Part II: Employer Contributions in the Philippines: PhilHealth

Philippines PhilHealthOur previous post was an introduction to employer contributions in the Philippines with a closer look on BIR and the SSS. In this post, we’ll give you an idea about how health insurance works in the Philippines. PhilHealth is the health insurance institution that all private and government companies are required to register their new employees to. Here is a list of benefits that PhilHealth covers. Unlike the SSS, the employer’s share towards insurance is equal to the employee’s share towards insurance. The contribution schedule is available here.

Step 1: Employers need to first register their business through the Philippines Business Directory.

Step 2: All employees must submit the PhilHealth Member Registration Form (PMRF) to the HR department. Once that is done, you need to register your employees by filling out Employee Data Record (ER1) Form and submit the ER1 Form with the PMRF for each employee.

Step 3: After the forms are processed, companies will be given the following:

  1. PhilHealth Employment Number (PEN)
  2. Certificate of Registration
  3. PhilHealth Identification Number (PIN)
  4. Member Data Record (MDR) of registered employees.

The Certificate of Registration is required to be displayed clearly in your business’s offices.

Step 4: After deducting employer and employee contributions from the basic monthly salary, payment must be made to PhilHealth or via Accredited Collecting Agents. The payment should be made on or before the due date. The table below is from the PhilHealth website:

Employers with PENs ending in 0-4 Every 11th-15th day of the month following the applicable period
Employers with PENs ending in 5-9 Every 16th-20th day of the month following the applicable period

Step 5: Once the payment is done, you will have to report it within 5 days with the revised RF-1 Form. Alternatively, you can report it online using the Electronic Premium Reporting System

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Additional Info:

For new employees in the company, you will have to file the ER2 form to ensure that they are covered by PhilHealth too. Make sure to ask them if the have their PIN so that you can add it to the ER2 form. The form should be submitted to PhilHealth within 30 days of the new employees coming into office. For separated employees, Form RF1 must be filled and submitted within 30 days of the employee leaving. To amend employer data, ER3 form must be filed along with supporting documents.

This is it for PhilHealth. For reference, here is how PayrollHero calculates PhilHealth deductions. Check out Part III of our posts on employee contributions. We give you a crash course on Pag-IBIG deductions.

Disclaimer: As always, consult your lawyer or accountant for advice! We are here to help, but your specific situation should be reviewed by a professional with complete knowledge of your situation.

If you are interested in learning more about PayrollHero for your Philippine business, check out our website at PayrollHero.ph or contact us at sales@payrollhero.com. We would be pleased to chat further about your needs!

Part I: Employee Contributions in the Philippines: BIR and SSS

As an HR admin or payroll admin, it is important to understand how employee contributions work for the social security nets that are in place for Filipinos. There are 4 institutions that you should know about for employee contributions:

  1. Bureau of Internal Revenue (BIR)
  2. Social Security System (SSS)
  3. Philhealth
  4. Home Development Mutual Fund

We will be talking about each of these over the next few blog posts. Let’s start with the first:

Bureau of Internal Revenue

When you are employing someone in the Philippines, the first requirement is to have a Tax Identification Number (TIN) that is registered in the same Revenue District Office (RDO) as your business. The TIN is essential in order to process employee contributions.

  • If the employee does not have a TIN, she must file form 1902 at the RDO where your business is registered.
  • If the employee does have a TIN but is not registered in the same RDO as your business, then she must fill form 1905 and file it at the RDO where her previous employee was registered in order to cancel it.
  • If the employee has a TIN registered at the same RDO as your company’s, then you will have to file form 2305 at the same RDO to update your employee’s information.

Here are all the BIR forms for your convenience.

Social Security Service

All employees in private companies across the country are required to be SSS members. The social security net covers a range of contingencies such as disability, sickness, retirement. Here is a summary of contingencies that the SSS covers. Around 70% of the contribution towards the SSS is made by the employer while 30% is made by the employee. Here is a schedule of contributions based on monthly salary.

First, you need to register your company as an employer in the nearest SSS office by filing Form R1. Along with this, you need to submit a list of employees with their SSS numbers. Note that private companies can only hire employees with SSS numbers. The form that needs to be files is Form R1A. The last form that needs to be submitted is the Specimen Signature Card SS Form L501. With these 3 forms, you will have to submit a sketch of your business address.

You will also have to pay a fee of PHP 160 for an Employer Registration Plate at the SSS or any SSS accredited bank. The list of accredited banks are here (at the bottom of the document). Along with the payment, you need to submit validated Miscellaneous Payment Return – SS Form R6 along with a Special Bank Receipt with this form.

You need to submit Form R1A – the Employment Report – every time a new employee joins. It must be filed within thirty days of the employee receiving the benefits of the coverage. The form must be submitted with the Specimen Signature Card and the 13 digit ER number and business address.

If there are changes to business operations, you need to file an Employer Data Change Request. This way, you will be billed correctly by the SSS.Singapore Payroll

Now that you know what these institutions are and what forms need to be filled, here is our example on how SSS contributions are calculated using PayrollHero software. As a bonus, we also have an example on how BIR taxes are computed.

That’s it for now! Check out our next few posts on Philhealth and Home Development Mutual Fund to find out everything you need to know about employer contributions.

Disclaimer: As always, consult your lawyer or accountant for advice! We are here to help, but your specific situation should be reviewed by a professional with complete knowledge of your situation. 


If you are interested in learning more about PayrollHero for your Philippine business, check out our website at PayrollHero.ph. We would be pleased to chat further about your needs.
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4 Job Boards to Hire Your Best Recruits in Southeast Asia

unnamed-1Today, there are a mind boggling number of channels to use while searching for the best candidate to join your team. In Singapore, the number one channel for recruiters to hire employees is through an online jobs portal. The other Southeast Asian nations are catching up to the trend. Which means, not only do you have to post in multiple online portals, you also have to stand out from every other company in your industry because everyone is using the most popular channel. We want to help you with that. Here we have a list of jobs portals, both conventional and specialized, for restaurant and retail owners to recruit staff.

Recruitasia: This website is devoted to the hospitality sector in Singapore. This is a great site for very specific roles for your establishment. It also provides industry news so that you can stay ahead of the curve when you are recruiting. Currently, the website is in beta stage. During this stage, jobs can be posted free of charge while the website is adding new features and receiving customer feedback to improve their application procedure.

JobsDB: This website runs ads in many Southeast Asian countries: Singapore, Indonesia, the Philippines, Thailand and China. In Singapore, it currently has 300 positions posted on the website under F&B. In the Philippines, the site features 960 positions. Every recruiting ad costs SGD 99. However, JobsDB is turning over all Job ads to JobStreet.com.ph in order to streamline the two recruiting sites into one.

JobStreet.com: JobStreet runs in Singapore, the Philippines, Malaysia, Indonesia and Vietnam. Currently, the Singapore site is featuring approximately 800 vacant positions in the F&B industry.This is the largest recruitment website in the Philippines and one you cannot miss while posting ads. The Philippine website is currently running a promo package that is 40% off the standard price (the standard price being PHP 5,600). The Singapore website runs 3 packages, based on number of ads you want to post and how long you want them to stay live. The price ranges between SGD 180 to SGD 400.

KalibrrKalibrr: This startup recruitment website works on a completely different pricing strategy. Instead of charging employers per ad, the ads are free and the database is open for employers to find their best candidate. They are charged a minimal fee of PHP 50 only when they want to contact the candidate. This company is becoming increasingly popular in the Philippines with around 1000 applicants signing up every day. Kalibrr features restaurants and retail as the most popular searches. (Disclosure, both Mike Stephenson and Stephen Jagger of PayrollHero are investors in Kalibrr)

These four are a few of the most popular recruiting website in Southeast Asia. We hope this list is useful and do let us know if you have any additions to the list that are unconventional or special to the retail or restaurant industries.

What To Do After The 3rd Store Grand Opening

Image by decor8blog.com

Success in your business would mean it’s time to expand, but this feat does not come without it’s own set of challenges.

After interviewing 3 different owners for our Retail/ Restaurant Executive Series, I’ve learnt that they all faced similar challenges in management, as soon as they’ve reached their 3rd store opening.

Here are some of the problems and solutions used by our retail/ restaurant executives when managing multiple store locations.

Keep Calm

Managing multiple locations means using technology to cut down on travel expenses

Implementing a different management system is necessary when you have several stores to oversee. Although it is not impossible, but it takes a lot of effort for you to constantly schedule your travel time to supervise different stores at different locations. Travel costs will pile up even more if your stores are located at different countries.

Getting your hands on free, cheap or available SaaS (software-as-a-service) solutions will be save your company a chunk of money. While some businesses have their own custom- built software platforms as collaborative platforms, some of the more commonly-used tools are available online and widely used by small business owners. Some of the best cost saving productivity tools are available online- free or at low monthly costs like Google Documents, Skype, PipelineDeals.com.

As mentioned by our retail executive Andrew Masigan, owner of The Advent Manila Hospitality Group in the Philippines, he advice that “the trick is to put the important systems in place… the efficiency your company’s chain-of-command largely determines
how well your stores operate”.

Managing multiple locations means having putting a system in place

You must have systems in place to be able to standardize the quality of your communications, products and results,” says Bert Martinez, founder of Bert Martinez Communications. Ensuring a strong internal system of operations would mean that you can save costs on training and reduce time required for supervision. Each employee will have a clear understanding of their responsibilities and boundaries.

In our interview with Adrien Desbaillets, President at SaladStop, he says that “a strong infrastructure is required to support the operation. Overheads start to escalate and a strong focus on SOPs, training, technology is required.” The point here is then to make each employee’s responsibility crystal clear through an organised structure and combine that with a system that measures each person. That way, everyone is accountable for delivering their work regardless of which location they are based at.

Managing multiple locations means shifting from micro management to systematized macro management

Before, Eileen Grey– owner of The Picture Company in the Philippines, didn’t need to think about an entire infrastructure when she opened her first store. She recalls it being just “very personal and mom and pop” until her 3rd store opening. Now she has to consider personnel training, back office space, production, logistics and others.

Having systems and technology in place is good for the business, but it wouldn’t help much if there is no focus on communication. Establishing good communication practices within the whole business is key to collaborate with offices at different locations, co-workers and clients.

Good tips to foster good communication between offices at different locations can include using webcams during weekly team meetings or webinars so team members can see each other, establish a daily reporting system online and use a centralized task management software like Asana, Trello and others.

(Read on how PayrollHero stays in sync with our other offices across the globe)


PayrollHero can help you efficiently manage your multiple business locations and cut down on costs. Talk to us about our business or meet us at our next Meetup!

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How To Get To Fort Bonifacio (From The 4th Worst Airport In The World)

The Ninoy Aquino International Airport (NAIA) in the Philippines is no longer the world’s worst airport, rising to fourth spot after topping the list for the past four years.

With a slight improvement in its ranking as a result of increased positive votes for its Terminal 3, the same can be said about the country – looking ahead despite ongoing challenges.

We have visitors coming to Manila all year round and continue sending out information about the taxis at the airport so I figured I would post it here for all to use. For our purposes, the fees are based on getting from NAIA to Fort Bonifacio.

Metered Taxis

Metered Taxis are the yellow ones that are found under the “Metered Taxi” sign. There is a desk there that will grab your name and give you a slip of paper with the vehicle’s license plate written on it. This is meant to give you some comfort incase there is an issue or you forget something, but best to make a note of the plate yourself as many times they are not legible (see below). The costs from NAIA to Fort Bonifacio should be about P220+/- (depends on traffic and route)

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Coupon Taxis (aka Fixed Fare) 

The Fixed Fare taxis are just down the road a little bit and marked with a similar sign. They are white, and usually larger than the metered taxis. They are a bit better quality vehicle and will take you to Fort Bonifacio for a flat P440.

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Here is what the paperwork looks like. What license plate is my taxi?

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What to watch for at NAIA?

1. There are a lot of random people running around asking you if you need a taxi. Many don’t have “official” ID. I find it best to go straight to the counter where the taxis are.

2. The taxis drivers love to say “no change” – so best to bring pesos with you.

3. Keep an eye on your items.

Welcome to the Philippines!! Make sure to get out to some of the beaches, they are the best in the world.