Three funds, and late remittance carries criminal liability

Philippine employment carries three mandatory contribution schemes, all administered separately.

SSS

The Social Security System. Under R.A. No. 11199, coverage is compulsory for all private sector employees, including domestic workers.

It funds pension, maternity pay and sickness benefits.

PhilHealth

The national health insurance programme.

Pag-IBIG

The Home Development Mutual Fund — the government-backed affordable housing fund, also known as HDMF.

Both shares must be remitted

Employer and employee shares must be remitted on time. Late remittance carries surcharges and potential criminal liability.

Surcharges run at 2 to 3 per cent per month for SSS, PhilHealth and Pag-IBIG.

Why you should verify

A deduction on your payslip does not prove the employer remitted it. Check your records with each agency directly.

Gaps affect your pension, your health coverage and your housing loan eligibility — and given the surcharges and criminal exposure, an employer with gaps has a real problem you can raise.

The retroactive liability

Worth knowing: if you were misclassified as a contractor and are later recognised as a regular employee, you are owed retroactive contributions from day one of service.

That is one of the reasons misclassification is described as the single largest hidden cost in Philippine hiring.

Employer cost

Combined with the 13th month, core employer costs land at roughly 22% of gross salary.

What to check on your payslip

1. That SSS, PhilHealth and Pag-IBIG all appear
2. That your basic salary matches your contract
3. That payroll ran at least twice in the month
4. That no unauthorised deduction is present

Where to raise a problem

DOLE for labour standards, and each agency directly for contribution gaps.