01 · The agencies
The three agencies
RoleSocial security
Contributions15% of salary, 10% employer and 5% employee, with a ceiling
RoleNational health insurance
Contributions5% of salary, split equally, with a ceiling
RoleHousing savings fund
Contributions2% each, with a ceiling
The employer deducts the employee’s share from salary and remits both shares.
02 · Registering
Registering and reporting
Once the company has its TIN from the BIR, it gets its SSS, PhilHealth and Pag-IBIG employer numbers. Registration then still has to be finalized with each agency, which takes liaison work. See BIR registration.
Each new employee is then reported to all three: within 30 days of hiring for SSS and PhilHealth, and “immediately” under the Pag-IBIG law. Cities also ask for a certificate of SSS coverage before issuing the annual business permit.
03 · DOLE
Registering the workplace with DOLE
Under the occupational safety and health law, every employer registers its establishment with DOLE, the filing known as Rule 1020 registration under the Occupational Safety and Health Standards.
04 · Contributions
Paying contributions
Once employees are on the payroll, the company pays contributions to each agency every month, and late payment carries penalties. Penalties for missing a registration or a payment can reach the company’s officers. Deadlines, payroll and penalties will be covered in detail in a separate guide on hiring and payroll.
An employer that engages a non-resident foreign national gets an employment permit from DOLE, the Alien Employment Permit. It is issued after DOLE determines that no one in the Philippines is competent, able and willing to do the job. The Bureau of Immigration then asks for the permit, and proof of its publication, for the 9(g) work visa.
Foreign founders guide →05 · FAQ
Frequently asked questions
When does a new company have to register with SSS, PhilHealth and Pag-IBIG?
As soon as it hires its first employee. The company gets its employer numbers once it has its TIN, then finalizes registration with each agency.
How quickly do I report a new employee?
As soon as the employee starts. SSS and PhilHealth allow 30 days from the hiring date, and the Pag-IBIG law says immediately.
Can the company hire a foreign national?
Yes. The employer gets an employment permit from DOLE, which the Bureau of Immigration then asks for with the 9(g) work visa.
