MSC) |
| Employer share | 10% of MSC |
| Employee share | 5% of MSC |
| MSC floor | ₱5,000 |
| MSC ceiling | ₱35,000 |
The Monthly Salary Credit is a fixed bracket assigned based on the employee’s actual monthly compensation, in ₱500 increments; it is not simply the gross salary figure. Employers must map each employee’s pay to the correct MSC bracket using the SSS contribution table.
In addition to regular contributions, employers pay a separate, employer-funded Employee Compensation (EC) contribution: ₱10 for an MSC below ₱15,000, or ₱30 for an MSC of ₱15,000 and above — this is never deducted from the employee. At the MSC ceiling of ₱35,000, total monthly SSS cost is employee ₱1,750 + employer ₱3,500 + ₱30 EC = ₱5,280.
Note on the Mandatory Provident Fund (MPF): the 15% rate applies across the entire MSC up to ₱35,000, but the portion above ₱20,000 is technically routed to the Mandatory Provident Fund (MPF) rather than the regular social security fund. This is a bracket within the same 15% — it is not an additional contribution on top, and should not be added twice when computing take-home pay or employer cost.
PhilHealth — Philippine Health Insurance
The 2026 PhilHealth premium rate is 5% of monthly basic salary, split equally:
| Parameter | Rate / Amount |
|---|---|
| Total premium rate | 5% of monthly basic salary |
| Employer share | 2.5% |
| Employee share | 2.5% |
| Salary floor for computation | ₱10,000 |
| Salary ceiling for computation | ₱100,000 |
An employee earning ₱30,000 basic salary per month will have a total PhilHealth premium of ₱1,500 (₱750 from the employer, ₱750 deducted from the employee).
Pag-IBIG Fund (HDMF) — Home Development Mutual Fund
Pag-IBIG contributions are set at 2% of monthly compensation for both employer and employee, with a compensation ceiling of ₱10,000:
| Parameter | Rate / Amount |
|---|---|
| Employer contribution | 2% of monthly compensation |
| Employee contribution | 2% of monthly compensation |
| Monthly compensation ceiling | ₱10,000 |
| Maximum employer contribution | ₱200/month |
| Maximum employee contribution | ₱200/month |
Employees earning above ₱10,000 may voluntarily elect a higher contribution, but employer liability is capped at ₱200 per month regardless of salary level.
Employer Registration and Remittance
New entities must secure an employer number from each agency before their first payroll run. Registration requires the SEC certificate of registration (or DTI permit for sole proprietors), BIR Certificate of Registration, and supporting corporate documents.
Remittance deadlines are staggered by agency according to the last digit of the employer’s number or alphabetical schedules. Missing a deadline typically attracts a 3% per month penalty (SSS) or equivalent charges from PhilHealth and Pag-IBIG. Chamberlain manages agency registrations and remittances on behalf of clients to ensure no deadline is missed.
For a complete look at how contributions flow into the payroll cycle, see our resources guide and the broader payroll overview.
Book a consultation to get set up correctly from day one, or review our transparent pricing to see what managed payroll costs at your headcount.
Frequently asked questions
What are the three mandatory statutory contributions for Philippine employers?
Employers must contribute to SSS (Social Security System), PhilHealth (Philippine Health Insurance Corporation), and Pag-IBIG Fund (HDMF). Each requires a separate employer registration and monthly remittance.
What is the SSS employer contribution rate in 2026?
The total SSS contribution rate for 2026 is 15% of the employee's Monthly Salary Credit (MSC). Employers shoulder 10% and employees contribute 5%. The MSC floor is ₱5,000 and the ceiling is ₱35,000.
When must statutory contributions be remitted?
Remittance deadlines vary by agency and are staggered by the employer's SSS number or business name. Generally, contributions for a given month must be remitted by the last day of the following month, though specific cut-offs apply. Late remittances attract penalties.