A clear, jargon-free guide explaining taxes, benefits, and mandatory contributions—so you stay compliant, protect your Filipino team, and avoid costly mistakes.

Why This Matters

Hiring Filipino talent is one of the smartest moves global companies make.
Strong work ethic, loyalty, creativity, and world-class skills are real advantages.

But once you hire, there’s one area you must get right: monthly dues.

These dues are the backbone of compliant employment in the Philippines.
Handled properly, they protect your business and support your employees.
Handled poorly, they lead to penalties, confusion, and trust issues.

This guide breaks it down—clearly and without jargon.

What You Need to Know

1. BIR Taxes (Non-Negotiable)

Every month, employers must withhold and remit taxes to the Bureau of Internal Revenue (BIR).

What this means in practice:

• You withhold the correct tax amount
  
  
• You file the required forms
  
  
• You remit payments on time
  
  

Key points:

• Tax brackets determine withholding
  
  
• BIR Form 1601-C is filed monthly
  
  
• BIR Form 2316 is issued yearly
  
  

Missing or incorrect filings can quickly result in penalties.

2. HMO (A Benefit Employees Truly Value)

HMO is one of the most important benefits for Filipino employees.
It’s more than healthcare—it’s peace of mind.

Typical coverage includes:

• Outpatient and inpatient care
  
  
• Emergency services
  
  
• Preventive checkups
  
  

Employees see HMO as a sign that an employer genuinely cares about their well-being and their family.
It directly supports trust, retention, and productivity.

3. Compensation & Allowances (More Than Salary)

In the Philippines, compensation is a package, not just a paycheck.

Depending on the role, this may include:

• Night differential for US shifts
  
  
• Overtime pay
  
  
• Internet or remote work allowance
  
  
• Bonuses or incentives
  
  
• Company-provided equipment (e.g., laptops)
  
  

Compensation must be structured correctly to remain fair, competitive, and compliant.

4. State-Mandated Contributions (The Big Three)

All Filipino employees are covered by three mandatory government programs:

• SSS
  Social security benefits for sickness, disability, maternity, and retirement
  
  
• PhilHealth
  Government healthcare, separate from HMO
  
  
• Pag-IBIG
  A national savings and housing fund employees actively use
  
  

These contributions are shared by employer and employee and are calculated monthly based on salary. They are mandatory—and they provide real, long-term value to employees.

The Bottom Line

Monthly dues aren’t just paperwork.
They reflect how seriously you take your responsibility as an employer.

Done right, they:

• Build employee trust
  
  
• Protect your business
  
  
• Keep you fully compliant with Philippine labor and tax laws
  
  

With Montani, monthly dues are handled accurately, transparently, and on time—so you can focus on scaling your business while we take care of your people.