Mandatory government contributions in the Philippines are the three statutory deductions every covered employee must pay from their monthly salary: the Social Security System (SSS), the Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund (Pag-IBIG). They are separate from income tax. Together with withholding tax, they explain the gap between your gross pay and your net take-home pay. This pillar guide covers all three for 2026—what each one funds, who pays what, and how the numbers land on a real payslip.
What are the mandatory government contributions in the Philippines?
There are three mandatory contributions for employed Filipinos in 2026: SSS, PhilHealth, and Pag-IBIG. SSS provides pension, sickness, maternity, disability, and death benefits. PhilHealth funds national health insurance. Pag-IBIG is a forced-savings and housing-loan fund. All three are legally required for covered private-sector employees, and employers are obligated to deduct, match, and remit them.
- SSS (Social Security System) — retirement, sickness, maternity, disability, and death benefits under Republic Act No. 11199 (Social Security Act of 2018).
- PhilHealth — national health insurance under Republic Act No. 11223 (Universal Health Care Act).
- Pag-IBIG / HDMF — savings and housing fund under Republic Act No. 9679 (HDMF Law of 2009).
These are mandatory benefits, not taxes, but they are deducted before income tax in your payroll computation. That ordering matters, which we explain in the worked example below.
How much is the SSS contribution in 2026?
The 2026 SSS contribution rate is 15% of your Monthly Salary Credit (MSC)—the employer pays 10% and the employee pays 5%. The MSC floor is ₱5,000 and the ceiling is ₱35,000, so the maximum total contribution is ₱5,280 per month (₱1,750 employee + ₱3,530 employer, the latter including a small Employees' Compensation fee). The rate has been fixed at 15% since 2025 under the Social Security Act of 2018.
The employer's share carries an Employees' Compensation (EC) fee of ₱10 for an MSC below ₱15,000 and ₱30 from ₱15,000 up. For salaries with an MSC above ₱20,000, part of the contribution is automatically routed to the Mandatory Provident Fund (MPF/WISP)—an extra retirement-savings layer—but to you it still appears as a single deduction. Self-employed members, voluntary members, and OFWs pay the full 15% themselves; see our self-employed tax guide and OFW tax guide. For the full bracket-by-bracket schedule, use the SSS contribution table 2026.
How much is the PhilHealth contribution in 2026?
The 2026 PhilHealth premium rate is 5% of your monthly basic salary, split evenly—2.5% from you and 2.5% from your employer. The income floor is ₱10,000 and the ceiling is ₱100,000, so the monthly premium ranges from ₱500 (minimum) to ₱5,000 (maximum). For an employee, that is ₱250–₱2,500 on each side. PhilHealth confirmed through the Philippine Information Agency that there is no rate hike for 2026; 5% is the final scheduled rate under the Universal Health Care Act.
A worker earning exactly ₱10,000 or below pays the ₱500 floor; anyone earning ₱100,000 or above is capped at ₱5,000. The full salary-bracket breakdown lives in our PhilHealth contribution table 2026 guide, so this pillar links to it rather than repeating the table.
How much is the Pag-IBIG contribution in 2026?
The 2026 Pag-IBIG (HDMF) contribution rate is 2% for the employee and 2% for the employer, computed on a Maximum Fund Salary (MFS) capped at ₱10,000. That caps the mandatory deduction at ₱200 each, or ₱400 combined per month. Employees earning ₱1,500 or below contribute only 1%, while the employer still pays 2%.
Because the MFS ceiling is ₱10,000, anyone earning ₱10,000 or more pays the flat ₱200 maximum—a teacher on ₱28,000 and a manager on ₱90,000 contribute the same ₱200. Members may voluntarily contribute more to boost their Pag-IBIG savings and dividends, but only the ₱200 is mandatory. Unlike SSS and PhilHealth, every peso of your Pag-IBIG contribution is savings you can later withdraw or borrow against.
Employee vs employer share: who pays what?
For all three contributions, the employer shoulders the larger or equal share and is legally responsible for remitting the combined amount to each agency. Here is the 2026 split at a glance:
| Contribution | Total rate | Employee share | Employer share | 2026 cap (employee) |
|---|---|---|---|---|
| SSS | 15% of MSC | 5% | 10% (+ EC fee) | ₱1,750 |
| PhilHealth | 5% of salary | 2.5% | 2.5% | ₱2,500 |
| Pag-IBIG | 2% + 2% | 2% | 2% | ₱200 |
If your employer fails to deduct and remit, you are still credited as paid—the liability falls on the employer, who can face penalties and surcharges. This is why these contributions are non-negotiable on a legitimate payslip.
Worked example: Maria's payslip on ₱30,000 a month
Consider Maria Santos, a marketing associate in Quezon City earning a basic salary of ₱30,000 in 2026. Here is how her three mandatory contributions are computed:
- SSS: Her ₱30,000 salary maps to the ₱30,000 MSC bracket. Her 5% employee share is ₱1,500. (Her employer pays ₱3,030, including the ₱30 EC fee.)
- PhilHealth: 5% of ₱30,000 is ₱1,500 total, split evenly—Maria pays ₱750.
- Pag-IBIG: Capped at the ₱10,000 MFS, so 2% × ₱10,000 = ₱200.
Maria's total mandatory contributions are ₱1,500 + ₱750 + ₱200 = ₱2,450 per month. Crucially, these ₱2,450 are deducted from her gross pay before her income tax is computed, lowering her taxable income to ₱27,550. Only then is withholding tax applied. To see your own net pay after both contributions and tax, run the numbers through our salary tax calculator or the standalone income tax calculator.
Common mistakes Filipinos make with their contributions
The biggest errors are not about the math—they are about misreading what the deductions do. Avoid these:
- Treating contributions as tax. SSS, PhilHealth, and Pag-IBIG are benefits, not taxes. They are even deductible from your gross income before income tax is calculated, so they reduce your tax bill.
- Assuming Pag-IBIG scales with salary. It is capped at ₱200 mandatory regardless of how much you earn above ₱10,000. Many high earners wrongly expect a bigger deduction.
- Forgetting the order of deductions. Contributions come off first, tax second. Computing tax on gross salary overstates what you owe.
- Self-employed members skipping payments. Freelancers and sole proprietors must pay the full share themselves. Gaps reduce SSS pensions and PhilHealth eligibility. See our freelancer tax guide and how to register as a freelancer with the BIR.
- Ignoring voluntary top-ups. Pag-IBIG MP2 and higher SSS MSC declarations grow your future benefits—worth considering once your income tax picture is clear.
How contributions connect to your take-home pay and taxes
Your net take-home pay is gross salary minus mandatory contributions minus withholding tax. Because contributions are subtracted first, they shrink your taxable income—a quiet tax benefit most people overlook. Under the TRAIN law graduated rates, anyone earning ₱250,000 or less a year pays zero income tax, so for many lower-wage earners, the three contributions are the only mandatory deductions on the payslip.
For the full picture, pair this guide with our income tax overview and decide between the 8% vs graduated income tax options if you are self-employed. Salaried employees can model everything—contributions plus tax—in one step with the salary tax calculator.
Disclaimer: TaxCalculator.com.ph provides general information, not professional tax or legal advice. Contribution rates and tables are set by SSS, PhilHealth, and Pag-IBIG and may change. Always confirm current figures with the official agencies before relying on them.
Sources and References
The rates, thresholds, and rules on this page are drawn from official Philippine government issuances and reputable tax references. Tax rules change; always confirm current figures with the relevant agency before acting.
- Philippines - Individual - Other taxes / Significant developments (2025-2026 SSS, PhilHealth, Pag-IBIG rates) — PwC Tax Summaries
- SSS Contribution Table — Republic of the Philippines Social Security System
- Workers' Investment and Savings Program (WISP) — Republic of the Philippines Social Security System
- PhilHealth sets 5% premium contribution rate for 2026 — Philippine Information Agency