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Verified: main employer charges cited
Mandatory employer contributions in Philippines
| Contribution | Employer rate | Monthly cap |
|---|---|---|
| SSS + mandatory provident fund (WISP) | 10.0% | 35,000 PHP/month |
| PhilHealth | 2.5% | 100,000 PHP/month |
| Pag-IBIG (HDMF) | 2.0% | 10,000 PHP/month |
| Employees’ Compensation | fixed | 30 PHP/month |
Employer cost at three salary levels
| Annual salary | Employer contributions | On-cost % | Total cost | Total in USD |
|---|---|---|---|---|
| 240,000 PHP | 32,760 PHP | 13.7% | 272,760 PHP | $4,743 |
| 480,000 PHP | 56,760 PHP | 11.8% | 536,760 PHP | $9,334 |
| 959,000 PHP | 68,735 PHP | 7.2% | 1,027,735 PHP | $17,872 |
The examples use 1×, 2× and 4× Philippines’s 2025 GDP per person in local currency (239,838 PHP, World Bank) as reference salaries. GDP per person is not a wage; it is a neutral, cited yardstick for low, middle and senior pay.
Worked example
For a salary of 480,000 PHP a year, the employer adds about 56,760 PHP (11.8%) in mandatory contributions, for a total of 536,760 PHP, about $9,334 at the 2025 average exchange rate. Because some contributions stop at a ceiling, the effective rate falls from 13.7% at the lowest example salary to 7.2% at the highest, so senior hires cost proportionally less in on-costs.
What is not included
- PwC gives the employer maxima: PHP 2,000 SSS + PHP 1,500 WISP, PHP 30 EC; HDMF and PhilHealth match the employee maxima (PHP 200 and PHP 2,500). The 10%, 2.5% and 2% rates reproduce those maxima. 13th-month pay is mandatory; add it as a benefit.
How to budget a hire in Philippines
- Start from the gross salary you plan to offer in PHP.
- Add the mandatory contributions above. The calculator applies caps and salary bands automatically.
- Add benefits customary in Philippines (health cover, bonuses, extra month salaries) as a percentage in the calculator.
- If you have no local entity, add an employer-of-record fee. Deel and Remote both list EOR from $599 per employee per month on their public pricing pages (checked 23 October 2026).
- Convert to your budgeting currency with a current rate. The USD figures here use the World Bank 2025 average.
Compare Philippines with other countries in the any-country comparison, or see whether an EOR, contractor or own entity is cheaper.
Source: PwC Worldwide Tax Summaries: Philippines, other taxes, last reviewed 01 August 2026 (checked 23 October 2026). Exchange rate and GDP per capita: World Bank (2025, indicators PA.NUS.FCRF and NY.GDP.PCAP.CN). HireCost transcribes the rates; it does not invent or estimate missing ones.
Frequently asked questions
How much does it cost to employ someone in Philippines?
On a salary of 480,000 PHP, mandatory employer contributions add about 11.8%, for a total of roughly 536,760 PHP a year before benefits (PwC, reviewed 01 August 2026).
What are employer social security contributions in Philippines?
SSS + mandatory provident fund (WISP) 10.0%, PhilHealth 2.5%, Pag-IBIG (HDMF) 2.0%, plus Employees’ Compensation 30 PHP/month.
Is the Philippines data verified?
Yes: every rate is transcribed from PwC Worldwide Tax Summaries and dated.