Monthly health insurance premium contributed by employee (2.5%) and employer (2.5%), totaling 5% of monthly basic salary, with a maximum combined monthly contribution of ₱5,000.
PhilHealth (Philippine Health Insurance Corporation) provides mandatory health insurance coverage to all Filipino employees and their qualified dependents. Monthly premiums are shared equally: 2.5% paid by the employee (deducted from salary) and 2.5% paid by the employer. The computation base is the employee's basic monthly salary, with a floor (minimum contribution) and a ceiling (maximum contribution) prescribed by PhilHealth circulars.
As of 2024, the premium rate is 5% of basic salary. The maximum monthly salary base for premium computation is ₱100,000 — meaning the maximum combined monthly contribution is ₱5,000 (₱2,500 employee + ₱2,500 employer). Employees earning below the minimum threshold pay based on that floor.
In practice: Maria earns ₱30,000 basic monthly salary. PhilHealth deduction from her salary = 2.5% × ₱30,000 = ₱750. Employer contribution = ₱750. Total PhilHealth premium = ₱1,500 remitted monthly to PhilHealth. Her employer submits the remittance using the PhilHealth Electronic Premium Remittance System (EPRS).
Why it matters: PhilHealth coverage enables employees to access hospitalization benefits, outpatient benefits, and Z-benefit packages for catastrophic illnesses. Employers who fail to remit face penalties under RA 7875 and may be held personally liable. More immediately: employees who need hospitalization discover their PhilHealth benefits are unavailable if their employer's remittances are not up to date.
Contribution rates for PhilHealth have been increasing toward a target of 5%. Check the latest PhilHealth circular for the current floor and ceiling amounts, as these are updated annually.