Employee Government Contribution Basis

Employee Government Contribution Basis

Under the Philippine Labor Code, employers are required to remit monthly contributions to government bodies (SSS, PhilHealth, and PAGIBIG Fund) on behalf of their employees, to ensure the employees' access to mandated benefits from the government, such as affordable house financing, health insurance, and social security benefits.

For each government body, the employers and employees have their own monthly shares. The computation is based on the actual income of an employee and where they fall on the released guideline of each government body. There may be some instances when employees with the same actual income have different amounts of contributions because of the contribution basis followed by a company.

In Salarium, there are now 6 different options an employer can choose from.

Please be guided by the illustrations below as we know more about the different contributions basis.

SSS Table of Contribution
new sss contribution table 2023

PhilHealth Table of Contribution

**PHIC Contribution is still at 4% until further notice.

PAGIBIG Table of Contribution

Monthly EE Share is capped at PHP 100.00, unless the employee requests to have a higher monthly contribution.
Let us also use the amounts below as we go through the different bases.
Monthly Base Pay: 17,000.00
Other Taxable Pay Items: 1,000.00
Other Non-Taxable Pay Items: 1,000.00
Attendance Premiums: 1,000.00
Attendance Deductions: 500.00

1. Gross Income
The contribution is computed based on the following:
a. Basic Pay
b. Other Taxable Pay Items (Allowances, Adjustments, Bonuses, Commissions)
c. Other Non-Taxable Pay Items (Allowances, Adjustments, Bonuses, Commissions)
d. Attendance Related pay items (ADD: Premiums - OT, Holiday Premium, Night Premium, etc.; DEDUCT - Tardiness, Absences, Undertime, etc.)
     17,000.00
+     1,000.00
+     1,000.00
+     1,000.00
-         500.00
_____________
=   19,500.00 - Gross Income

SSS EE Share - 877.50
WISP - N/A
PHIC EE Share - 390.00
HDMF EE Share - 100.00

2. Gross Taxable
The contribution is computed based on the following:
a. Basic Pay
b. Other Taxable Pay Items (Allowances, Adjustments, Bonuses, Commissions)
c. Attendance Related pay items (ADD: Premiums - OT, Holiday Premium, Night Premium, etc.; DEDUCT - Tardiness, Absences, Undertime, etc.)
     17,000.00
+     1,000.00
+     1,000.00
-         500.00
_____________
=   18,500.00 - Gross Taxable

SSS EE Share - 832.50
WISP - N/A
PHIC EE Share - 390.00
HDMF EE Share - 100.00

3. Basic Pay
The contribution is based ONLY on the monthly base pay of the employee, regardless if there are other pay items and attendance-related premiums and deductions.

Basic Pay = 17,000.00

SSS EE Share - 765.00
WISP - N/A
PHIC EE Share - 340.00
HDMF EE Share - 100.00

4. Net Basic Pay
The contribution is based on the employee's monthly base pay LESS attendance-related deductions such as Tardiness, Absences, Undertime, etc. Unlike in Gross Income, here, other pay items and attendance-related premiums are not factored in.

     17,000.00
-         500.00
_____________
     16,500.00 - Net Basic Pay

SSS EE Share - 742.50
WISP - N/A
PHIC EE Share - 330.00
HDMF EE Share - 100.00

5. Fixed Monthly Amount
Choosing this option will give employers liberty and flexibility on how much will be deducted from the employee's pay and how much the employer will shoulder for their share.

6. No Contribution
The last option is not to deduct any amount from the employees' pay for their government contributions. The employees are free to decide how much their monthly remittance will be. They will also be responsible for remitting their contributions on their own.


If a company is following a semi-monthly, fortnightly, or weekly pay frequency and the contribution deduction schedule is every pay, there are 2 possible scenarios.
a. The contributions may adjust on the second/succeeding payout/s if the basis is Gross Income, Gross Taxable, or Net Basic Pay.
b. The contributions will be split equally if the basis is Basic Pay or Fixed Monthly.

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