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Philippine HR Compliance

Philippine HR & Payroll Compliance — Built In, Not Bolted On.

SSS, PhilHealth, Pag-IBIG, BIR, and DOLE-mandated pay components — computed automatically on every payroll run. Contribution tables, remittance exports, BIR forms, annualization, leave law tracking, and data privacy controls. All handled without manual calculation.

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SSS Ready PhilHealth Pag-IBIG BIR Compliant DOLE

Regulatory Coverage

Every Philippine Employer Obligation, Covered

From the Labor Code's overtime rules to the Data Privacy Act's security requirements — EngageHRIS is built to handle the full scope of Philippine employer obligations inside a single platform.

Law / Agency What EngageHRIS Handles Priority
DOLE / Labor Code PD 442 & related issuances Overtime pay (+25% ordinary, +30% rest day/holiday), rest day differential, regular and special holiday pay, night shift differential (+10% for 10PM–6AM), minimum wage compliance per regional wage board orders, holiday calendar management, service incentive leave (SIL) accrual Critical
BIR NIRC / TRAIN Law (RA 10963) Monthly withholding tax computation per graduated TRAIN table, annualization at year-end, Form 2316 (annual tax certificate) PDF generation per employee, Form 2307, 1601-C monthly remittance export, 1604-C annual return, Alphalist (Annex A) in BIR-prescribed format, ₱90,000 combined 13th-month exclusion computation Critical
SSS RA 11199 (Social Security Act) Employee (5%) and employer (10%) contribution computation per current MSC schedule (max ₱35,000 effective Jan 2025), salary loan deduction tracking, R3 contribution list and R5 payment return exports formatted for My.SSS portal upload, per-period contribution history per employee Critical
PhilHealth RA 7875 / UHC Act (RA 11223) 5% premium computation (2025 rate) with ₱10,000 floor and ₱100,000 ceiling, equal employee/employer split, RF1-aligned monthly remittance file export for PhilHealth ER portal submission, configurable premium rate table for annual updates Critical
Pag-IBIG / HDMF RA 9679 (HDMF Act) 2% contribution rate (employer match) on up to ₱5,000 monthly compensation ceiling, multi-purpose and calamity loan deduction tracking, M1 and M2 formatted remittance exports for HDMF Virtual Pag-IBIG portal, configurable contribution ceiling table Critical
RA 11210 Expanded Maternity Leave Act Leave tracking for 105 days (normal delivery), 120 days (caesarean section), 60 days (miscarriage / emergency termination), SSS benefit coordination, paid/unpaid day tracking, entitlement alerts per employee status High
RA 8187 Paternity Leave Act 7-day paid paternity leave tracking for married male employees (up to 4 deliveries of legitimate spouse), leave balance recording and payroll integration for paid days High
RA 8972 Solo Parent Welfare Act 7-day paid parental leave for qualified solo parents (with valid Solo Parent ID), special leave balance management, qualification verification fields, pay computation integration High
RA 9710 Magna Carta of Women 2-month special leave for female employees after surgery for gynecological disorders (non-cumulative, in addition to SIL), separate leave bucket tracking, eligibility check (minimum 6-month service), payroll coding for paid leave days High
RA 10173 Data Privacy Act of 2012 Role-based access control (RBAC) so only authorized users see payroll and sensitive data, audit trail on all data modifications, field-level protection for SSS/TIN/bank details, data retention policy configuration, employee data access request handling, encrypted data transmission Critical
RA 11165 Telecommuting Act Remote work attendance and time-tracking, work location tagging per shift, overtime computation for remote workers, leave and holiday calendar parity for telecommuting staff, compensation parity record-keeping High

Statutory Contributions

All Four PH Government Agencies — Covered with Current 2025 Rates

Every mandatory Philippine employer contribution and remittance is handled inside EngageHRIS — computed automatically using current rates, exported in the exact format each agency requires for portal submission.

SSS — Social Security System
RA 11199 — effective Jan 2025
15% total contribution Max MSC ₱35,000

Employer share: 10%  |  Employee share: 5%

Automatic employer and employee SSS contribution computation based on the current contribution schedule, with remittance exports ready for submission.

  • Contribution computation per current SSS schedule (15% total rate)
  • Employee (5%) and employer (10%) share breakdown per payslip
  • R3 and R5 summary exports for monthly filing via My.SSS
  • SSS salary loan deduction tracking and remittance export
  • Configurable contribution table updated as SSS issues new circulars
  • Monthly Salary Credit (MSC) capped at ₱35,000 per Jan 2025 schedule
PhilHealth — PHIC
RA 11223 UHC Act — 2025 rate
5% premium rate ₱10K–₱100K bracket

Employee share: 2.5%  |  Employer share: 2.5%

PhilHealth premium computations are automatically applied each payroll run using the current premium rates table, with RF1-aligned remittance exports.

  • 5% premium computation (2025) with ₱10,000 salary floor
  • Maximum monthly contribution at ₱100,000 salary ceiling
  • Equal employee and employer 2.5% premium split
  • RF1-aligned monthly remittance file export for ER portal
  • Configurable premium rate table for annual PHIC rate updates
  • Per-employee contribution history per period
Pag-IBIG — HDMF
RA 9679 — current rates
2% max contribution ₱5,000 ceiling base

Employee share: 2% (up to ₱100/mo)  |  Employer match: 2%

Pag-IBIG contributions are computed within payroll and exported in the M1/M2 format used for HDMF online remittance submissions.

  • 2% contribution on monthly compensation (max ₱5,000 base)
  • Employer match at 2% — both shares per payslip line item
  • M1 and M2 formatted remittance export for Virtual Pag-IBIG portal
  • Multi-purpose and calamity loan deduction tracking
  • Configurable contribution ceiling table for HDMF circular updates
  • Full deduction history per employee per period
BIR — Bureau of Internal Revenue
TRAIN Law (RA 10963) — graduated tax
Graduated 0%–35% ₱90K exclusion

₱90,000 combined 13th-month & other benefits exclusion from taxable income per TRAIN Law

Withholding tax is computed on every payroll run against current BIR income tax tables, with all required BIR forms generated automatically at period-end and year-end.

  • Monthly withholding tax per TRAIN Law graduated table (0%–35%)
  • BIR Form 2316 PDF per employee (annual income tax certificate)
  • BIR Alphalist Annex A and 1601-C monthly remittance export
  • BIR Form 2307 creditable withholding tax certificate PDF
  • 1604-C annual return support and annualization computation
  • ₱90,000 13th-month and other benefits exclusion applied automatically

DOLE-Mandated Pay Components

Every DOLE Pay Rate, Computed Automatically

EngageHRIS computes all DOLE-mandated pay components on every payroll run — no manual spreadsheet formulas needed. The rates below are pre-configured and applied automatically based on shift type, work date, and employee records.

Pay Component Legal Basis Rate / Rule EngageHRIS Handling
Ordinary Overtime Labor Code Art. 87 +25% Computed on declared OT hours from attendance records; applied per hourly rate
Regular Holiday (worked, first 8 hrs) Labor Code Art. 94 200% Triggered when employee works on a regular holiday per the EngageHRIS holiday calendar
Regular Holiday Overtime Labor Code Art. 94 260% 200% base + 30% OT premium on the 200% rate — applied automatically when OT on holiday is logged
Special Non-Working Day (worked) Labor Code / Exec. Orders 130% Computed on hours worked on special non-working days per the configurable holiday calendar
Rest Day Worked Labor Code Art. 93 130% Applied when attendance records show work on the employee's scheduled rest day
Night Shift Differential Labor Code Art. 86 +10% Added for every hour (or fraction) worked between 10:00 PM and 6:00 AM; computed from shift records
13th Month Pay Presidential Decree 851 1/12 annual basic Auto-computed from total basic salary earned during the calendar year; pro-rated for mid-year hires; ₱90,000 tax exclusion applied
Service Incentive Leave (SIL) Labor Code Art. 95 5 days/year Accrued after 1 year of service; leave balance tracked per employee; convertible to cash if unused (employer-configurable)

Special Leave Laws

Philippine Special Leave Entitlements, Tracked Automatically

Beyond standard SIL, Philippine law mandates several special leave types for specific employee groups. EngageHRIS tracks them all as separate leave buckets — with entitlement rules, balance management, and payroll integration built in.

RA 11210
Expanded Maternity Leave Act

For female SSS members who give birth, have a miscarriage, or an emergency termination of pregnancy.

Entitlements

  • →Normal delivery: 105 days paid
  • →Caesarean section: 120 days paid
  • →Miscarriage / ETP: 60 days paid
  • →Optional 30-day extension (unpaid) available
  • Separate leave bucket per employee record
  • Delivery type field triggers correct entitlement days
  • SSS maternity benefit coordination and offset tracking
  • Payroll coding distinguishes SSS-paid vs employer-paid days
RA 8187
Paternity Leave Act

For married male employees whose lawfully wedded spouse undergoes delivery or miscarriage.

Entitlements

  • →7 working days with full pay
  • →Covers up to 4 deliveries of legitimate spouse
  • →Non-cumulative; use or lose per qualifying event
  • Leave balance per qualifying delivery tracked per employee
  • Marriage status and delivery count fields in employee profile
  • Payroll integration for 7 paid days per approved application
  • Usage counter to track remaining lifetime entitlements
RA 8972
Solo Parent Welfare Act

For qualified solo parents with a valid Solo Parent ID issued by the DSWD — providing additional leave and benefits support.

Entitlements

  • →7 working days parental leave per year
  • →Requires valid Solo Parent ID from DSWD
  • →Annual renewal of Solo Parent ID required
  • Solo Parent flag and Solo Parent ID field in employee profile
  • Annual 7-day leave bucket separate from SIL and VL
  • ID expiry reminder to maintain qualification status
  • Paid leave days integrated into payroll processing
RA 9710
Magna Carta of Women

Special leave benefit for female employees who undergo surgery for gynecological disorders — in addition to any SIL or VL entitlements.

Entitlements

  • →Up to 2 months special leave with full pay
  • →Requires minimum 6 months of continuous service
  • →Non-cumulative; availed per surgery
  • →Medical certificate / surgeon's report required
  • Dedicated 2-month leave bucket per surgery event
  • 6-month service eligibility check from hire date
  • Separate from vacation and sick leave balances
  • Paid days fully integrated into payroll computation

RA 10173 — Data Privacy Act

Your Employees' Data is Sensitive Personal Information — We Treat It That Way

Under the Data Privacy Act of 2012 (RA 10173), employee records in an HRIS — including compensation, government IDs (SSS, TIN, PhilHealth), bank account details, health information, and employment history — are classified as sensitive personal information.

Philippine employers are required to implement appropriate organizational, physical, and technical security measures to protect this data. The National Privacy Commission (NPC) has issued guidelines on HRIS systems specifically noting the need for access controls, audit trails, and breach notification procedures.

As the personal information processor, your HRIS vendor's security architecture directly affects your DPA compliance posture. EngageHRIS is designed with DPA obligations for Philippine employers as a core architectural requirement — not an afterthought.

Data types protected by EngageHRIS

SSS Number TIN PhilHealth ID Pag-IBIG MID Bank Account Salary / Payroll Health / Leave Records Disciplinary Records
How EngageHRIS Handles DPA Obligations
  • Role-Based Access Control (RBAC) HR users cannot access payroll data unless explicitly granted the payroll permission role. Department managers see only their team. Customizable per company structure.
  • Audit Trail on All Data Changes Every create, read, update, and delete action on employee records is timestamped with the acting user — providing a complete audit log for NPC inspection or internal review.
  • Field-Level Protection for Sensitive IDs SSS numbers, TIN, bank account details, and PhilHealth/Pag-IBIG IDs are masked in views and accessible only to users with explicit field-level permissions.
  • Data Retention Policy Support Configure retention schedules per record type — aligned with DOLE (3 years payroll records), BIR (10 years), and NPC guidelines for personal data minimization.
  • Employee Data Access Request Handling Data subjects (employees) can request their own records through the self-service portal — supporting the DPA's right to access and right to correction provisions.
  • Encrypted Data Transmission All data transmitted between client browsers and EngageHRIS is encrypted in transit. Employee payslips and BIR documents sent via the system use secure delivery channels.

Honest Positioning

What EngageHRIS Can Honestly Claim

There is an important distinction that every responsible HRIS vendor should make: the difference between a system that supports compliance and a system that is "certified" or "accredited" by a government agency. These are not the same thing — and any vendor claiming the latter for routine payroll software should be questioned.

"EngageHRIS is built for Philippine HR, payroll, and labor compliance."

This means the system's computation logic, contribution tables, form templates, and data controls are designed and maintained specifically for the Philippine regulatory environment — covering DOLE, BIR, SSS, PhilHealth, Pag-IBIG, and the special leave laws listed on this page.

What this means for your business: EngageHRIS gives you the tools, computation rules, and reporting outputs needed to meet Philippine employer obligations. The system computes correctly when configured correctly. Compliance ultimately depends on your organization's data input quality, configuration accuracy, and operational procedures — the software provides the framework.

What we can say:

  • Contribution rates are aligned with current government schedules
  • BIR form templates follow prescribed formats
  • Leave entitlement rules follow the letter of each law
  • DOLE pay multipliers are correctly implemented
  • Data controls support DPA compliance posture

What requires your attention:

  • →Accurate time and attendance data entry
  • →Updating contribution tables when agencies issue circulars
  • →Correct employee classification and compensation setup
  • →Leave approval workflows and supporting documentation
  • →Actual filing and remittance submission to agencies

BIR Documents

Every BIR Form You Need, Generated Automatically

No more manually filling BIR forms at year-end. EngageHRIS generates every required document directly from your payroll data — accurately and in seconds.

BIR Form 2316

Annual income tax return certificate for each employee — PDF generated per person, ready to sign and distribute at year-end. Contains gross compensation, total tax withheld, and employer certification. Required for employees substituting filing.

BIR Alphalist

Annex A alphalist of employees with taxable compensation — exported in the BIR-prescribed DAT file format for eFPS upload with the monthly 1601-C and annual 1604-C filing. Covers all employees for the period including minimum wage earners.

BIR Form 2307

Creditable withholding tax certificate — PDF generated per employee for applicable periods. Used as evidence of tax withheld at source for the employee's own income tax return. Covers compensation income subject to withholding.

1601-C Export

Monthly remittance return of income taxes withheld on compensation — CSV/DAT file exported in BIR format, ready for eFPS submission without any manual reformatting. Includes total tax withheld and employee count for the period.

Remittance Exports

Export-Ready Remittance Files for All Agencies

Every payroll run produces government-ready remittance files for SSS, PhilHealth, and Pag-IBIG — in the exact format each agency requires for portal submission.

SSS Remittance
  • R3 contribution file for employer remittance
  • R5 payment return summary export
  • Employee contribution breakdown per period
  • Formatted for SSS My.SSS portal upload
  • Loan deduction amounts included per employee
PhilHealth Remittance
  • RF1-aligned contribution file per period
  • Employee and employer premium share listed
  • Formatted for PhilHealth ER portal submission
  • Monthly remittance report per payroll run
  • Employee PhilHealth number per record
Pag-IBIG Remittance
  • M1 and M2 formatted contribution file export
  • Employee and employer contribution per record
  • Loan amortization deductions included in export
  • Formatted for HDMF Virtual Pag-IBIG portal upload
  • Multi-purpose and calamity loan separation

Year-End Compliance

Year-End Compliance Done Right

Annualization and 13th Month Pay are two of the most time-consuming year-end requirements — EngageHRIS handles both automatically based on your payroll history.

Annualization

Annual tax computation applied at year-end to true up the withholding tax for each employee — based on total taxable compensation earned across all payroll periods for the year. Required under BIR regulations before year-end cutoff.

  • Annual gross compensation aggregated from all runs
  • Tax due computed against BIR TRAIN table for the full year
  • Adjustment for over or under-withheld tax per employee
  • Recalculation support for retroactive corrections
  • Feeds directly into BIR Form 2316 generation
  • ₱90,000 13th-month and benefits exclusion correctly applied
13th Month Pay

13th Month Pay is computed based on total basic salary earned during the calendar year in compliance with Presidential Decree 851 — with a full history of computation records. Mandatory for all rank-and-file employees regardless of compensation method.

  • Computation based on total basic salary for the year
  • Pro-rated calculation for employees hired mid-year
  • Year records maintained per employee for audit purposes
  • PDF download of 13th Month Pay computation per employee
  • Integrated into payroll for disbursement processing
  • ₱90,000 combined exclusion applied in annualization

Contribution Tables

Contribution Tables Updated as Government Rates Change

Government contribution rates and ceilings change over time. EngageHRIS stores all three agency contribution tables in configurable admin settings — so your payroll stays accurate when PHIC, SSS, or HDMF issues a circular with new rates.

SSS Contribution Schedule

The SSS contribution table is stored in the admin panel and can be updated when SSS issues new contribution schedules. Employee and employer share brackets are configurable per the current circular. Contribution computations apply the table automatically to each employee's monthly salary credit. The current table reflects the January 2025 schedule (15% total rate, max MSC ₱35,000).

PhilHealth Premium Rates

PhilHealth premium rates are configured based on the current PHIC premium rate circular. The 2025 rate (5% of monthly basic salary) with the ₱10,000 floor and ₱100,000 ceiling is pre-configured. As PHIC issues annual premium rate updates, the table in EngageHRIS can be updated so all subsequent payroll runs reflect the new rate — with employee and employer shares computed correctly.

Pag-IBIG Contribution Ceilings

The Pag-IBIG contribution ceiling (₱5,000 monthly compensation cap) and rate table is configurable in admin settings. When HDMF issues revised contribution guidelines or ceiling adjustments, the table is updated centrally and all payroll runs from that point forward use the new rates automatically. Loan deduction schedules are also configurable per employee.

Stop Manually Tracking Philippine HR Compliance

EngageHRIS handles SSS, PhilHealth, Pag-IBIG, BIR, DOLE pay rules, and special leave laws — automatically on every payroll run, so your HR team focuses on people, not statutory spreadsheets.

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