Philippines

Individual - Significant developments

Last reviewed - 20 December 2019

Social taxes

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

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

Philippine Health Insurance Corporation (PHIC) or PhilHealth

Under Circular No. 2019-0009, effective December 7, 2019, the threshold for PhilHealth contribution has increased from PHP 40,000 to PHP 50,000, while the contribution rate of 2.75% remain unchanged.

Beginning 2020, the threshold and the premium rate shall increase by PHP 10,000 (i.e., PHP 60,000) and the rate by 0.25% (i.e., 3.00%).  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.

Social Security System (SSS)

Circular no. 2019-005 prescribes a new schedule of contributions effective April 2019, pursuant to Social Security Commission (SSC) Resolution No. 216-s. 2019, dated 13 March 2019.

Under the new SSC table, the maximum employee contribution was increased to PHP 800 (from PHP 581.30) for a maximum monthly salary credit of PHP 20,000.

Home Development Mutual Fund (HDMF) or Pag-IBIG Fund

Pursuant to Pag-IBIG Fund Circular No. 421, dated 16 January 2019, the mandatory coverage of expatriates has been repealed. Further, any previous contributions, including the accrued dividends from said contributions, may be refunded upon filing of the corresponding applications for claim.