Overview of Health and Medical Insurance in the Philippines and Contribution Rates

Companies operating in the Philippines are required to register with three government agencies: the Social Security System (SSS), the Philippine Health Insurance Corporation (PhilHealth or PHIC), and the Home Development Mutual Fund (Pag-IBIG or HDMF), and to submit employee information.

As in Japan, companies calculate the monthly contributions for each health insurance program based on employee salaries, deduct them from payroll, and remit them to the respective agencies.

This section provides an overview of the various health and medical insurance programs in the Philippines, the application procedures, and the applicable contribution rates.

Social Security System (SSS)

SSS is the Philippines’ social security system, providing retirement pensions, maternity benefits, and sickness or disability allowances, as well as loan services for living expenses, education, and other purposes.

In the Philippines, all companies with employees aged 60 and below must register with the SSS and subsequently register their employees.

The required documents are as follows:

• SEC registration documents (Certificate of Incorporation, Articles of Incorporation and By-laws)
• Business Permit / Mayor’s Permit
• Secretary’s Certificate and/or GIS
• SSS R1 Form (Employer Registration): Includes company name, address, business start date, contact information (phone number and email), signed by an authorized representative
• SSS R1A Form (Employee Report): Lists employees with their SSS numbers, employment dates, and monthly salaries
• SSS L-501 Form (Signature Card): Signed by the designated representative and approved by an authorized officer
• SSS online registration: Form provided after SSS registration, including company name, address, and details of the authorized representative
• Other documents may be required, such as originals and copies of IDs of authorized representatives and signatories, and a vicinity map of the company premises

PhilHealth or PHIC

PhilHealth is the healthcare insurance system of the Philippines, which allows insured individuals to reduce a certain portion of medical and pharmaceutical expenses when receiving consultations, hospitalization, or treatment.

In the Philippines, all companies with employees register with PhilHealth first, and then register their employees.

The required documents are as follows:

• SEC registration documents (Certificate of Incorporation, Articles of Incorporation and By-Laws)
• PHIC ER1 (Employer Registration): Includes company name, address, contact details (phone number and email), number of employees, etc.; signed by an authorized representative.
• PHIC ER2 (Employer Report): Declares a list of employees with their SSS/PhilHealth numbers, monthly salary, and date of employment; signed by an authorized representative.
• PhilHealth Online Access Form (POAF): Online system registration form; includes detailed information of an authorized representative.
• Additionally, original and photocopies of IDs of authorized representatives and signatories, as well as a map of the company’s surroundings, may be required.

Home Development Mutual Fund (Pag-IBIG or HDMF)

Pag-IBIG is a mutual fund primarily for housing loans, allowing members to use their savings and loans when purchasing a home, with contributions deducted directly from their salary.

Except for foreign workers, all employees are required to enroll.

The required documents are as follows:

• SEC registration documents (Certificate of Incorporation, Articles of Incorporation and By-Laws, each obtained as a Certified True Copy from the SEC)
• Employer Data Form: Includes company name, address, Tax Identification Number (TIN), SSS number, business start date, and other company details; signed by an authorized representative.
• Signature Form: Three designated representatives sign, and the authorized representative approves the signatures.
• eSRS Enrollment Form (Employer Registration): Online system registration form; signed by an authorized representative.
• SSS R1A Form (Employer Report): (Same as above) Pag-IBIG registration must be done after SSS registration.
• Additionally, originals and photocopies of IDs of authorized representatives and signatories, as well as a map of the company’s surroundings, may be required.

To ensure the registration process proceeds smoothly and minimize the need for rework, it is helpful to keep the following points in mind:

• Required documents may vary by region and can change without notice, so obtain the list of necessary documents from each government agency before applying.
• Print and sign all documents in three copies.
• Use a valid email address, as government agencies may contact you via email during the process.
• SSS office hours may differ by region (e.g., accepting submissions only until 11:00 AM); to avoid crowds, complete procedures early in the morning.

Rate tables for various healthcare programs

The contribution rates for health and medical insurance in the Philippines are as follows.
Note that the basic salary used as the base does not include allowances, and adjustments for overtime or absences are not considered.

As of November 2025 (effective January 2025), the SSS rates are as follows.

As of November 2025 (effective January 2024), the PhilHealth rates are as follows:

Monthly Basic Income	Premium Rate	Monthly Premium
10,000.00	5.00%	500
10,000.00 to 99,999.99	5.00%	500.00 to 5,000.00
100,000.00	5.00%	5,000.00

As of November 2025 (effective February 2024), the contribution rates for Home Development Mutual Fund (Pag‑IBIG) are as follows:

Contribution Rate	Monthly Compensation	Employee	Employer
1.00%	1,500.00 and below	1.00%	2.00%
2.00%	Over 1,500	2.00%	2.00%

For Pag-IBIG, regardless of the above rates, the maximum monthly contribution is ₱400 (employee + employer).
However, if an employee wishes to increase their monthly contribution for savings, contributions above this amount are allowed.

If the above procedures are delayed, penalties may be incurred, and failure to make the payments would mean that the company is lacking in critical compliance obligations.
In practice, there have been cases where former employees, due to non-payment of SSS, PhilHealth, or Pag-IBIG contributions, have gone to the Department of Labor and Employment (DOLE), resulting in legal disputes.
There have also been cases where, when applying for maternity benefits, payment records were not reflected in the systems of the respective government agencies, causing problems.

Contribution rates are frequently revised, and expatriates may have certain exceptions, so it is necessary to ensure that processing is done correctly.

Our company handles various registration procedures and reviews, so please feel free to contact us.