| Item | 2026 figure | Notes |
|---|---|---|
| Employer costs on top of salary | About 21.5% | At PHP 35,000 a month, including 13th-month pay |
| 13th-month pay | One twelfth of basic pay | Paid by 24 December |
| SSS employer share | 10% | Monthly salary credit capped at PHP 35,000 |
| PhilHealth employer share | 2.5% | Half of 5%, on salary up to PHP 100,000 a month |
| Pag-IBIG employer share | 2% | On salary up to PHP 10,000 a month |
| Minimum wage (Metro Manila) | PHP 755 a day | PHP 780 from 20 January 2027 |
| Service incentive leave | 5 days | After one year of service |
Philippine employers pay 13th-month pay and four social contributions. Each contribution has its own salary ceiling, so the employer rate falls as pay rises: SSS stops at a monthly salary credit of PHP 35,000, PhilHealth at PHP 100,000 and Pag-IBIG at PHP 10,000.
| Contribution | Employer rate | Applies to |
|---|---|---|
| 13th-month pay | 8.333% | One twelfth of annual basic salary |
| SSS (employer share) | 10% | Monthly salary credit up to PHP 35,000 |
| Employees' Compensation (EC) | ₱360 a year | PHP 30 a month (PHP 10 for salary credits under PHP 15,000) |
| PhilHealth (employer share) | 2.5% | Salary up to PHP 100,000 a month |
| Pag-IBIG (employer share) | 2% | Salary up to PHP 10,000 a month (max PHP 200) |
Employer amounts for a full year at 2026 rates, using the contributions above:
| Annual gross salary | Employer contributions | Share of salary |
|---|---|---|
| ₱420,000 | ₱90,260.00 | 21.49% |
| ₱720,000 | ₱122,760.00 | 17.05% |
| ₱1,200,000 | ₱174,760.00 | 14.56% |
| ₱2,400,000 | ₱274,760.00 | 11.45% |
- Normal hours may not exceed 8 a day. Overtime is paid at the regular wage plus at least 25%, and work on a scheduled rest day or special holiday earns at least 30% extra.
- 5 days of paid service incentive leave a year after one year of service, unless the employer already gives at least 5 days' paid vacation leave or employs fewer than 10 people. Most employers offer 10–15 days of vacation and sick leave.
- Mandatory for rank-and-file employees: one twelfth of total basic salary for the year, paid by 24 December.
- 105 days of maternity leave with full pay (plus 15 days for solo parents and an optional 30 days unpaid; 60 days for miscarriage). SSS pays the maternity benefit, advanced by the employer, and the employer pays the difference up to full pay. Married male employees get 7 days' paternity leave with full pay for the first four deliveries.
- Up to 6 months from the start date (longer only under an apprenticeship agreement). The employer must make the standards for regularisation known at engagement; an employee who keeps working after probation becomes regular.
- Regular employees can only be dismissed for a just cause (such as serious misconduct, gross neglect or fraud) or an authorised cause (such as redundancy or retrenchment), after a written notice of the grounds and a chance to be heard.
- Labour-only contracting is absolutely prohibited. It exists where the contractor lacks substantial capital (at least PHP 5 million paid-up) or investment in tools, equipment and supervision and its workers do work directly related to the principal's main business, or where the contractor does not control how the work is done. If it is found, the principal is deemed the direct employer.
Changes to these rates and rules, newest first. Every country is covered in our law changes tracker.
- From 20 January 2027: Metro Manila minimum wage rises to ₱780 a day. The second tranche of Wage Order NCR-28 adds ₱25 to the non-agriculture rate (₱743 for agriculture and small establishments).
- From 26 September 2026: Metro Manila minimum wage up to ₱755 a day (Wage Order NCR-28). Adds ₱60 to the ₱695 non-agriculture rate (₱718 for agriculture and small establishments). Separately, Wage Order NCR-27 remains before the courts.
What are the employer contributions in the Philippines in 2026?
What is the minimum wage in Metro Manila?
Is 13th-month pay mandatory?
- 1Premium contribution schedule (Circular 2019-0009)
PhilHealth
Final step of the schedule (2024 to 2025): 5% premium shared equally, on monthly basic salary from PHP 10,000 to PHP 100,000. No later schedule has been published.
- 2Labor Code of the Philippines (renumbered, 2022 edition)
Department of Labor and Employment (DOLE)
Arts. 83, 87, 93 (hours, overtime, rest days), 95 (service incentive leave), 106 (contracting), 292(b), 294, 296–298 (probation and termination).
- 3Department Order 174, series of 2017: Rules implementing Articles 106 to 109 of the Labor Code
Department of Labor and Employment (DOLE)
Prohibition of labour-only contracting, PHP 5 million substantial capital, mandatory registration of contractors.
- 4Republic Act No. 11210: 105-Day Expanded Maternity Leave Law
Official Gazette of the Philippines
105 days' paid maternity leave; SSS benefit and employer salary differential (sections 3, 5 and 6).
- 5Labor Advisory No. 13, s. 2024: Guidelines on the payment of thirteenth-month pay
Department of Labor and Employment (DOLE), Bureau of Working Conditions
At least one twelfth of total basic salary earned in the calendar year, paid on or before 24 December.
- 6Circular No. 2024-006: Schedule of SSS contributions for business employers and employees (effective January 2025)
Social Security System (SSS)
15% total rate (10% employer, 5% employee), monthly salary credit from PHP 5,000 to PHP 35,000, EC of PHP 10 or PHP 30 a month.
- 7Circular Letter No. 2024-2: adjustment in the employer share of Pag-IBIG contributions (implementing HDMF Circular No. 460)
Department of Budget and Management (DBM)
Under HDMF Circular No. 460 the maximum fund salary rose from PHP 5,000 to PHP 10,000 a month from February 2024, so the 2% employer share is up to PHP 200 a month.
- 8NCR current daily minimum wage rates (Wage Order NCR-28)
National Wages and Productivity Commission (NWPC)
Metro Manila: PHP 755 a day non-agriculture and PHP 718 agriculture and small establishments from 26 September 2026; PHP 780 and PHP 743 from 20 January 2027.