So you’ve finally decided on pursuing your business ideas in the Philippines. Before you do anything else, be sure to read our post on the requirements for starting a business in the Philippines. Consider this the second part of that post, as you would also have to employ Filipinos to your business.
Related Article: Requirements for Starting A Business in the Philippines
To begin, you would need to remember yet another set of important agencies that comes after registering your business. All employees aged 60 and below, earning more than 1000 PHP am month are required to make these contributions.
1. Social Security System (SSS)
According to the Social Security Act of 1997, this requires all businesses — be it private, professional, and informal — to provide social insurance for their employees. This act, signed RA 8282, provides better benefits packages, coverage expansion, and the option for flexible investments. With SSS, private employees are protected against disability, old age, sickness, and death.
An employee’s previous SSS number is required for the monthly contributions to be accredited. If the employee isn’t an SSS member yet, the employee must personally register where your company is registered. You can check the downloadable forms on the SSS website.
2. Philippine Health Insurance Corporation (PhilHealth)
One of the reasons Filipinos are very intent on finding good jobs is the benefit of having an active PhilHealth account. The mandatory contributions give them the chance to pay for medical care in the country.
Previous and new members are required to sign a new form per new employer. All the necessary forms for this can be downloaded in the PhilHealth website. Forms should be submitted in the PHIC office where your business is registered. You can also submit it online.
3. Home Development Mutual Fund (Pag-IBIG)
This saving system allows employees to pursue housing loans. As long as the employee is a registered SSS member, it would be easy to update an employee’s status in the HDMF website.
All these contributions are deducted from the employee’s monthly salary by the employer. For big or small business ideas in the Philippines to come into fruition, it’s a must to make sure all bases are covered — including your employees’ needs. When candidates learn that a foreign-owned business complies with these local/legal requirements, they are going to rest assured that your company is legitimate.
Related Page: Outsourcing Support for Your Business
Did you know that when you outsource to Eastvantage, you can go straight ahead to establishing your business and let us take care of the recruitment process? We’ll do that and more. Get in touch with us today and see just how much we can do for your business.