Our previous post was an introduction to employer contributions in the Philippines with a closer look on BIR and the SSS. In this post, we’ll give you an idea about how health insurance works in the Philippines. PhilHealth is the health insurance institution that all private and government companies are required to register their new employees to. Here is a list of benefits that PhilHealth covers. Unlike the SSS, the employer’s share towards insurance is equal to the employee’s share towards insurance. The contribution schedule is available here.
Step 1: Employers need to first register their business through the Philippines Business Directory.
Step 2: All employees must submit the PhilHealth Member Registration Form (PMRF) to the HR department. Once that is done, you need to register your employees by filling out Employee Data Record (ER1) Form and submit the ER1 Form with the PMRF for each employee.
Step 3: After the forms are processed, companies will be given the following:
- PhilHealth Employment Number (PEN)
- Certificate of Registration
- PhilHealth Identification Number (PIN)
- Member Data Record (MDR) of registered employees.
The Certificate of Registration is required to be displayed clearly in your business’s offices.
Step 4: After deducting employer and employee contributions from the basic monthly salary, payment must be made to PhilHealth or via Accredited Collecting Agents. The payment should be made on or before the due date. The table below is from the PhilHealth website:
|Employers with PENs ending in 0-4||Every 11th-15th day of the month following the applicable period|
|Employers with PENs ending in 5-9||Every 16th-20th day of the month following the applicable period|
Step 5: Once the payment is done, you will have to report it within 5 days with the revised RF-1 Form. Alternatively, you can report it online using the Electronic Premium Reporting System
For new employees in the company, you will have to file the ER2 form to ensure that they are covered by PhilHealth too. Make sure to ask them if the have their PIN so that you can add it to the ER2 form. The form should be submitted to PhilHealth within 30 days of the new employees coming into office. For separated employees, Form RF1 must be filled and submitted within 30 days of the employee leaving. To amend employer data, ER3 form must be filed along with supporting documents.
This is it for PhilHealth. For reference, here is how PayrollHero calculates PhilHealth deductions. Check out Part III of our posts on employee contributions. We give you a crash course on Pag-IBIG deductions.
Disclaimer: As always, consult your lawyer or accountant for advice! We are here to help, but your specific situation should be reviewed by a professional with complete knowledge of your situation.
If you are interested in learning more about PayrollHero for your Philippine business, check out our website at PayrollHero.ph or contact us at email@example.com. We would be pleased to chat further about your needs!