🇵🇭 UniqHRM Compliance Guide

Philippines BIR
Employer Compliance Guide 2025

UniqHRM automates statutory payroll compliance so your team can process payroll with confidence — accurate calculations, on-time submissions and full audit trails.

4 Bodies
BIR · SSS · PhilHealth · Pag-IBIG
₱645/day
NCR Min Wage
Dec 24
13th Month Deadline
🇵🇭
Philippines
BIR · SSS · PhilHealth · Pag-IBIG (HDMF)
Fully Supported in UniqHRM

Philippine Payroll Statutory Overview

Philippine employers must comply with four major statutory bodies governing employee compensation. Each has separate contribution rates, wage bases, filing deadlines and reporting formats — making Philippine payroll one of the more complex compliance environments in ASEAN.

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Bureau of Internal Revenue (BIR)
Income tax withholding on compensation under the TRAIN Law. Monthly remittance via BIR Form 1601-C. Annual reporting via Form 1604-C and Form 2316 per employee.
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Social Security System (SSS)
Mandatory social insurance covering sickness, maternity, disability, retirement and death benefits. Employer and employee contributions based on Monthly Salary Credit.
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PhilHealth
National health insurance contributions. 5% total (2.5% employer + 2.5% employee) on basic monthly salary up to ₱100,000 cap.
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Pag-IBIG / HDMF
Home development mutual fund contributions for housing loans and provident savings. 2% each from employer and employee on compensation up to ₱5,000 basis.

BIR Withholding Tax on Compensation (TRAIN Law)

Employers are required to withhold income tax from employees’ monthly compensation under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, Republic Act 10963. The withheld amount must be remitted to BIR by the 10th or 15th of the following month depending on the employer’s classification.

Annual Taxable IncomeIncome Tax Due
Up to ₱250,0000% — Tax Exempt
₱250,001 – ₱400,00015% on excess over ₱250,000
₱400,001 – ₱800,000₱22,500 + 20% on excess over ₱400,000
₱800,001 – ₱2,000,000₱102,500 + 25% on excess over ₱800,000
₱2,000,001 – ₱8,000,000₱402,500 + 30% on excess over ₱2,000,000
Above ₱8,000,000₱2,202,500 + 35% on excess over ₱8,000,000
📌 Employees earning up to ₱250,000 annually (approximately ₱20,833/month) pay zero income tax under the TRAIN Law. This exemption significantly reduces the tax burden for rank-and-file workers.

SSS, PhilHealth & Pag-IBIG Contribution Rates (2025)

Statutory BodyEmployer ShareEmployee ShareWage Basis / Cap
SSS9.5%4.5%Monthly Salary Credit — max ₱20,000
PhilHealth2.5%2.5%Basic monthly salary — max ₱100,000
Pag-IBIG (HDMF)2%2%Monthly compensation — max ₱5,000 basis

All three contributions must be remitted monthly. SSS and PhilHealth have specific contribution schedule tables — contributions are not simply a flat percentage applied to any salary; they are based on salary brackets that determine the applicable contribution amount.

13th Month Pay

Under Presidential Decree 851, all rank-and-file employees in the private sector who have worked for at least one month during the calendar year are entitled to receive a 13th month pay.

  • Amount: equivalent to 1/12 of the employee’s total basic salary earned during the calendar year
  • Payment deadline: on or before 24 December each year
  • Tax treatment: up to ₱90,000 is tax-exempt under the TRAIN Law
  • Eligibility: all rank-and-file employees regardless of position, designation or employment status
  • Managers and executives are excluded from the rank-and-file definition but most companies extend the benefit as a matter of policy
  • Pro-ration applies for employees who did not work the full year
📌 Example: Employee with ₱25,000 monthly basic salary who worked 12 months. 13th month pay = ₱25,000. This falls below the ₱90,000 tax-exempt threshold and is fully exempt from income tax.

Minimum Wage (NCR, 2025)

Minimum wages in the Philippines are set by Regional Tripartite Wages and Productivity Boards — rates vary by region. The National Capital Region (NCR) has the highest minimum wage in the country.

SectorNCR Daily Rate (2025)
Non-Agriculture (NCR)₱645/day
Agriculture / Service / Retail Establishments with ≤15 workers (NCR)₱645/day
Other regionsVaries — set by Regional Wage Boards. Check DOLE for current rates.

Philippines Payroll Filing Calendar

10th / 15th Monthly
BIR Form 1601-C — Monthly withholding tax on compensation (10th for non-large taxpayers, 15th for large taxpayers)
Monthly
SSS contribution payment (deadline per SSS contribution schedule)
Monthly
PhilHealth contribution remittance via PhilHealth portal
Monthly
Pag-IBIG (HDMF) contribution payment
Quarterly
BIR Form 1601-EQ — Quarterly remittance return of expanded withholding tax
31 January Annual
BIR Form 1604-C — Annual information return of income taxes withheld on compensation
28 February Annual
BIR Form 2316 — Certificate of compensation payment issued to each employee for their personal tax return
24 December Annual
13th Month Pay — must be paid on or before this date

Philippine Payslip Requirements

Under DOLE regulations, employers must provide employees with payslips that clearly show all components of their compensation and deductions. While less prescriptive than Singapore’s MOM requirements, Philippine payslips should include:

  • Basic salary / hourly rate and total hours or days worked
  • All allowances paid — COLA, transportation, meal, housing
  • Overtime pay, night differential, holiday pay and rest day pay
  • SSS, PhilHealth and Pag-IBIG employee share deductions
  • BIR withholding tax deduction for the period
  • Other deductions (loans, cash advances)
  • Net salary paid

Automate Philippines Payroll Compliance with UniqHRM

TRAIN Law Tax Withholding
BIR withholding tax calculated automatically using the correct TRAIN Law brackets for each employee’s annual taxable income — monthly and annualised computation handled automatically.
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SSS Contribution Tables
SSS contributions looked up from the current contribution schedule based on each employee’s Monthly Salary Credit — no manual table lookup required.
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PhilHealth & Pag-IBIG
PhilHealth (5% total) and Pag-IBIG (4% total) contributions calculated and split correctly between employer and employee shares — with applicable salary caps applied.
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13th Month Pay Tracking
UniqHRM tracks each employee’s accumulated basic salary throughout the year to calculate the correct 13th month pay amount — with the ₱90,000 tax-exempt threshold applied automatically.
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Multi-Branch & Multi-Company
Manage payroll for multiple Philippine branches or subsidiary companies under one UniqHRM account — each with separate employee records and statutory filing per entity.
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BIR Form 2316 Data
Generate the compensation and withholding data needed for BIR Form 2316 per employee for annual filing — reducing the manual effort of end-of-year compliance preparation.
Automate Your Compliance

Let UniqHRM Handle the Calculations So You Don’t Have To

Book a demo and see how UniqHRM automates statutory payroll compliance for your team — accurate, on time, and fully auditable.

TRAIN Law BIR tax auto-calculated
SSS contribution table lookup
PhilHealth & Pag-IBIG auto-split
13th Month Pay with ₱90K exemption
Multi-branch payroll support
BIR Form 2316 data export