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 rule covers all private and public sector employees, including those in contractual and temporary positions who work for at least one month. PhilHealth provides basic hospitalization benefits, outpatient services, and emergency care to covered members and their dependents. The program ensures that workers have access to essential health services without bearing the full financial burden of medical expenses.

The rule is governed by Republic Act No. 7875, also known as the National Health Insurance Act of 1992, and is administered by PhilHealth under the Department of Health. The contribution rates and coverage benefits are periodically reviewed and adjusted by the PhilHealth Board of Directors to reflect inflation and healthcare costs.

Employers must register with PhilHealth and remit contributions monthly through authorized payment channels. Payroll teams must accurately calculate and deduct the employee's 3.25% contribution from salaries while simultaneously remitting the employer's 3.25% contribution. Failure to comply with PhilHealth registration and contribution requirements can result in penalties and legal sanctions. Employers should maintain detailed records of all contributions and ensure timely submission to avoid compliance issues.