Social Security System (SSS)

Purpose: The Philippine government is bound to protect the welfare of employees and
workers in the country. That is why through labor and social security laws, it mandates
and obliges businesses and employers to ensure that their hired employees or laborers
are covered by viable tax-exempt social security service and protection against the
hazards of disability, sickness, maternity, old age, death, and other contingencies
resulting in loss of income (Republic Act No. 8282, Social Security Act of 1997, Section
2). Thus, if you own a company and employs people to carry out your business, you
have to comply with the law and register your business with the Philippine Social
Security System (SSS).

Who are the employers covered to register with the SSS?

The following employers are required for compulsory coverage under SSS:
a. An employer, or any person who uses the services of another person in business,
trade, industry or any undertaking.
xxxx

When should employers start the SSS coverage of their employees?

According to the SSS, for an employer, the effectivity of compulsory coverage starts on
the first day he or she hires employees. The employer only has 30 days from the date
of employment of employee to report the person for coverage to the SSS thru Form R-
1A (Employment Report).

Form:
SSS R-1A
https://www.sss.gov.ph/sss/DownloadContent?
fileName=SSSForms_Employment_Report.pdf

How to register a business with the SSS?

The following are the instructions to register the different types of business with the
SSS:

For Corporations  

1. Must accomplish SSS Forms R-1(Employer Registration)

2. R-1A (Employment Report) signed by its President or any of the corporate officers
3. A photocopy of the Articles of Incorporation. The original copy of the Articles of
Incorporation must be presented to the SSS for authentication purposes.
Forms:
Employer Registration
https://www.sss.gov.ph/sss/DownloadContent?
fileName=SSSForms_ER_Registration.pdf

Employer Report
https://www.sss.gov.ph/sss/DownloadContent?
fileName=SSSForms_Employment_Report.pdf

What is the effect of non-reporting and non-remittance of contributions?

An employer who does not report temporary or provisional employees is violating the
SS law. The employer is liable to the employees and must:
1. pay the benefits of those who die, become disabled , get sick or reach retirement
age;
2. pay all unpaid contributions plus a penalty of three percent per month; and
3. be held liable for a criminal offense punishable by fine and/or imprisonment.

Conclusion:
As business owners and employers, we have to be responsible in assuring the welfare
of our employees or workers. Covering your employees with the Philippine Social
Security System is not only a compulsory obligation that must be complied to avoid
penalties or punishments for violating the law, but it is also showing that you truly care
and love the people who are helping you to bringing your business to success . Besides,
benefits, whether based on law or based on your cheerful heart, will always make your
employees happy and productive, leading your business to profitability and
sustainability.

Philippine Health Insurance Corporation (PHILHEALTH)

Purpose: All employees, both public and private, are mandated under Republic Act No.
7875 to apply for membership and remit monthly contributions to the medical insurance
company in the Philippines – the Philippine Health Insurance Corporation (PHIC), or
more commonly known as PhilHealth.

PhilHealth provides health and hospitalization subsidies to its members should they or
their dependent/s be hospitalized. It provides employees with a practical means of
paying for adequate medical care in the Philippines. The monthly contributions are
deducted from the employee’s actual monthly salary where they are required to
contribute 50% of the amount and the remaining 50% should be paid by the employer.
How to Register Your Business with PhilHealth

1. Download the Employer Data Record (E1 Form) directly from the PhilHealth website.

Form:
Employer Data Recprd
https://www.philhealth.gov.ph/downloads/

2. Fill in all the necessary fields.

3. Prepare your business permit and other necessary documents.

Required document:
SEC (Securities and Exchange Commission) Registration.

4. Upon processing, PhilHealth will issue your company’s PhilHealth Employer Number
(PEN) and Certificate of Registration (COR), as well as your registered employees’
PhilHealth Identification Number (PIN) and Member Data Record (MDR)
5. With the exception of household employers, businesses must display their Certificate
of Registration in a noticeable area of their offices.

Home Development Mutual Fund (Pag-IBIG Fund)

Purpose: Republic Act 7835 mandates employers to contribute to the Home

Development Mutual Fund (HDMF), otherwise known as the Pag-IBIG Fund. It is a
provident savings system that supplies housing loans to public and private employees,
as well as to self-employed persons who apply for membership. It provides housing and
land acquisition loans to its members with the lowest interest rate and are payable for
up to thirty (30) years.

How to Register Your Business for Pag-IBIG

1. Have the following documents at the ready:

a. SSS (Social Security System) Certificate

b. SSS R1 and/or SSS-R1 A and SSS R3
c. Proof of Business Ownership 
d.Specimen Signature

2. Additional Requirements: (For Partnerships and Corporations)

a. SEC Certificate
b. Approved Articles of Partnership
c. Board Resolution with Authorized Signatories
d. Business Permit
e. BIR COR (2303)

3. Download and print the Employer’s Data Form (EDF) and Membership Savings

Remittance Form (MSRF) from Pag-IBIG online. Fill out all the necessary fields. Do note
that for the MSRF form, you will need to input the Pag-IBIG Member ID (MID) number
of your employees.

Forms:
Employer’s Data Form:
https://www.pagibigfund.gov.ph/document/pdf/dlforms/providentrelated/
PFF002_Employer%27s%20Data%20Form_V07.pdf

Membership Savings Remittance Form:

https://www.pagibigfund.gov.ph/document/pdf/dlforms/providentrelated/
PFF053_Member%27sContributionRemittanceForm_V03.pdf

4. Head to the nearest Pag-IBIG branch and submit the EDF and MSRF forms and other
requirements for verification. Here, you will be given a printed copy of your EDF
containing the Registration Tracking Number (RTN). Remember: The RTN is essential
when paying for the monthly contributions while you haven’t received your employer ID
number.

5. You will receive the certificate of your employer ID number once you’ve attended the
seminar they’ve assigned to you.