Employer Cost Calculator
See what an employee costs you each month and each year. Salary, plus your share of SSS, PhilHealth and Pag-IBIG, plus 13th month pay.
Updated October 13, 2026
Calculate the cost of a hire
What a ₱20,000 employee costs you
On a ₱20,000 monthly salary you pay ₱4,396.67 a month on top, so the hire costs ₱24,396.67 a month and ₱292,760.00 a year.
| Line | Monthly | Rule |
|---|---|---|
| Basic salary | ₱20,000.00 | What you agreed to pay |
| Employer SSS | ₱2,000.00 | 10% of the ₱20,000 Monthly Salary Credit, from January 2025 (RA 11199 Sec 4(a)(9); SSS Circular 2024-006) |
| SSS EC | ₱30.00 | Employer only: ₱10 below a ₱15,000 MSC, ₱30 from ₱15,000 (SSS Circular 2024-006) |
| Employer PhilHealth | ₱500.00 | Half of the 5% premium on basic salary (RA 11223 Sec 10; PhilHealth Circular 2020-0005) |
| Employer Pag-IBIG | ₱200.00 | 2% of pay up to the ₱10,000 Maximum Fund Salary (RA 9679 Sec 7; HDMF Circular 460) |
| 13th month pay | ₱1,666.67 | 1/12 of basic salary earned in the year, set aside monthly; ₱20,000 for a full year (PD 851) |
| Total monthly cost | ₱24,396.67 | ₱4,396.67 on top of salary, or 21.98% |
The employee also pays ₱1,700.00 a month (₱1,000.00 SSS, ₱500.00 PhilHealth, ₱200.00 Pag-IBIG). You deduct that from the salary and remit it with your share. It is not an extra cost to you.
Employer cost at common salaries
| Monthly salary | Employer contributions | Total per month | Total per year | On top |
|---|---|---|---|---|
| ₱8,000 | ₱1,220.00 | ₱9,886.67 | ₱118,640.00 | 23.58% |
| ₱15,000 | ₱2,105.00 | ₱18,355.00 | ₱220,260.00 | 22.37% |
| ₱20,000 | ₱2,730.00 | ₱24,396.67 | ₱292,760.00 | 21.98% |
| ₱35,000 | ₱4,605.00 | ₱42,521.67 | ₱510,260.00 | 21.49% |
| ₱50,000 | ₱4,980.00 | ₱59,146.67 | ₱709,760.00 | 18.29% |
Computed by the calculator above, with the 13th month pay included. The percentage falls above ₱35,000 because the SSS Monthly Salary Credit stops at ₱35,000 and Pag-IBIG stops at ₱200.
Next, check what the employee takes home with the salary tax calculator, see the full SSS contribution table, and report the tax you withhold each month on BIR Form 1601-C.
The short answer
For a ₱20,000 monthly salary, the employer pays ₱4,396.67 a month on top, about 22% of salary: ₱2,030 SSS with EC, ₱500 PhilHealth, ₱200 Pag-IBIG and ₱1,666.67 set aside for 13th month pay. The hire costs ₱24,396.67 a month, or ₱292,760 a year.
- The employee pays another ₱1,700 a month (₱1,000 SSS, ₱500 PhilHealth, ₱200 Pag-IBIG). You deduct it from the salary. It is not an extra cost to you.
- Without the 13th month pay, the employer contributions alone add ₱2,730 a month, or 13.65% of a ₱20,000 salary.
- Above ₱35,000 the share falls, because the SSS salary credit stops at ₱35,000 and Pag-IBIG stops at ₱200. At ₱50,000 the cost on top is 18.29%.
How it works
The calculator takes one number, the monthly basic salary, and adds everything the law makes the employer pay on top of it. It shows the cost per month, per year, and how much that is above the salary in pesos and as a percentage.
The formula
Monthly cost = salary + employer SSS + SSS EC + employer PhilHealth + employer Pag-IBIG + salary ÷ 12
- Employer SSS: 10% of the Monthly Salary Credit (MSC). The total SSS rate is 15%: 10% employer, 5% employee (RA 11199 Sec. 4(a)(9); SSS Circular 2024-006). The MSC is your salary rounded to the nearest ₱500, with a ₱5,000 floor and a ₱35,000 ceiling. Employer SSS tops out at ₱3,500.
- SSS EC: the Employees' Compensation premium is paid by the employer only. It is ₱10 a month when the MSC is below ₱15,000 and ₱30 from ₱15,000 (SSS Circular 2024-006 table).
- Employer PhilHealth: 2.5% of basic salary. The premium is 5% of monthly basic salary, shared equally by employer and employee (RA 11223 Sec. 10; PhilHealth Circular 2020-0005). Salaries below ₱10,000 pay on ₱10,000; above ₱100,000 pay on ₱100,000, so the employer share runs from ₱250 to ₱2,500.
- Employer Pag-IBIG: 2% of pay up to the ₱10,000 Maximum Fund Salary, so at most ₱200 a month (RA 9679 Sec. 7; HDMF Circular 460).
- 13th month pay: at least one-twelfth of the basic salary earned in the calendar year (PD 851). The calculator sets aside salary ÷ 12 each month. For a full year that is one month's salary, due by December 24.
Yearly cost = salary × 12 + employer contributions × 12 + one month's salary for the 13th month pay.
Employee shares are not your cost
The employee pays 5% of the MSC to SSS, 2.5% of salary to PhilHealth and 2% (1% at ₱1,500 or less) to Pag-IBIG. You deduct these from the salary and remit them with your own share, so they do not raise what the hire costs you. Withholding tax works the same way: it is the employee's tax, withheld from pay under RR 11-2018 and reported on BIR Form 1601-C.
What this leaves out
The figure covers salary, the three mandatory contributions and 13th month pay. It does not include overtime, holiday pay, night shift differential, de minimis benefits, HMO cover or the cash conversion of unused service incentive leave. Add those if your employee gets them.
To see what the employee takes home, use the salary tax calculator. For the full bracket list, see the SSS contribution table and the PhilHealth contribution table.
Before you hire
- Budget on the monthly cost, not the salary
- A ₱20,000 hire costs ₱24,396.67 a month once employer contributions and the 13th month pay are counted. The 13th month pay is due in one go by December 24 (PD 851), so setting aside salary ÷ 12 each month keeps December from being a cash squeeze.
- Deduct the employee share from pay
- The employee's SSS, PhilHealth and Pag-IBIG shares come out of the salary. On ₱20,000 that is ₱1,700 a month. If you pay them on top instead of deducting them, the hire costs you ₱1,700 more each month than this calculator shows.
- Use the basic salary for PhilHealth
- PhilHealth is computed on monthly basic salary only, not on overtime, allowances, commissions, bonuses or the 13th month pay (PhilHealth Advisory 2025-0002). Keep allowances as separate payroll lines so the base stays correct.
- Check the employee's take-home pay too
- The employee sees the salary less their contributions and withholding tax. Run the same salary through the salary tax calculator so the offer you make matches the pay they expect.
Frequently asked questions
Who pays which share of SSS, PhilHealth and Pag-IBIG?
SSS is 15% of the Monthly Salary Credit: 10% from the employer and 5% from the employee, plus a ₱10 or ₱30 EC premium that only the employer pays (RA 11199; SSS Circular 2024-006). PhilHealth is 5% of basic salary, split equally at 2.5% each (PhilHealth Circular 2020-0005). Pag-IBIG is 2% from the employer and 2% from the employee, on pay up to ₱10,000 (RA 9679 Sec. 7; HDMF Circular 460).
How much does an employer pay for SSS in 2026?
10% of the employee's Monthly Salary Credit plus EC. The MSC runs from ₱5,000 to ₱35,000 in ₱500 steps, so the employer share is ₱500 to ₱3,500, plus ₱10 EC below a ₱15,000 MSC or ₱30 from ₱15,000. On a ₱20,000 salary that is ₱2,000 plus ₱30, or ₱2,030 a month. The 2025 schedule still applies in 2026.
Should I count the 13th month pay as part of the cost of an employee?
Yes. Rank-and-file employees in the private sector must get at least one-twelfth of the basic salary they earned in the calendar year, paid by December 24 (PD 851). Setting aside salary ÷ 12 each month spreads that cost. On a ₱20,000 salary it is ₱1,666.67 a month, or ₱20,000 for a full year.
Is the employer's PhilHealth share based on overtime and bonuses too?
No. The premium is 5% of the monthly basic salary. Commissions, overtime, allowances, 13th month pay and bonuses are not part of the base (PhilHealth Advisory 2025-0002). The employer pays half, 2.5%, on a base of at least ₱10,000 and at most ₱100,000.
Why does the cost on top of salary go down at higher salaries?
Two contributions hit a ceiling. The SSS Monthly Salary Credit stops at ₱35,000, so employer SSS stops at ₱3,530 with EC. Pag-IBIG stops at ₱200. Only PhilHealth keeps rising, up to a ₱100,000 salary. With the 13th month pay included, the cost on top is 21.49% at ₱35,000 and 18.29% at ₱50,000.
Is withholding tax part of the employer's cost?
No. Withholding tax on compensation is the employee's income tax. The employer deducts it from pay using the BIR withholding tables (RR 11-2018) and remits it, so it does not add to the cost of the hire. Use the salary tax calculator to see the employee's take-home pay.
Sources & References (7)
Primary sources and the laws, regulations, and official issuances this page relies on. Each citation links directly to the issuing authority’s document.
- LawPhil Project (Arellano Law Foundation). “SSS contribution rate from January 2025: 15% of the Monthly Salary Credit, 10% employer and 5% employee; MSC floor P5,000 and ceiling P35,000.” lawphil.net. RA 11199 (Social Security Act of 2018), Sec. 4(a)(9) schedule, row 2025. Accessed .
- Social Security System. “SSS schedule of contributions effective January 2025: P500 MSC brackets and the employer-only EC of P10 (MSC below P15,000) or P30 (MSC P15,000 and up).” sss.gov.ph. SSS Circular No. 2024-006. Accessed .
- Philippine Health Insurance Corporation. “PhilHealth premium of 5% of monthly basic salary, income floor P10,000 and ceiling P100,000.” philhealth.gov.ph. PhilHealth Advisory No. 2025-0002; RA 11223 (Universal Health Care Act) Sec. 10. Accessed .
- Philippine Health Insurance Corporation. “PhilHealth premium of employed members shared equally between employee and employer.” philhealth.gov.ph. PhilHealth Circular No. 2020-0005, Part III.B. Accessed .
- LawPhil Project (Arellano Law Foundation). “Pag-IBIG contributions: employer 2%; employee 1% (P1,500 and below) or 2%.” lawphil.net. RA 9679 (HDMF Law of 2009), Sec. 7. Accessed .
- nwpc.dole.gov.ph. “Pag-IBIG Maximum Fund Salary of P10,000; 13th month pay of at least 1/12 of basic salary earned in the year, paid by December 24.” nwpc.dole.gov.ph. DOLE Handbook on Workers' Statutory Monetary Benefits (2024), summarizing HDMF Circular No. 460 and PD 851. Accessed .