Starting freelancing? As a freelancer starting out in the Philippines, it’s important to understand your financial responsibilities, including the monthly contributions to government-mandated programs like the Social Security System (SSS), Pag-IBIG Fund, and the Philippine Health Insurance Corporation (PhilHealth).Ā
To ensure accuracy, let’s refer to the latest information provided by the respective government agencies.
Social Security System (SSS):
The SSS is a social insurance program that provides benefits to Filipino employees, including freelancers. Here’s what you need to know:
a. Monthly Contribution Rates:
According to the latest SSS contribution schedule released in December 2020, the minimum monthly salary credit (MSC) is ā±3,000, and the maximum MSC is ā±25,000. The contribution rate is 12% of your monthly earnings within the prescribed MSC range.
b. Payment Procedure:
When you’re starting freelancing, you can pay your SSS contributions through various channels, including over-the-counter payments, online banking, or the SSS mobile app. Visit the official SSS website (www.sss.gov.ph) for detailed information on payment options and procedures.
Pag-IBIG Fund:
The Pag-IBIG Fund is a government agency that offers housing loans, savings programs, and other benefits to Filipino workers. Consider the following:
a. Monthly Contribution Rates:
As of 2021, the monthly contribution rate for Pag-IBIG Fund is ā±100, which is a fixed amount for all members, including freelancers.
b. Payment Procedure:
You can pay your Pag-IBIG contributions through various channels, such as over-the-counter payments, online banking, or authorized payment centers. Visit the official Pag-IBIG Fund website (www.pagibigfund.gov.ph) for detailed information on payment options and procedures.
Philippine Health Insurance Corporation (PhilHealth):
PhilHealth provides health insurance coverage to Filipino citizens, including freelancers. Here’s what you should know:
a. Monthly Contribution Rates:
As of 2021, the monthly contribution rate for self-employed individuals and for those starting freelancing, is 3.5% of their monthly income, which should not exceed ā±60,000. If your monthly income is below ā±10,000, a fixed monthly contribution of ā±350 applies.
b. Payment Procedure:
You can pay your PhilHealth contributions through various channels, including over-the-counter payments, online banking, or authorized payment centers. Visit the official PhilHealth website (www.philhealth.gov.ph) for detailed information on payment options and procedures.
It’s crucial to understand and fulfill your financial obligations by making regular monthly contributions to the SSS, Pag-IBIG Fund, and PhilHealth. Stay updated with the latest contribution rates and payment procedures by visiting the official websites of these government agencies.
Disclaimer: The information provided in this blog is based on the latest available data from the respective government agencies as of September 2021. For the most accurate and up-to-date information, please visit the official websites of the Social Security System (www.sss.gov.ph), Pag-IBIG Fund (www.pagibigfund.gov.ph), and the Philippine Health Insurance Corporation (www.philhealth.gov.ph).
Hi! If I transitioned from purely compensation to freelancing, do I need to change my SSS, PAG-IBIG and Philhealth membership status, or will it be automatically changed? Also, under what category do I fall in na po kaya? Hope you can answer, thanks!
Hello Mariel,
If you transition from a salaried position to freelancing, you will need to update your membership status with SSS, PAG-IBIG, and PhilHealth. It won’t happen automatically. You should inform each agency about the change to voluntary membership. As a freelancer, you fall under the self-employed or voluntary category. Contact the respective agencies to update your records and ensure you continue to receive the benefits you need.
Hello Millicent, I am Leo M. Dadole, 64 yrs old and w/ SSS No. 08-0717749-5 with only 7 months contributions on my previous employment before I was voluntary detached. Now I want to continue my monthly SSS contributions at 650 – 1000 pesos as self employed or voluntary status up to at least 120 as required by SSS. My question now?
1. Can I pay the balance of 113
to complete the 120 months
contributions at one (1) time
to complete the 120 reqmts?
2. Considering I can pay the 113
months balance can I still be
qualified for a monthly
pension?
3. If qualified how much
monthly pension I can
avail?
Thanks
Hello Leo,
Good day!
Thank you for reaching us out! In your case, it is best to coordinate this to SSS directly since last time we checked, we cannot pay previous months online. You may reach them out through the following contact info:
SSS Call Center: (632) 8920-6446 to 55
Toll-Free No.: 1-800-10-2255777 Malaysia: 00-800-0225-5777
SSS Email: member_relations@sss.gov.ph
If there was a gap of unemployment (resigned december 2022 and your about to start a freelance work this July), would you have to pay for the missed payments in the months when you were unemployed? All for SSS, Pagibig and Philhealth
Thanks!
Hello Amy,
Good day!
Kindly be informed that our tax obligation starts only when we are already registered as a Freelancer or Business Entity in BIR. In your case, you won’t get penalize for the unfiled/unpaid taxes when you were unemployed. For the government contribution, you won’t get penalize too but I believe we can no longer pay for the past months when we were unable to pay for our monthly contribution. š
How do they determine how much I earn as a freelancer? Do I provide them with the information?
Also, Iām a new freelancer, is it possible to pay just the minimum amount required each month for these contributions?
Hello Dani,
Good day!
For tax filing, your dues will be based on your income and expenses, hence, it is important that we declare our gross income. In BIR, they sometimes ask you your estimate gross annual income so they can determine whether you can be classified as VAT or non-VAT type of taxpayer. As for government contributions, you have the option to pay the minimum required amount if that aligns with your preferred contribution level. š
Hi! Do you know how much contribution will I pay if for the first 6 months of the year I was unemployed, no source of income at all, and hence my monthly contribution was just the minimum, then I got self-employed starting July. Do I need to amend my information with Philhealth first before proceeding to pay my contribution from July onwards? Your thoughts will be greatly appreciated. Thank you!
Hello Kim,
Thanks for your question. It’s important to make sure your PhilHealth contributions are accurate and up-to-date. Here’s what you can do:
Report Unemployment: If you were without income for the first 6 months of the year, let PhilHealth know. Accuracy matters for your contributions, so reach out to them to discuss reporting periods of unemployment and its impact.
Adjust Contributions: Since you started as self-employed in July, you need to adjust your PhilHealth contributions. As a self-employed individual, it’s your responsibility to pay these contributions based on your income. Update your PhilHealth status and contribution level to reflect your self-employment.
Update Information: Keep your info current with PhilHealth. Changes in your work or income should be reflected in your records. Get details on how to update your info and make contribution adjustments.
Payment: After updating your info and self-employment status, pay your contributions from July onwards according to your new income bracket.
For precise steps, reach out to PhilHealth or visit their official website. They can provide the latest info on calculations, updates, and payment guidelines.
Hope this helps. š
Regards,
Millicent
Is this updated? Upon checking the SSS and PAGIBIG the contribution rate is different from what is posted above.
Hello Anj,
Yes this article is updated and follows the 2023 contribution table š
Hello, may I ask the difference between voluntary and self employed in SSS?
I used to have a corporate job and now I’m purely doing freelancing. My current status in SSS is voluntary and I pay the minimum of Php560 each month since it’s the only amount I can afford to pay (my salary is not high because I’m new) but I realized that I’m not paying the EC each month. I want to pay it and I was advised to change to self employed.
Pero I’m hesitating because the SSS may require me to pay the contribution based on my real salary which I can’t afford š
Hi Angel,
Good day!
In the context of the Social Security System (SSS) in the Philippines, “self-employed” and “voluntary” are two different categories of SSS membership, and they apply to individuals who are not covered by the SSS through their employment. Here’s an explanation of the key differences between self-employed and voluntary SSS members:
Self-Employed SSS Membership:
Mandatory for Certain Individuals: Self-employed SSS membership is mandatory for specific individuals who are not covered by the SSS through their employment but fall under the category of mandatory coverage. This includes individuals such as sole proprietors, business owners, farmers, and fisherfolk who meet certain criteria, including income thresholds.
Contributions: Self-employed members are required to make regular contributions to the SSS based on their declared monthly earnings or income. The SSS provides a schedule of contributions that self-employed members can follow.
Coverage: Self-employed members are entitled to the same SSS benefits as employed members, including retirement, disability, maternity, sickness, and death benefits.
Voluntary SSS Membership:
Optional Enrollment: Voluntary SSS membership is optional and available to individuals who are not covered by mandatory SSS membership but want to voluntarily enroll in the SSS to avail of its benefits. This category includes professionals, freelancers, housewives, and other individuals who are not categorized as self-employed.
Contributions: Voluntary members can choose to make regular contributions to the SSS. The amount of their contributions is typically based on their chosen monthly income bracket. They have the flexibility to adjust their contributions within the prescribed limits.
Coverage: Voluntary members enjoy the same benefits as self-employed and employed members, including access to retirement, disability, maternity, sickness, and death benefits.
Hope this helps! š
How much is the monthly contributions or quarterly contributions that i need to pay for the self employed earning 25k a month? For the SSS, Philheath, & Pag-ibig…thanks š
Hello Chris,
Good day!
You can refer to the contribution table of SSS and Pag-ibig to know how much should your contribution be based on your income and classification. š
For SSS: https://www.sss.gov.ph/sss/DownloadContent?fileName=2023-Schedule-of-Contributions.pdf
For Pagibig: https://philpad.com/pagibig-contribution-table/?expand_article=1
Hope this helps! š
Hi, I was employed more than a year ago (corporate) till August 2022 paying 3,250 monthly and I started my freelancing job October 2022 but never updated my membership status. I’m planning to update my membership this month from employed to voluntary and pay the minimum (since my freelance job salary is low and inconsistent). Should I cover all the months with no contributions?
Hello April,
Good day!
I believe that we do are no longer allowed to pay previous months contribution. Hence, what you can do is to start paying from the month that you became a voluntary payee. If you wish to check if you can pay for the previous months, you may clarify this directly to the government agency (SSS, Pagibig. Philhealth). š
Hi, I would like to ask how much will be the contribution if your monthly income ranges from 40k? Thank you!
Hi Pau,
Good day!
You can check the minimum contribution based on your income via the SSS, Pagibig & Philhealth Contribution table.
SSS: https://www.sss.gov.ph/sss/DownloadContent?fileName=2023-Schedule-of-Contributions.pdf
Pagibig: https://pagibighousingloancal.com/pag-ibig-contribution-table/
Philhealth: https://www.philhealth.gov.ph/partners/employers/ContributionTable_v2.pdf
Hope this helps! š