Payroll, HR & labor compliance
PhilHealth contribution 2026: rates, ceiling and employer computation
The 2026 PhilHealth premium rate, income floor and ceiling, how employer and employee shares are split, and worked examples for Philippine payroll.
For 2026, the PhilHealth premium for employed members is 5% of the monthly basic salary, shared equally between employer and employee. The salary used for the computation has a floor of ₱10,000 and a ceiling of ₱100,000, so the total monthly premium ranges from ₱500 to ₱5,000, or ₱250 to ₱2,500 for each side.
The 5% rate is the final step of the schedule under the Universal Health Care Act (RA 11223) and has applied since 2024. Check the latest advisory on the PhilHealth website before you update payroll tables, because the agency has revised its schedule in the past.
PhilHealth premium at a glance
| Item | 2026 value |
|---|---|
| Premium rate | 5% of monthly basic salary |
| Split | 50% employer, 50% employee |
| Income floor | ₱10,000 (lower salaries are computed as ₱10,000) |
| Income ceiling | ₱100,000 (higher salaries are computed as ₱100,000) |
| Minimum total premium | ₱500 per month (₱250 each) |
| Maximum total premium | ₱5,000 per month (₱2,500 each) |
How to compute the PhilHealth contribution
- Take the employee's monthly basic salary.
- Apply the floor and ceiling: if it is below ₱10,000, use ₱10,000; if above ₱100,000, use ₱100,000.
- Multiply by 5% to get the total monthly premium.
- Divide by two. The employee share is deducted from pay and the employer pays the other half.
Unlike SSS, PhilHealth uses a straight percentage rather than a bracket table, which makes the computation simple. The errors usually come from the salary basis and from employees whose basic salary changes mid-month.
Sample PhilHealth computations
| Monthly basic salary | Salary used | Total premium (5%) | Employee share | Employer share |
|---|---|---|---|---|
| ₱8,000 | ₱10,000 | ₱500 | ₱250 | ₱250 |
| ₱25,000 | ₱25,000 | ₱1,250 | ₱625 | ₱625 |
| ₱60,000 | ₱60,000 | ₱3,000 | ₱1,500 | ₱1,500 |
| ₱150,000 | ₱100,000 | ₱5,000 | ₱2,500 | ₱2,500 |
Worked example: ₱25,000 basic salary
The salary is within the floor and ceiling, so the premium is 5% × ₱25,000 = ₱1,250. The employee pays ₱625 through payroll deduction and the employer pays ₱625.
What counts as basic salary?
PhilHealth computes the premium on the monthly basic salary, not on gross pay. Allowances, overtime and most other earnings are normally excluded. Daily-paid employees need a monthly equivalent, so define and document how your company converts daily rates (for example, using your approved factor for the number of paid days in a year). Confirm your treatment with PhilHealth or your adviser, and apply it consistently across branches.
Semi-monthly payroll and mid-month changes
Like SSS and Pag-IBIG, PhilHealth is a monthly obligation. Companies with semi-monthly payroll usually either deduct the full employee share in one cutoff or split it evenly between two. When an employee receives a salary increase mid-month, decide in your payroll policy whether the new rate applies to the month's premium, then configure the system to apply that rule automatically. See payroll cutoff best practices.
Common PhilHealth mistakes in payroll
- Using gross pay instead of basic salary, which overstates the premium.
- Ignoring the floor for part-month or low-salary employees.
- Not capping at the ceiling for senior staff, which over-deducts.
- Remitting late, which can affect employees' benefit availment and create penalties.
- Merging employers. Each company in a group remits under its own PhilHealth employer number.
Handling PhilHealth in payroll software
Store the rate, floor and ceiling as configurable values with an effective date. That way, a future change is a table update, not a code change. The system should show the salary basis used for each employee and produce the monthly remittance list per employer.
Cirquolus Payroll includes SSS, PhilHealth, Pag-IBIG and withholding tax workflows. To complete your statutory checklist, see the SSS contribution guide, the Pag-IBIG contribution guide and withholding tax on compensation.
Frequently asked questions
What is the PhilHealth contribution rate in 2026?
It is 5% of monthly basic salary, split equally between employer and employee, with a ₱10,000 floor and a ₱100,000 ceiling.
What is the maximum PhilHealth contribution per month?
₱5,000 in total, or ₱2,500 each for the employee and the employer, for salaries of ₱100,000 or more.
Is the PhilHealth contribution tax-deductible for employees?
Mandatory employee contributions to PhilHealth, SSS and Pag-IBIG are excluded from taxable compensation when computing withholding tax.
Do minimum wage earners pay PhilHealth?
Yes. Minimum wage earners are members, and the floor of ₱10,000 applies if their monthly basic salary is lower. Confirm current rules with PhilHealth.
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