How to Register New Employees in the Philippines with SSS, BIR, PhilHealth, and Pag-IBIG Fund

Registering new employees in the Philippines is a crucial process for your company. It ensures compliance with labor laws and provides your employees access to essential benefits. 

The four key government agencies involved in this registration process are the Social Security System (SSS), Bureau of Internal Revenue (BIR), Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund (Pag-IBIG). 

In this article, we will guide you through the SSS, BIR, PhilHealth, and Pag-IBIG fund registration from requirements to the application process. 

Is it Mandatory to Register Employees in the Philippines?

According to the Labor Code of the Philippine, employers are required by law to register their employees with government agencies such as SSS, BIR, PhilHealth, and Pag-IBIG to ensure they receive necessary benefits.Non-compliance with this can lead to fines, legal action, and damage to your company’s reputation.

Registration Process for Employee Benefits in the Philippines

Registering with the Bureau of Internal Revenue (BIR)

As an employer, obtaining a Tax Identification Number (TIN) is a legal obligation under the National Internal Revenue Code (NIRC) and the Labor Code of the Philippines. It allows you to withhold the correct amount of income tax from your employees and remit the amount in compliance with Philippine tax laws. 

To register employees without a TIN, you must fill out the BIR Form 1902 to apply for a Tax Identification Number (TIN). To obtain this form you can visit the nearest BIR office to request a physical copy, download from the BIR’s official website, or through Emerhub’s tax and accounting services in the Philippines. 

You would also need the following documents to register your employees with the BIR:

• Valid government-issued ID
• Birth certificate or any valid proof of identity
• Additional documents may be required based on specific circumstances.

Whenever you register a new employee with the BIR, you must also file the BIR Form 2305 to ensure that the Bureau has accurate information about all employees under your payroll.

Registering with the Social Security System (SSS)

Under the Social Security Act of 2018 (Republic Act No. 11199), you are required to register your new employees with the Social Security System (SSS) in the Philippines. Employees registered with the SSS provide benefits such as sickness, maternity, disability, retirement, death, and unemployment support.  These benefits serve as a vital safety net, promoting social justice and helping workers and their families manage economic challenges.

Here’s how to register your new employees with the SSS: 

1. Secure an Employer ID Number – Complete the Employer Registration Form (SS Form R-1) and submit it to the nearest SSS branch along with required documents such as business permits and identification.
2. Report Newly Hired Employees – Within 30 days from the employee’s start date, you must submit SS Form R-1A (Employment Report) to register new employees together with their birth certificate or valid ID to obtain their SSS number.
3. Payment of Contributions – After registration, you must remit monthly contributions for all your SSS-registered employees based on established rates.
4. Maintain Records – Keep accurate records of contributions and employee information for compliance verification during audits by the SSS.

Registering with the Home Development Mutual Fund (Pag-IBIG)

Registration with Pag-IBIG allows employees to access various housing-related benefits, including affordable housing loans and savings programs. As an employer, you are required to register your new employees with Pag-IBIG under the Republic Act No. 9679. Here’s how you can start the process:

1. Obtain the Employer Data Form (EDF) – This form can be downloaded from the Pag-IBIG website or obtained at any Pag-IBIG branch. Fill out all necessary information accurately, including business name, address, nature of your business, and authorized representatives.
2. Receive the Pag-IBIG Employer ID Number – After processing, Pag-IBIG will issue an Employer ID Number, which will be used for all transactions related to your employee contributions.
3. Enroll Employees – to register your staff, each must fill out a Member’s Data Form (MDF) along with a photocopy of their valid ID.
4. Remit Contributions to Pag-IBIG – you are required to remit monthly contributions based on employee compensation—typically 4% of monthly salary (2% from the employer and 2% from the employee). 

Registering with the Philippine Health Insurance Corporation (PhilHealth)

As part of the Philippine government’s initiative to provide comprehensive health insurance to Filipinos, the National Health Insurance Program (NHIP) mandates all businesses to register their staff with PhilHealth. To provide financial risk protection against high medical costs, ensuring that employees can receive necessary healthcare without incurring crippling debt. Here’s how you can register your employees with PhilHealth insurance:

1. Obtain the ER1 Form – Download or request the Employer Data Record from any PhilHealth office or their official website.Fill out all necessary information and submit your application along with your business permit and any required documents to the nearest PhilHealth office.
2. Receive the PhilHealth Employer Number – After processing, PhilHealth will issue an Employer Number (PEN) along with a certificate of registration.
3. Register Employees to PhilHealth – Each employee must complete a PMRF and submit it along with a photocopy of a valid ID to obtain their PhilHealth Identification Number (PIN).
4. Remit Contributions to PhilHealth – as a business owner, you are required to remit monthly contributions based on employee compensation—typically shared equally between employer and employee (50% each).
5. Display Registration Certificate – Once registered, you must prominently display their certificate of registration within their office premises as mandated by PhilHealth regulations.

SSS, BIR, PhilHealth, and Pag-IBIG Fund Registration Made Easy with Employer of Record (EOR) 

Emerhub acts as your Employer of Record (EOR) in the Philippines, streamlining the hiring process by managing all administrative tasks, including compliance with local labor laws and benefits administration. We will handle onboarding, payroll processing, and timely remittance of mandatory contributions to SSS, PhilHealth, and Pag-IBIG Fund, while also providing ongoing support to ensure your business remains compliant with regulatory requirements.

By outsourcing HR functions to Emerhub, companies can reduce costs associated with in-house HR staff and benefit from their expertise in local regulations. Our EOR service facilitates quicker employee onboarding, allowing you to concentrate on core operations while Emerhub manages employee registrations and compliance effectively.

For more information on how our team can assist with your HR needs, fill in the form below and one of our local experts will get in touch.