New employee registration is a must-do for every registered company and household employer in the Philippines.
Each time you hire people, you need to report them to the BIR, SSS, Pag-IBIG Fund, and PhilHealth. Registering new employees entails updating their employment status at each government agency.
Why Register Your New Employees?
First, the law mandates it. Employees in the Philippines need to be registered (and pay their government contributions) so that they can pay their taxes and receive their government-mandated benefits
under the Labor Code.
If your employees can enjoy their benefits, their morale and motivation to do their job well go up. Plus, they’re more likely to stay longer with your company.
Second, new employee registration allows you to record your workers’ salaries as your business’ deductible expense.
Before you can register your newly hired people, you need to register as an employer with the SSS
, Pag-IBIG, and PhilHealth.
Done with your employer registration? You can proceed with new employee registration. Here’s a guide to help you properly report your new hires to the four government agencies.
New Employee Registration with BIR
How to Register New Employees without TIN
Ask your employees who don’t have a tax identification number (TIN) to fill out the BIR Form 1902
and submit the accomplished form to the revenue district office (RDO) where your business is registered.
They also must submit a photocopy of the following documents during their TIN application:
- Birth certificate or any valid ID that shows the applicant’s complete name, birth date, address, and signature
- Marriage certificate (for married applicants)
- Birth certificates of dependents, if applicable
- Company ID or certificate of employment, if available
If you’re enrolled online as an employer in the BIR eREG
and an active Withholding Tax Agent for Compensation Earners, you can issue TIN to your employees through the eTIN, a module within the eREG system.
How to Register New Employees without TIN
If the employees’ previous employer is in the same RDO as yours:
Update your employees’ information by having an HR officer or your concerned employees file an accomplished BIR Form 2305
at your RDO.
If the employees’ previous employer is in a different RDO:
Have your concerned employees submit an accomplished BIR Form 1905
to the RDO where their previous employer is registered. This will transfer your employees’ home RDO to your company’s RDO.
New Employee Registration with SSS
Require your employees without an SSS number to register for SSS membership in the branch where you registered yourself as an employer. Alternatively, they may apply for a Social Security number online
via the SSS website.
Get the SSS number, birth date, employment date, monthly salary, and job title of your new hires. Then fill out the SSS Form R1A
using the details you collected. Submit two copies of the accomplished form along with a valid primary ID or two secondary IDs
to the SSS branch where your business is registered.
New Employee Registration with Pag-IBIG
Ask your new employees who don’t have a Pag-IBIG Membership ID (MID) Number to register as members of the Pag-IBIG Fund. They can register for Pag-IBIG membership online
or manually by submitting an accomplished Member’s Data Form
. Employees can apply for Pag-IBIG membership only if they’re already SSS members.
Get the Pag-IBIG MID numbers of your new employees. When you file your next monthly HDMF contribution, add their names and other details on the Membership Savings Remittance Form (MSRF)
. Under the Remarks column, write N and the hiring date (in MM/DD/YYYY format) of each new hire (e.g., N: 2/28/2019).
New Employee Registration with PhilHealth
Have your new hires fill out a PhilHealth Member Registration Form (PMRF)
, whether they’re already PhilHealth members or not. File the accomplished PMRF in the PhilHealth branch where you registered your company.
Get the PhilHealth numbers of your new employees. Then submit two copies of accomplished ER2 Form
within 30 days from hiring date to the PhilHealth branch where your business is registered.
Kasambahay Registration with SSS, PhilHealth, and Pag-IBIG
If you’re employing household service workers such as maids, cooks, drivers, etc., you have to register your kasambahays
with the SSS, PhilHealth, and Pag-IBIG Fund.
Household employers can easily do so through Kasambahay Unified Registration. You can register your household workers online
or by having your workers submit an accomplished registration form
to any office of the three government agencies. However, you have to go to each agency to register a family driver.
Along with the Kasambahay Unified Registration Form, your Kasambahay must also present the original copy and photocopy of any of the following documents:
- Birth certificate
- Baptismal certificate
- Driver’s license
- PRC ID
- Seaman’s Book
If your kasambahays
don’t have any of the primary documents listed above, they can submit any two secondary documents listed here
Apart from registering new employees, you also have to update the government agencies each time an employee leaves your company. In doing so, you avoid getting penalties from these government agencies for failure to report your resigned, terminated, or deceased employees.