Business
Philippines — Business: Payroll
Philippine payroll includes PhilHealth premiums of 5% of monthly income for direct contributors, with a PHP 100,000 income ceiling in 2025.
VerifiedGovernment / official sourcePhilHealth — premium contributions 2025-2026Last reviewed: 2026-10-23
Why this matters
Understanding Philippines payroll regulations is crucial for businesses to avoid non-compliance fines, penalties, and reputational damage.
Key facts
- PhilHealth premiums are 5% of monthly income from January 2025, with a minimum monthly premium of PHP 500.
- For 2025 the income floor was PHP 10,000 and the ceiling PHP 100,000; no 2026 ceiling was found.
- Foreign employees on a 9(g) visa need a valid DOLE Alien Employment Permit before they can be paid for work.
- The 8% income tax option is for self-employed individuals only and does not apply to pure compensation earners (BIR RMO 23-2018).
Steps
- Step 1: Register with the BIR and SSS — Register the business with the Bureau of Internal Revenue (BIR) and the Social Security System (SSS) to obtain necessary tax and social security IDs.
- Step 2: Comply with Tax and Social Security Regulations — File tax returns and remit taxes, and make social security contributions on behalf of employees.
- Step 3: Obtain Required Documents — Obtain and maintain required documents, including employment contracts, payslips, and social security contributions certificates.