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 universal 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 foundational safety net for medical expenses across the country's healthcare system.

The rule is governed by the Social Security System (SSS) Act and the PhilHealth Act, with the Insurance Commission and Department of Labor and Employment (DOLE) overseeing compliance. PhilHealth operates as the implementing agency responsible for collecting contributions and managing benefits.

Recent adjustments to contribution rates have been implemented periodically to sustain the program's solvency. Employers must register with PhilHealth and remit contributions monthly, typically through authorized collection agents or directly to PhilHealth offices.

Payroll teams must ensure accurate calculation of the 3.25% employer contribution based on gross monthly salary, proper remittance within prescribed deadlines, and maintenance of contribution records for audit purposes. Failure to remit contributions can result in penalties and legal liability. Employers should verify employee enrollment status and coordinate with PhilHealth to resolve any coverage gaps or contribution discrepancies to maintain compliance with Philippine labor law.