1. What is Employer Salary Cost?

The total employer salary cost includes gross salary plus mandatory employer contributions to SSS, PhilHealth, and Pag-IBIG in the Philippines. This represents the true cost to the employer for employing someone.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Base annual salary in PHP
• Employer SSS — Social Security System contribution
• Employer PhilHealth — Philippine Health Insurance contribution
• Employer Pag-IBIG — Home Development Mutual Fund contribution

Explanation: Philippine law requires employers to contribute to these social benefit programs in addition to paying the employee's salary.

3. Importance of Calculating Total Cost

Details: Understanding the total employment cost helps businesses budget accurately and comply with Philippine labor laws.

4. Using the Calculator

Tips: Enter all values in PHP. The calculator sums the gross salary with all mandatory employer contributions to show the total employment cost.

5. Frequently Asked Questions (FAQ)

Q1: What are the current contribution rates?
A: Rates may change annually. Check with SSS, PhilHealth, and Pag-IBIG for 2025-26 rates.

Q2: Are there salary caps for contributions?
A: Yes, each program has maximum salary bases for contributions.

Q3: Do all employees require these contributions?
A: Regular employees generally do, while some contractual arrangements may differ.

Q4: When are these contributions due?
A: Typically monthly, along with salary payments.

Q5: Are these contributions tax-deductible?
A: Generally yes, but consult a tax professional for specific advice.