SSS Business Registration in the Philippines: Complete Employer Guide for 2025

Starting a business in the Philippines and becoming an employer comes with essential responsibilities, and one of the most important is registering with the Social Security System (SSS). In fact, it’s a legal requirement that protects your employees and keeps your business compliant.

The process of registering your business involves multiple government agencies, including the Bureau of Internal Revenue (BIR), Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and Home Development Mutual Fund (Pag-IBIG Fund) - with strong punishments for those who fail to do so.

In this guide, we’ll focus on SSS registration and walk you through the complete process, from understanding why it matters to completing the paperwork and staying compliant. We’ll also look at how Wise Business offers a multi-currency account that can help manage payments and expenses - an important step in setting up the financial side of your business.

Table of contents
The importance of social security for your employees Understanding the mandatory government agencies Penalties for non-compliance SSS registration process: step by step Post-registration obligations for employers

The importance of social security for your employees

When you hire your first employee in the Philippines, you take on the legal responsibility to protect their welfare through social security coverage.

The Social Security Act of 2018 (Republic Act No. 11199) requires all employers to register within 30 days of hiring their first employee. This registration gives your team access to vital benefits, including retirement pensions, disability coverage, sickness benefits, maternity leave, and death benefits for their families.

The benefits go beyond legal compliance. If you’re properly registered, you’ll enhance your company’s reputation on the job market and attract talented people. Failing to register can lead to substantial fines and even imprisonment for business owners, managing partners, and HR personnel.

Understanding the mandatory government agencies

Three main agencies handle employee welfare in the Philippines:

• The Social Security System (SSS) protects private sector employees against disability, sickness, old age, and death.
• The Philippine Health Insurance Corporation (PhilHealth) handles health and hospitalisation subsidies.
• The Home Development Mutual Fund (Pag-IBIG Fund) runs a provident savings system and offers housing loans.

Since January 2021, you can register with all three through the Philippines Business Hub (formerly Central Business Portal), which streamlines what used to be a multi-step, tedious process.

Penalties for non-compliance

The penalties for failing to register are purposefully steep. Employers who don’t register with SSS face fines ranging from PHP 5,000 to PHP 20,000, plus imprisonment from 6 years to 12 years.¹ If you deduct SSS contributions from employees’ salaries but don't remit them, penalties include imprisonment for up to 20 years and interest of 2% per month². Criminal liability applies to company owners, managing partners, payroll officers, and HR personnel.

Non-compliance can also result in frozen bank accounts, blocked business permit renewals, and employee complaints that damage your reputation.

PhilHealth can fine employers PHP 5,000 to PHP 10,000 multiplied by the number of employees for non-compliance³.

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Overview of business registration in the Philippines

Before SSS registration, you need to legally establish your business and get a Taxpayer Identification Number (TIN) from the Bureau of Internal Revenue (BIR). Sole proprietorships register with the Department of Trade and Industry (DTI), while partnerships and corporations go through the Securities and Exchange Commission (SEC).

The DTI registration fees vary by level - PHP 200 at the barangay level, PHP 500 at the city or municipal level, PHP 1,000 at the regional level, and PHP 2,000 at the national level, plus a PHP 30 Documentary Stamp Tax. For BIR registration, you’ll pay just PHP 30 for the Documentary Stamp Tax. The annual PHP 500 registration fee was eliminated in January 2024⁴.

You must complete SSS registration first, because both PhilHealth and Pag-IBIG rely on your SSS Employment Report during their registration processes.

SSS business registration requirements

Every business needs to complete three primary SSS forms:

• SSS Form R-1 (Employer Registration Form)⁵
• SSS Form R-1A (Employment Report)⁶
• SSS Form L-501 (Specimen Signature Card)⁷

You’ll also need to register for the My.SSS online portal.

Sole proprietorships need their DTI Certificate of Registration and Business Permit or Mayor’s Permit. Partnerships and corporations need their SEC Articles of Incorporation and By-laws, SEC Certificate of Registration, and Business Permit or Mayor’s Permit. All businesses need valid government-issued IDs for the signatories.

SSS employer registration is generally free of charge.

SSS registration process: step by step

Step 1: Prepare your documentation

Complete all required SSS forms with accurate information and gather your supporting documents based on your business structure (sole proprietorship, partnership, or corporation).

Step 2: Submit your application

Apply online via My.SSS by uploading scanned documents through the SSS employer portal, or by submitting in person at any SSS servicing branch. Online applications typically get processed within a few working days. In-person applications generally take longer.

Step 3: Receive your registration certificate

You’ll receive your SSS Certificate of Registration, SSS Employer ID Number, and stamped copies of the forms you filed.

Step 4: Activate your My.SSS account

Within 1-2 weeks after registration approval, SSS will send an activation link to your email. The My.SSS portal gives you immediate access to contribution records, online transactions, appointment scheduling, and real-time reporting.

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Post-registration obligations for employers

You must report all employees within 30 days of hiring them, using SSS Form R-1A.⁶ This report should include each employee’s SSS number, employment start date, monthly salary information, and employment status changes.

The current contribution rate is 15% of the Monthly Salary Credit, with employer and employee shares split as mandated.⁸ Keep your SSS records updated for any changes to business details, employee information, salary adjustments, and employment status changes.

PhilHealth and Pag-IBIG Fund registration

PhilHealth and Pag-IBIG Fund work alongside SSS to give your employees (and you) complete protection.

For PhilHealth registration, you’ll need the Employer Data Record (ER1 form)⁹ to register your business, the Report on Employee-Members (ER2 form)¹⁰ to list your employees, and the Online Access Form 001 to access the PhilHealth portal. Submit these to a PhilHealth office or register online.

Pag-IBIG Fund registration is now managed through the Philippines Business Registration Services (PBRS). You’ll need the Employer’s Data Form, your BIR Certificate of Registration, your SEC Registration or DTI Registration, your Articles of Incorporation and By-Laws, along with a valid IDS for each of your signatories.

Submit the completed EDF along with your supporting documents to the nearest Pag-IBIG branch. After processing, you’ll receive an Employer ID Number - your unique identifier for all future Pag-IBIG transactions and monthly contribution remittances. You must have your duly received or stamped SSS Form R-1A before Pag-IBIG will process your registration. Once you're registered, you'll need to enroll all employees as Pag-IBIG members using the Member's Data Form (MDF). Processing typically takes 3-5 business days.¹¹

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Conclusion

Registering your business with SSS is a non-negotiable step for any legitimate employer in the Philippines. Complete your basic business registration, gather the required SSS documents, submit your application online or in person, and maintain ongoing compliance with monthly contributions and employee reporting.

Beyond avoiding fines and legal trouble, proper registration shows your employees you value their welfare and helps you attract talented people.

Once you’ve sorted your legal obligations, turn your attention to building efficient financial systems. With the freedom to send and receive payments in more currencies globally, Wise Business can let you focus on growing a local business that knows no borders.

💡Are bank accounts limited to USD, EUR, or GBP options holding back your business? With a Wise Business multi-currency account, you can access over 10 local account numbers — far more currency options than the handful most banks offer. Plus, Wise makes it easy to hold, send, receive, and exchange 40+ currencies from a single account. With the freedom to send and receive payments in more currencies globally, you can focus on what matters most: growing a local business that knows no borders.

• Obtain account details to receive payments in USD, EUR, GBP, SGD, HKD and more for a one-time fee of 1,400 PHP.
• Zero fees when you get paid via ACH, FAST, InstaPay/PESONet, & other local transfers.
• Send money to pay invoices, suppliers & contractors fast, with less fees
• Always get the mid-market rate with transparent conversion fees starting from 0.57%.
• Pay your bills and ad-hoc overseas expenses using the Wise Business card without hefty foreign transaction fees.
• Seamless integrations with popular accounting software.

➡️Get started with Wise Business today

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Sources:

1 - Social Security Act of 1997 - Republic Act 8282

2 - SSS Unpaid Contributions

3 - PhilHealth Penalties

4 - DTI Registration Fees

5 - R-1 - Employer Registration

6 - R-1A - Employer Report

7 - L-501 - Specimen Signature Card

8 - SSS - Employer Contributions Table

9 - PhilHealth - Employers Registration

10 - PhilHealth - ER2 Form

11 - PBRS - Pag-IBIG Application

Sources checked on 14th October 2025