Employee Benefits, Incentives, Coverage, and Contributions
The Philippine Social Security System consists of the following bodies:
- Social Security System (SSS) – The SSS was created to provide private employees and their families with protection against disability, sickness, old age, and death. The Government Service Insurance System (GSIS) is an equivalent system for Philippine government employees.
- Home Development Mutual Fund (HDMF) – The HMDF is a provident savings system providing housing loans to private and Philippine government employees, and to self-employed persons who elect to join the Fund.
- Philippine Health Insurance Corporation (PhilHealth) – PhilHealth is administered by the Philippine National Health Corporation, which is designed to provide employees with a practical means of paying for adequate medical care in the Philippines.
Coverage in the Philippines
All persons under the age of 60 who earn income from employment of more than P1,000 per month are required to contribute to the SSS. Government employees are required to contribute to the equivalent GSIS.
Employees are also required to contribute to the HDMF and PhilHealth. Membership is optional, however, for self-employed persons. Foreign personnel are also required to make contributions. Opting out is not possible, except in limited circumstances under some of the Philippines’ international social security agreements. In practice, however, the potential savings involved are generally insufficient to justify the efforts required to effect the exemption.
Contributions in the Philippines
Employee contributions for social security are deducted from employee’s salary payments. These are withheld by the employer on a monthly basis.
Employers in the Philippines are also required to make contributions. SSS contributions are roughly 180% of the employee contributions, with the maximum employer contribution of P1,090 per month. HDMF and Philhealth contribution by employers in the Philippines are roughly the same with the maximum for 2017 set at P100 for HDMF and P437.50 for PhilHealth monthly.