Starting July 2025, the Philippine Health Insurance Corporation (PhilHealth) is implementing an updated premium contribution rate of 5.0% of the monthly basic salary. This adjustment is in line with the Universal Health Care (UHC) Law, aiming to enhance healthcare services for all Filipinos.
Understanding these changes is crucial for employees, employers, self-employed individuals, and Overseas Filipino Workers (OFWs) to ensure compliance and proper budgeting.
Understanding the 2025 PhilHealth Contribution Rate
Under the PhilHealth Circular No. 2020-0005, the premium rate for 2025 is set at 5.0% of the monthly basic salary, with an income floor of ₱10,000 and a ceiling of ₱100,000. This means:
- Minimum Monthly Premium: ₱500
- Maximum Monthly Premium: ₱5,000
For employed individuals, the premium is equally shared between the employer and the employee. Self-employed individuals and OFWs are responsible for the full amount.
Monthly Premium Breakdown
To better understand the impact of the new rates, here’s a table illustrating the monthly premiums based on various salary levels:
| Monthly Salary | Monthly Premium (5.0%) | Employee Share (50%) | Employer Share (50%) |
|---|---|---|---|
| ₱10,000 | ₱500 | ₱250 | ₱250 |
| ₱20,000 | ₱1,000 | ₱500 | ₱500 |
| ₱50,000 | ₱2,500 | ₱1,250 | ₱1,250 |
| ₱100,000 | ₱5,000 | ₱2,500 | ₱2,500 |
Note: Salaries above ₱100,000 will still have a maximum premium of ₱5,000.
Who Are Affected by the Changes?
The updated contribution rates apply to all direct contributors, including:
- Employed Individuals: Automatic salary deductions.
- Self-Employed and Freelancers: Must compute and remit their full contributions based on declared income.
- OFWs: Required to pay the full contribution, 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 and are not affected by these changes.
Legal Basis for the Increase
The adjustment aligns with Republic Act No. 11223, also known as the Universal Health Care (UHC) Act, which mandates an annual increase in premium rates to ensure sustainable funding for expanded healthcare services. The goal is to provide broader and more inclusive healthcare coverage for all Filipinos.
Steps to Ensure Compliance
To adapt to the new contribution rates:
- Employees: Review your payslips starting July 2025 to ensure correct deductions.
- Self-Employed and Freelancers: Update your income declarations and remit the appropriate contributions.
- OFWs: Utilize accredited collecting agents or online platforms for timely payments.
- Employers: Update payroll systems to reflect the new rates and ensure accurate remittances.
The 2025 PhilHealth contribution rate increase to 5.0% is a significant step towards enhancing the country’s healthcare system under the Universal Health Care Law.
While this means higher contributions for many, it also promises improved services and benefits. Staying informed and ensuring compliance will help you make the most of your PhilHealth membership.
FAQs
How is the 5.0% contribution calculated?
Multiply your monthly basic salary by 0.05. For example, a salary of ₱30,000 results in a monthly premium of ₱1,500.
Is there a cap on monthly contributions?
Yes, the maximum monthly premium is capped at ₱5,000, corresponding to a salary of ₱100,000. Salaries above this amount will still have a premium of ₱5,000.
Are OFWs required to pay the same rates?
Yes, OFWs are required to pay the full 5.0% contribution based on their declared income, with flexible payment options available.