🇵🇭 Philippines Payroll & Labor Law Cheat Sheet 2025
Your quick guide to staying compliant (without losing your sanity)
Running payroll in the Philippines can feel like juggling acronyms — BIR, SSS, PhilHealth, Pag-IBIG — all while chasing deadlines. But don’t worry! We’ve broken it all down into a simple, human-friendly guide so you can stay compliant and confident.
Whether you’re a startup founder, HR manager, or finance pro, this 2025 cheat sheet gives you the must-know rules for payroll, contributions, and labor compliance — minus the legal jargon.
🏛️ 1. Registration Requirements
With the Bureau of Internal Revenue (BIR)
Every employer must register with the BIR to withhold taxes on employee compensation under the TRAIN Law (RA 10963).
You’ll need:
💡 Update 2025: The BIR continues to expand eBIRForms and EFPS filing coverage — most employers are now expected to file and pay taxes electronically.
With Other Government Agencies
All employers and employees must also register with:
These cover social insurance, health coverage, and housing benefits.
💸 2. Monthly Tax & Statutory Contributions
Payroll Tax (Withholding Tax on Wages)
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File monthly via BIR Form 1601-C.
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Manual filing: by the 10th of the following month.
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EFPS (electronic filing): between the 11th–15th, depending on your industry classification.
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Annual summary (BIR Form 1604-CF): due 31 Jan of the following year.
Statutory Contributions (SSS, PhilHealth, Pag-IBIG)
| Agency |
Employer Share |
Employee Share |
Contribution Cap / Notes |
| SSS |
9.5% |
4.5% |
Monthly salary credit up to ₱30,000 (effective Jan 2023) |
| PhilHealth |
5% total |
50/50 shared |
Applied to income ceiling up to ₱100,000 |
| Pag-IBIG (HDMF) |
2% |
1% |
Based on salary up to ₱5,000 |
🆕 Update 2025:
-
PhilHealth now implements the 5% premium rate (2024–2025) as per UHC Law (RA 11223).
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SSS rate remains 14% total, but Maternity Benefit is now 105 days (RA 11210).
🧓 3. Pension & Retirement Benefits
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Retirement benefits are governed by RA 7641 (Labor Code).
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Retirement age: 60 years (optional) or 65 years (compulsory).
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Must have at least 5 years of service to qualify.
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Retirement pay = ½ month’s salary per year of service (minimum standard).
👩💼 4. Employment Obligations & Leave
Working Hours & Rest Days
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Max 8 hours/day, 48 hours/week.
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Overtime pay = +25% (regular days), +30% (rest/holidays).
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Rest period: at least 24 consecutive hours every 6 workdays.
Minimum Wage (2025)
Leave Entitlements
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Service Incentive Leave: 5 days/year after 1 year of service
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Maternity Leave: 105 days (additional 15 days for solo mothers)
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Paternity Leave: 7 days
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Solo Parent Leave: 7 days
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Violence Against Women Leave: 10 days
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Gynecological Leave: 2 months
🎁 5. Bonuses & Benefits
13th-Month Pay
De Minimis Benefits (Non-Taxable)
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Rice subsidy up to ₱2,000/month
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Uniform/clothing allowance up to ₱6,000/year
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Medical & laundry allowances within ₱10,000/year
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Achievement gifts up to ₱5,000
💵 6. Payroll Frequency & Payslips
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Wages paid at least twice a month (max 16-day interval).
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Payslips must show salary breakdown, deductions, overtime, and net pay.
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Digital payslips are accepted and encouraged for transparency.
🏦 7. Payment & Banking
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Wages must be paid in Philippine legal tender.
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Bank transfers allowed if within 1 km radius of the workplace and employees consent in writing.
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Employers cannot charge or profit from the payroll bank arrangement.
✅ Quick Employer Compliance Checklist
💡 Bonus Tips from HR Forte
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E-filing saves time: Most agencies now prefer (and sometimes require) electronic submissions. Set up EFPS and My.SSS accounts early.
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Use unified payment portals: Try Bayanihan E-Payment, My.SSS, or PhilHealth Online to skip in-person queues.
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Track regional wage updates: RTWPBs announce new minimum wages periodically — not all regions increase at the same time.
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Avoid last-minute 13th-month rush: Budget and accrue monthly to stay cash-ready by December.
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Automate payroll: HR Forte’s payroll engine auto-calculates tax, SSS, PhilHealth, and Pag-IBIG for you — no spreadsheets, no stress.
Stay Updated with HR Forte
At HR Forte, we help you simplify HR, payroll, and compliance with automation — so you can focus on growing your business, not decoding regulations.
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