MANILA, Philippines – Employers who missed paying their employees’ premium to the Philippine Health Insurance Corporation (PhilHealth) may feel relief as the government will waive, in part or in full, the interest incurred from non-payments.

Every month, PhilHealth direct members, including employees with formal employment, pay contributions to the state insurer.

For those in the employed sector, the amount of an employee’s monthly contribution to PhilHealth is 5% of his/her basic salary. Half of the amount will be deducted from the employee’s income while the other half will be shouldered by the employer.

Contributions of employees are being handled by the employer, who, in some cases, fail to pay the premiums in a timely manner, resulting in a penalty of 3% interest, compounded monthly. This means “any computed interest on the first month shall be included and shall be made part of the principal amount for computation of applicable interest for the second month and so on.”

President Ferdinand Marcos Jr. has announced a one-time general amnesty for interests.

“Ito po ay patuloy naming ginagawa upang pagaanin ang dala ng ating mga kababayan tungkol nga sa mga healthcare costs at sa lahat ng iba’t ibang hamon na hinaharap ng ating mga kababayan araw-araw,” he earlier said.

(We are doing this to ease the burden of our fellow Filipinos on healthcare costs and other challenges they face every day.)

The Employers Confederation of the Philippines (ECOP) said the move could be helpful to employers.

“Assuming that there [are] a lot of people who will benefit or who will avail of it, one way or another, then it’s good,” ECOP president Sergio Ortiz-Luis Jr. told Rappler.

Following the pronouncement, PhilHealth issued a policy on how Marcos’ order will be implemented for the employed sector.

Settling of unpaid premium

Here’s what you need to know:

The amnesty covers interest from missed contributions from July 2013 to December 2024. This means employers will have to settle the unpaid premiums only for the same period.

They may start settling the amounts from January 24 to December 31 , 2026.

PhilHealth senior vice president and spokesperson Israel Pargas explained that the amnesty does not automatically waive 100% of the interest. The rate of interest that will be forgone, he said, will depend on how long the employer committed to pay the premiums.

“[The waiver will have a] graduated percentage, according to how long you would be able to settle your account,” Pargas said.

Employers who will pledge to settle the unpaid premiums within a month will be granted an absolute waiver of the 3% monthly compounded interest, Pargas said.

But if the employer will settle the missed contributions in installment within two to six months, 2% of the monthly compounded interest will be waived.

One percent of the monthly compounded interest, meanwhile, will be waived if the employer will pay the missed premiums within seven to 12 months.

Premiums should be paid online at PhilHealth’s Electronic Premium Remittance System while the interests must be settled over-the-counter in any PhilHealth Local Health Insurance Office.

Conditions

To be qualified for the waiver, an employer has to comply with three conditions, Pargas said.

First, employee information, such as dependents and civil status, should be updated.

Second, all employees must be registered to a Yaman ng Kalusugan Program (YAKAP) clinic.

YAKAP is a PhilHealth program that provides primary care benefits such as access to medicines, consultations, and laboratory tests. As of December 2025, there are around 4,000 YAKAP clinics nationwide.

“It’s a member’s choice kung saan nila gustong magpa-register, kung sinong YAKAP clinic ang gusto nilang mag-alaga sa kanila,” Pargas said. (It’s a member’s choice where they want to register and which YAKAP clinic they prefer to take care of them.)

The third condition involves employers complying with the documentary requirements.

Going after employers

Citing PhilHealth records, Pargas said about 290,000 private employers and 10,000 government employers will benefit from the waiver.

The state insurer is estimating a collection of P20 billion, should employers settle their unpaid contributions.

In case employers fail to settle the premiums by the end of 2026, Pargas warned that interest will be charged as mandated by law and that they will handle it through legal means.

“[The] non-remittance of premium is a violation, and so we may go through litigation of cases. We may go through other legal means,” he said.

“We are hoping that the employers, once they settle their account, will continue paying their premium contribution,” said Pargas.

The Department of Health (DOH) also urged employers to settle their unpaid premiums, saying “now is the best time” given the “easier terms” set.

“With better benefits manifest, let us do our part and help fuel more improvements,” DOH assistant secretary and spokesperson Albert Domingo said. “Participation by each and every Filipino according to his ability to pay will ensure that there will be funds from the healthy that can be readily used for the sick.”

The lapses of some employers in the payment of premiums, Pargas said, did not affect the contributors’ access to PhilHealth benefits.

For self-employed individuals, interests from missed premiums will also be waived. PhilHealth is targeting to release the policy for self-employed contributors by the end of January. – Rappler.com