Manila, Philippines - The Philippine Health Insurance Corporation or PhilHealth will implement new contribution rates.
As prescribed in Section 10 of Republic Act No. 11223 or the Universal Health Care Act, the rates are scheduled to increase from 3.5% to 4%
Philhealth Premium Contribution Table
|Year||Premium Rate||Income Floor||Income Ceiling|
|2019||2.75%||Php 10,000||Php 50,000|
|2020||3.00%||Php 10,000||Php 60,000|
|2021||3.50%||Php 10,000||Php 70,000|
|2022||4.00%||Php 10,000||Php 80,000|
|2023||4.50%||Php 10,000||Php 90,000|
|2024||5.00%||Php 10,000||Php 100,000|
|2025||5.00%||Php 10,000||Php 100,000|
In accordance with the Universal Health Care Act, Philhealth has issued Advisory No. 2022 - 0010 announcing the scheduled increase for all Direct Contributors.
The increase is set to take effect in the month of June 2022.
To help guide our payroll professionals, here is a sample computation below:
For example, if an employee has a basic salary of PHP 25,000, you may compute with the following formula:
Basic Salary X 4% (0.04) = Premium Rate
Php 25,000 X 0.04 = PHP 1,000
Both the employee and employer will each pay PHP 500 per month for his/her premium contribution to PhilHealth.
Frequently Asked Questions
1. How much is the new income floor and income ceiling, and at what percent? – For the year 2022, it will be from Php 10,000.00 to Php 80,000.00, the premium rate of 4% is based on the monthly basic salary.
2. Who is a direct contributor? – A direct contributor is a person who has the capacity to pay premiums, who are gainfully employed, and is bound by an employer-employee relationship, or are self-earning professional practitioners, migrant workers (seafarers, OFWs), including their dependents, and lifetime members.
3. Who is an indirect contributor? – An indirect contributor is a person who is not included in the list under a direct contributor, as well as their qualified dependents, whose premiums shall be subsidized by the government as a result of a special law (e.g. DSWD identified indigents, beneficiaries of 4Ps, unemployed senior citizens, and unemployed PWDs, among others). They are not required to pay Philhealth contributions, hence not covered by the new premium rate of 4%.
4. What is a differential rate? - Despite the mandate of the UHL to peg the premium rate at 4% for CY 2022, our contributions from January to May 2022 remained at 3%. And since the 4% will only take effect in June 2022, it will result in the months of January to May 2022 having a difference of 1% each month, hence the differential rate.
5. What is the covered period for the differential rate? - from January 2022 to May 2022.
6. When is the start of the 4% rate? – Under the Universal Health Law, the 4% should commence in January 2022; however, the actual implementation came into force only in June 2022. For the difference beginning January to May 2022, direct contributors are required to settle them until December 31, 2022.
7. Is the 1% differential rate covered by the employer? – No, it is equally shared by employee and employer.
8. Until when can direct contributors who have already paid their 3% contributions to settle the 1% differential rate? – Until 31 December 2022.
9. Will there be a generated Statement of Premium Account (SPA) every month for the payment of the 1% differential rate? – Yes, a SPA will be generated every month for the differential rate.
10. What would be the treatment on the adjustment of premium rate to those employees who resigned prior to the June implementation of the new rate? - The SPA for the 1% differential can be edited to exclude those who have resigned. In this case, the Electronic Premium Remittance System (EPRS) will just compute the employer share or half of the 1%.
11. How would non-EPRs users and those who have not registered in the Philhealth Member Portal (PMP) pay their 4% premium rate and additional 1% rate? – They shall be issued a billing statement, wherein payment shall only be at the nearest Philhealth Local Health Insurance Office.
12. For resigned employees, do employers still need to pay their share in the differential rates? – Yes, only half of the 1% covering the period while such employee was still employed in the company.
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