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 January 1, 2020.

Under the new contribution table, the maximum employer and employee contributions will be increased to PHP2,155 (from PHP1,630) and PHP1,125 (from PHP800), respectively.  Further, the graduated salary brackets will be changed to a minimum of PHP3,000 to a maximum of PHP25,000 (previously from PHP2,000 to 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., PHP 70,000) and the rate by 0.50% (i.e., 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.