Here are Philippines’s statutory updates for 2025.
Effective February 2025
Philippines Updates Tax-Exempt “De Minimis” Benefits
The Bureau of Internal Revenue (BIR) has issued Revenue Regulations (RR) No. 004-2025, amending tax-exempt “De Minimis” benefits for employees.
Key Updates:
- Uniform and clothing allowance exemption increased from Php 6,000 to Php 7,000 per year.
- Employee achievement awards can now include cash and gift certificates, whereas previously, only tangible property (excluding cash and gift certificates) qualified. The annual exemption remains Php 10,000.
These changes align with Republic Act (RA) No. 11466 to enhance employee benefits.
Source: Ramco
Effective January 2025
Philippines Increases SSS Contribution Rates
The Social Security System (SSS) in the Philippines has updated its contribution schedule for 2025, affecting both employers and employees.
Key Updates:
- Increase in the contribution rate from 14% to 15%.
- Adjustment of the Employer share from 9.5% to 10%.
- Adjustment of the Employee share from 4.5% to 5%.
- Adjustment of the Minimum Monthly Salary Credit (MSC) from Php 4,000 to Php 5,000.
- Adjustment of the Maximum MSC from Php 30,000 to Php 35,000.
Source: SSS Circular No. 2025
PhilHealth Contribution Rate Remains at 5%
The Philippine Health Insurance Corporation (PhilHealth) has confirmed that the premium contribution rate for 2025 remains at 5.0% in line with the Universal Health Care (UHC) Act.
Key Updates:
- Contribution Rate: 5.0% of Monthly Basic Salary (MBS).
- Income Floor: Php 10,000 (minimum monthly contribution: Php 500).
- Income Ceiling: Php 100,000 (maximum monthly contribution: Php 5,000).
- MBS Definition: Excludes commissions, overtime, bonuses, and deductions due to tardiness or unpaid leave.
Employers must continue using MBS for contribution calculations.
