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How to Compute PhilHealth Contributions in 2025: A Definitive Guide for Philippine Employers and Employees
Master the 2025 PhilHealth contribution computation. This expert guide covers the 5.0% premium rate, salary brackets, and employer/employee shares, ensuring full compliance with PhilHealth and DOLE regulations in the Philippines.
Understanding mandatory contributions is essential for sound financial management and legal compliance in the Philippines. The Philippine Health Insurance Corporation (PhilHealth), guided by the Universal Health Care (UHC) Act (Republic Act No. 11223), mandates monthly premiums to fund the nation's healthcare services.
As we navigate 2025, the final tier of the scheduled premium increases, as outlined in PhilHealth Circular No. 2019-0009, is in full effect. This guide, prepared from the perspective of DOLE and PhilHealth experts, provides a 100% accurate breakdown of how to compute PhilHealth contributions this year.
The Official PhilHealth Contribution Rate for 2025
For the calendar year 2025, the PhilHealth premium rate is set at 5.00% of the employee’s Monthly Basic Salary (MBS). This contribution is shared equally between the employer and the employee (50/50 share).
Key Components of the Computation
To accurately calculate the premium, it is crucial to understand the established thresholds:
- Premium Rate: 5.00%
- Income Floor (Minimum Threshold): P10,000.00
- Income Ceiling (Maximum Threshold): P100,000.00
What is Monthly Basic Salary (MBS)?
MBS refers to the fixed basic remuneration of an employee. It strictly excludes overtime pay, commissions, allowances, 13th-month pay, and other variable bonuses.
The 2025 PhilHealth Contribution Table
The following table summarizes the computation rules based on the different salary brackets:
| Monthly Basic Salary (MBS) | Premium Rate | Total Monthly Premium | Employee Share (50%) | Employer Share (50%) |
|---|---|---|---|---|
| P10,000.00 and below | 5.00% | P500.00 (Fixed Minimum) | P250.00 | P250.00 |
| P10,000.01 to P99,999.99 | 5.00% | MBS x 5% | Total Premium / 2 | Total Premium / 2 |
| P100,000.00 and above | 5.00% | P5,000.00 (Fixed Maximum) | P2,500.00 | P2,500.00 |
Step-by-Step Computation Guide
The basic formula for PhilHealth contribution is:
However, this formula is governed by the rules of the income floor and ceiling.
Rule 1: Salaries at or Below the Income Floor (P10,000)
If an employee's MBS is P10,000 or less, the contribution is fixed at the minimum rate of P500.00.
Rule 2: Salaries Within the Range (P10,000.01 to P99,999.99)
If the MBS falls within this range, the actual salary is multiplied by the 5.0% premium rate.
Rule 3: Salaries at or Above the Income Ceiling (P100,000)
If an employee's MBS is P100,000 or higher, the contribution is capped at the maximum rate of P5,000.00.
Scenario Analysis: 2025 Calculations
To illustrate these rules, let’s examine various salary scenarios.
Scenario 1: Salary at the Income Floor
MBS: P10,000.00
Computation: P10,000.00 x 5% = P500.00
Scenario 2: Salary Below the Income Floor
MBS: P8,000.00
Computation: Below floor. Minimum P500.00 applies.
(Note: Even though 8,000 x 5% is P400, the mandated minimum is required.)Scenario 3: Entry-Level Salary
MBS: P15,000.00
Computation: P15,000.00 x 5% = P750.00
Scenario 4: Mid-Level Salary
MBS: P55,000.00
Computation: P55,000.00 x 5% = P2,750.00
Scenario 5: Salary Above Ceiling
MBS: P120,000.00
Computation: Exceeds ceiling. Max P5,000.00 applies.
DOLE Compliance and Employer Responsibilities
From the perspective of the Department of Labor and Employment (DOLE), adherence to mandatory government contributions is non-negotiable. Employers bear significant responsibilities:
- Accurate Deduction: Employers must ensure the correct employee share is calculated and deducted during every payroll cycle.
- Employer Counterpart: Employers are legally mandated to provide their 50% share. This is an operational expense and cannot be passed on to the employee.
- Timely Remittance: Both the employee and employer shares must be remitted to PhilHealth on schedule. Late remittances incur penalties and can affect the employee's benefit eligibility.
- Reporting and Systems: Employers must utilize the Electronic Premium Remittance System (EPRS) for accurate reporting and payment.
Failure to deduct, provide the counterpart share, or remit the contributions constitutes a violation of labor laws and the UHC Act, leading to potential legal action and fines.
Special Cases
Self-Earning Individuals/Voluntary Members: They are responsible for the full 5.0% contribution based on their declared income, adhering to the same floor and ceiling.
Kasambahays (Domestic Workers): According to the Kasambahay Law, if the worker earns less than P5,000 per month, the employer must pay the entire premium. If they earn P5,000 or more, the standard 50/50 sharing applies.
Frequently Asked Questions (FAQs)
Q1: Are 13th-month pay and bonuses included in the PhilHealth computation?
No. The computation is based strictly on the Monthly Basic Salary (MBS). Variable compensation, allowances, and bonuses are excluded.
Q2: Is the 5.0% rate permanent?
The 5.0% rate for 2024-2025 represents the final increase scheduled under PhilHealth Circular No. 2019-0009. Any changes beyond 2025 would require new legislation or amendments to the UHC Act.
Q3: What happens if I have multiple employers?
Each employer is responsible for deducting and remitting contributions based on the salary they pay you. The aggregate contributions across all employers should still respect the P100,000 income ceiling.
Conclusion
The 5.0% PhilHealth contribution rate for 2025 is a cornerstone of the Philippines' commitment to universal healthcare. Ensuring accurate computation—by correctly applying the P10,000 income floor and the P100,000 income ceiling—is vital for both employee well-being and employer compliance. Employers and HR professionals must stay vigilant in their payroll processes to adhere to these regulations.