Close X
2012_November_MoneyMatters_HowToRemitEmployeesMonthlyContributions_Image

How To Remit Your Employees’ Monthly Contributions

Your employees’ welfare are your responsibility. Make sure to remit their contributions accurately.

by Rachel Kelly Davis Posted on Nov 4, 2012

Every company with employees is required to remit monthly contributions on behalf of their employees. These remittances are paid for partly by the company and partly by the employee. The deductions from the employee’s salary are made prior to the issuance of their monthly paycheck, and need to be reflected on the employee’s payslip.

There are three types of remittances that need to be calculated and then filed, specifically SSS, Pag-IBIG, and Philhealth.

 

Social Security System

What to do: Fill out and file SSS Form R5. This reflects the amounts contributed by the employee and employer. Prepare four copies.

How to compute: Computation for SSS depends on the salary bracket. Usually, the employer covers 70% of the payment.

Schedule of SS and EC contributions.

When needed: On or before the 10th of the following month.

Where to pay: Payments are accepted at SSS cashier counters, Bayad CentersSM Bills Payment Centers, and accredited banks (over the counter or online).

For more info: www.sss.gov.ph

 

Pag-IBIG (Home Development Mutual Fund)

What to do: Fill out and file PAG-IBIG Form M1. This reflects the amounts contributed by the employee and employer.

How to compute: Calculate 2% of the employee’s gross income.

When needed: Any day of the following month.

Where to pay: Payments are accepted at Pag-IBIG Main Office or the Pag-IBIG branch where the company is registered, at accredited banks, or through online payment facilities (namely BPI Expresslink Online, UnionBank, and LandBank WeAccess)

For more info: www.pagibigfund.gov.ph

 

PhilHealth

What to do: Fill out and file PhilHealth Form ME-5. This reflects the amounts contributed by the employee and employer.

How to compute: The computation changes depending on the salary bracket of employee. Usually, the employer covers 50% of the payment and the employee covers the other 50%.

Salary brackets for PhilHealth computations. 

When needed: On or before the 10th of the following month.

Where to pay: Payments are accepted at PhilHealth, at accredited collecting banks (these include LandBank of the Philippines, BPI, MBTC, Unionbank, ChinaBank, and UCPB), accredited collecting partner outlets, or through electronic payment facilities.

For more info: www.philhealth.gov.ph 

 

A summary: What, how much, when and where

Abiding by these guidelines monthly should help keep your business in the clear.

HANDY GUIDE. A summary of the monthly remittance requirements. Infographic design by Jechrist Ramos.

SUMMARY OF MONTHLY REMITTANCE REQUIREMENTS FOR EMPLOYEES.
Infographic text by Rachel Kelly Davis, design by Jechrist Ramos. Click to enlarge.

 

Image of money transfer copyright Modella. Used under license from Shutterstock.com.

Writer's Block

Rachel Kelly Davis is a literature-loving foodie who suffers from occasional bouts of wanderlust. When she isn’t reading, writing, eating, cooking, or discovering new locales, she supports local businesses and entrepreneurs through her own business ventures. She was the financial officer of her first venture, Empresario Manila, a marketing and events company tailored to small to medium enterprises. In 2008, she co-wrote the book 25 Kitchens, and has been in online publishing for the past four years. Presently, she is the Culture Curator for her second venture, Homegrown Media Inc.. Find her on Twitter: @rache_tweets.

comments powered by Disqus