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<!DOCTYPE html><html dir="ltr" lang="en-us"><head><meta charSet="utf-8" data-next-head=""/><meta name="viewport" content="width=device-width" data-next-head=""/><title data-next-head="">Payroll taxes in the Philippines: An employer’s guide | Remote</title><meta name="description" content="Learn how payroll taxes work in the Philippines, and understand what your responsibilities are when you employ staff members there." data-next-head=""/><meta name="twitter:card" content="summary" data-next-head=""/><meta name="twitter:title" content="Payroll taxes in the Philippines: An employer’s guide" data-next-head=""/><meta name="twitter:description" content="Learn how payroll taxes work in the Philippines, and understand what your responsibilities are when you employ staff members there." data-next-head=""/><meta name="twitter:image" content="https://images.ctfassets.net/8naaccf28y0f/5YHfcdMmbpIbMSGi9sI5tL/95244ec4cef7c092b68b62b05b3d0c9b/philippines.jpg?fm=webp&w=1920" data-next-head=""/><meta 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tabindex="0" class="sc-e8e52cf3-6 etbnLB">Global Payroll</a> <!-- -->—<!-- --> <!-- -->6<!-- --> min</p><h1 class="sc-2e52db73-16 kKMbKO">Payroll taxes in the Philippines: An employer’s guide</h1><div class="sc-2e52db73-8 fmNcQl"><div class="sc-2e52db73-10 ZOqHE">Written by <span class="sc-2e52db73-13 bzmmVn"><a href="/blog/author/jonathan-goldsmith">Jonathan Goldsmith</a></span></div><div class="sc-2e52db73-14 jlqTyM"><span class="sc-2e52db73-15 buvXPN">December 3, 2024</span></div><div class="sc-2e52db73-11 SMXEN"><div class="sc-2e52db73-12 bTUqIa"><span class="sc-2e52db73-9 kxOwCo"><a href="/blog/author/jonathan-goldsmith"><img alt="Jonathan Goldsmith" loading="lazy" width="40" height="40" decoding="async" data-nimg="1" style="color:transparent;object-fit:cover" srcSet="https://blog.remote.com/blog/_next/image?url=https%3A%2F%2Fimages.ctfassets.net%2F8naaccf28y0f%2F2TykpoURinkjXkxFjn0W2N%2Fccfd07a0b91a9f4f45546c4127e3eb5f%2FScreenshot_2023-10-10_at_14.00.09.png&w=48&q=75 1x, 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src="https://blog.remote.com/blog/images/icons/twitter.svg"/></a><a href="http://www.facebook.com/sharer.php?u=https://remote.com/blog/payroll-taxes-philippines&p[title]=Payroll taxes in the Philippines: An employer’s guide" target="_blank" rel="noreferrer" tabindex="0" class="sc-e8e52cf3-6 etbnLB"><img alt="share to Facebook" loading="lazy" width="8" height="17" decoding="async" data-nimg="1" style="color:transparent" src="https://blog.remote.com/blog/images/icons/facebook.svg"/></a><button><span class="sc-1cd0255a-0 hFkLur">copy link to clipboard</span><img alt="copy link to clipboard" aria-hidden="true" loading="lazy" width="20" height="21" decoding="async" data-nimg="1" style="color:transparent" src="https://blog.remote.com/blog/images/icons/link.svg"/></button><div class="sc-2e52db73-3 hJIEPk">Link copied <br/>to clipboard</div></div><div class="sc-2e52db73-18 iRGfhb"><p>When you hire in the Philippines, you — as the employer — are responsible for calculating, withholding, and submitting payroll taxes from your team members’ pay slips. For some taxes, you are also required to make employer contributions.</p><p>In this article, we’ll explain clearly which taxes you need to withhold, which taxes you need to contribute to, and how to remit and make payments. So let’s jump straight in.</p><div class="sc-c8601491-0 cgKInu"><span class="sc-c8601491-1 jXMiBx"><svg viewBox="0 0 24 24" fill="currentColor" width="24" xmlns="http://www.w3.org/2000/svg" class="sc-c8601491-2 cChZlq"><path fill-rule="evenodd" clip-rule="evenodd" d="M1 3a1 1 0 011-1h6a5 5 0 015 5v14a1 1 0 11-2 0 2 2 0 00-2-2H2a1 1 0 01-1-1V3zm10 14.54V7a3 3 0 00-3-3H3v13h6a4 4 0 012 .54z"></path><path fill-rule="evenodd" clip-rule="evenodd" d="M12.46 3.46A5 5 0 0116 2h6a1 1 0 011 1v15a1 1 0 01-1 1h-7a2 2 0 00-2 2 1 1 0 11-2 0V7a5 5 0 011.46-3.54zM13 17.54a4 4 0 012-.54h6V4h-5a3 3 0 00-3 3v10.54z"></path></svg><span class="sc-c8601491-5 gUaBok">Jump straight to a key chapter</span></span><ul class="sc-c8601491-3 xDcKr"><li class="sc-c8601491-4 cKJYaE"><a href="#what-is-payroll-tax" tabindex="0" class="sc-e8e52cf3-6 etbnLB">What is payroll tax?</a></li><li class="sc-c8601491-4 cKJYaE"><a href="#which-payroll-taxes-do-you-need-to-withhold-from-your-employee-in-the-philippines" tabindex="0" class="sc-e8e52cf3-6 etbnLB">Which payroll taxes do you need to withhold from your employee in the Philippines?</a></li><li class="sc-c8601491-4 cKJYaE"><a href="#which-payroll-taxes-does-your-business-need-to-contribute-to" tabindex="0" class="sc-e8e52cf3-6 etbnLB">Which payroll taxes does your business need to contribute to?</a></li><li class="sc-c8601491-4 cKJYaE"><a href="#how-do-you-remit-and-pay-payroll-taxes-in-the-philippines" tabindex="0" class="sc-e8e52cf3-6 etbnLB">How do you remit and pay payroll taxes in the Philippines?</a></li><li class="sc-c8601491-4 cKJYaE"><a href="#how-do-you-manage-payroll-taxes-as-an-international-employer" tabindex="0" class="sc-e8e52cf3-6 etbnLB">How do you manage payroll taxes as an international employer?</a></li><li class="sc-c8601491-4 cKJYaE"><a href="#what-about-independent-contractors" tabindex="0" class="sc-e8e52cf3-6 etbnLB">What about independent contractors?</a></li><li class="sc-c8601491-4 cKJYaE"><a href="#how-can-remote-help" tabindex="0" class="sc-e8e52cf3-6 etbnLB">How can Remote help?</a></li></ul></div><h2 id="what-is-payroll-tax">What is payroll tax?</h2><p>Payroll taxes are the contributions employees and businesses make to the government to fund public programs, such as retirement, healthcare, and unemployment insurance. They typically include income tax and social contributions, and are set at pre-determined rates.</p><p>These rates (and the rules governing them) vary by country, but it’s every employer’s responsibility to ensure they are compliant, and that they are withholding and submitting the correct amounts.</p><h3 id="what-is-the-difference-between-payroll-taxes-and-corporate-taxes">What is the difference between payroll taxes and corporate taxes?</h3><p>Generally, payroll taxes are tied to your employees’ wages, while corporate taxes are based on your company’s profits. </p><h2 id="which-payroll-taxes-do-you-need-to-withhold-from-your-employee-in-the-philippines">Which payroll taxes do you need to withhold from your employee in the Philippines?</h2><p>In the Philippines, the taxes you’ll need to withhold are:</p><h3 id="income-tax">Income tax</h3><p>Residents of the Philippines are taxed progressively based on their level of income, at rates of between 0% and 35%. You must withhold taxes from their pay slip based on these rates.</p><p><b>When to pay:</b> Withheld taxes must be remitted to the Bureau of Internal Revenue (BIR) by the 10th day of the following month.</p><h3 id="social-security-system-sss-contributions">Social Security System (SSS) contributions</h3><p>Employees are required to contribute 4.5% of their salary to the country’s social fund, which covers benefits for retirement, disability, maternity, sickness, and death.</p><p><b>When to pay:</b> Remittances are due by the 15th day of the following month.</p><h3 id="philippine-health-insurance-corporation-phil-health-contributions">Philippine Health Insurance Corporation (PhilHealth) contributions</h3><p>This tax is used to fund health insurance coverage. It’s taxed at 2.5% of the employee’s monthly salary, up to a ceiling of ₱100,000.</p><p><b>When to pay:</b> Contributions should be remitted by the 10th day of the following month.</p><h3 id="home-development-mutual-fund-pag-ibig-contributions">Home Development Mutual Fund (Pag-IBIG) contributions</h3><p>The Pag-IBIG is a mutual fund that covers housing loans and savings programs. For employees earning over ₱1,500 monthly, the contribution is 2%; those earning ₱1,500 or less contribute 1%.</p><p><b>When to pay:</b> Contributions are due by the 10th day of the following month.</p><p>Note that you may also be required to withhold additional taxes for certain employees, such as child support payments, student loan repayments, or any other <a target="_blank" rel="noopener noreferrer" href="https://remote.com/resources/hr-glossary/garnishment" tabindex="0" class="sc-e8e52cf3-6 etbnLB"><u>court-ordered garnishments</u></a>.</p><h2 id="which-payroll-taxes-does-your-business-need-to-contribute-to">Which payroll taxes does your business need to contribute to?</h2><p>As well as withholding the contributions listed above, you are also required to make your own contributions, as follows:</p><h3 id="sss-contributions">SSS contributions</h3><p>As the employer, you must also make SSS contributions. These should total 9.5% of your employees’ monthly salary.</p><p><b>When to pay:</b> At the same time as employee contributions (see previous section).</p><h3 id="phil-health-contributions">PhilHealth contributions</h3><p>Employers contribute 2.5% of the employee's monthly salary, with a salary ceiling of ₱100,000.</p><p><b>When to pay:</b> At the same time as employee contributions.</p><h3 id="pag-ibig-contributions">Pag-IBIG contributions</h3><p>You must make an employer contribution of 2% of the employee's monthly compensation.</p><p><b>When to pay:</b> At the same time as employee contributions.</p><h3 id="employees-compensation-program-ec">Employees’ Compensation Program (EC)</h3><p>This program provides compensation for work-related injuries or illnesses. You must contribute ₱10 for employees earning ₱14,749 or less monthly, and ₱30 for those earning more.</p><p><b>When to pay:</b> Monthly, alongside your SSS contributions.</p><p><b>To quickly see a full breakdown of payroll taxes and employment costs for your Philippine hire(s) based on their salary, use our free </b><a target="_blank" rel="noopener noreferrer" href="https://remote.com/resources/employee-cost-calculator" tabindex="0" class="sc-e8e52cf3-6 etbnLB"><b><u>Employee Cost Calculator tool</u></b></a><b>.</b></p><h2 id="how-do-you-remit-and-pay-payroll-taxes-in-the-philippines">How do you remit and pay payroll taxes in the Philippines?</h2><p>To pay these taxes, you will first need to calculate the correct amounts for withholding. If you use <a target="_blank" rel="noopener noreferrer" href="https://remote.com/global-hr/global-payroll" tabindex="0" class="sc-e8e52cf3-6 etbnLB"><u>Remote Payroll</u></a> or <a target="_blank" rel="noopener noreferrer" href="https://remote.com/global-hr/employer-of-record" tabindex="0" class="sc-e8e52cf3-6 etbnLB"><u>Remote EOR</u></a>, we will do this for you.</p><p>You must also ensure that you are:</p><ul><li><p>Registered as an employer with the BIR</p></li><li><p>Enrolled as an employer with SSS, PhilHealth, and Pag-IBIG</p></li></ul><p>You should remit and make the relevant payments through each agency’s online portal, in line with the deadlines listed in the previous sections.</p><h2 id="how-do-you-manage-payroll-taxes-as-an-international-employer">How do you manage payroll taxes as an international employer?</h2><p>When you hire a Philippines-based team member from abroad, there are several ways you can manage their payroll and payroll taxes.</p><p>If you already have your own legal entity in the Philippines, you can:</p><ul><li><p><b>Handle it in-house.</b> You can hire your own payroll tax specialists and manage everything internally. This can be costly, however.</p></li><li><p><b>Use a local third party.</b> You can hire a local firm to handle payroll, although this can be unreliable, costly, and pose data risks.</p></li><li><p><b>Use a PEO.</b> A professional employment organization (PEO) acts as an outsourced HR provider, and includes payroll.</p></li><li><p><b>Use a global payroll provider.</b> Global payroll providers — <a target="_blank" rel="noopener noreferrer" href="https://remote.com/global-hr/global-payroll" tabindex="0" class="sc-e8e52cf3-6 etbnLB"><u>like Remote</u></a> — have local specialists in multiple countries, ensuring that you are fully compliant with all tax requirements in each one. This is especially convenient if you have (or plan to have) employees in different countries, as you can manage all of them through one platform.</p></li></ul><p>If you don’t have your own entity in the Philippines and you still want to hire there, you can:</p><ul><li><p><b>Set up your own entity. </b>This can be extremely costly and time-consuming, but if you plan on establishing your business long-term in the Philippines, it might be a viable approach. To pay your employees, you would then need to choose one of the options above.</p></li><li><p><b>Use an EOR.</b> Employer of record (EOR) providers — <a target="_blank" rel="noopener noreferrer" href="https://remote.com/global-hr/employer-of-record" tabindex="0" class="sc-e8e52cf3-6 etbnLB"><u>like Remote</u></a> — enable you to quickly and easily hire anywhere in the world, and also handle all the core HR functions (such as compliance and payroll). As well as being generally more cost-effective than opening your own entity, this option is highly scalable and, again, enables you to streamline all your global HR tasks in one place. <a href="/blog/what-does-eor-do" tabindex="0" class="sc-e8e52cf3-6 etbnLB"><u>How does an EOR work?</u></a></p></li></ul><p></p><div class="sc-3e00b9dc-0 jhBKrR"><div class="sc-3e00b9dc-1 jQxumU"><img alt="link to EOR, Payroll, or both: What does your business need?" loading="lazy" decoding="async" data-nimg="fill" style="position:absolute;height:100%;width:100%;left:0;top:0;right:0;bottom:0;object-fit:cover;color:transparent;border-radius:10px 0 0 10px;margin:0" sizes="100vw" srcSet="https://blog.remote.com/blog/_next/image?url=https%3A%2F%2Fimages.ctfassets.net%2F8naaccf28y0f%2F17oWF06IlJ4W6vIxevdcko%2F5375b0dbffa6d0c7ce6d26674022d8cd%2Fremote_content_team_create_a_photo_of_a_person_in_a_cool_office_bc7cb279-7166-41d5-80d1-2d2f6b80afd2.png%3Ffm%3Dwebp%26w%3D666%26h%3D600%26fit%3Dfill&w=640&q=75 640w, https://blog.remote.com/blog/_next/image?url=https%3A%2F%2Fimages.ctfassets.net%2F8naaccf28y0f%2F17oWF06IlJ4W6vIxevdcko%2F5375b0dbffa6d0c7ce6d26674022d8cd%2Fremote_content_team_create_a_photo_of_a_person_in_a_cool_office_bc7cb279-7166-41d5-80d1-2d2f6b80afd2.png%3Ffm%3Dwebp%26w%3D666%26h%3D600%26fit%3Dfill&w=750&q=75 750w, https://blog.remote.com/blog/_next/image?url=https%3A%2F%2Fimages.ctfassets.net%2F8naaccf28y0f%2F17oWF06IlJ4W6vIxevdcko%2F5375b0dbffa6d0c7ce6d26674022d8cd%2Fremote_content_team_create_a_photo_of_a_person_in_a_cool_office_bc7cb279-7166-41d5-80d1-2d2f6b80afd2.png%3Ffm%3Dwebp%26w%3D666%26h%3D600%26fit%3Dfill&w=828&q=75 828w, https://blog.remote.com/blog/_next/image?url=https%3A%2F%2Fimages.ctfassets.net%2F8naaccf28y0f%2F17oWF06IlJ4W6vIxevdcko%2F5375b0dbffa6d0c7ce6d26674022d8cd%2Fremote_content_team_create_a_photo_of_a_person_in_a_cool_office_bc7cb279-7166-41d5-80d1-2d2f6b80afd2.png%3Ffm%3Dwebp%26w%3D666%26h%3D600%26fit%3Dfill&w=1080&q=75 1080w, https://blog.remote.com/blog/_next/image?url=https%3A%2F%2Fimages.ctfassets.net%2F8naaccf28y0f%2F17oWF06IlJ4W6vIxevdcko%2F5375b0dbffa6d0c7ce6d26674022d8cd%2Fremote_content_team_create_a_photo_of_a_person_in_a_cool_office_bc7cb279-7166-41d5-80d1-2d2f6b80afd2.png%3Ffm%3Dwebp%26w%3D666%26h%3D600%26fit%3Dfill&w=1200&q=75 1200w, https://blog.remote.com/blog/_next/image?url=https%3A%2F%2Fimages.ctfassets.net%2F8naaccf28y0f%2F17oWF06IlJ4W6vIxevdcko%2F5375b0dbffa6d0c7ce6d26674022d8cd%2Fremote_content_team_create_a_photo_of_a_person_in_a_cool_office_bc7cb279-7166-41d5-80d1-2d2f6b80afd2.png%3Ffm%3Dwebp%26w%3D666%26h%3D600%26fit%3Dfill&w=1920&q=75 1920w, https://blog.remote.com/blog/_next/image?url=https%3A%2F%2Fimages.ctfassets.net%2F8naaccf28y0f%2F17oWF06IlJ4W6vIxevdcko%2F5375b0dbffa6d0c7ce6d26674022d8cd%2Fremote_content_team_create_a_photo_of_a_person_in_a_cool_office_bc7cb279-7166-41d5-80d1-2d2f6b80afd2.png%3Ffm%3Dwebp%26w%3D666%26h%3D600%26fit%3Dfill&w=2048&q=75 2048w, https://blog.remote.com/blog/_next/image?url=https%3A%2F%2Fimages.ctfassets.net%2F8naaccf28y0f%2F17oWF06IlJ4W6vIxevdcko%2F5375b0dbffa6d0c7ce6d26674022d8cd%2Fremote_content_team_create_a_photo_of_a_person_in_a_cool_office_bc7cb279-7166-41d5-80d1-2d2f6b80afd2.png%3Ffm%3Dwebp%26w%3D666%26h%3D600%26fit%3Dfill&w=3840&q=75 3840w" src="https://blog.remote.com/blog/_next/image?url=https%3A%2F%2Fimages.ctfassets.net%2F8naaccf28y0f%2F17oWF06IlJ4W6vIxevdcko%2F5375b0dbffa6d0c7ce6d26674022d8cd%2Fremote_content_team_create_a_photo_of_a_person_in_a_cool_office_bc7cb279-7166-41d5-80d1-2d2f6b80afd2.png%3Ffm%3Dwebp%26w%3D666%26h%3D600%26fit%3Dfill&w=3840&q=75"/></div><div class="sc-3e00b9dc-2 eWafhX"><div class="sc-e8882eee-1 jFPwkZ"><div class="sc-e8882eee-2 gcpYSg"><a href="/blog/category/global-hr" class="sc-3e00b9dc-4 eYBHo">Global HR</a> <!-- -->—</div><div class="sc-e8882eee-3 eHSIGt">5<!-- --> min</div></div><h4 class="sc-e8882eee-4 VLose"><a href="https://remote.com/blog/eor-payroll-difference" class="sc-3e00b9dc-4 eYBHo">EOR, Payroll, or both: What does your business need?</a></h4><div class="sc-3e00b9dc-3 ftjLeb">Understand the difference between EOR and payroll services — and clarify which one your business needs to pay your international team members.</div></div></div><h2 id="what-about-independent-contractors">What about independent contractors?</h2><p>In the Philippines, independent contractors are classified differently to employees. As a result, they (in most cases) are responsible for calculating, managing, and paying their own taxes.</p><p>However, it’s crucial to understand the difference between contractors and employees, as you may inadvertently create <a href="/blog/employee-independent-contractor-misclassification" tabindex="0" class="sc-e8e52cf3-6 etbnLB"><u>misclassification risk</u></a>. This can result in severe fines and penalties for your business. <a href="/blog/how-to-hire-pay-contractors-in-philippines" tabindex="0" class="sc-e8e52cf3-6 etbnLB"><u>Learn more about hiring contractors in the Philippines</u></a>.</p><h2 id="how-can-remote-help">How can Remote help?</h2><p>Knowing which payroll taxes you need to calculate, withhold, and contribute to requires local expertise, especially as these rules can — and do — change. And if you make a mistake or fail to comply, the financial consequences can be significant.</p><p>Whether you have your own entity in the Philippines or not, Remote ensures that you are withholding and contributing the correct amounts, and that you are fully compliant at all times with local tax and employment laws. We also provide 24/7 support for any guidance you may need.</p><p>To see how we can help — and to learn which approach is the most suitable for your business — <a target="_blank" rel="noopener noreferrer" href="https://remote.com/contact-us" tabindex="0" class="sc-e8e52cf3-6 etbnLB"><u>speak to one of our friendly payroll experts</u></a> today.</p><div class="sc-4ea58b2a-11 JECvZ"><div class="sc-4ea58b2a-10 cxRDfB"><div class="sc-4ea58b2a-0 epZyzL"><h2 class="sc-4ea58b2a-1 fwxfkC">Trust G2’s multi-country payroll leader to keep you compliant</h2></div><div class="sc-4ea58b2a-3 gdKDFE"><div class="sc-4ea58b2a-4 iaGrIa"><div class="sc-4ea58b2a-2 sc-41f7d48b-0 jvSOAF kGudTq"><p>Hire and pay your global team with Remote and get access to our team of global taxation experts.</p></div><div class="sc-41f7d48b-1 kuDDYf"><a href="https://employ.remote.com/sign-up/" class="sc-232c646f-1 sc-232c646f-2 llRthT iNPNyG sc-4ea58b2a-6 dGXuWE">Get started now</a><button type="button" 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For some taxes, you are also required to make employer contributions.","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"In this article, we’ll explain clearly which taxes you need to withhold, which taxes you need to contribute to, and how to remit and make payments. So let’s jump straight in.","marks":[],"data":{}}]},{"nodeType":"heading-2","data":{},"content":[{"nodeType":"text","value":"What is payroll tax?","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"Payroll taxes are the contributions employees and businesses make to the government to fund public programs, such as retirement, healthcare, and unemployment insurance. They typically include income tax and social contributions, and are set at pre-determined rates.","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"These rates (and the rules governing them) vary by country, but it’s every employer’s responsibility to ensure they are compliant, and that they are withholding and submitting the correct amounts.","marks":[],"data":{}}]},{"nodeType":"heading-3","data":{},"content":[{"nodeType":"text","value":"What is the difference between payroll taxes and corporate taxes?","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"Generally, payroll taxes are tied to your employees’ wages, while corporate taxes are based on your company’s profits. ","marks":[],"data":{}}]},{"nodeType":"heading-2","data":{},"content":[{"nodeType":"text","value":"Which payroll taxes do you need to withhold from your employee in the Philippines?","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"In the Philippines, the taxes you’ll need to withhold are:","marks":[],"data":{}}]},{"nodeType":"heading-3","data":{},"content":[{"nodeType":"text","value":"Income tax","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"Residents of the Philippines are taxed progressively based on their level of income, at rates of between 0% and 35%. You must withhold taxes from their pay slip based on these rates.","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"When to pay:","marks":[{"type":"bold"}],"data":{}},{"nodeType":"text","value":" Withheld taxes must be remitted to the Bureau of Internal Revenue (BIR) by the 10th day of the following month.","marks":[],"data":{}}]},{"nodeType":"heading-3","data":{},"content":[{"nodeType":"text","value":"Social Security System (SSS) contributions","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"Employees are required to contribute 4.5% of their salary to the country’s social fund, which covers benefits for retirement, disability, maternity, sickness, and death.","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"When to pay:","marks":[{"type":"bold"}],"data":{}},{"nodeType":"text","value":" Remittances are due by the 15th day of the following month.","marks":[],"data":{}}]},{"nodeType":"heading-3","data":{},"content":[{"nodeType":"text","value":"Philippine Health Insurance Corporation (PhilHealth) contributions","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"This tax is used to fund health insurance coverage. It’s taxed at 2.5% of the employee’s monthly salary, up to a ceiling of ₱100,000.","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"When to pay:","marks":[{"type":"bold"}],"data":{}},{"nodeType":"text","value":" Contributions should be remitted by the 10th day of the following month.","marks":[],"data":{}}]},{"nodeType":"heading-3","data":{},"content":[{"nodeType":"text","value":"Home Development Mutual Fund (Pag-IBIG) contributions","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"The Pag-IBIG is a mutual fund that covers housing loans and savings programs. For employees earning over ₱1,500 monthly, the contribution is 2%; those earning ₱1,500 or less contribute 1%.","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"When to pay:","marks":[{"type":"bold"}],"data":{}},{"nodeType":"text","value":" Contributions are due by the 10th day of the following month.","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"Note that you may also be required to withhold additional taxes for certain employees, such as child support payments, student loan repayments, or any other ","marks":[],"data":{}},{"nodeType":"hyperlink","data":{"uri":"https://remote.com/resources/hr-glossary/garnishment"},"content":[{"nodeType":"text","value":"court-ordered garnishments","marks":[{"type":"underline"}],"data":{}}]},{"nodeType":"text","value":".","marks":[],"data":{}}]},{"nodeType":"heading-2","data":{},"content":[{"nodeType":"text","value":"Which payroll taxes does your business need to contribute to?","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"As well as withholding the contributions listed above, you are also required to make your own contributions, as follows:","marks":[],"data":{}}]},{"nodeType":"heading-3","data":{},"content":[{"nodeType":"text","value":"SSS contributions","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"As the employer, you must also make SSS contributions. These should total 9.5% of your employees’ monthly salary.","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"When to pay:","marks":[{"type":"bold"}],"data":{}},{"nodeType":"text","value":" At the same time as employee contributions (see previous section).","marks":[],"data":{}}]},{"nodeType":"heading-3","data":{},"content":[{"nodeType":"text","value":"PhilHealth contributions","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"Employers contribute 2.5% of the employee's monthly salary, with a salary ceiling of ₱100,000.","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"When to pay:","marks":[{"type":"bold"}],"data":{}},{"nodeType":"text","value":" At the same time as employee contributions.","marks":[],"data":{}}]},{"nodeType":"heading-3","data":{},"content":[{"nodeType":"text","value":"Pag-IBIG contributions","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"You must make an employer contribution of 2% of the employee's monthly compensation.","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"When to pay:","marks":[{"type":"bold"}],"data":{}},{"nodeType":"text","value":" At the same time as employee contributions.","marks":[],"data":{}}]},{"nodeType":"heading-3","data":{},"content":[{"nodeType":"text","value":"Employees’ Compensation Program (EC)","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"This program provides compensation for work-related injuries or illnesses. You must contribute ₱10 for employees earning ₱14,749 or less monthly, and ₱30 for those earning more.","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"When to pay:","marks":[{"type":"bold"}],"data":{}},{"nodeType":"text","value":" Monthly, alongside your SSS contributions.","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"To quickly see a full breakdown of payroll taxes and employment costs for your Philippine hire(s) based on their salary, use our free ","marks":[{"type":"bold"}],"data":{}},{"nodeType":"hyperlink","data":{"uri":"https://remote.com/resources/employee-cost-calculator"},"content":[{"nodeType":"text","value":"Employee Cost Calculator tool","marks":[{"type":"underline"},{"type":"bold"}],"data":{}}]},{"nodeType":"text","value":".","marks":[{"type":"bold"}],"data":{}}]},{"nodeType":"heading-2","data":{},"content":[{"nodeType":"text","value":"How do you remit and pay payroll taxes in the Philippines?","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"To pay these taxes, you will first need to calculate the correct amounts for withholding. If you use ","marks":[],"data":{}},{"nodeType":"hyperlink","data":{"uri":"https://remote.com/global-hr/global-payroll"},"content":[{"nodeType":"text","value":"Remote Payroll","marks":[{"type":"underline"}],"data":{}}]},{"nodeType":"text","value":" or ","marks":[],"data":{}},{"nodeType":"hyperlink","data":{"uri":"https://remote.com/global-hr/employer-of-record"},"content":[{"nodeType":"text","value":"Remote EOR","marks":[{"type":"underline"}],"data":{}}]},{"nodeType":"text","value":", we will do this for you.","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"You must also ensure that you are:","marks":[],"data":{}}]},{"nodeType":"unordered-list","data":{},"content":[{"nodeType":"list-item","data":{},"content":[{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"Registered as an employer with the BIR","marks":[],"data":{}}]}]},{"nodeType":"list-item","data":{},"content":[{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"Enrolled as an employer with SSS, PhilHealth, and Pag-IBIG","marks":[],"data":{}}]}]}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"You should remit and make the relevant payments through each agency’s online portal, in line with the deadlines listed in the previous sections.","marks":[],"data":{}}]},{"nodeType":"heading-2","data":{},"content":[{"nodeType":"text","value":"How do you manage payroll taxes as an international employer?","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"When you hire a Philippines-based team member from abroad, there are several ways you can manage their payroll and payroll taxes.","marks":[],"data":{}}]},{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"If you already have your own legal entity in the Philippines, you can:","marks":[],"data":{}}]},{"nodeType":"unordered-list","data":{},"content":[{"nodeType":"list-item","data":{},"content":[{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"Handle it in-house.","marks":[{"type":"bold"}],"data":{}},{"nodeType":"text","value":" You can hire your own payroll tax specialists and manage everything internally. This can be costly, however.","marks":[],"data":{}}]}]},{"nodeType":"list-item","data":{},"content":[{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"Use a local third party.","marks":[{"type":"bold"}],"data":{}},{"nodeType":"text","value":" You can hire a local firm to handle payroll, although this can be unreliable, costly, and pose data risks.","marks":[],"data":{}}]}]},{"nodeType":"list-item","data":{},"content":[{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"Use a PEO.","marks":[{"type":"bold"}],"data":{}},{"nodeType":"text","value":" A professional employment organization (PEO) acts as an outsourced HR provider, and includes payroll.","marks":[],"data":{}}]}]},{"nodeType":"list-item","data":{},"content":[{"nodeType":"paragraph","data":{},"content":[{"nodeType":"text","value":"Use a global payroll provider.","marks":[{"type":"bold"}],"data":{}},{"nodeType":"text","value":" Global payroll providers — ","marks":[],"data":{}},{"nodeType":"hyperlink","data":{"uri":"https://remote.com/global-hr/global-payroll"},"content":[{"nodeType":"text","value":"like Remote","marks":[{"type":"underline"}],"data":{}}]},{"nodeType":"text","value":" — have local specialists in multiple countries, ensuring that you are fully compliant with all tax requirements in each one. 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