Health insurance — employer

The Philippines requires employers to provide 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, with the current employer contribution rate set at 3.25% of the employee's gross monthly compensation, while employees contribute an equal 3.25%.

This mandatory health insurance scheme covers inpatient and outpatient services, including hospitalization, emergency care, and preventive health services. The coverage extends to the employee's dependents under certain conditions, providing a basic safety net for medical expenses across the country's healthcare system.

The rule is governed by Republic Act No. 7875 (National Health Insurance Act of 1992) and administered by PhilHealth under the Department of Health. The Social Security System (SSS) and Government Service Insurance System (GSIS) also play roles in coordinating benefits for their respective members.

Recent adjustments to contribution rates and benefit packages have been implemented periodically. Employers must register with PhilHealth and maintain updated employee records to ensure proper premium remittance and coverage continuity.

Payroll teams must calculate and withhold the employee's 3.25% contribution from gross salary each month, remit the employer's matching 3.25% contribution, and submit combined payments to PhilHealth by the fifteenth of the following month. Employers must also maintain documentation of contributions and provide employees with proof of coverage. Non-compliance can result in penalties and administrative sanctions from PhilHealth.