In the Philippines, registered companies must report their new hires to four government agencies: the PAG IBIG Fund (HDMF), the Social Security System (SSS), the Philippine Health-Insurance Organization (PhilHealth), and the Bureau of Internal Revenue (BIR). This aspect is required to ensure that legally employed members receive the compulsory benefits. The Labor Code of the Philippines manages and establishes these benefits.
Meanwhile, private company employees are automatically permitted six basic advantages in the Philippines:
Among all of these organizations, three (SSS, PAG-IBIG, and PhilHealth) beneficial agencies are managed by their relevant Government policies. These government agencies are working by the per month contribution programs. Employers must give a part of the employee’s monthly wage for their contributions. If they fail to pay their contributions within the due date, it results in penalties.
ELI5: What are SSS, PAG-IBIG, and PhilHealth? What are they for? How do they work?
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Contents
How to Register in PAG-IBIG, SSS, and Philhealth?
PAG IBIG Organization
Employers’ contributions to the PAG IBIG agency are dictated under Republic Act 7835. It’s a provident savings scheme that provides low-interest house loans for private and public employees and self-employed members. Members can access housing and land-purchasing loans with a repayment duration of thirty years.
For Employees
New hiring individuals must accomplish the PAG IBIG membership registration to join this funding program. They can visit official branches or websites with original ID cards, fill out the registration form, and confirm their membership in PAG via their provided contact number.
For Employers
Here, you can register new employees by marking them as NH (Newly Hire) and completing the Member Contribution Remittance Form (MCRF) in monthly contributions. This process is also accessible on our official website virtually and physically in branches.
Monthly Contribution of PAG IBIG
| Compensation per Month | %age for Monthly Contribution | |
| Employer Share | Employee Share | |
| Php1,500 and lower | 2% | 1% |
| Over Php1,500 | 2% | 2% |
PhilHealth Registration and Contribution
All private and public employees are capable of enrolling in monthly medical insurance in the Philippines under Republic Act No. 7875. This organization offers hospitalization and health support to individuals and their dependents during hospitalization. It brings a practical solution for employees to afford quality medical care in the Philippines. Hence, your contributions per month comprise 50% from the employer and the same from employees.
For Employers
You can fill out PhilHealth Form ER2, which also contains all new hires. Afterward, you may submit it to PhilHealth’s official Company.
For Employees
These individuals must complete a PhilHealth Membership Registration Form (PMRF). Current members should offer their PhilHealth identification number. So, this form doesn’t depend on your existing PhilHealth membership. Now, you can submit your accomplished PMRF to the PhilHealth office.
Contribution Table per Month in PhilHealth
| Salary x 2.75% Monthly | Personal Share | Employer Share | Monthly Premium |
| P10,000 and low | P137.50 | P137.50 | P275.00 |
| P10,000 – P39,999.99 | P137.51 – P549.99 | P137.51 – P549.99 | P275.02 – P1,099.99 |
| 940,000 and More | P550 | P550 | P1,100 |
Social Security System (SSS)
Private company employees must enroll in the SSS that’s offered in Republic Act No. 8282. This approach protects all members against death, sickness, old age, disability, and related circumstances. Meanwhile, public employees are covered by the Government Services Insurance Systems (GSIS) in the Philippines.
However, both employees and employers are proficient in contributing monthly to the SSS program. Employers come with 70% of the contribution and deduct the rest of 30% from the employee’s salary based on their actual monthly earnings.
For those employees who don’t have an SSS Number:
For those employees who already have an SSS Number:
PAG-IBIG, SSS, and PhilHealth Contributions
You can start deduction of employees’ payment from frist-day of their employment. This amount is considered the monthly contribution of employees in PAG IBIG, Philhealth, and SSS. Furthermore, the employer must contribute a corresponding amount to cover these contributions, and it’s taken as a company expense.
PAG IBIG Payment Deadlines
HDMF MSRF Form is required to pay and report the monthly contributions of PAG IBIG according to the name letters of the business/company letter.
| Employer/Business name’s First Letter | Due Date |
| A – D | 10th – 14th day per month |
| E – L | 15th – 19th day per month |
| M – Q | 20th – 24th day per month |
| R – Z, Numeral | 25th – end of the month |
SSS Payment Deadlines
When you’ve contributed to SSS, you must understand that your monthly payments should be settled by the last day of the following month.
PhilHealth Payment Deadlines
These deadlines for monthly contributions to PhilHealth:
Late Payment Penalties for PAG IBIG, SSS, and PhilHealth
If you fail to contribute on exact time, then you should accomplish the penalties. These are computed from the due date of each program until payment is made.
| Agency | Penalties |
| PAG IBIG Funds | 1/10 of 1% per day |
| Social Security System (SSS) | 3% monthly |
| Philhealth | 2% monthly |
Final Words
Labor Code dictates that employers join the SSS, PAGIBIG Funds, and PhilHealth programs. In this way, they can regularly submit contributions to these government institutes on behalf of their employees. It also guarantees that employees have access to government benefits. These benefits include social security benefits, accessible home financing, and healthcare coverage.
