Estimated payroll costs for employers in Philippines

Payroll Contributions Cost
Social Security System, including employer contribution and provident fund (WISP)  14% capped at PHP 2880
The Home Development Mutual Fund (HDMF) (Formerly called PagIBIG) 2%
PhilHealth Contribution 5% with a minimum of PHP 250 and capped at PHP 2500. 

(Rates increase annually)
13th month Pay 8.335%
Total 10% to 20% depending on the employee pay

 

Mandatory Employee Benefits

 

Payroll Contributions Cost
13th month pay Total basic salary / 12 = 13th month pay
Separation pay
  • The pay is ½ month pay per year of service- if the separation reasons are retrenchment of the company to save from loss, the sudden closure of functions due to bankruptcy, and incurable illness causing threat to colleagues.
  • The pay is 1-month pay per year of service- if the employee got terminated because of the implementation of machinery or devices which doesn’t require labor, overstaffing, and impossible situations to reinstate the job position.

 

*Please note that any overage fee collected as part of the employer payroll costs will be refunded to the customer by Global Squirrels upon an employee’s termination of employment.

Employer payroll cost doesn’t include monthly platform fee and recruitment fee

All numbers shown are approximate figures and vary due to changes in laws. It is also almost impossible to estimate accurate numbers since various contributions have a limit on the maximum contribution and some contribution criteria change based on employee gross pay.

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