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.
Every employer must register with the BIR to withhold taxes on employee compensation under the TRAIN Law (RA 10963).
You’ll need:
BIR Form 1902 – for new employees without TIN
BIR Form 2305 – to update employee details or exemptions
💡 Update 2025: The BIR continues to expand eBIRForms and EFPS filing coverage — most employers are now expected to file and pay taxes electronically.
All employers and employees must also register with:
Social Security System (SSS) – RA 8282
PhilHealth – RA 7875
Pag-IBIG Fund (HDMF) – RA 9679
These cover social insurance, health coverage, and housing benefits.
File monthly via BIR Form 1601-C.
Manual filing: by the 10th of the following month.
EFPS (electronic filing): between the 11th–15th, depending on your industry classification.
Annual summary (BIR Form 1604-CF): due 31 Jan of the following year.
| 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).
SSS rate remains 14% total, but Maternity Benefit is now 105 days (RA 11210).
Retirement benefits are governed by RA 7641 (Labor Code).
Retirement age: 60 years (optional) or 65 years (compulsory).
Must have at least 5 years of service to qualify.
Retirement pay = ½ month’s salary per year of service (minimum standard).
Max 8 hours/day, 48 hours/week.
Overtime pay = +25% (regular days), +30% (rest/holidays).
Rest period: at least 24 consecutive hours every 6 workdays.
Regional rates range from ₱420 to ₱610 per day depending on location.
NCR daily wage (non-agriculture): ₱610 (effective June 2024).
Service Incentive Leave: 5 days/year after 1 year of service
Maternity Leave: 105 days (additional 15 days for solo mothers)
Paternity Leave: 7 days
Solo Parent Leave: 7 days
Violence Against Women Leave: 10 days
Gynecological Leave: 2 months
Mandatory under PD 851
Pay by 24 December each year
Tax-free up to ₱90,000 combined with other bonuses
Rice subsidy up to ₱2,000/month
Uniform/clothing allowance up to ₱6,000/year
Medical & laundry allowances within ₱10,000/year
Achievement gifts up to ₱5,000
Wages paid at least twice a month (max 16-day interval).
Payslips must show salary breakdown, deductions, overtime, and net pay.
Digital payslips are accepted and encouraged for transparency.
Wages must be paid in Philippine legal tender.
Bank transfers allowed if within 1 km radius of the workplace and employees consent in writing.
Employers cannot charge or profit from the payroll bank arrangement.
Register with BIR, SSS, PhilHealth, Pag-IBIG
File BIR 1601-C monthly (by 10th / EFPS 11th–15th)
Submit BIR 1604-CF by 31 Jan yearly
Remit SSS, PhilHealth, Pag-IBIG monthly (by last business day)
Pay employees at least twice per month
Provide itemized payslips every payday
Release 13th-month pay before 24 Dec
Comply with new PhilHealth 5% premium cap
E-filing saves time: Most agencies now prefer (and sometimes require) electronic submissions. Set up EFPS and My.SSS accounts early.
Use unified payment portals: Try Bayanihan E-Payment, My.SSS, or PhilHealth Online to skip in-person queues.
Track regional wage updates: RTWPBs announce new minimum wages periodically — not all regions increase at the same time.
Avoid last-minute 13th-month rush: Budget and accrue monthly to stay cash-ready by December.
Automate payroll: HR Forte’s payroll engine auto-calculates tax, SSS, PhilHealth, and Pag-IBIG for you — no spreadsheets, no stress.
At HR Forte, we help you simplify HR, payroll, and compliance with automation — so you can focus on growing your business, not decoding regulations.
💬 Try AskGenie, our AI compliance assistant, for instant answers to Philippine HR and payroll questions — anytime, in any language. Learn more about AskGenie
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