PhilHealth is the simplest of the three statutory contributions to compute: a flat percentage of basic salary, split down the middle, with a floor and a ceiling. Most payroll errors come from the floor, the ceiling, and which salary the percentage applies to.
Who is covered
All private-sector employees are direct contributors, along with government employees, self-employed professionals, and overseas Filipino workers under their own rules. Employers register each employee and remit the premium every month from the first month of employment. Under the Universal Health Care law everyone is a PhilHealth member; what employers are responsible for is the premium of the people on their payroll.
The 5% rate and the split
Under the rates currently in effect, the monthly premium is 5% of the employee's basic monthly salary, and it is split equally:
- Employee share: 2.5% of basic salary, deducted from pay.
- Employer share: 2.5% of basic salary, paid by the company on top of salary.
Unlike SSS, there are no brackets in the middle. ₱23,456 of basic salary produces a premium of ₱1,172.80, split ₱586.40 each. Rounding is to the centavo.
Floor and ceiling
- Floor: ₱10,000. Any basic salary below ₱10,000 is treated as ₱10,000. The minimum premium is therefore ₱500 a month, ₱250 each side.
- Ceiling: ₱100,000. Any basic salary above ₱100,000 is treated as ₱100,000. The maximum premium is ₱5,000 a month, ₱2,500 each side.
So the employee share always lands between ₱250 and ₱2,500, and the employer share matches it.
Bracket table
| Basic monthly salary | Premium base | Total (5%) | Employee | Employer |
|---|---|---|---|---|
| Below ₱10,000 | ₱10,000 (floor) | ₱500.00 | ₱250.00 | ₱250.00 |
| ₱10,000 to ₱100,000 | Actual salary | 5% of salary | 2.5% of salary | 2.5% of salary |
| Above ₱100,000 | ₱100,000 (ceiling) | ₱5,000.00 | ₱2,500.00 | ₱2,500.00 |
Reference points inside the middle band: ₱15,000 salary is ₱375 each; ₱25,000 is ₱625 each; ₱50,000 is ₱1,250 each; ₱80,000 is ₱2,000 each.
Worked example
Employee with a ₱28,300 monthly basic salary
| Premium base (within floor and ceiling) | ₱28,300.00 |
| Total premium (5%) | ₱1,415.00 |
| Employee share (2.5%) | ₱707.50 |
| Employer share (2.5%) | ₱707.50 |
On a semi-monthly payroll the employee's ₱707.50 is typically split ₱353.75 per cutoff, or deducted in full on one cutoff, depending on the company's deduction schedule. The amount remitted for the month is ₱1,415.00 either way.
Common payroll mistakes
- Applying the percentage to gross pay. Overtime, night differential, holiday premiums, and allowances inflate the base and over-deduct. The premium is on basic salary.
- Missing the floor. A part-timer or new hire with a low basic salary still has a ₱500 premium (₱250 each side), not 5% of the smaller amount.
- Missing the ceiling. Executives above ₱100,000 are capped at ₱2,500 each. Systems that keep multiplying over-deduct by hundreds of pesos a month.
- Running an old rate. The rate stepped up over several years under the Universal Health Care law schedule. Confirm what is currently in effect rather than what was in effect when the spreadsheet was built.
- Not adjusting when the basic salary changes. A mid-year increase changes the premium from the month it takes effect. Check the current circular for how PhilHealth treats retroactive salary adjustments.
- Half-month rounding that does not reconcile. Two cutoff deductions rounded separately can differ by a centavo from the monthly premium. Reconcile the monthly figure, not the halves.
Remittance timing
Employers remit monthly through PhilHealth's electronic premium remittance and reporting system, with the deadline tied to the employer's PhilHealth Employer Number. Check the current circular for the schedule and accredited payment channels in effect, and for the treatment of any retroactive premium differentials it may require.
How AppDeep Payroll handles this
- The rate, floor, and ceiling are master data. When PhilHealth issues a new circular, the values are updated once and apply to every cutoff after that.
- The premium is computed from the employee's basic salary on record, so a salary change flows through automatically from its effective date.
- The deduction schedule decides whether the employee's half is taken on the first cutoff, the second, or split, and the monthly total always reconciles to the premium.
- The payroll summary exports employee and employer shares per employee for the remittance report, and the payslip shows the employee the exact deduction.
- Every PhilHealth line is reconciled against your current system in the free parallel run before you go live.
Frequently asked questions
What is the PhilHealth contribution rate?
Under the rates currently in effect, the PhilHealth premium is 5% of the employee's basic monthly salary, shared equally: 2.5% deducted from the employee and 2.5% paid by the employer.
What is the minimum and maximum PhilHealth contribution?
The premium is computed on a salary floor of ₱10,000 and a ceiling of ₱100,000. The employee share is therefore between ₱250 and ₱2,500 a month, and the employer matches the same amount.
Is PhilHealth computed on basic salary or gross pay?
On the basic monthly salary. Overtime, premiums, and most allowances are not part of the base. Check the current PhilHealth circular for the precise definition of basic salary it applies.
Can the employer pay the whole PhilHealth premium?
The law sets an equal split, but nothing stops an employer from shouldering the employee's half as a benefit. The full 5% must still be remitted, and the employee's half, if paid by the employer, may have tax implications to check with your accountant.
When are PhilHealth contributions remitted?
Employers remit monthly through PhilHealth's electronic payment and reporting channels. The deadline depends on the employer's PhilHealth Employer Number; check the current circular for the schedule in effect.
Not tax or legal advice. This guide is general information based on the rules currently in effect as we understand them. Verify every figure against the current PhilHealth issuance and consult your accountant or counsel for your situation.