The Philippine government has fully implemented the scheduled increases for mandatory contributions under several key laws. For employers, staying compliant is not just a payroll task—it is a legal obligation.
Failure to remit on time can lead to interest penalties, surcharges, and even criminal liability. This guide breaks down the updated SSS, PhilHealth, and Pag-IBIG contribution rules in simple, practical terms for business owners, HR teams, and OFWs managing businesses in the Philippines.
| Agency | Total Rate | Employer Share | Employee Share | Max Monthly Contribution |
| SSS | 15% | 10% (+ EC) | 5% | ₱5,250 (Regular) |
| PhilHealth | 5% | 2.5% | 2.5% | ₱5,000 |
| Pag-IBIG | 4% | 2% | 2% | ₱400 |
The Social Security System (SSS)
As of January 2026, the SSS contribution rate has reached its final scheduled increase of 15 percent of the Monthly Salary Credit (MSC), as mandated by the Social Security Act of 2018.
1.1 Contribution breakdown
- Employer share: 10.0 percent
- Employee share: 5.0 percent
The total 15 percent is applied to the employee’s MSC based on the official SSS contribution table.
1.2 Key 2026 thresholds
- Minimum MSC: 5,000 pesos (Monthly contribution: 750 pesos)
- Maximum MSC: 35,000 pesos (Monthly contribution: 5,250 pesos)
If an employee earns below 5,000 pesos, the minimum MSC still applies. If they earn above 35,000 pesos, the MSC is capped at 35,000 pesos.
1.3 Employees’ Compensation (EC) Program
The EC Program is a fixed employer-only contribution that provides protection for work-related injury, sickness, disability, or death.
- 10 pesos for MSC below 15,000 pesos
- 30 pesos for MSC of 15,000 pesos and above
This amount is added on top of the employer’s SSS share.
1.4 Mandatory Provident Fund (WISP)
The Workers’ Investment and Savings Program (WISP) is mandatory for employees with an MSC above 20,000 pesos. Contributions corresponding to the portion above P20,000 are automatically allocated to this retirement fund.
WISP is included in the SSS Payment Reference Number (PRN) and must be remitted together with regular SSS contributions.
Sample SSS computation
Example employee: Monthly salary = 25,000 pesos
- MSC used: 25,000 pesos
- Total SSS contribution: 15% of 25,000 = 3,750 pesos
- Employer share: 10% = 2,500 pesos
- Employee share: 5% = 1,250 pesos
- EC contribution (MSC above 15,000): 30 pesos (employer only)
- Total employer cost: 2,500 + 30 = 2,530 pesos
PhilHealth
Under the Universal Health Care (UHC) Law, PhilHealth premiums have reached their ceiling rate and remain unchanged for 2026.
2.1 Premium rate
Premium rate: 5.0 percent of the employee’s monthly basic salary.
2.2 Sharing scheme
- Employer share: 2.5 percent
- Employee share: 2.5 percent
2.3 Salary caps
- Income floor: 10,000 pesos (Fixed premium: 500 pesos)
- Income ceiling: 100,000 pesos (Fixed premium: 5,000 pesos)
If an employee earns below 10,000 pesos, the premium is still computed using the 10,000-peso floor. If they earn above 100,000 pesos, the premium is capped at the 100,000-peso ceiling.
| Monthly Basic Salary (MBS) | Premium Rate | Total Monthly Premium | ER Share (50%) | EE Share (50%) |
| ₱10,000 and below | 5.0% | ₱500.00 (Fixed) | ₱250.00 | ₱250.00 |
| ₱10,000.01 – ₱99,999.99 | 5.0% | ₱500.01 – ₱4,999.99 | Variable | Variable |
| ₱100,000 and above | 5.0% | ₱5,000.00 (Fixed) | ₱2,500.00 | ₱2,500.00 |
Sample PhilHealth computation (2026)
Example employee: Monthly salary = 42,000 pesos
- Salary used: 42,000 pesos (within the 10,000–100,000 range)
- Total premium: 5% of 42,000 = 2,100 pesos
- Employer share: 1,050 pesos
- Employee share: 1,050 pesos
Example employee (high earner): Monthly salary = 150,000 pesos
- Salary used: 100,000 pesos (ceiling)
- Total premium: 5% of 100,000 = 5,000 pesos
- Employer share: 2,500 pesos
- Employee share: 2,500 pesos
Pag-IBIG Fund
Following the major increase in 2024, Pag-IBIG contribution rates remain stable in 2026 but are based on a higher Maximum Fund Salary (MFS).
3.1 Contribution rates
- Salary 1,500 pesos and below: 1 percent employee, 2 percent employer
- Salary above 1,500 pesos: 2 percent employee, 2 percent employer
3.2 The 2026 cap
The Maximum Fund Salary (MFS) is capped at 10,000 pesos.
This means the maximum monthly contribution is:
- Employee: 200 pesos
- Employer: 200 pesos
- Total: 400 pesos
Summary table for 2026 payroll
| Agency | Total Rate | Employer Share | Employee Share | Max Monthly Ceiling |
|---|---|---|---|---|
| SSS | 15.0% + EC | 10.0% + EC | 5.0% | 35,000 pesos (MSC) |
| PhilHealth | 5.0% | 2.5% | 2.5% | 100,000 pesos (Basic Salary) |
| Pag-IBIG | 4.0% (Split) | 2.0% | 2.0% | 10,000 pesos (MFS) |
Sample Pag-IBIG computation (2026)
Example employee: Monthly salary = 18,000 pesos
- Salary used: 10,000 pesos (MFS cap)
- Employee share: 2% of 10,000 = 200 pesos
- Employer share: 2% of 10,000 = 200 pesos
- Total monthly contribution: 400 pesos
Example employee (low salary): Monthly salary = 1,200 pesos
- Employee share: 1% of 1,200 = 12 pesos
- Employer share: 2% of 1,200 = 24 pesos
- Total monthly contribution: 36 pesos
Employer compliance and deadlines
5.1 Registration
All new employees must be registered with SSS, PhilHealth, and Pag-IBIG within 30 days of employment. Employers must ensure that employee records are updated and accurate.
5.2 Remittance portals
- SSS: My.SSS Employer Portal (PRN required)
- PhilHealth: Electronic Premium Remittance System (EPRS)
- Pag-IBIG: Virtual Pag-IBIG for Employers or accredited banks
5.3 Penalties
- Late SSS payments incur a 2 percent monthly penalty.
- PhilHealth and Pag-IBIG impose legal interest on delayed or unremitted premiums.
Non-remittance of employee deductions may result in criminal liability for responsible officers.
Beyond contributions (statutory monetary benefits)
Mandatory contributions are separate from other legally required benefits. Employers must also comply with the following:
13th month pay
Must be paid on or before December 24. Applies to all rank-and-file employees who have worked at least one month during the year.
Service Incentive Leave (SIL)
Employees with at least one year of service are entitled to 5 days of paid leave annually.
Holiday pay
- Regular holidays: 200 percent of daily wage if worked
- Special non-working days: 130 percent of daily wage if worked
These benefits must be budgeted alongside contributions to avoid payroll issues.
Final thoughts
Compliance with government contributions is more than a legal requirement—it is part of building a trustworthy and sustainable workplace. By understanding the contribution rates, salary ceilings, and remittance rules, employers can avoid penalties, protect their employees, and maintain smooth payroll operations.
Setting up a clear payroll system, using online remittance portals, and regularly updating employee records will help ensure that your business stays compliant throughout 2026 and beyond.
FAQ: Mandatory Employer Contributions in the Philippines
1. What are the mandatory employer contributions in the Philippines?
Employers must remit SSS, PhilHealth, and Pag-IBIG contributions for all eligible employees. These are required under Philippine labor and social protection laws.
2. Are employers required to shoulder part of the contributions?
Yes. Employers pay the employer share while employees pay the employee share, which is deducted from payroll.
3. How often should contributions be remitted?
SSS, PhilHealth, and Pag-IBIG contributions are typically remitted monthly, following each agency’s official schedule.
4. Are part-time or probationary employees covered?
Yes. All employees—full-time, part-time, probationary, or contractual—must be covered as long as they earn compensation.
5. What happens if an employer fails to remit contributions?
Employers may face penalties, surcharges, interest, and possible legal action for non-remittance or late remittance.
6. Are kasambahays covered by mandatory contributions?
Yes. Under the Kasambahay Law, employers must remit SSS, PhilHealth, and Pag-IBIG contributions for household workers.
7. Can employers deduct their share from employees?
No. Only the employee share may be deducted. The employer share must be fully shouldered by the employer.
8. Do employers need to register new hires with SSS, PhilHealth, and Pag-IBIG?
Yes. Employers must ensure all employees have valid membership numbers and are properly reported to each agency.