Health insurance — employee

The Philippines mandates employer-sponsored health insurance coverage for all employees through the Philippine Health Insurance Corporation (PhilHealth), the country's social health insurance program. As of 2024, employers must contribute a percentage of each employee's monthly salary to PhilHealth premiums, with the current employee contribution rate set at 2.5% of gross monthly earnings and the employer contribution matching this amount.

PhilHealth coverage provides employees and their dependents with access to inpatient and outpatient services, preventive care, and catastrophic illness benefits. The program operates under the Social Security System (SSS) framework and is governed by Republic Act No. 7875, as amended by subsequent legislation including the Universal Health Care Act of 2019 (Republic Act No. 11223).

Recent statutory changes expanded PhilHealth's benefit package and adjusted contribution rates to strengthen coverage. Employers must ensure timely remittance of contributions to PhilHealth, typically processed through the SSS or directly to PhilHealth, depending on the employee's registration status.

Payroll teams must verify employee PhilHealth membership, calculate contributions accurately based on current rates, and maintain records of premium payments. Employers should reconcile contributions monthly and address any lapses in coverage promptly, as non-compliance can result in penalties and administrative sanctions. Employees should receive documentation confirming their PhilHealth enrollment and contribution history. Employers offering supplementary private health insurance may do so, but PhilHealth coverage remains mandatory and non-negotiable for all employees regardless of additional benefits provided.