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So, you’ve decided to become a freelancer! While being your own boss offers flexibility and independence, it also comes with the responsibility of managing your monthly contributions and benefits on your own. For many Filipino freelancers, Social Security System (SSS), Philippine Health Insurance (PhilHealth), and Home Development Mutual Fund (Pag-IBIG) are the most crucial government-mandated contributions.
We know managing these monthly freelance contributions can be tedious. To make it easier for you, we’re walking you through how to navigate these in our freelancer’s adulting guide!
Also read: An Adulting Guide: Freelance or Employment — Which One’s For You?
According to the Philippine labour laws, all workers are required to be members of SSS, PhilHealth, and Pag-IBIG programmes. Before we get into the nitty-gritty details, let’s take a look at the purpose and benefits of each.
Social Security System or SSS is a social insurance program mandated by the government to all income-earners or workers that provides social security benefits. These include retirement pensions, maternity, disability, death, and sickness benefits. Eligible members also have the opportunity to avail of loans for salary, housing, business, and education.
As a self-employed worker or freelancer, you can contribute a portion of your income and are eligible for these benefits upon reaching retirement age or in case of emergencies.
For more information about SSS and its benefits, click here.
Philippine Health Insurance or PhilHealth provides Filipino workers with universal health insurance coverage and healthcare services. That said, PhilHealth members are entitled to financial aid covering medications, hospital expenses, and certain inpatient and outpatient procedures.
For more information about PhilHealth and its benefits, click here.
Home Development Mutual Fund or Pag-IBIG provides Filipino workers with housing and savings assistance programmes. Eligible members can avail of housing loans, multi-purpose loans as well as calamity loans. In addition to its standard savings program, members can also participate in the Pag-IBIG MP2 Savings. This special savings facility allows you to save more and earn higher dividends.
For more information about Pag-IBIG and its benefits, click here.
Also read: 7 Valid IDs in the Philippines You Should Have Right Now as an Adult
Before we guide you through the process of settling your monthly payments, see the contribution rates below to find out the amount that aligns with your income:
Effective 2023, the SSS contribution rate has risen to 14% from the previous 13%. This rate will see a gradual 1% increase every other year until 2025. As of 2024, the SSS monthly contribution rate remains fixed at 14%.
As of 2024, the PhilHealth contribution for self-employed members has increased to 5% from the previous 4%. Additionally, the income ceiling is now at ₱100,000.
Monthly Income | 2024 PhilHealth Contribution | PhilHealth Monthly Contribution |
₱10,000 (min) | 5% | ₱500 |
₱100,000 (max) | 5% | ₱5,000 |
As of 2024, the updated mandatory monthly contribution for Pag-IBIG is set at ₱200 for the employee’s portion and ₱200 for the employer’s share. Thus, freelancers must contribute ₱200 per month, covering both the employee’s and employer’s share. Moreover, there’s an option to make contributions exceeding ₱400, especially if you intend to apply for a loan or if you wish to save more.
Now that you know how much you should be paying for your SSS, PhilHealth, and Pag-IBIG contributions, here’s how you can settle your payments:
Note: This online payment guide is for existing members of SSS, PhilHealth, and Pag-IBIG. Moreover, if you were previously employed, you must change your membership type before settling your payments.
Also read: 12 #Adulting Apps Every Pinoy Millennial Should Have
There you have it! We hope this guide to SSS, PhilHealth, and Pag-IBIG helps you better navigate your monthly contributions as a freelancer. Thinking about working freelance? Find out if it’s the right fit for you here!
Featured image credit: pondsaksitphotos via Canva Pro
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