Philippines

Individual - Significant developments

Last reviewed - 29 December 2020

Social taxes

Social taxes in the Philippines consist of contributions to the following government agencies:

  • Social Security System (SSS)
  • Philippine Health Insurance Corporation (PhilHealth), and
  • Home Development Mutual Fund (HDMF) or Pag-IBIG Fund

Social Security System (SSS)

Circular No. 2020-033 prescribes a new schedule of contributions effective 1 January 2020.

Under the new contribution table, the maximum employer and employee contributions will be increased to 2,155 (from 1,630) and 1,125 (from 800) Philippine pesos (PHP), respectively. Further, the graduated salary brackets will be changed to a minimum of PHP 3,000 to a maximum of PHP 25,000 (previously from PHP 2,000 to PHP 20,000).

Philippine Health Insurance Corporation (PHIC) or PhilHealth

Under Circular No. 2020-005, beginning 2021, the salary ceiling shall increase by PHP 10,000 (i.e. to PHP 70,000) and the rate by 0.50% (i.e. to 3.50%). Thereafter, there would be an annual increase of PHP 10,000 in the ceiling and 0.50% in the contribution rate until both reach PHP 100,000 and 5.00% by 2025.