PhilHealth Contribution Rates: A Guide for SG Employers

On January 12, 2024, the Philippine Health Insurance Corp. (PhilHealth) announced a significant change: the member contribution rate is set to increase from 4% to 5%.

This adjustment will take effect for the entire year of 2024 and will continue into 2025. Alongside this rate increase, the maximum monthly salary ceiling for contribution calculations will rise from ₱80,000 to ₱100,000.

These changes are in accordance with the Universal Health Care Act of 2019, which aims to enhance the healthcare system in the Philippines by increasing contribution rates incrementally until they reach 5% for the years 2024 and 2025.

A PhilHealth contribution is a payment made by both individuals and employers to fund the Philippine Health Insurance Corporation’s health insurance program.

These payments fund the national health insurance program, which covers medical expenses for Filipinos. The program is designed to make healthcare more accessible and provide financial protection in cases of medical emergencies or hospitalizations.

There are two primary categories of PhilHealth contributors:

Direct Contributors

• Formally Employed Workers: Individuals working under a formal employment arrangement.
• Kasambahays: Domestic workers or household helpers.
• Overseas Filipino Workers (OFWs): Filipinos working abroad.
• Self-Employed and Professional Practitioners: Individuals who operate their own businesses or practice professions independently.
• Filipinos Living Abroad: Includes those with dual citizenship.
• Lifetime Members: Filipinos who have reached the age of 60 and have met the contribution requirements.
• All Filipinos Aged 21 and Above: Those who can afford to pay into PhilHealth.

Indirect Contributors

• Indigents: Individuals identified by the Department of Social Welfare and Development (DSWD) as needing assistance.
• Senior Citizens: Individuals aged 60 and above.
• Beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps): Families receiving financial aid from the government.
• Persons with Disabilities (PWDs): Individuals with physical or mental impairments.
• Previously Identified Point-of-Service Beneficiaries/Sponsored by Local Government Units (LGUs): Those who have received sponsored coverage.
• Sangguniang Kabataan (SK) Officials: Youth council officials.
• Filipinos Aged 21 and Above Who Cannot Afford Direct Payments: Individuals who are unable to make direct contributions.

The contribution rate is the percentage of a person’s salary that is paid into PhilHealth. The rate has been progressively increasing, and as of 2024, it is set at 5%.

This increase was implemented gradually, starting at 2.75% in 2019 and moving up by 0.25% each year until it reached 5% in 2024.

Here’s a look at the contribution rates and premiums from 2019 to 2025:

Year | Monthly Salary Basis | Premium Rate | Monthly Premium (in PHP)

2019: ₱10,000 | 2.75% | ₱275

2020: ₱10,000 | 3% | ₱300

2021: ₱10,000 | 3.50% | ₱350

2022: ₱10,000 | 4% | ₱400

2023: ₱10,000 | 4% | ₱400

2024-2025: ₱10,000 | 5% | ₱500

2024-2025: ₱100,000 | 5% | ₱5,000

To compute an employee's contribution under the new 5% rate, here's the calculation.

For an employee with a monthly salary of ₱25,000:

• Monthly Contribution: Multiply the salary by the contribution rate (5% or 0.05). So, ₱25,000 x 0.05 = ₱1,250. (approximately SGD 31.25)
• Employee’s Share: Since the total contribution is divided equally between the employer and the employee, each party will contribute ₱625. (approximately SGD 15.63)

Thus, both the employee and employer will each contribute ₱625 per month.

1. Compliance and Penalties

Ensuring compliance with the new PhilHealth rates is crucial. Employers must accurately deduct and remit the updated premiums to avoid penalties. Non-compliance can result in fines ranging from ₱5,000 to ₱10,000 per employee, and legal action may be taken for persistent violations.

2. Financial Planning

The contribution increase could impact your company’s benefits budget. Employers should adjust their financial plans accordingly, potentially revising benefits packages or employee compensation to accommodate the higher costs.

3. Communication

Clearly communicate the changes to employees to maintain positive relations and help them understand the benefits of the updated PhilHealth coverage.

4. Long-Term Benefits

Despite the short-term cost, the increased contributions aim to enhance the healthcare system. A stronger healthcare system benefits employees by providing better medical services, which can lead to a healthier, more productive workforce.

5. Payroll Adjustments

Update your payroll systems to reflect the new 5% rate. This may involve recalculating deductions and possibly updating payroll software or discussing changes with payroll service providers.

How to Pay PhilHealth Contributions?

Contributions can be paid through employers, directly at PhilHealth offices, online payment channels, or authorized collection agents.

What Benefits Does PhilHealth Offer?

PhilHealth covers a wide range of medical services, including hospital stays, surgeries, outpatient care, and maternity services. It's advisable to check PhilHealth’s website for the most current information on benefits.

Can My Family Get Benefits from My PhilHealth Membership?

Yes, legal dependents such as spouses, children under 21, and parents over 60 can benefit from your PhilHealth coverage.

Can Members Continue Paying After Retirement?

Yes, retirees can maintain their PhilHealth membership by continuing premium payments as lifetime members, provided they have made at least 120 contributions while working and are at least 60 years old.

How to Update Membership Information?

To update membership details, submit a completed PMRF (PhilHealth Member Registration Form) at any PhilHealth office or through their online portal.

Adapting to PhilHealth's new 5% contribution rate in 2024 is essential for compliance and maintaining smooth operations.

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