START DATE OF EMPLOYER SSS, PHILHEALTH, AND PAG-IBIG CONTRIBUTIONS
Comprehensive Philippine Legal Guide (2025 edition)
This article summarizes Philippine statutes, regulations, and administrative issuances in force as of 26 June 2025. It is intended for general information only and does not constitute legal advice.
1. Overview of the Three Mandatory State-Run Social Funds
| Fund | Governing Law (latest consolidated) | Primary Purpose | Contribution Share |
|---|---|---|---|
| SSS – Social Security System | Rep. Act No. 11199 (Social Security Act of 2018) + SSC Resolutions & Circulars | Old-age, disability, sickness, maternity*, unemployment, funeral, death | Employer: 8.0 % – 8.5 % Employee: 4.0 % – 4.5 % Employer shoulders the full maternity benefit reimbursement cost under RA 11210 |
| PhilHealth – National Health Insurance Program | RA 7875 (as amended by RA 11223 “UHC Act”, RA 9241, RA 10606) + PhilHealth Circulars | Universal health-care financing | Employer: 50 % of premium Employee: 50 % of premium |
| Pag-IBIG Fund – Home Development Mutual Fund | Pres. Decree 1752 (1979) as amended by RA 9679 (2009) + HDMF Circulars | Savings, affordable housing finance, calamity loans | Employer: minimum 2 % of monthly comp. Employee: minimum 1 %–2 % (may voluntarily increase) |
2. When Does the Employer’s Obligation Begin?
| Stage | SSS | PhilHealth | Pag-IBIG |
|---|---|---|---|
| A. Employer Registration | Before hiring. R-1 Form or My.SSS online generates Employer (ER) Number. Must be completed within 30 days from first day of operation or first hiring, whichever comes first (SSS Rules §3, 2021). | Within 30 days from start of business OR first hiring (PhilHealth Circular 001-2015). Online ER1 registration via Employer Engagement Portal. | Within 30 days from date the entity becomes an employer (HDMF Circular No. 259-2019). HQP-PFF-023 submitted online or at branch. |
| B. Employee Coverage Reporting | Coverage is automatic on the very first day the employee is “in employment” (SSS Act §9-A). Employer files R-1A / R-3 or uploads S-R3 within 30 days of start date. | Employee is covered from the first actual day of service with pay (PhilHealth Rules §7, 2024). Employer submits Employee Move-in List (ER2/PMRF) within 30 days. | Coverage commences on the employee’s date of employment (HDMF Law §4-b). Employer submits Membership Savings Remittance Form (MSRF) the following month. |
| C. First Premium/Contribution | Due in the month salary is first payable, regardless of actual payroll release. Remitted on or before the 10th/15th/20th/25th of the following month depending on ER number (SSS Circular 2019-012). | Accrues from the calendar month of employment. Payment schedule is quarterly: last working day of the month following the quarter (e.g., 30 April for Q1). | Accrues simultaneously with first payroll. Remittance on or before the 10th calendar day of the month following deduction (HDMF Circular 448-2021). |
Key principle: Day 1 of paid service = Day 1 of coverage = Day 1 employer share accrues, even if registration paperwork follows later.
3. Special Scenarios
Household or Domestic Employers (RA 10361, “Batas Kasambahay”)
- Coverage starts on the kasambahay’s first actual workday.
- Employer registers as “Household-ER” with SSS, PhilHealth, Pag-IBIG within 30 days.
- Employer shoulders the entire employer share; government subsidizes Employee share only up to the mandated amount for SSS and Pag-IBIG when monthly wage ≤ ₱5 000.
Project-based / Seasonal Workers
- As long as there is an employer-employee relationship—even for a single day—the same Day-1 rule applies.
- Coverage pauses only when the employment relationship completely ends; no “grace period” exists.
Probationary, Part-time, Commission-based
- No distinction under law; compulsory coverage is immediate and continuous for any service with compensation.
Business Transfer / Mergers
- The successor-employer assumes all unremitted contributions of the predecessor for periods before legal transfer (SSS Act §28-b; HDMF Circular 134-2013).
4. Penalties for Late Start or Non-Remittance
| Fund | Interest | Surcharge | Criminal Liability |
|---|---|---|---|
| SSS | 2 % per month of delinquent amount | n/a | Fine ₱5 000–₱20 000 and/or 6 yrs 1 day–12 yrs imprisonment (SSS Act §28-e) |
| PhilHealth | 3 % per month (simple interest) | n/a | Fine ₱5 000–₱10 000 per affected employee, plus imprisonment of 6 months–1 yr (UHC Act §40) |
| Pag-IBIG | 2 % per month compounded | n/a | Fine twice the amount owed, and/or imprisonment of up to 6 yrs (RA 9679 §24) |
▸ Estoppel doctrine: Even if an employer fails to register, the employee’s right to benefits vests; the employer shoulders full cost if delinquent. ▸ Government may garnish bank accounts or padlock business via warrant of distraint/levy (SSS §28-d, HDMF §25).
5. Reporting & Documentary Trail Checklist
| Transaction | Primary Form / Portal Entry | Statutory Deadline |
|---|---|---|
| Employer registration | SSS R-1 / PhilHealth ER1 / Pag-IBIG HQP-PFF-023 | Within 30 days from hiring first employee |
| Employee enrolment | SSS R-1A + E-1/E-4 / PhilHealth PMRF / Pag-IBIG MDF | Within 30 days from date hired |
| Monthly/Quarterly remittance | SSS R-3 or e-SRS; PhilHealth EPRS; Pag-IBIG HDMF-EDR | See fund-specific schedules |
| Year-end confirmation | SSS Electronic Contribution Collection List; PhilHealth Annual “Employer Data Report”; Pag-IBIG Yearly Collection Summary | 31 January of succeeding year (administrative issuances) |
6. Recent & Pending Amendments (watchlist)
SSS Contribution Rate Escalator RA 11199 implements a 0.5 percentage-point hike every other year until the ER+EE rate reaches 15 % in 2025. Current split (2025): 13 % (8.5 % ER / 4.5 % EE).
PhilHealth Premium Schedule Under UHC Act and PhilHealth Circular 2023-0010, the premium is 5.0 % of basic monthly salary (₱10 000 floor – ₱100 000 ceiling) in 2025, held in abeyance at 4 % for migrant workers by executive moratorium.
Pag-IBIG Savings Plus (MP3) Mandate Bills pending in 19th Congress propose raising compulsory Pag-IBIG savings to 3 % and automatically enrolling employees into the optional MP3 tier, with employer payroll deduction but no matched employer share.
7. Practical Compliance Tips for Employers
- Register before recruitment—portals allow same-day issuance of ER number.
- Embed new-hire enrolment into onboarding; require personal SSS/PhilHealth/Pag-IBIG numbers before payroll cutoff.
- Sync payroll and government calendars; many Philippine holidays fall on 10th & 15th, so pay early to avoid missed remittance windows.
- Automate e-payment; accredited banks and GCash/PayMaya APIs post in real time, eliminating branch queues and late-posting risk.
- Maintain reconciliation file (Excel or ERP export) linking each payslip line to remittance receipt. Keep for 10 years—statute of limitations for enforcement actions.
8. Conclusion
The trigger date for employer obligations to SSS, PhilHealth, and Pag-IBIG is uniform and uncompromising: the very first compensated day of service. Registration paperwork may be allowed within 30 days, but contribution liability—and the accompanying interest and penal sanctions—accrues from Day 1. Robust onboarding procedures, timely electronic remittances, and vigilant monitoring of evolving contribution schedules are the employer’s best safeguards against costly assessments and criminal exposure.
Prepared by: [Your Name] Philippine Labor & Social Legislation Researcher