Skip to content
Home » News & Blogs » Employer Guide: Mandatory Benefits and Contributions of the Employee in the Philippines

Employer Guide: Mandatory Benefits and Contributions of the Employee in the Philippines

I am an Employer:

You are responsible for updating an employee’s SSS, PHilHealth, and PagIbig whenever you hire them, regardless of their status. Whether the employee has a new record or one that already exists. This is to guarantee that everything is in place for the required contribution.

I work as a worker:

If you are unfamiliar with these government-mandated benefits, you can begin learning about them by asking a friend who has prior job experience or by asking your employer for assistance. Simply go to HR and inquire.

The 3 Government Mandatory Benefits of an Employee

  1. Social Security System (SSS) – It is intended to provide security for private employees against death, burial expenses, maternity leave, permanent disability, retirement, sickness, and forced separation/unemployment benefits. Visit https://www.sss.gov.ph for additional information.
    If you work for the government, the equivalent is the Government Service Insurance System (GSIS).
  2. Another advantage of workers is the Philippine Health Insurance Corporation (PhilHealth), which assists in the payment of a sufficient medical aide in the Philippines. Visit www.philhealth.gov.ph for additional information.
  3. PagIbig, also known as Home Development Mutual Fund (HDMF), is a popularly known as Pag-IBIG Fund. This benefit is designed to assist you in saving money when it comes to providing housing loans to both government and private sector employees, as well as self-employed individuals. Visit https://pagibigfund.gov.ph for more information.

    Self-employed individuals, Overseas Filipino Workers (OFWs), and Non-Working Spouses, on the other hand, are not required to join (NWSs).

Who is responsible for contributing these 3 government mandated benefits?

All persons under the age of 60 who earn more than Php 1,000.00 per month are required to contribute to these three government-mandated benefits.

Kasambahays, drivers, chefs, and gardeners all earn at least PHP 1,000.00 each month.
All Filipinos working in the Philippines and those working abroad.
Foreigners under the age of 60 who live and work in the Philippines, with the exception of those exempted by the country’s totalization agreements

Employees in both the commercial and public sectors are expected to contribute to the Pag-IBIG Fund and PhilHealth.

Foreign nationals working in the Philippines must also make contributions to SSS, HDMF, and PhilHealth. Membership is mandatory unless exempt under some of the Philippines’ Totalization Agreements.

Foreign workers in the Philippines are required to contribute to SSS, HDMF, and PhilHealth. Unless exempted by one of the Philippines’ Totalization Agreements, membership is compulsory.