Overview
Philippine law requires employers to deduct and remit contributions to SSS (Social Security System), PhilHealth (Philippine Health Insurance), and Pag-IBIG (Home Development Mutual Fund) from employee salaries.
SSS Contributions
SSS contributions are based on a monthly salary bracket system. Both employer and employee share the contribution. The current rate is 14% of monthly salary credit, split between employer (9.5%) and employee (4.5%).
PhilHealth Contributions
PhilHealth premiums are computed at 5% of the monthly basic salary, equally shared between employer and employee (2.5% each). The maximum monthly salary base is PHP 100,000.
Pag-IBIG Contributions
For employees earning over PHP 1,500/month, both employer and employee contribute 2% of the monthly compensation (max PHP 5,000 base). The minimum employee share is PHP 100.
BraveWorx Payroll
BraveWorx automatically calculates these deductions when you process payroll through the HR module. Simply enter your staff's basic salary and the system handles the rest.