Overview
PhilHealth contributions for employees are computed based on the employee’s Monthly Basic Salary (MBS) and the applicable premium contribution rate.
As of the current PhilHealth contribution schedule, the premium rate is 5% of the employee’s Monthly Basic Salary, subject to the prescribed salary floor and ceiling. The resulting premium is shared equally between the employer and the employee.
Note: This article is based on the latest PhilHealth contribution schedule currently supported by Sprout Payroll and reflects current PhilHealth guidelines. Should PhilHealth release new contribution guidelines, the computation may change accordingly.
Monthly Basic Salary (MBS)
The Monthly Basic Salary (MBS) refers to the employee's configured monthly basic salary before payroll adjustments.
The following are not included in the computation:
- Overtime pay
- Sales commissions
- Allowances
- Bonuses
- 13th month pay
- Other gratuities
- Salary deductions due to:
- Absences
- Tardiness
- Undertime
- Leave without pay (LWOP)
PhilHealth requires employers to use only the Monthly Basic Salary when computing premium contributions. You may check PhilHealth Circular No. 2018-0001 for reference.
For daily-wage workers with a five-day work week schedule, who do not work and are not considered paid on Saturdays and Sundays or rest days shall be computed as:
MBS = (Applicable Daily Rate x 261)/12
Where 261 days/year shall refer to: 247 ordinary working days, 11 regular holidays and 3 special holidays
Contribution Formula
Step 1. Determine the salary to use
Step 2. Apply the salary floor for Monthly Basic Salaries of ₱10,000 and below, and the salary ceiling for ₱100,000 and above.
Step 3. If the Basic Salary is ₱10,000 to ₱99,999.99 Compute the Monthly Premium
Monthly Premium = Monthly Basic Salary × 5%Step 4. Split the Premium
The monthly premium is shared equally between:
- Employee Share = 50%
- Employer Share = 50%
Example 1: Salary Below the Floor
Monthly Basic Salary: ₱8,500
Since the salary is below the minimum salary floor:
- Salary Used = ₱10,000
- Monthly Premium = ₱10,000 × 5% = ₱500.00
Monthly Philhealth Employee Share: ₱250
Monthly Philhealth Employer Share: ₱250
Example 2: Salary Within the Range
Monthly Basic Salary: ₱30,000Monthly Premium:₱30,000 × 5% = ₱1,500.00Monthly Philhealth Employee Share: ₱750
Monthly Philhealth Employer Share: ₱750
Example 3: Salary Above the Ceiling
Monthly Basic Salary: ₱120,000
Since the salary exceeds the ceiling:
- Salary Used = ₱100,000
- Monthly Premium = ₱5,000.00
Monthly Philhealth Employee Share: ₱2500
Monthly Philhealth Employer Share: ₱2500
Handling Centavo Rounding
When splitting the monthly premium into equal employer and employee shares, centavo differences may occur.
Sprout Payroll follows the PhilHealth guideline by assigning the excess centavo to the employer share. Based on the PhilHealth advisory, if splitting the premium results in an excess centavo, the excess centavo shall be carried by the Employer.
Example
Monthly Basic Salary: ₱25,555
Monthly Premium:
₱25,555 × 5% = ₱1,277.75
Split equally:
- Employee Share = ₱638.87
- Employer Share = ₱638.88
The employer assumes the extra ₱0.01, ensuring the total premium remains ₱1,277.75.
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