Social Security

The Philippine Social Security System consists of the following bodies.

SSS (Social Security System) – SSS provides private employees and their families with protection against disability, sickness, old age, and death.

GSIS (Government Service Insurance System) is the equivalent system for Philippine government employees.

HDMF (Home Development Mutual Fund) – HMDF provides housing loans to private and Philippine government employees, and to self-employed persons who choose to join the Fund.

PhilHealth (PhilippineHealth Insurance Corporation) – PhilHealth, being administered by the Philippine National Health Corporation, is providing employees with adequate medical care in the Philippines.

Coverage in the Philippines

All persons under the age of 60 who earn income from employment of more than P1,000 per month are required to contribute to the SSS. Government employees are required to contribute to the equivalent GSIS.

Employees are also required to contribute to the HDMF and PhilHealth. Membership is optional, however, for self-employed persons. Foreign personnel are also required to make contributions. Opting out is not possible, except in limited circumstances under some of the Philippines’ international social security agreements. In practice, however, the potential savings involved are generally insufficient to justify the efforts required to effect the exemption.

Contributions in the Philippines

Employee contributions for social security are deducted from employee’s salary payments. These are withheld by the employer on a monthly basis. The employer contributes accordingly.