A Full Comparative Overview of SSS, HDMF, and PHIC for Employers in the Philippines
In the Philippines, employers are required to register and report their employees to specified government agencies to ensure that they properly receive their benefits as mandated under Philippine laws. The agencies, namely, the Social Security System (SSS), the Home Development Mutual Fund (HDMF, otherwise known as Pag-IBIG), and the Philippine Health Insurance Corporation (PHIC, otherwise known as PhilHealth) provide benefits such as loans, retirement funds, and healthcare to all employees in the Philippines.
To give you a better understanding of the differences and similarities between each agency, this article will provide you with a complete overview of its key features, from registration to contribution requirements.
SSS, PhilHealth, and Pag-IBIG Registration Procedures:
SSS | PHIC (PhilHealth) | HDMF (Pag-IBIG) | |
---|---|---|---|
A. Membership Category | Types of Categories | ||
Employed | Formal Economy | Mandatory (Private & Government Employees, OFW, Self-employed Professionals, and Domestic Helpers or Kasambahay) | |
Self Employed | Informal Economy | Voluntary (Non-working Spouse, Former Pag-Ibig members, Barangay Officials and Employees, Expatriates, and Unemployed Filipinos) | |
Voluntary | OFW | ||
Indigent | |||
Sponsored | |||
Lifetime Membership | |||
Senior Citizen | |||
B. Membership Category | Types of Categories | ||
Filipino Citizens | Private employee who is not more than 60 years old, who engage in trade/business with at least ₱1000 monthly income, an OFW, or non-working spouse. | Filipino citizen of at least 18 years old; 60 and above previously not under any category shall automatically be covered. | Filipino citizen at least 18 years old |
Expat (Employee of foreign nationality) | Required | Required | Extended due to temporary tenure |
C. Mode of Registration | Documentary Requirements and Registration Procedure | ||
Manual Registration | 1. Prepare 2 copies of E-1 Form and 2 Valid IDs 2.Fill out and submit to your respective SSS Branch | 1. Prepare 2 copies PhilHealth Membership Registration Form (PMRF) and ER/ER2 Form 2. Submit to your Local Health Insurance Office (LHIO) | 1. Prepare 2 copies of Member’s Data Form (MDF) with supporting documents 2. Submit documents to respective Pag-ibig Branch |
Online or e-Registration | 1. Visit https://www.sss.gov.ph/sss/ for registration and fill out necessary details 2. Wait for the confirmation link sent to your registered email 3. Follow the link provided in your email 4. Review provided details 5. Generate SSS number and wait for SSS email confirmation 6. Print the Personal Record Form, SSS No. Slip, and SSS Number application 7. Go to your respective SSS Branch to submit the documents along with your online registration documents and other necessary documents (birth certificate, valid IDs, etc.) 9. For a non-working spouse, your working spouse must sign the printed personal record form | 1. Visit https://eregister.philhealth.gov.ph/ to register 2. Fill out Philhealth Online Application Form 4. Upload supporting documents (birth certificate, passport, driver’s license, etc.) 5. Review provided information before proceeding 6. Tick checkbox to confirm information correctness and accuracy then submit registration 7. Wait for the confirmation email sent to your registered email 8. Wait for your Philhealth number | 1. Visit https://www.pagibigfundservices.com/PubReg/Starter_Page.aspx 2. Accomplish the pre-registration form to check if you already have an existing record 3. Fill out the online registration form 4. Print Member’s Data Form (MDF) containing Pag-ibig tracking number 5. You will receive a text message with a Registration Tracking Number (RTN) from Pag-ibig Fund 6. Verify your Pag-Ibig No. using the following format: IDSTAT RTN BIRTHDATE (MM/DD/YYYY) and send to Globe/TM: (0917) 888-4363, Smart/TNT/Sun: (0918) 898-4363 |
D. Registered Dependents | Criteria for Eligibility | ||
Primary | Legitimate dependent spouse, dependent legitimate, legitimated or legally adopted, and illegitimate children, who are not over 21 years of age. | Single individual may list parents 60 years old and above | Immediate family member (parents,siblings,spouse and child/ren) |
Secondary | Parents | Married individuals may list spouse and children | |
Tertiary | Any person designated by the member | N/A | |
E. Requirements | |||
Filipinos | Birth Certificate/Baptismal Certificate, Government-issued ID (passport, driver’s license, PRC,TIN, etc.) | Government-issued valid IDs (TIN, driver’s license, passport, etc) For voluntary, 1 NSO-issued Birth CertificateLifetime Membership Requirements: 2 copies of 1×1 latest photo, 2 valid IDs; and any of the following documents:For SSS pensioners:
For GSIS pensioners:
For Uniformed personnel of AFP, PNP, BJMP and BFP:
GSIS Disability Pensioner / SSS Permanent Total Disability Pensioner before March 4, 1995:
SSS Survivorship Pensioner before March 4, 1995:
Other individuals who are not under the abovementioned categories:
| For Employed Individuals: Government-issued IDs For Voluntary/Self-Paying Employee: Company ID, certificate of employment and compensation, and latest payslip For Self-Employed: PRC, Latest ITR, 2 copies of 1×1 photo For OFWs: Contract of employment, POEA license, passport, 2 copies of 1×1 photo For Unemployed: Spouse-affidavit of employment, certificate of employment of spouse, written consent of member-spouse |
Expat | Passport (required) SPA (if manual registration done by a representative) | Passport;ACR I-Card (Alien Certificate of registration Identity Card) for residing/working expats, Special Resident’s Retiree’s Visa (SRRV) with permanent residency for interested foreign retirees | N/A |
F. Restrictions | |||
Not over 60 years old | No age limit | Not over 60 years old for mandatory membership | |
Not a surviving spouse/guardian of the pensioner | Foreign nationals 60 years old and above not qualified under mandatory Philhealth coverage | 18-65 years old for voluntary membership | |
G. Duration | |||
Lifetime | With expiry (expired once missed the 9 contribution preceeding the availment of benefit); Lifetime membership retired senior citizen with not less than 120 contributions | Membership shall be for 20 years with total 240 contributions unless terminated by the following grounds: retirement, permanent total disability/insanity, termination by reason of health,permanent departure in the country,death) |
SSS, PhilHealth, and Pag-IBIG Cash Loan Options:
Particulars | SSS | HDMF (Pag-IBIG) |
---|---|---|
1. Loan Type | Salary Loan | Multipurpose |
2. Loan Description | A cash loan granted to an employed, currently-paying self-employed, or voluntary member. It is intended to meet the member’s short-term credit needs. | The Pag-IBIG Fund Multi-Purpose Loan or MPL Program is a cash loan that qualified members may secure to assist them with any immediate financial need. |
3. Eligibility | All currently employed, currently contributing self-employed, or voluntary member | Must be an actively contributing member |
3.A. Required Contribution | Must have at least a total of 36 posted month contribution for a 1-month loan and 72 posted monthly contributions for a 2-month loan, six of which should be within the last twelve months prior to the month of filing the loan application | With at least twenty-four monthly membership savings and sufficient proof of income to qualify. |
3.B. Restrictions | Must be updated in the payment of contributions; Has not been granted final benefits, (total permanent disability, retirement and death); Must be under 65 years of age at the time of application; and Has not been disqualified due to fraud committed against the SSS | If you have an existing Pag-IBIG Fund Housing Loan, MPL and/or Calamity Loan, your payments must be updated to qualify |
4. Loan Amount | 1 Month Salary Loan equivalent to average Monthly Salary Credit of the latest 12 month posted contributions; or 2 Months Salary Loan equivalent to average Monthly Salary Credit of the latest 12 month posted contributions; | Up to 80% of their total Pag-IBIG Regular Savings, which consist of their monthly contributions, their employer’s contributions, and accumulated dividends earned. The more you save in your Pag-IBIG Regular Savings, the higher loan amount you may apply for via MPL |
5. Interest | 10% per annum based on diminishing principal balance | 10.5% per annum |
6. Repayment Term | Payable within two years in 24 monthly installments. | Payable within 24 months |
7. Loan Renewal | Renewal shall be allowed after payment of at least 50% of the original principal amount and at least 50% of the term has lapsed. The outstanding balance of the existing loan shall be deducted from the loan proceeds of the new loan. | After paying an equivalent of six (6) monthly amortizations. The outstanding balance of the existing loan shall be deducted from the loan proceeds of the new loan. |
Application | ||
1. Procedure | 1. Visit https://www.sss.gov.ph/sss/ and access the SSS Member Portal 2. Log in to your My.SSS Account 3. On the menu bar, click the E-Services tab and select ‘Apply for Salary Loan’ 4. Choose your preferred electronic loan disbursement channel 5. Read the Disbursement Account Enrollment Module (DAEM) Reminder 6. Enroll your bank account or mobile number using DAEM 7. Wait for the approval of your Disbursement Account enrollment 8. Once approved, proceed to apply for a salary loan 9. Read or print the loan disclosure statement 10. Wait to be notified of your SSS Salary Loan application status 11. Claim loan proceeds through your enrolled bank account or disbursement channel | 1. Submit accomplished Multi-Purpose Loan Application Form and required supporting documents 2. Get STL Acknowledgement Receipt (HQP-SLF-121) 3. Obtain loan proceeds on the scheduled disbursement date |
2. Requirements | 1. SSS Online Account 2.A. PESONET ACCREDITED/PARTICIPATING BANKS – Active single account in any PESONet accredited banks under your name. Joint account is not acceptable. 2.B. SSS ISSUED UBP QUICK CARD*Nomination of invalid/incorrect account number, closed account and dormant account will result to unsuccessful crediting of your loan proceeds, and shall be subject for cancellation of approved loan. Hence, a re-submission of a new loan application will be required. Disbursement thru check is no longer available |
*Payroll Accounts using Land Bank of the Philippines (LBP) Accounts for Disbursement |
SSS, PhilHealth, and Pag-iBIG Calamity Loan Options:
Particulars | SSS | HDMF (Pag-IBIG) |
---|---|---|
1. Loan Type | Calamity Loan Assistance Program | Calamity Loan Program |
2. Loan Description | Members who are residents of the calamity stricken areas as declared and may be declared by the National Disaster Risk Reduction and Management Council (NDRRMC) and who suffered losses or damages to their properties located in the said calamity stricken area | The Pag-IBIG Fund Calamity Loan Program seeks to provide immediate financial aid to affected members in calamity-stricken areas |
3. Eligibility | All currently employed, currently contributing self-employed or voluntary member | Must be an actively contributing member residing in an area declared by the Office of the President or the Local Sanggunian under a state of calamity |
3.A. Required Contribution | Must have at least 36 posted month contribution, six of which should be within the last twelve months prior to the month of filing of application | With at least twenty-four monthly membership savings (MS) and sufficient proof of income to qualify. |
3.B. Restrictions | Must be a resident of the calamity declared areas and suffered losses or damages to their properties. A resident is one who has a home address or property at the stricken area; Have not been granted any final benefit (total permanent disability, retirement, and death) at the time of application; and Does not have an outstanding restructured loan under the SSS Loan Restructuring Program (LRP) | If you have If an existing Pag-IBIG Fund Housing Loan, MPL and/or Calamity Loan, your payments must be updated for to qualify |
4. Availment Period | Three months from the declaration of State of Calamity | 90 days from the declaration of a state of calamity |
5. Loan Amount | 1 Month Salary Loan equivalent to average Monthly Salary Credit of the latest 12 month posted contributions; | Up to 80% of their total Pag-IBIG Regular Savings, which consist of their monthly contributions, their employer’s contributions, and accumulated dividends earned |
6. Interest | 10% per annum based on diminishing principal balance | 5% per annum |
7. Repayment Terms | Payable within two years in 24 monthly installments. | Payable within 24 months |
Application | ||
1. Procedure | A member who is registered at My.SSS can submit the salary loan application online. | 1. Submit accomplished Calamity Loan Application Form and required supporting documents. 2. Get STL Acknowledgement Receipt (HQP-SLF-121) 3. On scheduled date, get loan proceeds. |
2. Requirements | 1. SSS Online Account 2.A. PESONET ACCREDITED/PARTICIPATING BANKS – Active single account in any PESONet accredited banks under your name. Joint account is not acceptable. 2.B. SSS ISSUED UBP QUICK CARD*Nomination of invalid/incorrect account number, closed account and dormant account will result to unsuccessful crediting of your loan proceeds, and shall be subject for cancellation of approved loan. Hence, a re-submission of a new loan application will be required. Disbursement thru check is no longer available |
*Payroll Accounts using Land Bank of the Philippines (LBP) Accounts for Disbursement |
SSS, PhilHealth, and Pag-ibig Contribution:
Particulars | HDMF | SSS | PHIC |
---|---|---|---|
Qualified Individuals | All individuals can contribute to the HDMF upon reaching 18 years of age. For all employees, HDMF contribution is automatic as soon as they are hired by a company and start earning a salary—it comes in the form of a deduction from the employee’s pay.HDMF, or Pagibig, aims to provide savings and shelter plans for all Filipinos. It helps its members by returning their monthly contributions, employers’ contribution in their behalf, and any dividend earned by the money after a certain period of time, such as:
When a member decides to migrate, he has the option to claim his HDMF benefits before departure. In the case of death before the member is able to claim any benefit, the amount due to him will then be divided among his beneficiaries. PAG-IBIG also allow members to file for housing loan and to increase their monthly contributions to get more savings. | All employers are required and mandated to remit payments to Social Security System (SSS) of the employees and employer premiums, either every month or every quarter, to ensure complete SSS postings, securing entitled SSS benefits for their employees. | Qualified Members for PhilHealth coverage without additional premiums:
Note: Qualified dependents must be declared by the principal member. Their names must be listed under the principal member’s Member Data Record (MDR) to ensure hassle-free benefits availment |
Requirement in Paying (Forms & Documents) | 1. HDMF Membership Savings Remittance Form (https://www.pagibigfund.gov.ph/document/pdf/dlforms/providentrelated/PFF053_Member’sContributionRemittanceForm_V03.pdf) | SSS Form R5 – Employer Contributions Payment Return SSS Form R3 – Contribution Collection List | For Newly Hired And Existing Employees Without PIN:
For Newly Hired Employees With PIN
Premium Requirements: Continuing your coverage:
|
Description | Accomplish this form in softcopy when making remittances to Pag-IBIG Fund or to any accredited collecting partner based on the following payment schedule:Schedule of Payments:First Letter of Employer/Business Name: A to D: 10th to the 14th day of the month E to L: 15th to the 19th day of the month M to Q: 20th to the 24th day of the month R to Z, and Numeral: 25th to the end of the month | SSS Form R5: This form is submitted monthly together with the SSS Form R3. You must fillout the following details accordingly:
After the employer has paid the contribution, the bank or SSS Office will put a stamp on the R5 form which will serve as proof of payment. SSS Form R3: | Employers must submit premium contributions to PhilHealth through their Electronic Premium Remittance System (EPRS). The steps are as follows: 1. Visit https://eprs01.philhealth.gov.ph/ and register (if you already have an existing account, simply login). Registration can be made online through EPRS portal or at your nearest PhilHealth Office branch. |
Mode of Payment | Cash or Check Payable HDMF only accepts online payment and payment within HDMF offices | Cash or Check Payable to Social Security System (SSS) | Cash or Check Payable PHILHEALTH accepts online payment and payment with banks (registered accepting government payments) |
Steps and Procedures | Step-by-step payment procedures with SSS: 1. Fill out three copies of SSS Form R5 and SSS Form R3 *This SSS R3 file can be created by the SSS R3 generator. You can download the software through https://www.sss.gov.ph/sss/index2.jsp?secid=1&cat=101 | Payment And Reporting Procedures: 1. Deduct the amount of monthly premium corresponding to the employee’s share from the employee’s basic monthly salary. For reference, you may check the latest PhilHealth Premium Contribution Table. Important: All employers are required to use the Electronic Premium Remittance System (EPRS) application as the mode for the payment of the premiums, and preparation and submission of remittance report. The EPRS is a web-based application designed to allow access to employee information through the employer’s PhilHealth Employer Engagement Representatives (PEERS). Security features are put in place to ensure the confidentiality of information. The E-Pay Services of the Bank of the Philippine Islands, Citibank, Unionbank, Security Bank Development Bank of the Philippines, Asia United Bank, China Banking Corporation, CTBC Bank (Philippines) Corporation, Philippine National Bank, East West Banking Corporation, RCBC Savings Bank, Philippine Veterans Bank and Metropolitan Trust & Bank Company are also available for the employers to facilitate payment and reporting of premium contributions. | |
Contribution Amount | The HDMF Contribution rate for all members, except for non-working spouses of Pag-ibig members, are as follows: Monthly Compensation Contribution Rate The maximum monthly compensation to be used in computing the employee and | For a comprehensive view of the SSS Contribution table, follow this link <https://www.sss.gov.ph/sss/DownloadContent?fileName=2021-CONTRIBUTION-SCHEDULE.pdf> | For a comprehensive view of the PhilHealth contribution table, follow this link <https://www.philhealth.gov.ph/circulars/2020/circ2020-0005.pdf> |
Payment Deadlines | Schedule of Payments: First Letter of Employer/Business Name: A to D: 10th to the 14th day of the month In case of late remittance, HDMF will claim penalty fees of 1/10 of 1% per day. | Below are the following deadlines for SSS contributions: 1. Regular Employers – the last day of the month following the applicable month | Below are the following deadlines for PhilHealth contributions: 1. Employers with PENS ending in 0-4 – Every 11th-15th day of the month following the applicable period. |
Secure Full Compliance with Government Agencies in the Philippines
As an employer in the Philippines, it is essential to familiarize yourself with the relevant compliance regulations from applicable government agencies. Doing so will keep you from encountering unwanted issues in the future while ensuring that your employees receive their benefits properly as mandated by Philippine laws.
Managing the necessary employee reporting can be challenging. If you find such procedures exhaustive, it is best to reach out to recruitment firms to help guide you through your employee management needs.
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