Health insurance — employee

The Philippines mandates health insurance coverage for all employees through the Philippine Health Insurance Corporation (PhilHealth), the country's social health insurance program. As of 2024, the employee contribution rate is 2.75% of monthly gross earnings, with employers matching an equal 2.75% contribution. This requirement applies to all private sector employees, government workers, and self-employed individuals earning above the minimum threshold.

PhilHealth coverage provides access to inpatient and outpatient services, preventive care, and catastrophic illness benefits across accredited facilities nationwide. The program operates under the Social Security System (SSS) framework and is governed by Republic Act No. 7875 (National Health Insurance Act of 1992), as amended by subsequent legislation including the Universal Health Care Act of 2019.

Recent statutory changes took effect on January 1, 2024, when contribution rates were adjusted upward from 2.5% to 2.75% per side (employee and employer) to strengthen the program's financial sustainability and expand benefit coverage. This increase applies to all covered workers regardless of income level.

Employers must register employees with PhilHealth and remit contributions monthly through authorized payment channels. Payroll teams must accurately calculate contributions based on gross monthly earnings, including allowances and bonuses, and ensure timely submission to avoid penalties. Employees receive PhilHealth ID cards granting immediate access to covered services. Non-compliance by employers results in administrative fines and potential legal liability. Proper documentation of contribution payments is essential for audit purposes and employee benefit verification.