Glossary · Hiring in the Philippines

SSS, PhilHealth, and Pag-IBIG

SSS, PhilHealth, and Pag-IBIG are the three mandatory social contributions for employees in the Philippines. The Social Security System covers pensions and sickness benefits, PhilHealth covers health insurance, and the Pag-IBIG Fund covers housing savings and loans. Employers and employees each contribute a share every month.

Illustration of a hiring glossary: a reference page of terms with book, search, document and checklist icons

What it means in practice

Contribution rates and salary ceilings are set by each agency and change over time, so check the current schedules before you budget. Together with 13th-month pay, they make up most of the statutory cost of employing someone in the Philippines.

For self-employed workers and contractors, the person pays their own contributions instead, which is worth knowing if you contract talent directly.

If you hire through a partner, ask exactly what the monthly price covers. Rekruuto's flat monthly price includes recruiting, vetting, and pay for a full-time hire, and you can compare it with local costs on our country pages.

What to check before you hire directly

  • Confirm whether the person will be your employee or an independent contractor, because that decides who pays.
  • Get the current contribution tables from each agency's official website before you set a budget.
  • Register as an employer and set up monthly remittances if you employ the person yourself.
  • Keep proof of every payment, since employees rely on these records for benefits and loans.
  • If a partner employs the hire, ask them to confirm in writing that the contributions are paid.
  • 13th-month pay

    13th-month pay is a mandatory annual benefit in the Philippines, equal to at least one-twelfth of an employee's basic salary earned during the calendar year.

  • Employer of record (EOR)

    An employer of record (EOR) is a company that legally employs a worker on another business's behalf.

  • Fully loaded cost

    Fully loaded cost is the total an employer pays for a worker, not just the salary.

Read next

Hire a full-time professional from the Philippines

Every Rekruuto hire is a full-time professional based in the Philippines who works your hours. Most roles are $1,800 a month, software developers start at $2,500 a month, and an AI Implementation Specialist is $2,500 a month. Candidates pass top 2% vetting, hiring takes 14 days, and every hire starts with a 1-week trial with a replacement or refund.

Book a strategy callAll glossary terms