A Full Comparative Overview of SSS, HDMF, and PHIC for Employers in the Philippines

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:

• After 20 years since the member started contributing;
• at the time of the member’s retirement; and
• when he is no longer able to work because of injury, illness, or insanity

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.

Qualified Members for PhilHealth coverage without additional premiums:

• Legitimate spouse who is not a member;
• Child or children – legitimate, legitimated, acknowledged and illegitimate (as appearing in birth certificate), adopted or stepchild or step children below 21 years of age, unmarried and unemployed.
• Children who are twenty-one (21) years old or above but suffering from congenital disability, either physical or mental, or any disability acquired that renders them totally dependent on the member for support, as determined by the Corporation;
• Foster child as defined in Republic Act 10165 otherwise known as the Foster Care Act of 2012;
• Parents who are sixty (60) years old or above, not otherwise an enrolled member, whose monthly income is below an amount to be determined by PhilHealth in accordance with the guiding principles set forth in the NHI Act of 2013; and,
• Parents with permanent disability regardless of age as determined by PhilHealth, that renders them totally dependent on the member for subsistence.
• Qualified dependents shall be entitled to a separate coverage of up to 45 days per calendar year. However, the 45 days allowance shall be shared among them.

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

For Newly Hired And Existing Employees Without PIN:

• Fill out two (2) copies of the PhilHealth Member Registration Form (PMRF)
• Submit PMRF to the HR Department of employer
• Wait for Member Data Record and PhilHealth ID card from employer

For Newly Hired Employees With PIN

• Report your PIN to your employer for them to indicate the same in their ER2

Premium Requirements:
Premium contributions are shared by the employee and the employer, the amount of which is determined based on the new premium contribution rate. After deducting half of the premium requirement from your monthly salary, total premiums are remitted by your employer to PhilHealth.

Continuing your coverage:

• If leaving formal employment to venture into self-employment
• Register under the Informal Economy and pay the premium at any PhilHealth Office or accredited payment center.
• If the average monthly income over the last 12 months is P25,000 and below, the quarterly premium is P600.
• If leaving formal employment to venture into self-employment
• If the average monthly income over the last 12 months is above P25,000, quarterly premium is P900
• Payment can be made monthly, quarterly, semi-annually or annually.
• If seeking employment as land-based overseas Filipino worker
• Indicate existing PhilHealth Identification Number (PIN) when processing registration and payment to PhilHealth as a migrant worker.
• If already at age of retirement, have contributed at least 120 monthly premiums, and is not gainfully employed:

• Employer No.
• Business Name
• Business Address
• Business Tin
• Applicable Reporting Period
• Type of Payor
• Form of Payment (If cash or check)
• Total Amount of Payment

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:
This form is submitted monthly or quarterly before the 10th of the following month. If the due date falls on weekend or Holiday it must be submitted by the first working day after. The purpose of this form is to submit names of employees and employer contributions to SSS.

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.
2. Check registered email and follow instructions provided by PhilHealth
3. Once registered and logged in, provide an update of your employee masterlist. You can upload a file through ‘Remittance Management’ option or manually update through ‘Employees Management’ option.
4. Generate your Statement of Premium Account (SPA)
5. Pay the necessary fees

Step-by-step payment procedures with SSS:

1. Fill out three copies of SSS Form R5 and SSS Form R3
2. Visit your closest SSS Branch and pay the contributions
4. Once the contributions are paid, submit the receipt together with the SSS R3 file* via USB flash drive.

*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.
2. Remit the employee’s premium contribution, together with the employer’s share, to any of the Accredited Collecting Agents on or before the due date.

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.

The HDMF Contribution rate for all members, except for non-working spouses of Pag-ibig members, are as follows:

Monthly Compensation Contribution Rate
Employee Employer (if any)
₱1,500 and below 1.0% 2.0%
Over ₱1,500 2.0% 2.0%

The maximum monthly compensation to be used in computing the employee and
employer contributions shall not be more than ₱5,000.

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

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
2. Household Employers – last day of the month following the applicable month or calendar quarter
3. Self-employed, Voluntary, and Non-Working Spouse Members – last day of the month following the applicable month or calendar quarter
4. OFW Members – January to September – until December 31 of the applicable year; October to December – until January 31 of the following year

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.
2. Employers with PENS ending in 5-9 – Every 16th-20th day of the month following the applicable period.