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Philippines Social Contributions Guide — SSS, PhilHealth, Pag-IBIG

Philippines mandatory social contributions for 2026. The guide covers: the SSS (Social Security System) — the employee contribution of 4.5% up to the maximum salary credit (MSC) of PHP 30,000, the employer contribution of 8.5%, the total combined of approximately 13%; the PhilHealth (Philippine Health Insurance Corporation) — the 4% to 5% premium rate (split 50/50 between the employee and the employer), based on the salary bracket with the 2026 updated rates; the Pag-IBIG (Home Development Mutual Fund) — the 2% employee contribution plus the 2% employer match, capped at PHP 5,000/month of the monthly compensation.

SSS — Social Security System

  • Employee contribution — 4.5% up to PHP 30,000 MSC: The employee pays the 4.5% of the monthly salary credit (MSC), capped at the maximum salary credit of PHP 30,000. For example: the employee earning PHP 30,000 or more contributes PHP 30,000 × 4.5% = PHP 1,350/month. The employee earning PHP 15,000 contributes PHP 15,000 × 4.5% = PHP 675/month.
  • Employer contribution — 8.5%: The employer pays the 8.5% of the MSC, also capped at the PHP 30,000 maximum salary credit. For the MSC of PHP 30,000, the employer share is PHP 30,000 × 8.5% = PHP 2,550/month. The total combined SSS contribution is 13% of the MSC (4.5% + 8.5%).
  • Coverage: The SSS covers the employees, the self-employed individuals, the OFWs (the Overseas Filipino Workers), and the voluntary members. The mandatory coverage applies to all the private-sector employees regardless of the citizenship. The SSS provides the benefits: the retirement pension, the disability benefit, the death benefit, the sickness benefit, the maternity benefit, and the unemployment benefit.

PhilHealth — Philippine Health Insurance Corporation

  • Premium rate — 4% to 5% (2026): The PhilHealth premium rate for 2026 is between 4% and 5% of the monthly basic salary, depending on the salary bracket. The rate is adjusted periodically by the PhilHealth Board. The contribution is split 50/50 between the employee and the employer (2% to 2.5% each).
  • Salary bracket system: The PhilHealth contributions follow the bracket system: (a) the minimum monthly contribution of PHP 500 (the total of the employee + employer share) for the monthly basic salary of PHP 10,000 and below; (b) the progressive rate up to PHP 1,800/month for the salary of PHP 100,000 and above; (c) the exact bracket rates are published annually by the PhilHealth.
  • Benefits: The PhilHealth covers the hospitalisation (the room and board, the drugs and the medicines, the laboratory fees, the professional fees), the outpatient care (the dialysis, the chemotherapy, the radiotherapy), the maternity care, and the catastrophic illness coverage (the "Z Benefit Package" for the cancer, the heart surgery, the kidney transplant).

Pag-IBIG — Home Development Mutual Fund

  • Employee contribution — 2%: The employee contributes 2% of the monthly compensation to the Pag-IBIG fund. The contribution is capped at the monthly compensation of PHP 5,000 — the maximum employee contribution is PHP 5,000 × 2% = PHP 100/month.
  • Employer contribution — 2%: The employer matches the employee contribution at 2%, also capped at the PHP 5,000 monthly compensation — the maximum employer contribution is also PHP 100/month. The total combined Pag-IBIG contribution is 4% (2% + 2%), capped at PHP 200/month total.
  • Benefits: The Pag-IBIG fund provides: (a) the "Pag-IBIG Housing Loan" — the affordable housing financing for the members at the low interest rates (3% to 6% per annum depending on the loan amount); (b) the "Pag-IBIG Multi-Purpose Loan" — the short-term loan for the education, the medical, the livelihood, and the other personal needs; (c) the "Pag-IBIG Savings" — the annual dividend on the members' savings (historically 4% to 7% per annum).

Total Contribution Summary

  • Employee total — approximately 8.5% to 9%: SSS 4.5% + PhilHealth 2% to 2.5% + Pag-IBIG 2% = approximately 8.5% to 9% of the monthly salary, capped on the SSS and the Pag-IBIG portions.
  • Employer total — approximately 12.5% to 13%: SSS 8.5% + PhilHealth 2% to 2.5% + Pag-IBIG 2% = approximately 12.5% to 13% of the monthly salary.
  • Combined total — approximately 21% to 22%: The employee + employer social contributions total approximately 21% to 22% of the monthly salary.
  • Separate from withholding tax: The social contributions are deducted from the gross salary BEFORE the computation of the withholding tax (the "IIT" — the "income tax" at the 0% to 35% progressive rate). The contributions are NOT tax-deductible for the employees (the contributions are the after-tax deductions), but the employer contributions are tax-deductible as the business expense.