1) Overview: Why registration is mandatory

In the Philippines, a kasambahay (domestic worker) is legally entitled to social protection. The law treats household employment as formal work with enforceable rights, not a private arrangement outside regulation. One of the most important protections is mandatory coverage under:

SSS (Social Security System)
PhilHealth (Philippine Health Insurance Corporation)
Pag-IBIG Fund (Home Development Mutual Fund)

The employer’s core duty is not only to pay wages, but to ensure the kasambahay is properly reported, registered/covered, and remitted for under these systems, following statutory contribution rules.

2) Who is a “kasambahay” covered by these rules

A kasambahay generally includes persons hired for household work such as:

General househelp, domestic helper
Yaya/nanny, caregiver, family driver
Cook, laundry person, gardener (when directly serving the household)
Any similar work performed in or for the household on an employer-employee basis

Coverage typically depends on the existence of an employment relationship (control over work, payment of wages, and engagement to perform household services). Live-in and live-out kasambahay are covered.

3) What “mandatory registration/coverage” means in practice

“Mandatory” is more than giving money to the kasambahay and telling them to enroll. It usually requires the employer to:

Ensure the kasambahay has membership/coverage in SSS, PhilHealth, and Pag-IBIG (or facilitate membership if not yet a member).
Register as an employer / household employer with each agency where required.
Report the kasambahay as an employee under the employer’s account (or enroll them under the household employer category).
Deduct the employee-share only when legally allowed, and add the employer-share as required.
Remit contributions on time, keep proof of payment, and allow the kasambahay to know their contribution status.

In other words: coverage + reporting + correct computation + remittance + documentation.

4) Employer obligations under each agency

A. SSS (Social Security System)

Purpose: retirement, disability, sickness, maternity, funeral, death benefits; employee loans and other SSS benefits.

Employer duty:

Register as a household employer (if not yet registered) and report the kasambahay for coverage.
Remit monthly contributions based on the prescribed contribution table and rules applicable to household employment.
Provide the kasambahay’s SSS number and reporting details, and keep receipts/proof of remittances.

Employee-share deduction:

In general, SSS contributions are split between employer and employee. Household employment rules can have special arrangements depending on wage thresholds, but as a protective rule-set, the employer is expected to shoulder what the law requires and only deduct what is lawful.

B. PhilHealth

Purpose: health insurance and access to PhilHealth benefits for inpatient and outpatient needs under PhilHealth’s coverage rules.

Employer duty:

Ensure the kasambahay is enrolled/covered and that premium contributions are paid under the proper category.
Remit contributions within prescribed deadlines, maintain proof, and provide the kasambahay information needed to verify coverage.

Practical note:

PhilHealth membership/coverage status matters immediately when medical needs arise; late or missing premiums can disrupt benefit access.

C. Pag-IBIG Fund

Purpose: savings and access to housing-related benefits (and other Pag-IBIG programs depending on current policy).

Employer duty:

Ensure Pag-IBIG membership and remit monthly savings/contributions under the applicable household employment rules.
Maintain records and provide transparency to the kasambahay regarding remittances.

5) Wage levels, contribution sharing, and “who pays what”

The allocation between employer and kasambahay depends on the governing rules and thresholds (which can differ across agencies and can depend on wage level and the kasambahay’s employment conditions).

General legal principles that guide compliance:

Mandatory coverage cannot be waived by agreement. Even if the kasambahay “agrees” not to be enrolled, the obligation remains.
Deductions must be authorized by law. The employer cannot simply subtract any amount from wages for “contributions” beyond what the rules allow.
Employer must shoulder the employer-share at minimum, and must shoulder additional amounts when the law requires the employer to cover the full premium/contribution (this is common in protective labor schemes for low-wage household employment).
Net take-home pay must reflect lawful deductions only. If the employer makes improper deductions, this can create wage underpayment and other liabilities.

Because the legal consequences of miscomputing and under-remitting can be serious, compliance should follow the latest agency schedules and the specific household employer rules.

6) Documentation, transparency, and proof of compliance

Household employment can be informal in practice, but the legal standard expects record-keeping. Best compliance practice includes:

Written employment terms (at least documenting key items: wage rate, pay period, rest days, scope of work, start date)
Copies of membership numbers and registration confirmations
Proof of remittances (receipts, transaction references, printed confirmations)
A simple monthly ledger showing: wage paid, lawful deductions, employer share added, remittance date

Transparency is not optional in substance: if a kasambahay later claims non-remittance, the employer must be able to show proof.

7) Effects of non-registration and non-remittance

Failure to register and remit can expose the employer to multiple layers of liability:

A. Administrative liability and payment orders

Agencies can require:

Retroactive payment of contributions/premiums
Penalties, surcharges, and interest for late or non-remittance
Submission of reports and proof, and possible enforcement actions

B. Labor-related liability

Non-remittance and improper deductions can lead to claims such as:

Underpayment of wages (if deductions were made but not remitted, or were not lawful)
Money claims for amounts that should have been shouldered by the employer
Complaints related to conditions of employment (depending on the facts)

C. Potential civil and criminal exposure (fact-dependent)

Certain social legislation penalizes knowing failure to remit or misuse of deducted amounts. A common high-risk scenario is:

The employer deducts the kasambahay’s share from wages but does not remit it. This is treated seriously because it resembles withholding funds intended for mandatory benefits.

Whether a case becomes civil, administrative, or criminal depends on the governing law, the agency involved, and the evidence of intent and pattern.

8) Common scenarios and legal treatment

Scenario 1: “Kasambahay already has an SSS/PhilHealth/Pag-IBIG number”

The employer still must report and remit properly under the household employer relationship. Existing membership does not eliminate employer obligations.

Scenario 2: “We have a verbal agreement that she’ll handle her own contributions”

This does not defeat mandatory coverage. At most, it may affect logistics, but employer duties remain—especially the duty to ensure coverage and to remit correctly.

Scenario 3: “Part-time, several households”

A kasambahay working for multiple households can raise questions about who remits and under what arrangement. Generally, each household employer must comply for their employment relationship, but agency-specific rules may allow certain reporting methods. The safe legal approach is: each employer should ensure compliance for the portion of employment they control, unless a legally recognized alternative arrangement applies.

Scenario 4: “No payslips, cash payments only”

Cash payment is not illegal by itself, but it increases disputes. Without records, the employer is vulnerable to claims of nonpayment or non-remittance.

Scenario 5: “The kasambahay does not want deductions”

If the law requires employee-share contributions, lawful deductions can still apply, but the employer must implement them correctly and transparently. If the law requires the employer to shoulder the full amount (in certain cases), then there should be no employee deduction for that item.

9) How an employer properly complies (step-by-step in concept)

Confirm kasambahay identity details (full name, birthdate, address) and whether they already have SSS/PhilHealth/Pag-IBIG numbers.
Register as a household employer where needed.
Enroll/report the kasambahay under each system using the prescribed household employer process.
Determine contribution/premium amounts using the correct schedule and household employment rules.
Pay wages with lawful deductions only, itemize amounts, and keep acknowledgement.
Remit contributions/premiums on time and keep proof.
Periodically verify posting (that payments are reflected in the kasambahay’s records) and fix discrepancies quickly.

10) The kasambahay’s rights connected to mandatory registration

A kasambahay has the right to:

Be covered and reported under SSS, PhilHealth, and Pag-IBIG in accordance with law
Know the status of remittances and receive transparency on what is deducted and what is paid by the employer
Be protected from unlawful wage deductions and underpayment
Seek enforcement when an employer fails to register or remit

11) Practical compliance risk controls for employers

To reduce disputes and legal exposure:

Put key terms in writing and keep a copy (even a simple signed agreement)
Use a regular pay schedule and keep signed pay acknowledgements
Avoid “deduct then remit later” practices—remit promptly
Keep digital copies of all remittance confirmations
If changing wage rate or work arrangement, update records and recompute contributions accordingly

12) Key takeaways

Household employment is regulated: SSS, PhilHealth, and Pag-IBIG coverage is mandatory for kasambahay, and the employer must ensure proper registration/reporting and remittance.
Agreements waiving coverage are not enforceable against the mandatory nature of these benefits.
Incorrect deductions or failure to remit can lead to retroactive liabilities, penalties, and broader legal consequences.
The most defensible approach is timely remittance + clear documentation + transparency.