An OFW from Saudi Arabia has reported that his Philhealth contribution for 2020 has increased to P19,425.60. This is a big leap from last year’s contribution which was only P2400.00.
Why the increase in such a huge amount?
According to RA11223 (Universal Health Care Act), all OFW (migrant workers) and our family belongs to “Direct contributors.” This new health care act has taken into effect as of October 11, 2019. And because we belong to the category of Direct Contributors, our Philhealth contribution would follow Section 10 of the Universal Health Care Act.
To calculate the amount of contribution, you simply get your monthly income, multiply it with the premium rate and the number of months in a year.
For example, if your salary as an OFW worker in 2020 is equivalent to P10,000.00, then you will pay a contribution of P3,600 for the year 2020.
P10,000 X 0.03 Premium Rate X 12 months = P3,600.00.
If your salary is more than P60,000, your Philhealth contribution would still be P21,600 since the Income Ceiling for 2020 is only until P60,000.
If your salary is 400 USD, this is how you get the actual calculation:
Convert the salary first to Philippine Peso
400USD X 50.53 (exchange rate US Dollars to Philippine Peso) = P20,212
Then, calculate your Philhealth contribution using the formula stated in Section 10 of the Universal Health Care Act.
P20,212 x 0.03 Premium Rate X 12 months = P7,276.32
In 2021, the Premium Rate will increase to 3.5% and the Income Ceiling is P70,000. OFW Philhealth remittances will be between P4,200 to P29,400. There’s a .5% every year afterward for the Premium Rate and P10,000 for the Income Ceiling. Premium Rate reaches 5% by 2024 while Income Ceiling would be P100,000.