PhilHealth Premium Rate Overview for 2025
The Philippine Health Insurance Corporation (PhilHealth) is the government body that administers the National Health Insurance Program. All private employers in the Philippines are required by Republic Act 7875 (as amended by RA 11223, the Universal Health Care Act) to register their employees and remit monthly premium contributions.
Effective 2025, the PhilHealth premium rate is 5% of the employee's basic monthly salary, shared equally between the employer and the employee:
| Contributor | Rate | Min Premium (₱10,000 salary) | Max Premium (₱100,000 salary) |
|---|---|---|---|
| Employer Share | 2.5% | ₱250 | ₱2,500 |
| Employee Share | 2.5% | ₱250 | ₱2,500 |
| Total Premium | 5% | ₱500 | ₱5,000 |
Key parameters:
- Salary floor: ₱10,000/month — employees earning below ₱10,000 are computed at ₱10,000
- Salary ceiling: ₱100,000/month — employees earning above ₱100,000 are capped at ₱100,000
- Minimum total premium: ₱500/month (₱250 each)
- Maximum total premium: ₱5,000/month (₱2,500 each)
PhilHealth Contribution Computation Examples
Computing PhilHealth contributions is straightforward once you know the rate and the salary brackets:
Example 1 — Employee with ₱15,000 basic salary:
- Premium base: ₱15,000 (within floor-ceiling range)
- Total premium: ₱15,000 × 5% = ₱750
- Employee deduction: ₱750 ÷ 2 = ₱375
- Employer share: ₱375
Example 2 — Employee with ₱8,500 basic salary (below floor):
- Premium base: ₱10,000 (floor applies)
- Total premium: ₱10,000 × 5% = ₱500
- Employee deduction: ₱250
- Employer share: ₱250
Example 3 — Employee with ₱120,000 basic salary (above ceiling):
- Premium base: ₱100,000 (ceiling applies)
- Total premium: ₱100,000 × 5% = ₱5,000
- Employee deduction: ₱2,500
- Employer share: ₱2,500
Note: "Basic salary" for PhilHealth purposes generally means the basic monthly pay. Variable components like overtime, allowances, and bonuses are typically excluded unless PhilHealth issues specific guidance otherwise.
Employer vs. Employee Share: Who Pays What
The PhilHealth premium is unique in that it is split exactly equally between employer and employee. Neither party pays a larger share. This equal-split arrangement differs from SSS, where the employer pays a significantly larger share (10% vs. 5%).
For payroll processing:
- The employee's 2.5% share is deducted from the employee's payslip
- The employer's 2.5% share is a separate cost borne by the employer, on top of the employee's basic salary
- The employer is responsible for remitting the combined total (employee share + employer share) to PhilHealth
All employees must have a valid PhilHealth Identification Number (PIN). New employees without a PhilHealth number must be helped by the employer to register before or at the start of employment.
PhilHealth Remittance Process and Deadlines
PhilHealth has migrated its remittance system primarily to electronic channels. The updated process:
- Prepare the ER2 form (Electronic Premium Remittance Form, formerly the RF1 paper form). This is done through the PhilHealth Electronic Premium Remittance System (EPRS) or the PhilHealth employer portal.
- Remit payment via accredited banks or online payment channels linked to the EPRS.
- Retain the transaction reference as proof of payment.
Remittance deadline: The deadline for monthly premium remittance is based on the first letter of the employer's last name or business name:
| First Letter of Employer Last Name/Business Name | Deadline |
|---|---|
| A to D | 10th of the following month |
| E to L | 12th of the following month |
| M to Q | 14th of the following month |
| R to Z and others | 15th of the following month |
Penalties for Late or Non-Remittance
PhilHealth imposes penalties on delinquent employers under its rules:
- Surcharge: 2% per month on unpaid contributions, computed from the due date to the date of payment.
- Penalty for non-registration: Employers who do not register employees may face penalties and are liable for all unpaid premiums plus surcharges.
- Reimbursement liability: If an employee files a PhilHealth claim and the employer failed to remit contributions, PhilHealth may require the employer to reimburse the benefit paid out plus penalties.
- Criminal liability: Persistent non-compliance can result in criminal charges against the employer and authorized representatives.
Like SSS contributions, PhilHealth delinquency compounds quickly. Employers managing multiple employees must ensure monthly remittances are part of a systematic, automated payroll process.
How EngageHRIS Automates PhilHealth Contributions
EngageHRIS keeps PhilHealth contribution computations current and compliant. The compliance module handles:
- Automatic application of the 5% rate and the ₱10,000–₱100,000 salary bracket rules
- Separate tracking of employer and employee shares in the payroll ledger
- Auto-population of the monthly PhilHealth contribution report for ER2 preparation
- Rate change alerts when PhilHealth publishes new circulars
- Employee PhilHealth number management and validation
Explore EngageHRIS features or schedule a free demo to see how payroll compliance is handled end-to-end.