Philippine Payroll Contributions
Last updated: 2026-07-09 Summary:
- On a Philippine pay run, eKapital computes SSS, PhilHealth, Pag-IBIG, and BIR withholding tax automatically from its seeded statutory tables.
- Both the employee and employer shares are computed for you — you never type contribution amounts in.
- Statutory contributions are bracketed on a monthly base and then split across the pay frequency; withholding uses the period gross.
The figures below are illustrative of how the engine works, not tax advice. eKapital computes from the tables currently seeded in the product. Always confirm current rates, floors, and ceilings against the latest SSS, PhilHealth, Pag-IBIG, and BIR circulars with your accountant.
The four contributions
Section titled “The four contributions”| Contribution | What it is | Shares |
|---|---|---|
| SSS | Social Security System — retirement, disability, and related benefits, plus the Employees’ Compensation (EC) levy | Employee + employer (employer also pays EC) |
| PhilHealth | National health insurance premium | Employee + employer (split evenly) |
| Pag-IBIG (HDMF) | Home Development Mutual Fund savings | Employee + employer |
| BIR withholding tax | Withholding tax on compensation under the TRAIN graduated table | Employee only |
How the amounts are derived
Section titled “How the amounts are derived”Statutory contributions use a monthly base, then split to the period. SSS, PhilHealth, and Pag-IBIG each bracket, floor, and cap on a monthly compensation figure, then apply a 12 / periods-per-year factor so the amount collected each pay period sums to exactly twelve monthly contributions across the year. Illustratively:
- SSS applies a Monthly Salary Credit in ₱500 steps (rounded to the nearest bracket) across a floor/ceiling band, with the employee at a lower rate than the employer, plus a small fixed EC amount on the employer.
- PhilHealth takes a premium on monthly basic salary between a floor and ceiling and splits it evenly between employee and employer.
- Pag-IBIG applies its rate to a capped monthly fund salary, subject to a per-side peso ceiling.
Withholding tax uses the period gross. BIR withholding is computed on the period’s taxable compensation (gross less the employee statutory shares) against the Annex E table for that pay frequency — a separate Daily / Weekly / Semi-Monthly / Monthly schedule, chosen by cadence.
Biweekly has no BIR table
Section titled “Biweekly has no BIR table”BIR publishes withholding tables per period, but there is no biweekly schedule. For a biweekly employee eKapital falls back to the Semi-Monthly table (the nearest cadence). PH tenants are steered toward the supported frequencies at employee setup.
Viewing the seeded tables
Section titled “Viewing the seeded tables”The statutory schedules eKapital uses are visible under Payroll → Tax Tables (view-only). You don’t maintain rates there by hand; check them against current government schedules when in doubt.
See also
Section titled “See also”Salamat — thanks for the feedback!