Payroll in the Philippines
The processing of payroll can be a complicated process at the best of times. It is an important process that needs to be completed timely and accurately, without fail. It requires highly skilled and educated HR and Payroll professionals to complete this task, due to the legal and tax related implications. And from country to country, the idea of payroll processing can be completely different.
The processing of payroll in the Philippines, can be quite time consuming due to the many labor laws that need to be considered, as well as the many governments requirements that need to be completed. For most businesses the payroll process, and its compliance with labor laws and government agencies, can be its biggest pain point and cause of tension with employees.
There are three mandated benefits when it comes to payroll in the Philippines, and these are Social Security System, Pag-IBIG and PhilHealth. When it comes to knowing who is eligible to receive these mandated benefits, it is quite simply put that every employed person under the age of 60, earning a salary of more that P 1,000, are entitled to these benefits. Now whilst legally you need to know what these benefits are, socially you should also know what they are and why they exist.
Social Security System (SSS)
The SSS Employees’ Compensation (EC) program is there to provide assistance to workers who have experienced a work-related illnesses or injury that has resulted in disability or death. For those who are part of the SSS EC, they may be able to claim compensation for: medical services, appliances, and supplies in an accredited hospital; rehabilitation services, including medical, surgical, and hospital treatment; and income cash benefit. More information can be found on their website.
This Pag-IBIG fund (previously known as the [Home Development Mutual Fund (HDMF)], was set up to provide assistance when purchasing a house or during times or calamity or. Being part of the Pag-IBIG fund entitles employees to avail of a Housing Loan, Calamity Loan, and Multi-Purpose Loans that aim to provide financial assistance to their needs. For a full list of Pag-IBIG benefits and membership requirements, visit their website.
The National Health Insurance Program (NHIP) was established to provide health insurance coverage and ensure affordable, acceptable, available and accessible health care services for all citizens of the Philippines. It shall serve as the means for the healthy to help pay for the care of the sick and for those who can afford medical care to subsidize those who cannot. PhiliHealth is a Government body that administers the (NHIP). A full list of benefits can be found on their website.
There are many other components that make up payroll in the Philippines, and it is advised that if you do not have your own dedicated HR and Payroll team, then you should partner with a company who you can outsource this functionality too.
Project T has a dedicated and experience HR and Payroll team who can work with your business to take the pressure of managing your own HR and Payroll services.