Manage Philippines payroll with SSS, PhilHealth, Pag-IBIG, and BIR compliance built in — and 13th-month pay handled automatically.
Payroll compliance in the Philippines is governed by a combination of social security legislation, health insurance mandates, housing fund obligations, and Bureau of Internal Revenue (BIR) tax regulations. WorkWisely's Philippines payroll module ensures full compliance with all four major statutory systems: SSS, Pag-IBIG, PhilHealth, and BIR — automating calculations, contributions, and government filings.
Philippine labor law requires employers to register employees with four government agencies: the Social Security System (SSS), the Pag-IBIG Fund (HDMF), PhilHealth (Philippine Health Insurance Corporation), and the Bureau of Internal Revenue (BIR). Each imposes distinct contribution schedules, wage bases, filing deadlines, and penalties for non-compliance. WorkWisely consolidates all four into a single, unified payroll engine.
The SSS provides social insurance to private sector employees, covering retirement, disability, death, sickness, maternity, and funeral benefits. Membership is mandatory for all private-sector employees.
WorkWisely automatically maps employee monthly salaries to the correct SSS salary bracket, calculates both employee and employer contributions, and generates the monthly R-5 payment file. The system also manages Unified Multi-Purpose Identification (UMID) tracking and flags employees without valid SSS numbers.
The Home Development Mutual Fund, known as Pag-IBIG, provides housing finance and short-term loan programs for Filipino workers. Contributions are mandatory for all employees earning PHP 1,500 or more per month.
WorkWisely handles Pag-IBIG contribution calculations on a per-payroll basis, identifies mandatory versus voluntary contribution scenarios, and generates the monthly electronic remittance schedule in the format accepted by the Pag-IBIG portal.
PhilHealth provides universal health coverage to all Filipino workers. Premium contributions are mandatory and tied to the employee's basic monthly salary.
WorkWisely's PhilHealth module is updated in real time as PhilHealth adjusts premium rates (as mandated under the Universal Health Care Act). The system automatically generates the PhilHealth RF-1 equivalent file for the EPRS portal and ensures all employees' PhilHealth numbers (PHN) are registered and validated.
The BIR administers income tax withholding from salaries of all employees under the National Internal Revenue Code (NIRC), as amended by the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
WorkWisely computes monthly withholding tax using BIR-prescribed tax tables, handles mid-year tax annualisation for resigned employees (for BIR Form 2316), and supports eFPS (Electronic Filing and Payment System) integration. The system also handles the computation of 13th Month Pay, which is tax-exempt up to PHP 90,000 under TRAIN.
Q: Does WorkWisely support eFPS filing for BIR 1601-C?
A: WorkWisely generates the complete BIR 1601-C data file in the format compatible with eFPS. Your team can directly upload the exported file to the eFPS portal without manual re-entry.
Q: How does WorkWisely handle employees with multiple employers in the Philippines?
A: When an employee has a primary and secondary employer, WorkWisely flags the employment type and ensures the correct BIR Form 2316 categorisation. Secondary employer withholding is computed at the straight 25% rate as required by BIR regulations.
Q: How is the SSS salary bracket determined for employees with variable pay?
A: WorkWisely uses the month's total compensation to determine the applicable SSS Monthly Salary Credit. For employees with variable income (commissions, allowances), the system includes all regular monthly compensation in the MSC computation.