How often employees are paid
Under Article 103 of the Labor Code, wages are paid at least once every two weeks, or twice a month at intervals of no more than 16 days. Many employers pay on the 15th and the last day of the month.
Government contributions
Three contributions are paid every month: Social Security System (SSS), PhilHealth, and Pag-IBIG. The employer adds its share and pays both shares.
| Contribution | Total | Employer | Employee | Based on |
|---|---|---|---|---|
| SSS | 15% | 10% | 5% | Monthly salary credit, ₱5,000 to ₱35,000 |
| PhilHealth | 5% | 2.5% | 2.5% | Basic salary, ₱10,000 to ₱100,000 |
| Pag-IBIG | 4% | 2% | 2% | Up to ₱10,000 of monthly pay |
| Employees’ Compensation | ₱10 or ₱30 | All of it | None | Paid to SSS with the monthly contribution |
The part of the SSS salary credit above ₱20,000 goes to the employee’s MySSS Pension Booster account.
Income tax on salaries
Employers withhold income tax from each payslip under the TRAIN law (Republic Act No. 10963). The yearly rates for 2023 onward:
| Taxable income a year | Tax |
|---|---|
| ₱250,000 or less | 0% |
| Over ₱250,000 to ₱400,000 | 15% of the amount over ₱250,000 |
| Over ₱400,000 to ₱800,000 | ₱22,500 plus 20% of the amount over ₱400,000 |
| Over ₱800,000 to ₱2,000,000 | ₱102,500 plus 25% of the amount over ₱800,000 |
| Over ₱2,000,000 to ₱8,000,000 | ₱402,500 plus 30% of the amount over ₱2,000,000 |
| Over ₱8,000,000 | ₱2,202,500 plus 35% of the amount over ₱8,000,000 |
In monthly terms, there’s no tax on taxable pay up to ₱20,833. Minimum wage earners don’t pay income tax on their minimum wage, holiday pay, overtime, or night shift pay.
13th month pay and tax-free benefits
Every rank-and-file employee gets 13th month pay of at least 1/12 of the basic salary earned in the year, paid by December 24 (Presidential Decree No. 851).
13th month pay and other benefits like a Christmas bonus are tax-free up to ₱90,000 a year in total.
Small benefits called de minimis benefits are also tax-free up to set limits, for example a rice subsidy of up to ₱2,500 a month and Christmas gifts of up to ₱6,000 a year (Revenue Regulations No. 29-2025).
Filing and paying every month
- BIR Form 1601-C: the month’s tax withheld, filed by the 10th of the following month (December’s by January 15).
- SSS: paid by the last day of the following month.
- PhilHealth: paid between the 11th and the 20th of the following month, depending on the employer number.
- Pag-IBIG: paid every month, on a schedule set by the employer’s name.
- BIR Form 1604-C: the yearly return of tax withheld, by January 31.
- BIR Form 2316: each employee’s yearly certificate of pay and tax withheld, by January 31.
How Remote Employee® runs payroll
They are ours to run. As the legal employer, we handle payroll and tax filing, government registration, and contributions. You pay one set monthly invoice, and the price already covers your hire’s wages, payroll, and benefits.
See what the monthly fee covers
Sources
We checked the Philippine rules on this page against these official sources. Rates and rules change, so check the latest before you act on them.
- Labor Code of the Philippines (LawPhil)
- SSS Circular No. 2024-006, contribution schedule
- PhilHealth Advisory No. 2026-0042, premium rate
- Pag-IBIG Fund Circular No. 460 (Grant Thornton copy)
- Republic Act No. 10963, the TRAIN law (LawPhil)
- BIR withholding tax table (RR 11-2018, Annex E)
- BIR Revenue Regulations No. 29-2025, de minimis benefits
- Presidential Decree No. 851, 13th month pay (LawPhil)
- SSS: paying contributions
- PhilHealth: employer payment schedule
