Complete Guide to PhilHealth Contribution 2018
Updated PhilHealth Contribution – August 2022
Filipinos have been using the services of the Philippine Health Insurance Corporation (PhilHealth) as their basic health insurance. It is affordable and serves as the usual means to settle medical expenses for Filipinos with average to no income.
After three (3) years of no corresponding increase in premium contributions, PhilHealth announced its adjustments for the contribution of the employed workers.
New PhilHealth Contribution Table 2018
Starting this January 2018, the premium contributions for the employed sector will increase to 2.75% of a member’s basic salary from the previous 2.5%. According to PhilHealth’s Circular No. 2017-0024, the adjustment is necessary to sufficiently meet the increasing costs that the National Health Insurance Program (NHIP) is shouldering.
As of date, NHIP has been covering the full or partial costs of essential health, social services, and goods available to continue the health development of every Filipino. It includes the health care needs of the underprivileged, indigents, elderly, Persons with Disabilities (PWD), women, and children.
The change is expected to sustain and enhance the various healthcare programs which have benefitted the members in recent years.
Furthermore, the health agency aims to introduce new benefits packages to every member-sectors.
In addition to the change in the premium rates, the government health insurance agency has phased out the 28-tier bracketing system.
Despite these previous changes, PhilHealth had another increase from a 3% to a 4% in June 2022. The government deferred the contribution hike in 2021. Also, it is retroactive from January 2022. Payments made by you or your employer at 3% must generate the SPA (Statement of Premium Account). It helps you settle the 1% differential payment. But it is only valid until December 31, 2022.
The PhilHealth computation of the monthly premium is now following the latest PhilHealth contribution table:
The said premium increase covers all employed members of the Formal Economy, Sea-Based OFWs, Kasambahays, Family Drivers, and all employers in the private and government sectors.
In addition, expect a continuous increase of the rate by increments of 0.5% yearly. But, it caps off at 5% as the law allows it as the maximum limit in 2025.
PhilHealth Contribution for Employed
The latest increase in PhilHealth contribution took effect in June 2022. Employers and members who paid the 3% rate are responsible for paying the 1% differential until the end of the year.
Take a look at the contribution PhilHealth table latest.
Like before, the monthly premium is an equal share between the employer and employee. Employees earning P10,000 and below have a P400 fixed rate of monthly contribution. On the other hand, employees earning P80,000 and above have a P3,200 fixed rate of monthly contribution.
Meanwhile, employees earning in between those salaries use a different formula. Here’s how to compute PhilHealth contribution:
Employee or employer share = (Monthly basic salary x 0.04) / 2
To further understand the computation of PhilHealth, here is an illustration of an employee earning P20,000.
P20,000 x 0.04 = 800 (Total monthly contribution) | = P 400 (Employer or employee share) |
|---|---|
2 |
- If your salary is P20,000, you need to find out its 4%.
- P15,000 x 0.04 = P800
- Your total contribution is P800.
- You must divide this into two (2) because your employer will shoulder half of the contribution.
- P800 / 2 = P400
- You can expect a deduction of P400 from your salary for your PhilHealth monthly contribution.
RELATED: Top 10 Money Saving Ideas for Low-Income Workers
PhilHealth Contribution for Self-Employed
The self-employed or voluntary individuals need to pay their PhilHealth premiums. Having an updated PhilHealth account may be bothersome if you work as a freelance. But, it will surely be a great help during emergencies. You can pay monthly or quarterly.
Below is the PhilHealth monthly contribution for self-employed.
Self-employed carry the burden of paying the entire premium rate. It is far different from the PhilHealth contribution for the employed, wherein employers shoulder half of the rate. As a result, you will remit the total of 4% alone.
For example, a voluntary member earns P20,000. The monthly premium is P800 (P20,000 x 0.04). Your annual contribution rate is P9,600 (P800 x 12 months).
- For those earning P10,000 or below monthly, your premium PhilHealth yearly payment is P4,800.
- If your monthly income is between P10,000 and P69,999.99, your premium PhilHealth yearly payment is between P4,800 and P38,400.
- But if you earn P70,000 and above, your premium PhilHealth yearly payment is P38,400.
Now, you know how much is the PhilHealth contribution for self-employed. So always budget your finances to avoid missing any payments.
RELATED: 5 Financial Questions Before Becoming a Full-Time Freelancer
PhilHealth Contribution for OFW
The contributions of the land-based OFWs have been the same since its last adjustments in 2014. Migrant workers can pay their premium of P2,400 yearly or P1,200 every six months. However, the recent contribution hike affected their premium rates. Now, the contribution is based on their monthly salary. Take note that it uses the current exchange rate in Philippine pesos.
PhilHealth reminded the OFWs to pay their contributions through the POEA One-Stop Shop Centers, local PhilHealth offices nationwide, or any PhilHealth-accredited collecting agents overseas.
Check out the latest PhilHealth contribution table below.
Here is a scenario. If you earn $500 monthly, you must convert it to the current exchange rate in Philippine pesos. As of this writing, it is $1 = P55. Therefore, your basic monthly salary is P27,500.
Afterward, you compute your monthly PhilHealth premium at 4%. So you will pay P1,100 monthly (P27,000 x 0.04). Then, your total annual contribution is P13,200 (P1,100 x 12 months).
Paying in full is not necessary. You can have an initial payment of P2,400 before you leave the country. Then, pay off the remaining PhilHealth contribution in full after six months. Or you can opt for installments in the next two quarters.
Meanwhile, seafarers use a different PhilHealth contribution computation. It is the same with the employed PhilHealth members. The equal share comes from the monthly salary and the manning agency.
PhilHealth Contribution for Kasambahays
The new PhilHealth contribution allows kasambahays to settle it based on their monthly salary.
Note that as mandated in Republic Act No. 10361, the premium PhilHealth contributions of a house helper shall be solely shouldered by the household employer. Therefore, if the salary of the kasambahay is P5,000 or more a month, he or she will be required to pay the personal share. But, if it is less than P5,000 a month, the employer is responsible for paying the total PhilHealth monthly contribution in full.
Reason For a New PhilHealth Contribution
Health Secretary Francisco Duque III clarified that the said hike in the PhilHealth premium is justifiable since it is only now that the health agency is increasing it. In 2016, PhilHealth benefit payouts reached ₱101 billion.
It is expected to double the solvency of PhilHealth’s reserve fund. It means that with higher contributions, PhilHealth will have the ability to continue to have better operations for a long time since there will be more funds to support it. Aside from the higher premium, the national health agency will receive around P50 billion from the DOH’s 2018 budget.
Filipinos Exempted From PhilHealth Contribution
Some PhilHealth members have the privilege of being exempted from contributing. Before you start your obligation, check if you belong to the following categories.
Lifetime Members
Include retirees registered as lifetime members with a minimum of 120 contributions. They do not need to remit. However, lifetime members who were employees in the Philippines or overseas must have continuous payment of PhilHealth contributions until they resign from work.
Unemployed Senior Citizens
Senior members with no stable source of income are free from the obligations of paying PhilHealth contributions. The excise taxes from cigarette and alcohol sales cover up for it under the Sin Tax law. But employed and regularly income-earner senior citizens must still pay for their contributions based on their Philhealth membership category.
Persons with Disability (PWDs)
PWD members are exempted from paying PhilHealth. Employers and employed members and the national government shoulder their PhilHealth contributions.
Indigent and Sponsored Members
Sponsored or indigent PhilHealth members come from Filipino families in poor communities. They have the privilege of enjoying the exemption of paying the PhilHealth contribution. LGU, government agencies like DSWD, private organizations, and others are responsible for their contributions.
These members don’t need to pay for a PhilHealth contribution. Nevertheless, if you belong to this group, you still have the opportunity to maximize the benefits.
Conclusion on PhilHealth
PhilHealth benefits are handy in times of need.
Though there is a hike in the PhilHealth premium, it is better than draining your finances once you need to settle some medical bills. In addition, only active members are eligible for health-related benefits.
You must regularly pay your premiums whether employed, self-employed, an OFW, or a house helper. Missing your contributions may forfeit your benefits. Even if you feel lucky this year, there is no telling the exact future.
What if you or your dependent suddenly got confined in a hospital? Are you ready to pay the skyrocketing bills just from your own pockets?
You must ensure that your PhilHealth benefits are available once you need them. And even if you already have a health card, it is still handy since it has various health programs to cover a myriad of health cases.
Get the funding for urgent medical needs from a legal moneylending company like Cash Mart Philippines. Its quick and low-interest loan is always ready to serve you.
