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 the Social Security System (SSS) Act and the PhilHealth Act, with the Department of Labor and Employment (DOLE) and PhilHealth serving as the primary enforcement authorities. Employers must register their employees with PhilHealth and remit contributions monthly.

Recent updates to contribution rates and coverage benefits have been implemented periodically to adjust for inflation and expand service offerings. Employers must ensure timely and accurate remittance of contributions to avoid penalties and legal liability.

Payroll teams must calculate the 3.25% employer contribution on gross monthly salary for each covered employee, maintain detailed contribution records, and submit payments to PhilHealth within the prescribed deadlines. Non-compliance can result in fines, surcharges, and potential criminal liability. Employers should verify employee eligibility and ensure proper documentation of contributions for audit purposes and employee benefit verification.