Starting July 2025, the Philippine Health Insurance Corporation (PhilHealth) will implement an updated contribution rate of 5.0% of the monthly basic salary, as mandated by the Universal Health Care (UHC) Law.
This rate applies to all direct contributors, including employed individuals, self-paying members, and Overseas Filipino Workers (OFWs). The salary base for contributions is set between PHP 10,000 and PHP 100,000.
Monthly Premium Breakdown
To help you understand the impact of the new rate, here’s a breakdown of the projected monthly premiums based on various salary levels:
| Monthly Salary | Monthly Premium (5.0%) | Employee Share (50%) | Employer Share (50%) |
|---|---|---|---|
| PHP 10,000 | PHP 500 | PHP 250 | PHP 250 |
| PHP 20,000 | PHP 1,000 | PHP 500 | PHP 500 |
| PHP 50,000 | PHP 2,500 | PHP 1,250 | PHP 1,250 |
| PHP 100,000 | PHP 5,000 | PHP 2,500 | PHP 2,500 |
These changes aim to enhance PhilHealth’s financial capacity to cover expanded benefits under the UHC Law.
Rationale Behind the Increase
The adjustment to a 5.0% contribution rate aligns with the Universal Health Care (UHC) Law, which mandates annual increases in premium rates to ensure broader and more inclusive healthcare coverage for all Filipinos.
The additional funds will support enhanced inpatient benefits, outpatient services, and preventive care programs.
Who Is Affected?
The new rates apply to all direct contributors:
- Employed Individuals: Automatic deductions will reflect the new rate.
- Self-Employed and Freelancers: Must compute and remit their full contributions based on declared income.
- OFWs: Covered under the new rate, with flexible payment schedules through accredited collecting agents or online channels.
Indirect contributors, such as indigent members, senior citizens, and sponsored members, remain subsidized by the government. It’s crucial for all members to update their records with PhilHealth to ensure accurate salary declarations and avoid discrepancies.
Action Steps for Members
- Employees: Review your payslips starting July 2025 to ensure correct deductions.
- Self-Paying Individuals: Update your income bracket and ensure timely payments through PhilHealth’s online platforms or accredited agents.
- OFWs: Utilize accredited collecting agents or online channels for flexible payment options.
PhilHealth has streamlined its online contribution payment platform, accessible via the official website or mobile apps.
The implementation of the 5.0% PhilHealth contribution rate starting July 2025 is a significant step towards achieving universal health coverage in the Philippines.
By understanding these changes and ensuring compliance, members can contribute to a more robust and inclusive healthcare system.
FAQs
How is the PhilHealth contribution calculated?
The contribution is 5.0% of the monthly basic salary, shared equally between the employer and employee. For self-employed individuals, the full amount is shouldered by the member.
What is the income ceiling for PhilHealth contributions in 2025?
The income ceiling is set at PHP 100,000. Salaries above this amount will have contributions computed based on the ceiling.
Are bonuses and allowances included in the computation?
No, only the monthly basic salary is considered. Bonuses, allowances, and other gratuity payments are excluded.