As a business owner or employer in the Philippines, paying PhilHealth contributions for your employees is legally required. It ensures compliance and gives your employees better access to affordable healthcare. The contribution process and rates remain the same as in 2024 but require careful tracking and computation to avoid penalties.
To help you stay compliant, we’ll explain what PhilHealth contributions are, the 2025 contribution table, how to compute them, and where to pay.
What are PhilHealth Contributions
PhilHealth contributions are mandatory monthly payments made by employers and employees to the Philippine Health Insurance Corporation (PhilHealth). These contributions fund the national health insurance program, giving members access to a wide range of healthcare benefits and services. The total contribution is based on the employee’s monthly salary and is shared evenly between the employer and the employee.
PhilHealth Contribution Rate for 2025
For 2025, PhilHealth has set the premium rate at 5% of an employee’s monthly basic salary, with contributions split equally between the employer and employee.
This table is the official PhilHealth Contribution Table:
| Monthly Basic Salary (MBS) | Rate | Monthly Premium |
|---|---|---|
| ₱10,000.00 | 5% | ₱500.00 |
| ₱10,000.01 – ₱99,999.99 | 5% | ₱500.00 – ₱5,000.00 |
| ₱100,000.00 and above (income ceiling) | 5% | ₱5,000.00 (maximum cap) |
Important note: For kasambahays earning below ₱5,000, the employer pays the full ₱500 contribution.
Here’s a breakdown of the table:
- Income Floor: ₱10,000 (for employees earning below this, contributions are based on ₱10,000).
- Income Ceiling: ₱100,000 (for employees earning above this, contributions are capped at ₱100,000).
- Employer Responsibility: You are responsible for remitting your share (50%) of the contribution and deducting the employee’s share from their salary, ensuring timely submission to PhilHealth.
How to Compute PhilHealth Contributions in 2025
As an employer, accurately calculating contributions is essential for payroll management and compliance. Use this formula:
Total Monthly Contribution = Monthly Basic Salary (Keeping in mind the floor and cap) × 5%
Employer Share = Employee Share = Total Contribution ÷ 2
Here’s the step-by-step process:
- Determine Each Employee’s Monthly Basic Salary: Use the basic salary (excluding overtime, bonuses, or allowances). For daily-paid employees, compute the Estimated Equivalent Monthly Rate (EMR) per Department of Labor and Employment guidelines.
- Apply the Income Floor and Ceiling:
- If the salary is below ₱10,000, use ₱10,000.
- If the salary exceeds ₱100,000, use ₱100,000.
- Calculate the Total Contribution: Multiply the applicable salary by 5%.
- Split the Contribution: Divide the total by 2 to determine your share and the employee’s share.
Example Computations
Here are some sample computations to help you understand:
- Employee A: ₱25,000 monthly salary
- Total contribution: ₱25,000 × 5% = ₱1,250
- Your share: ₱1,250 ÷ 2 = ₱625
- Employee share (deducted from salary): ₱625
- Employee B: ₱8,000 monthly salary
- Salary adjusted to income floor: ₱10,000 (since ₱8,000 is lower than the ₱10,000 floor)
- Total contribution: ₱10,000 × 5% = ₱500
- Your share: ₱500 ÷ 2 = ₱250
- Employee share: ₱250
- Employee C: ₱120,000 monthly salary
- Salary adjusted to income ceiling: ₱100,000 (since ₱120,000 is higher than the ₱100,000 ceiling)
- Total contribution: ₱100,000 × 5% = ₱5,000
- Your share: ₱5,000 ÷ 2 = ₱2,500
- Employee share: ₱2,500
- Kasambahay: ₱4,000 monthly salary
- Salary adjusted to income floor: ₱10,000 (since ₱4,000 is lower than the ₱10,000 floor)
- Total contribution: ₱10,000 × 5% = ₱500
- Your share: ₱500 (full contribution, as salary is below ₱5,000)
- Employee share: ₱0
When, Where, and How to Pay PhilHealth Contributions
Before making any contributions, ensure your business is officially registered with PhilHealth. This gives you access to the necessary forms, online tools, and official records for proper processing.
PhilHealth contributions are due every 15th and last day of the month, covering the current payroll period. Employers typically remit payments through accredited channels such as banks (e.g., Land Bank, DBP), over the counter at PhilHealth offices, or online via the Electronic Payment Remittance System (EPRS). Be sure to keep your official receipts or payment confirmations for documentation and audit purposes.
No matter how you choose to pay, ensure your contributions are accurate and on time. To avoid errors and costly penalties, contact us. We can provide you with expert advice and professional payroll services.
Summary
As an employer, paying government-mandated contributions for your employees is a legal requirement. Make sure your business is registered with PhilHealth, understand the contribution table, compute accurately, and pay on time. Stay updated on the latest rates and guidelines to avoid issues. If you’re looking for a reliable and hassle-free way to manage your PhilHealth payments, feel free to contact us—we offer professional payroll and accounting services to help keep your business compliant.
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