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Expanding your business and hiring in the Philippines gives you access to one of Southeast Asia’s most dynamic and adaptable workforces. The country is known for its high English proficiency, strong work ethic, and deep talent pool across industries like customer service, IT, finance, healthcare, and creative fields. Filipino professionals are also widely recognized for their cultural compatibility with Western markets, making them valuable assets for companies building regional or global teams.
However, tapping into this promising talent market also comes with important compliance responsibilities. Employers must follow local labor laws, including making mandatory statutory contributions that support employee welfare, such as healthcare, social security, and housing.
In other words, while the Philippines offers a wealth of skilled professionals to power your growth, success in hiring and retaining them begins with understanding and fulfilling your obligations as an employer. Let’s explore what these statutory contributions are and how they work.
Statutory contributions are government-mandated payments that employers and employees make to specific agencies to fund social protection programs. These include SSS (Social Security System), PhilHealth, Pag-IBIG Fund, and the Withholding Tax for income.
Each of these contributions serves a different purpose, from healthcare and housing to retirement and social welfare.
Employers in the Philippines should be familiar with several key statutory contributions that form part of their legal responsibilities. Here are the key points:
The SSS provides employees with benefits related to sickness, maternity, disability, retirement, and death. Employers contribute 10% of the employee’s monthly salary, while employees contribute 5%, based on a salary credit table.
Both employer and employee shares must be remitted monthly to the SSS on or before the deadline based on the employer’s 10-digit SSS number. Failure to pay on time could lead to penalties and surcharges.
PhilHealth provides universal healthcare coverage for employees in the Philippines. The premium rate as of 2025 stands at 5% of the monthly salary, shared equally between the employer and employee, with a salary base cap of PHP 100,000.
This contribution ensures employees can access medical benefits, hospital coverage, and other health services nationwide.
The Home Development Mutual Fund (HDMF), commonly known as Pag-IBIG, supports employees in building savings and accessing affordable housing loans.
Employers are required to contribute2% of the employee’s monthly salary, while employees contribute 1–2%, depending on their income bracket. Payments are due monthly through Pag-IBIG’s online system or accredited partners.
Employees may also withdraw their Pag-IBIG savings after 10 to 20 years, depending on their membership type. For the Pag-IBIG I program, savings can be withdrawn after 20 years of continuous contribution, while members under Pag-IBIG MP2 (Modified Pag-IBIG II) can withdraw their savings after 5 years, with an option to renew. Early withdrawal is permitted in special cases such as retirement, permanent departure from the country, total disability, or death.
In the Philippines, the 13th-month pay is a mandatory benefit under Presidential Decree No. 851. All rank-and-file employees who have worked for at least one month within a calendar year are entitled to receive it.
The payment must be equivalent to one-twelfth (1/12) of an employee’s total basic salary earned within the year and should be released on or before December 24.
Here’s a quick overview of typical remittance timelines:
| Contribution Type | Payment Frequency | Remittance Deadline |
| SSS | Monthly | Last day of the month following the applicable month |
| PhilHealth | Monthly | PEN ends 0–4: every 11–15th of the following month PEN ends 5–9: every 16–20th of the following month |
| Pag-IBIG | Monthly | Based on the first letter of the employer’s business name A to D: 10th to 14th day of the month E to L: 14th to 19 day of the month M to Q: 19th to 24th day of the month R to Z Numeral: 25th day to at the end of the month |
| 13th Month Pay | Annually | On or before December 24 of every year |
Managing payroll and compliance across multiple agencies can be complex, especially when hiring at scale. Partnering with a trusted talent solutions provider helps ensure every contribution, deduction, and compliance step is handled accurately.
That’s where Glints TalentHub makes a difference. Our platform helps businesses hire and manage employees in the Philippines with full compliance, from onboarding to payroll and statutory contributions. You’ll have peace of mind knowing your team is supported by local HR and legal experts who stay up to date with the latest regulations.
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