How to compute PhilHealth contribution for an employed member is a four-part exercise: name the Monthly Basic Salary, apply the floor or ceiling, take 5.0%, and split the premium equally. The arithmetic is short. The errors are almost always in the base.
Last reviewed: September 2026. This article was checked against PhilHealth Advisory PA2025-0002. Issuances reviewed at that date still cite a 5% premium. Treat the advisory, not this page, as the rule for the pay period.
TimeBoxHR is designed to support configurable PhilHealth contribution tables so this computation can run from a rate, floor, and ceiling the company has checked.
The rate and bounds are summarized in the PhilHealth contribution table. Worked examples below use ₱8,000, ₱15,000, ₱30,000, ₱50,000, and ₱120,000 as MBS. For SSS and Pag-IBIG on the same employee, see how to compute SSS, PhilHealth, and Pag-IBIG.
Computation steps
Use this order.
- Identify Monthly Basic Salary (MBS), the fixed basic rate.
- Apply the income floor of ₱10,000 or the income ceiling of ₱100,000 if MBS is outside those bounds.
- Multiply the resulting premium base by 5.0%.
- Split the premium equally: employee 50%, employer 50%.
- Post the employee share to deductions and the employer share to employer cost.
- Keep MBS, premium base, and both shares on the register.
There is no MSC lookup and no Employees Compensation add-on. If your worksheet has extra PhilHealth columns copied from the SSS table, delete them.
Step 1: identify Monthly Basic Salary
MBS is the fixed basic rate, not the period’s gross and not the period’s net.
Leave out of MBS, per the CY 2025 advisory:
- Sales commission
- Overtime
- Allowances
- 13th month
- Bonuses or gratuity
Also leave out of the MBS computation base the effect of:
- Undertime
- Tardiness
- Leave without pay
- Absences
A ₱30,000 basic rate remains ₱30,000 for PhilHealth when the employee works overtime, and it remains ₱30,000 when the employee is late, unless a later official issuance changes that instruction.
If basic pay changed during the month, document which rate you used and why. Mid-month increases are a policy and advisory question. Do not average two rates in silence.
Daily-paid employees still need a stated basic rate or an equivalent MBS that the company can defend. Do not convert daily pay with an unofficial factor and then call the result official.
Do not start from take-home pay. Do not start from taxable compensation. Those numbers already contain other decisions.
Step 2: apply floor and ceiling
Compare MBS with ₱10,000 and ₱100,000.
- If MBS is below ₱10,000, the premium base is ₱10,000.
- If MBS is between ₱10,000 and ₱100,000 inclusive, the premium base is MBS.
- If MBS is above ₱100,000, the premium base is ₱100,000.
The floor creates a minimum premium of ₱500. The ceiling creates a maximum premium of ₱5,000. Those peso amounts are 5% of the bounds, not a separate published schedule of many brackets.
Write the premium base down. Step 3 uses this number, not the original MBS, when the bounds applied.
Step 3: multiply by 5.0%
Premium = 5.0% × premium base.
- Premium base ₱10,000 → ₱500
- Premium base ₱15,000 → ₱750
- Premium base ₱30,000 → ₱1,500
- Premium base ₱50,000 → ₱2,500
- Premium base ₱100,000 → ₱5,000
If someone on the team still remembers a 4% or 3% premium, that memory is a prior period. This review still cites 5%. Check the current advisory before you argue about a tenth of a percent.
Step 4: split equally
Employee share = half of the premium. Employer share = the other half.
- ₱500 total → ₱250 / ₱250
- ₱750 total → ₱375 / ₱375
- ₱1,500 total → ₱750 / ₱750
- ₱2,500 total → ₱1,250 / ₱1,250
- ₱5,000 total → ₱2,500 / ₱2,500
For employed members, do not assign 5% entirely to the employee. Do not use Pag-IBIG’s 2% and 2% structure here.
The employer share is not deducted from wages.
Example: ₱8,000 MBS (below floor)
- MBS: ₱8,000
- Premium base: ₱10,000
- Premium: ₱500
- Employee: ₱250
- Employer: ₱250
The employee does not pay 5% of ₱8,000. The floor exists so the minimum premium is ₱500.
Example: ₱15,000 MBS
- MBS: ₱15,000
- Premium base: ₱15,000
- Premium: ₱750
- Employee: ₱375
- Employer: ₱375
No floor or ceiling adjustment. This is the clean 5% case.
Example: ₱30,000 MBS
- MBS: ₱30,000
- Premium base: ₱30,000
- Premium: ₱1,500
- Employee: ₱750
- Employer: ₱750
This is the figure reused in the combined ₱30,000 walkthrough. If overtime of ₱5,000 also appears on the same payslip, it does not enter this PhilHealth base under the CY 2025 advisory.
Example: ₱50,000 MBS
- MBS: ₱50,000
- Premium base: ₱50,000
- Premium: ₱2,500
- Employee: ₱1,250
- Employer: ₱1,250
Still below the ₱100,000 ceiling. SSS on a ₱50,000 salary would already be on the ₱35,000 MSC ceiling; PhilHealth is not. Do not copy the SSS ceiling into this step.
Example: ₱120,000 MBS (above ceiling)
- MBS: ₱120,000
- Premium base: ₱100,000
- Premium: ₱5,000
- Employee: ₱2,500
- Employer: ₱2,500
The additional ₱20,000 of basic pay does not increase the PhilHealth premium under this advisory. If a calculator shows ₱6,000, the ceiling was skipped.
Pay frequency and posting
PhilHealth is monthly. A semi-monthly payroll that withholds ₱750 on the 15th and another ₱750 on the 30th for a ₱30,000 MBS has collected two months in one month.
Document one of these, then apply it to everyone in the group:
- Withhold the full monthly employee share on a designated payday
- Split the monthly employee share across the month’s paydays so the month totals the correct share
Remittance follows PhilHealth’s current payment instructions, which can differ from the withholding pattern. Computation and remittance are related controls, not the same button.
New hires and separations still need a stated MBS for the month they are covered. Do not skip the premium because the employee worked only a few days unless the current issuance says coverage or the base changes in that situation.
What not to compute here
Do not compute SSS inside the PhilHealth worksheet. SSS uses compensation and MSC. See how to compute SSS contribution.
Do not compute Pag-IBIG here. Pag-IBIG uses fund salary capped at the Maximum Fund Salary. See how to compute Pag-IBIG contribution.
Do not compute BIR withholding here. Withholding depends on taxable compensation and the current BIR table. No PhilHealth example in this article is a net-pay figure.
PhilHealth loans or other recoveries, if any appear in your process, are not the 5% premium. Keep them off the premium line.
Records worth keeping
For each employee and month, keep:
- MBS used
- Whether floor or ceiling applied
- Premium base
- Total premium
- Employee share
- Employer share
- Payday the deduction was taken
- Remittance reference
If the employee asks why overtime did not raise PhilHealth, the answer is the MBS definition in the advisory, not a shrug toward “the system.”
When PhilHealth issues a new rate or new bounds, date the configuration change. Closed months stay on the advisory that applied to them unless PhilHealth requires a stated correction.
A wider close that includes time, premiums, and all statutory deductions is described in how to compute payroll in the Philippines and Philippine payroll deductions. A payroll system for the Philippines should apply a verified PhilHealth table after MBS is known.
Worked check before you remit
Before remittance, pick a sample of employees and recompute by hand.
- One employee below ₱10,000 MBS: confirm the ₱500 minimum and the ₱250 / ₱250 split.
- One employee in the middle, such as ₱30,000: confirm ₱1,500 and ₱750 / ₱750.
- One employee above ₱100,000 MBS, if you have one: confirm the ₱5,000 maximum.
- One employee with overtime and tardiness in the same month: confirm MBS did not move.
If the sample fails, stop the remittance file and fix the base, not the remittance channel. A tidy file that used gross pay as MBS is still the wrong advisory.
Keep the sample worksheet with the register. Next month’s reviewer should be able to repeat the same three or four employees without asking which version of the 5% you meant.
Last reviewed: September 2026. If PhilHealth issues a new rate or new bounds after this review, those later official figures replace the arithmetic shown on this page. Until then, treat 5.0%, the ₱10,000 floor, and the ₱100,000 ceiling as the employed-member grid you must be able to source from the current advisory, not from memory or from last year’s payroll file.
Simplify PhilHealth computation with TimeBoxHR
TimeBoxHR is designed to support configurable PhilHealth contribution tables and statutory payroll computation using those tables. Employee records, DTR, configurable payroll rules, and SSS, PhilHealth, Pag-IBIG, and BIR reports are in the same designed scope. Overtime captured in DTR should not be allowed to silently rewrite MBS.
How TimeBoxHR Handles This
TimeBoxHR is designed to support configurable PhilHealth contribution tables so the 5% rate, floor, and ceiling can be applied during statutory payroll computation after you verify them against PhilHealth. Employee records store identifiers. DTR and configurable payroll rules support earnings and attendance without substituting gross pay for MBS. SSS, PhilHealth, Pag-IBIG, and BIR reports can be generated from the posted payroll.
Read PA2025-0002 or the current successor on philhealth.gov.ph before activating a table.
