How Much Is Payroll Software in the Philippines? (2026)

How Is Payroll Software Priced in the Philippines?

Most payroll systems sold to Philippine businesses use one of three pricing models. Knowing which one you're looking at makes quotes easier to compare.

Pricing model	How it works	Best for
Per employee per month	A fixed fee for each employee on payroll, often with a monthly minimum	Companies whose headcount changes often
Flat monthly plan (tiered)	One price covers up to a set number of employees; higher tiers add employees and features	Small and mid-sized teams that want a predictable bill
One-time license	Software installed on your own computers or server, sometimes with yearly maintenance fees	Companies with in-house IT that prefer to host their own system

What Hidden Costs Should You Check?

The advertised price is rarely the full cost. Before you sign, ask about:

VAT — many prices are shown exclusive of 12% VAT.
Setup or onboarding fees — some vendors charge to configure your company and import employees.
Payment processing fees — paying by card or e-wallet may add a convenience fee.
Government forms — check that BIR 2316, BIR 1601-C, SSS R3 and PhilHealth RF-1 are included, not sold as add-ons.
Rate updates — when SSS, PhilHealth, Pag-IBIG or BIR tables change, are updates automatic and included?
Attendance integration — importing biometric logs may need a higher tier.
Staff accounts — some plans limit how many admin or HR users can log in.
Contract length — annual contracts are cheaper per month but harder to cancel.

Is There Free Payroll Software in the Philippines?

Yes, but check what "free" covers. Spreadsheets and government contribution calculators cost nothing, but they need manual updates whenever rates change and leave no audit trail. Free trials end after a set period.

Kinsweldo's Starter plan is free with no time limit for up to 5 employees. It includes payroll computation, SSS, PhilHealth, Pag-IBIG and BIR withholding tax, 13th month pay, PDF payslips, an employee self-service portal, BIR Form 1601-C, SSS R3 and PhilHealth RF-1.

Kinsweldo Pricing (2026)

Plan	Price (before VAT)	Employees
Starter	₱0	Up to 5
Growth	₱2,999/month	30 included; +₱80 per extra employee, up to 50
Pro	₱5,499/month	Up to 100
Enterprise	Custom quote	100+

Annual billing is about 15% cheaper than monthly. Paying by bank transfer has no convenience fee. See the pricing page for each plan's full feature list and VAT-inclusive totals.

How to Choose a Payroll System: Step by Step

Count your employees today and in 12 months.
List the reports you file — 1601-C monthly, 2316 yearly, SSS, PhilHealth and Pag-IBIG remittances.
Check how you track attendance — biometric device, timesheets or none.
Get the total yearly cost including VAT and any setup or processing fees.
Test with a real payroll run — compare the result with your current payroll for one cutoff before switching.

Still computing payroll by hand? Our step-by-step payroll guide walks through each part.

Frequently Asked Questions

How much does a payroll system cost for a small business in the Philippines?

It depends on headcount and pricing model. Kinsweldo is free for up to 5 employees, and its Growth plan is ₱2,999 a month before VAT for up to 30 employees. Always compare the total yearly cost including VAT and fees.

Is payroll software better than Excel?

For a few employees Excel can work, but every SSS, PhilHealth, Pag-IBIG or BIR rate change means updating formulas by hand. Payroll software applies the current tables automatically and produces payslips and government reports from the same data.

Are payroll software prices VAT-inclusive?

Often not. Many vendors, including Kinsweldo, list prices exclusive of 12% VAT. Ask for the VAT-inclusive total before comparing quotes.

Does payroll software generate BIR Form 2316?

Many do, but sometimes only on higher plans. In Kinsweldo, BIR Form 2316 is included in the Growth plan and above; BIR Form 1601-C is included in every plan, including the free Starter plan.