🇵🇭 Cost of employing in Philippines
Philippine employer costs are mostly fixed-schedule social contributions (SSS, PhilHealth, Pag-IBIG) plus the mandatory 13th-month pay.
Status key: Verified read on the official source page · Pending re-check from an official source, figure not yet re-read on the page · Coming soon not shown until verified. Every figure links to its source and shows the date we last checked it.
Employer on-costs and statutory contributions
| Item | Rate | Base / cap | Effective | Source · checked | Status |
|---|---|---|---|---|---|
| SSS contribution Paid by: employer + employee Circular 2024-006 (read from scanned schedule): e.g. MSC 5,000 -> ER 500 / EE 250; top bracket (34,750+) ER 3,500 SS+MPF + 30 EC, EE 1,750. Also SSS news: source | 15% of Monthly Salary Credit: employer 10%, employee 5% | MSC min PHP 5,000, max PHP 35,000 (MSC > 20,000 goes to MPF/MySSS Pension Booster) | 2025-01 | sss.gov.ph ↗ 22 Oct 2026 | Verified |
| Employees' Compensation (EC) contribution Paid by: employer | PHP 10/month (MSC up to 14,500); PHP 30/month (MSC 15,000+) | Per SSS schedule | 2025-01 | sss.gov.ph ↗ 22 Oct 2026 | Verified |
| PhilHealth premium Paid by: employer + employee Philippine Information Agency (govt). PIA report dated 14 May 2026; philhealth.gov.ph circular not yet read. | 5% of monthly basic salary, split 2.5% / 2.5% | Floor PHP 10,000; ceiling PHP 100,000 (max PHP 5,000 total) | 2026 | pia.gov.ph ↗ 22 Oct 2026 | Verified |
| 13th-month pay Paid by: employer Effectively +8.33% of basic pay for cost modelling (arithmetic, not a quoted rate). | 1/12 of basic salary earned in calendar year | Rank-and-file employees with >= 1 month service; due by 24 Dec | 1975 (PD 851) | lawphil.net ↗ 22 Oct 2026 | Verified |
Coming soon – not yet verified against an official source, so no figures are shown.
- Pag-IBIG (HDMF) contribution
Leave and termination rules
| Rule | Detail | Source | Checked | Status |
|---|---|---|---|---|
| 13th-month pay | 1/12 of annual basic salary, due by 24 Dec | lawphil.net ↗ | 22 Oct 2026 | Verified |
| Service incentive leave | 5 paid days/year after 1 year service (exclusions apply) | nwpc.dole.gov.ph ↗ | 22 Oct 2026 | Verified |
Coming soon – not yet verified against an official source, so no figures are shown.
- Separation pay
Estimate a total cost: use the calculator to add these on-costs and an EOR fee to a salary in Philippines.
General information only – not legal or tax advice. Rules change and individual circumstances differ; confirm with the official source or a qualified adviser. See our disclaimer.