PhilHealth introduced the updated payroll contribution rates in the Philippines for 2024 in the latest version of their contribution table released on January 1, 2024. The new version revealed that PhilHealth contributions are going up to 5% this year compared to the previous rate at 4%. Originally, these changes were planned for an earlier release but were suspended by President BongBong Marcos due to the impact of COVID-19 on the Philippine economy.
The organisation also adjusted the table’s income levels, which now range from PHP 10,000 to PHP 100,000.00. They also stated that these changes were made following the guidelines of the ‘Universal Healthcare Law of 2019’ and in continuation of their plan to expand the benefits of all their members.
PhilHealth Contribution Rates in 2024
Both PhilHealth and Home Development Mutual Fund (Pag-IBIG) have changed their contribution rates for 2024. They are as follows:
- PhilHealth: Contribution rate jumps from 4% to 5% of the employee's monthly salary
- Pag-IBIG: Monthly contribution rate doubles from 1% to 2%, along with a Monthly Fund Salary bump from P5,000 to P10,000. This translates to P200 monthly contributions from both employees and employers.
Philhealth and Pag-IBIG then advised employers to update their payroll for the new contribution rates to remain compliant and avoid issues with the law due to uncompliant operations.
Check out the table below for all contribution rate changes from 2019 to 2025, you can also click HERE to see the original table from PhilHealth:
No change to SSS contributions for 2024
In contrast to the changes in the Contribution Rates, the Social Security System (SSS) will continue to retain its 14% contribution rate for the foreseeable future. The contribution shares for employees and their employers will be as follows:
- Employers – shall continue to contribute 9.5% of their share.
- Employees – will still provide their 4.5% share
However, moving to 2025, a planned increase may be in the works to fulfill a requirement of the Social Security Act of 2018.
Impactful changes will be arriving to PhilHealth, Pag-IBIG, and SSS contribution rates in the Philippines that will require attention from both Employers and Payroll Professionals. It’s best to fully understand the details and strategize for seamless integration to avoid any disruptions to your business.
It should be noted that the changes to contribution rates reflect the different goals of the organizations:
- PhilHealth – The increased premium aligns with the expanded healthcare goals
- PAGIBIG Fund – Was made to accommodate the evolving economic considerations
Action Plans for the Upcoming Contribution Rate Changes
The revised PhilHealth and Pag-IBIG contribution rates provide both challenges and opportunities. Thus, Employers in the Philippines are advised to adhere to the following precautions to avoid any legal issues or hefty financial penalties:
- Always be aware of the new changes to the contribution rates and other updates
- Ensure that their establishment’s payroll systems are updated accordingly to said changes
- Provide accurate calculations and deductions from employee salaries following the changes.
Please note that while these adjustments may entail added financial obligations for employers, it is crucial to bear in mind that their primary objective is to enhance the well-being of Filipino workers. The new payroll contribution rates in the Philippines will play a pivotal role in sustaining and expanding social security and healthcare benefits, thereby guaranteeing an improved quality of life for all beneficiaries.
Outsourcing to Payroll Services in the Philippines
We understand that it can be quite tedious to keep up with the continuous changes to payroll guidelines. Our HR and payroll services are designed to meet the requirements of companies that are seeking a consistent and reliable service that is scalable and flexible.
The modern workforce has myriad HR needs and, above all, wants to know that they will be paid on time and accurately. Keeping updated with the latest regulations, we help in the delivery of streamlined and compliant payroll and HR processes.
Our Payroll experts at Mazars in the Philippines can give a guiding hand to both employers and payroll practitioners through the changes step-by-step, ensuring a seamless transition. To contact us, you can click the link HERE or click on the box below this page.