If you employ people in the Philippines, three government contributions show up in every payroll: SSS, PhilHealth and Pag-IBIG. The rules are not hard, but small mistakes repeat every month and across every employee. This guide gives you the 2026 rates in plain language, plus an example.
Important: These are the rates as of October 2026. They can change by law or agency circular, so check the latest tables on the official SSS, PhilHealth and Pag-IBIG websites before running payroll.
SSS (Social Security System)
- Total rate: 15% of the Monthly Salary Credit (MSC).
- Employer share: 10%. Employee share: 5%.
- MSC range: ₱5,000 to ₱35,000, in steps of ₱500.
- Plus Employees' Compensation (EC): a small amount paid by the employer only (₱10 or ₱30, depending on the salary bracket).
The contribution is based on the MSC bracket your employee's pay falls into, not on gross pay exactly. Anyone earning ₱35,000 or more pays the same maximum employee share of ₱1,750.
PhilHealth
- Premium rate: 5% of monthly basic salary.
- Split: shared equally, 2.5% employer and 2.5% employee.
- Salary limits: floor of ₱10,000 and ceiling of ₱100,000.
Pag-IBIG (HDMF)
- Rate: 2% of the monthly fund salary for both employer and employee.
- Fund salary cap: ₱10,000, so the maximum is ₱200 from each side.
Worked example: ₱20,000 monthly salary
| Contribution | Employee pays | Employer pays |
|---|---|---|
| SSS (MSC ₱20,000) | ₱1,000 | ₱2,000 + EC ₱30 |
| PhilHealth (5% of ₱20,000) | ₱500 | ₱500 |
| Pag-IBIG (2% of ₱10,000 cap) | ₱200 | ₱200 |
| Total | ₱1,700 | ₱2,730 |
So this employee's total monthly cost to the company is about ₱20,000 + ₱2,730 = ₱22,730 before the 13th month accrual, leave and other benefits. Employees see ₱1,700 deducted from their pay, and withholding tax on compensation may be deducted on top of this.
Practical tips
- Deduct and remit on time. Every agency has its own remittance schedule, and late payment can lead to penalties. Put each due date on a calendar.
- Use each employee's correct numbers. A wrong ID number or salary bracket means contributions do not credit to the right member.
- Keep proof of payment and reports for every month.
- Update when a salary changes. A raise moves the employee into a new bracket.
- Review each January for new rates or tables.
Why this matters beyond compliance
These contributions are part of your real cost per employee. When you price your services or plan your budget, you should look at salary plus the employer share, plus the 13th month pay. It is easy to underestimate this when you only look at the salary.
When payroll runs inside the same system as your accounting, contributions are computed from each employee's record and posted to your books automatically. You can see how this works in GodoERP or start a free trial.
Information only. Always confirm current tables with SSS, PhilHealth and Pag-IBIG, or consult your HR or accounting adviser.