Mandatory Statutory Deductions in the Philippines
Every formally employed Filipino in the private sector is subject to three mandatory government contributions and progressive income withholding tax:
- Social Security System (SSS): 4.5% employee share based on the Monthly Salary Credit (capped at ₱30,000 MSC $ ightarrow$ max ₱1,350 employee share).
- PhilHealth: 5.0% total contribution rate shared equally (2.5% employee share, capped at ₱100,000 monthly ceiling $ ightarrow$ max ₱2,500).
- Pag-IBIG Fund (HDMF): ₱200 maximum mandatory monthly employee contribution.
- BIR Withholding Tax (TRAIN Law): Progressive tax applied on taxable income after deducting SSS, PhilHealth, and Pag-IBIG contributions.