Hiring In The Philippines: Insurance Policies for Employers
Employer insurance policy in the Philippines mandates employers to cover approximately 10.57% of the employee's salary, including contributions to the Philippine Health Insurance Corporation (PhilHealth) of 2%, Social Security of 8.57%, and a Home Development Fund (HDMF) fee of PHP 100. The PhilHealth contribution is capped at PHP 1,600/month, while Social Security contributions are capped at PHP 2,880/month. If you're an employer in the Philippines, it's important to understand the costs associated with providing insurance coverage for your employees.
Here is a more in-depth look into the insurance details and insurance coverages:
Insurance details
Employer Payroll Contributions
|
9.50% |
Social Security System (SSS) (maximum contribution 2,155 PHP) |
|
|
2.00% |
Philippine Health Insurance Corporation (PHIC) (salary ceiling 80,000 PHP) |
|
|
2.00% |
Home Development Mutual Fund (HDMF) (Pag-ibig) |
|
|
425 PHP per month |
Provident Fund (WISP) |
|
|
13.50% +425 PHP |
Total Employment Cost |
|
Employee Payroll Contributions
|
4.50% |
Social Security System (maximum contribution 1,250 PHP) |
|
|
1.00% - Below 1,500 PHP |
Home Development Mutual Fund (HDMF) (Pag-ibig) |
|
|
2.00% - Above 1,500 PHP |
Home Development Mutual Fund (HDMF) (Pag-ibig) |
|
|
2.00% |
Philippine Health Insurance Corporation (PHIC) |
|
|
225 PHP per month |
Provident Fund (WISP) |
|
|
Up to 9.50% + 225 PHP |
Total Employee Cost |
|
In the Philippines, the Social Security System (SSS) is a state-run insurance program that offers a range of benefits, such as maternity pay, sickness pay, pension, disability benefits, salary loans, life insurance, and funeral grants. The program covers private-sector employees, self-employed workers, and household workers, and it also provides social benefits to the insured person's spouse.
Insurance coverage
Employees who have contributed to the Social Security System (SSS) can claim an allowance if hospitalized for more than 3 days, with the employer initially covering the payment until reimbursement is received from the SSS.
Female employees can take a 2-month leave with full pay for gynaecological disorders, which the insurance provided by the employer covers.
Maternity leave of 105 calendar days is available to eligible female employees, with full salary paid by the employer, and reimbursement up to a certain amount from the Social Security System (SSS).
Fathers are entitled to 7 calendar days of paid paternity leave, with the employer paying the full salary during the leave and claiming reimbursement from the Social Security System (SSS.
Female employees who have experienced domestic violence can take up to 10 days of paid leave for medical and legal assistance, covered by insurance.
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