PhilHealth Contribution Rules
3 min readPhilHealth (Philippine Health Insurance Corporation) provides universal healthcare coverage for employees. TalinoHR automatically computes PhilHealth contributions during payroll processing.
Premium Rate
The PhilHealth premium rate is 5% of the employee's monthly basic salary. This total premium is shared equally between the employee and employer, meaning each party pays 2.5%.
- Premium Rate: 5%
- Employee Share: 2.5% of monthly basic salary
- Employer Share: 2.5% of monthly basic salary
Salary Floor and Ceiling
PhilHealth applies a floor and ceiling to the salary base used for computing contributions:
- Salary Floor: P10,000/month — If the employee's monthly salary is below P10,000, PhilHealth uses P10,000 as the computation base. This means the minimum monthly premium is P500 (P250 employee + P250 employer).
- Salary Ceiling: P100,000/month — If the employee's monthly salary exceeds P100,000, PhilHealth uses P100,000 as the computation base. This means the maximum monthly premium is P5,000 (P2,500 employee + P2,500 employer).
Contribution Examples
| Monthly Salary | Salary Base Used | Total Premium | Employee Share | Employer Share |
|---|---|---|---|---|
| P8,000 | P10,000 (floor) | P500 | P250 | P250 |
| P15,000 | P15,000 | P750 | P375 | P375 |
| P30,000 | P30,000 | P1,500 | P750 | P750 |
| P50,000 | P50,000 | P2,500 | P1,250 | P1,250 |
| P100,000 | P100,000 | P5,000 | P2,500 | P2,500 |
| P150,000 | P100,000 (ceiling) | P5,000 | P2,500 | P2,500 |
How the Computation Works
- The system takes the employee's monthly basic salary (derived from their pay basis: monthly, daily, or hourly).
- The salary is clamped between the floor (P10,000) and ceiling (P100,000).
- The clamped salary is multiplied by 5% to get the total monthly premium.
- The premium is split equally between employee and employer.
- For semi-monthly pay frequency, each payroll period deducts half of the employee's monthly share.
Pay Basis Handling
The payroll engine always derives a monthly equivalent salary for PhilHealth computation, regardless of the employee's pay basis:
- Monthly employees: The basic salary is used directly.
- Daily employees: Monthly salary = daily rate x work days per month (based on work schedule, typically 22 or 26 days).
- Hourly employees: Monthly salary = hourly rate x work hours per day x work days per month.
Semi-Monthly Deduction
For employees paid semi-monthly (twice a month), the PhilHealth deduction per payroll period is half of the monthly employee share. For example, if the monthly employee share is P750, each semi-monthly payroll deducts P375.
Where to View PhilHealth Contributions
- Payroll Run Detail: Navigate to Payroll (
/payroll) and click on any completed payroll run to see per-employee PhilHealth deductions. - Payslip: Each employee's payslip shows the PhilHealth employee share as a line item under government contributions.
- Remittance Summary: Navigate to Payroll → Government (
/payroll/government) to generate a monthly remittance summary showing total PhilHealth contributions (both employee and employer shares) for remittance to PhilHealth.
Important Notes
- PhilHealth contributions are mandatory for all active employees.
- The employee share is a pre-tax deduction (subtracted before computing withholding tax).
- PhilHealth contributions are computed using the monthly salary equivalent, even for daily or hourly employees.
- The premium rate and salary floor/ceiling values are set by PhilHealth and may be updated periodically. The current values in TalinoHR reflect the latest PhilHealth circular.
Related Reports
- Remittance Summary: Monthly report for PhilHealth remittance. Navigate to Payroll → Government (
/payroll/government) and select the month. - BIR 2316: Annual report that includes total PhilHealth contributions for each employee.