PHILHEALTH CONTRIBUTION FOR EMPLOYED MEMBERS: THE BASICS ( EMPLOYER’S GUIDE )

Philippine Health Insurance Corporation (PhilHealth) is a tax-exempt Government Corporation that established the National Health Insurance Program which aims to provide health insurance coverage and financial assistance to ensure affordable and accessible health care services for all Filipinos. PhilHealth contributions collected are designed to grant healthcare benefits to its members, their dependents as well as giving subsidies to those who cannot afford medical care.

This blog provides the basics of PhilHealth Contribution that will serve as a guide for employers who withhold monthly contributions shared by them and their employees.

HOW TO COMPUTE PHILHEALTH PREMIUM CONTRIBUTION?

PHILHEALTH CONTRIBUTION TABLE

 

 

UPDATE: The increase in premium contribution set for 2021 has been suspended based on their posted official statement whereby the Direct Contributors will still use the 3% rate instead of 3.5% and P60,000 ceiling instead of P70,000.

Based on PhilHealth Circular No. 2020-0005, the premium shall be computed based on the monthly basic salary of the employee which shall be equally shared by employee and employer.

 

For the following examples, we will use the 2020 contribution table in observance with the updated guideline.

Monthly Basic Salary x Premium Rate = Monthly Premium

• For employees having basic salary of P10,000 and below:

The premium shall be computed based on the income floor.

If your employee has a monthly basic salary of P8,000, monthly premium will be fixed at P300:

Employee: P10,000 x 3% /2 = P150

Employer: P10,000 x 3% /2 = P150

Total: P300

 

• For employees having basic salary of P10,000.01 to P59,999.99:

The premium shall be computed based on their salary times the applicable rate.

If your employee has a monthly basic salary of P45,000, monthly premium will be P1,350:

Employee: P45,000 x 3% /2 = P675

Employer: P45,000 x 3% /2 = P675

Total: P1,350

 

• For employees having basic salary of P60,000 and above:

The premium shall be computed based on the income ceiling.

If your employee has a monthly basic salary of P75,000, monthly premium will be fixed at P1,800:

Employee: P60,000 x 3% /2 = P900

Employer: P60,000 x 3% /2 = P900

Total: P1,800

 

The total employer’s contribution will serve as an expense.

The total EE and ER contributions will be your payable, must be remitted to the agency and must be paid to Accredited Collecting Agents.

 

WHEN TO PAY CONTRIBUTIONS?

The payment schedule for employers is:

You may download this PhilHealth Flowchart to give you a glimpse of a basic guide on the process of SSS Contribution.

For more updates, you can check their following accounts:

Official Facebook account: https://web.facebook.com/PhilHealthOfficial/

Official twitter account: https://twitter.com/teamphilhealth

Official youtube account: https://www.youtube.com/user/teamphilhealth

Official website: https://www.philhealth.gov.ph/

*Reference: Philippine Health Insurance Corporation. https://www.philhealth.gov.ph/