Philippine Labor Law Glossary
Definition: The PhilHealth Contribution is the mandatory monthly premium for the National Health Insurance Program, shared equally between employer and employee, deducted from salary and remitted by the employer. Coverage is automatic and a member’s benefits are not forfeited by an employer’s failure to remit.
Sa Filipino · Filipino Explanation
Ano ang PhilHealth Contribution?
Ang kontribusyon sa PhilHealth ay ang buwanang premium para sa National Health Insurance Program. Hatian ito ng empleyado at employer — kalahati bawat isa. Ibinabawas ng employer sa sahod mo ang parte mo, at siya ang may tungkuling ipasa ito sa PhilHealth kasama ng sariling parte niya.
Dalawang bagay na dapat mong malaman. Una: awtomatiko ang coverage mo sa ilalim ng Universal Health Care Act — hindi ito nakadepende sa pag-sign up mo. Pangalawa, at ito ang mahalaga: kung binawas ng employer sa sahod mo pero hindi niya ipinasa sa PhilHealth, hindi ka mapaparusahan — sabi mismo ng batas na “failure to pay premiums shall not prevent the enjoyment of any Program benefits.” Sa employer ito babawiin ng PhilHealth, kasama ang interes. At kriminal na pananagutan ang hindi pagremit — ₱50,000 kada empleyado bawat paglabag, at maaaring makulong.
Coverage Is Automatic
Section 5 of the Universal Health Care Act provides that “every Filipino citizen shall be automatically included into the NHIP.” Section 4(f) classes employed persons as direct contributors — those who “have the capacity to pay premiums, are gainfully employed and are bound by an employer-employee relationship.”
Membership is therefore not something an employee opts into, and it does not depend on premiums actually reaching PhilHealth.
The Rate Is Set by Circular, Not Frozen in the Statute
Section 10 of the Act contains a premium schedule — but it runs only from 2019 to 2025, rising from 2.75% to 5.00%, with an income floor of ₱10,000 and a ceiling that reached ₱100,000. The statutory table is exhausted.
Everything after that comes from PhilHealth issuance. The rate currently applied is 5.0% of monthly basic income, with a ₱10,000 floor and a ₱100,000 ceiling, producing a monthly premium between ₱500 and ₱5,000. Because the figure moves by circular rather than by amendment, employers and employees should confirm the current rate against the latest PhilHealth advisory rather than relying on any published number.
Equal Sharing
The premium is shared equally between employer and employee. Worth noting for accuracy: this equal split is not stated on the face of Section 10 of the Universal Health Care Act. It comes from the implementing rules and is reflected in implementing issuances, which provide that members in the formal sector pay monthly contributions “to be shared equally by the employer and employee.”
At current figures that means a ₱500 floor premium is ₱250 from each side, and a ₱5,000 ceiling premium is ₱2,500 each.
The Employer’s Duty to Remit
The employer deducts the employee’s share from salary and remits it together with its own share. Deadlines are staggered by the employer’s PhilHealth Employer Number: those ending in 0 to 4 remit on the 11th to 15th day of the month following the applicable period, and those ending in 5 to 9 on the 16th to 20th.
Deducting from the employee is the easy part. Remitting is the legal obligation.
Deducting Without Remitting Is a Crime
Section 38(d)(1) of the Universal Health Care Act provides that an employer that “fails or refuses for whatever reason to accurately and timely remit the contributions to PhilHealth within thirty (30) days from due date shall be presumed prima facie to have misappropriated the same and is obligated to hold the same in trust.”
The penalty is substantial: a fine of ₱50,000 “for every violation per affected employee,” or imprisonment of not less than six months and not more than one year, or both. And liability reaches individuals — where the employer is a juridical person, “its officers and employees or other representatives found to be responsible, whether they acted negligently or with intent… shall be liable.”
A separate offence under Section 38(d)(2) covers an employer that recovers its own share from employees: a fine of ₱5,000 multiplied by the number of affected employees, or imprisonment, or both.
Your Benefits Are Protected
This is the provision every employee should know. Section 9 states that “failure to pay premiums shall not prevent the enjoyment of any Program benefits.”
The mechanism runs like this: the member claims and is paid; PhilHealth then recovers from the employer; and the employer separately owes the missed contributions with interest “compounded monthly, of at least three percent (3%)” — notably higher than the rate applied to self-earning individuals. The employer also remains exposed to prosecution under Section 38(d).
The asymmetry is deliberate. The member is held harmless; the cost and the risk fall on the party that failed to remit.
Legal Basis
| Authority | Classification | Rule supported | Official source |
|---|---|---|---|
| Republic Act No. 11223, Sections 4(f) and 5 | Statute | Provides for automatic inclusion of every Filipino citizen in the NHIP and classifies employed persons as direct contributors. | Official statute text |
| Republic Act No. 11223, Section 9 | Statute | Provides that failure to pay premiums shall not prevent the enjoyment of Program benefits, and sets the employer interest on missed contributions at not less than 3% compounded monthly. | Official statute text |
| Republic Act No. 11223, Section 10 | Statute | Sets the premium rate schedule and income floor and ceiling for 2019 through 2025; later rates are set by PhilHealth issuance. | Official statute text |
| Republic Act No. 11223, Section 38(d) | Statute | Creates the prima facie presumption of misappropriation for non-remittance and sets the penalties, including personal liability of responsible officers. | Official statute text |
| Republic Act No. 7875 as amended by Republic Act No. 10606, Section 44(c) | Statute | The predecessor provision presuming misappropriation where contributions deducted from compensation are not remitted within thirty days. | Official statute text |
| PhilHealth, employer payment procedures | Administrative guidance | Sets the staggered remittance deadlines by PhilHealth Employer Number and the deduct-and-remit procedure. | PhilHealth |
Common Misunderstandings
Misunderstanding: If my employer did not remit, I cannot use PhilHealth.
Correct approach: Section 9 expressly protects the member. PhilHealth recovers from the employer instead.
Misunderstanding: Non-remittance is an administrative matter settled by paying arrears.
Correct approach: It carries a prima facie presumption of misappropriation, a fine per affected employee, possible imprisonment, and personal liability for responsible officers.
Common Questions
How much is the contribution now?
The rate applied is 5.0% of monthly basic income between a ₱10,000 floor and a ₱100,000 ceiling, split equally. Because the rate is set by circular rather than by the statute for years after 2025, confirm the current figure with the latest PhilHealth advisory.
Can my employer make me pay its share?
No. Recovering the employer’s own share from employees is a separate offence under Section 38(d)(2).
What can I do if my contributions are not showing?
Raise it with PhilHealth, which can pursue the employer for the arrears and interest, and with DOLE as a labour-standards concern. Your payslip is the primary evidence that the deduction was in fact made.
Sources and Legal Citations
- Republic Act No. 11223, the Universal Health Care Act, Sections 4, 5, 9, 10 and 38, official statute text. Classification: statute.
- Republic Act No. 7875 as amended by Republic Act No. 10606, Sections 28 and 44, official statute text. Classification: statute.
- PhilHealth, payment procedures for employers, official PhilHealth page. Classification: administrative guidance.
Disclaimer
This glossary entry is for general educational and legal-information purposes and is not legal advice. Premium rates, income floors and ceilings are set and adjusted by PhilHealth circular; verify the current schedule with PhilHealth before relying on any figure.