Jun 12, 2013

SSS, HDMF, Philhealth, and the Kasambahay Law - UPDATED July 11, 2013

By this time, all of us must have heard about the Kasambahay Law. We know that under the law, we are required to pay for our household worker's SSS, HDMF (PAG-IBIG), and Philhealth benefits.

How do you go about it, and what do you need to know?

SSS

If your kasambahay has been an SSS member in the past, you can fulfill the Kasambahay Law by simply registering your kasambahay as voluntary member and shouldering your legal share of the SSS payments. You do not need to register as employer. 

I got the above information from a supervisor at the Department of Labor and Employment (DOLE) contact center. (The agent passed the phone to her when she found out I was writing all these in my blog.)

If you are using this method of SSS payments for your kasambahay, the DOLE advises that you clearly indicate in the contract that although your kasambahay is registered as voluntary member, you are shouldering your legal share of the payments as employer. And make sure to keep your own copy of all receipts.

To change your kasambahay's membership status to Voluntary, simply make payments in his/her behalf using his/her SSS number, using the SSS Form RS-5. According to the SSS website, "Posting of said payment will change the membership status from covered employee, self-employed, OFW or non-working spouse to a voluntary paying member." 

If your kasambahay has never been an SSS member, then he/she cannot begin as a voluntary member (SSS rules forbid that; don't ask me why) and you, alas, will need to register as employer. I have a separate article on that. Click the link to read The SSS Household Employer Under the Kasambahay Law: Register, Pay, Report.

Now you can start paying your kasambahay's SSS contributions. Do so before the 10th of the following month. For your convenience, it is better to pay through SM Payment Centers, Bayad Centers, or SSS accredited banks, such as Chinabank, Metrobank, and BPI.

How much should you pay? See the table below (click to enlarge). If your kasambahay is registered as a voluntary member, then the required contribution is found on the last column (SE/VM/OFW).

Note that if your kasambahay is earning less than five thousand pesos per month, you are required to shoulder 100% of the contribution. If your kasambahay is earning five thousand pesos or more, the contributions are divided, as indicated on the table:


QUESTION: What if our kasambahay has been with us since the year 2000 but we only began paying contributions this year? Click on the link to see the answer: SSS Arrears and the Kasambahay Law.

Philhealth

According to the DOLE, you can register your kasambahay as Individually Paying Member (IPM). Do this by filling out the Philhealth Member Registration Form and submitting it, along with supporting documents, to the nearest Philhealth office. To find the Philhealth office nearest you, call the Philhealth contact center at (02) 441-7442.

As IPM, your kasambahay is required to pay P450 quarterly or P1,800 per year. As employer, you are required to shoulder this in full if your kasambahay is earning less than P5,000. If your kasambahay is earning  P5,000 or more, you shoulder half of the payments while your kasambahay shoulders the other half.

Now if you want to register as employer rather than register your kasambahay as an IPM, I've written a separate article on that. Please click the link to read The Philhealth Household Employer Under the Kasambahay Law: Register, Pay, Report.

Where to pay: Click on the link to find a list of Philhealth accredited collecting partners.

PAG-IBIG/HDMF UPDATED! (June 11, 2013)

For HDMF, you don't have to will be advised to register as employer, contrary to what their hotline agent told me earlier this month. I found this out because I went to the HDMF office today to register our househelp, and lo and behold, they told me to register as employer!

To see the steps on how to register as employer, click on the link.

On the other hand, I have just been on the phone with the Marketing Department of the HDMF main office in Cubao. Although they still advise that we register as employer, they admitted that there is no real sanction if your kasambahay is registered as individual payor, as long as you shoulder your legal share of his/her payments and have proof of doing so.

Whether or not you are registering as employer, you should register your kasambahay as member online. Click on the link to reach their online registration portal.

After your online registration, print out the Member Data Form that will be generated. Submit that form to the nearest HDMF office, along with
  1. proof of income, which is basically a statement from you saying that Mr./Ms. So-and-so has been working with you since (the date of first employment) and is earning (amount) per month, and 
  2. two of your kasambahay's valid IDs.
What valid IDs can you use for PAG-IBIG application if you do not have a birth certificate?
  • Voter's ID (you don't need a birth certificate to get this; just fill out the form)
  • Postal ID (you don't need a birth certificate to get this either)
  • Philhealth ID (you can get Philhealth ID using these documents: http://www.philhealth.gov.ph/downloads/membership/pmrf.pdf)
  • SSS ID (you can get an SSS ID using these documents: https://www.sss.gov.ph/sss/uploaded_images/forms/normal/e1.pdf)
Then, you can remit payments at the nearest PAG-IBIG office. Unfortunately, banks only accept loan repayments, not member contributions.

The PAG-IBIG website also says we can now pay monthly contributions through Gcash. However, there has been issues with the posting of payments this way, and there is currently no way that I have found of verifying posting of contributions via online.

On the other hand, you will receive a confirmation from Globe that your payment has been processed, so if you keep records of these verifications, you should be able to update your posted contributions using such records.

How much to pay? PAG-IBIG contributions are 4% of the kasambahay's salary, with maximum salary set at P5,000.

So if your kasambahay is earning, say, P4,000 per month, you pay the entire 4%, or P160, every month.

If your kasambahay's salary is P5,000 or more, you need to pay P200, but you can split this amount 50-50 between you and your kasambahay, so you only pay P100 each.

More Info

DOLE's FAQ: If you have more questions about the Kasambahay Law, like "Is our live-out yaya considered a kasambahay?" or "Am I required to provide my kasambahay with shampoo and soap, etc.?" then check out this FAQ published by the DOLE: Q&A on Batas Kasambahay.

For an easy-to-understand document on the Batas Kasambahay, here's GMA's Batas Kasambahay infographic.

Sample contract that you can use for your kasambahay: check out Smart Parenting's sample kasambahay contract. (Look at the bottom of the Smart Parenting page for the contract links.)


The Nanay Notebook is written by Blessie Adlaon, a work-at-home and homeschooling mom of four. Check out our About page to know more about this blog's author and our policies on advertising, press releases, and reposting.

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