The Philippine Health Insurance Corp. (PhilHealth) reiterated that it has increased the contribution of overseas Filipino workers (OFWs) to 3% of their monthly salary. The increase, which has been rolled out late last year and has fully taken effect starting this year, covers all land- and sea-based workers.
Based on the circular issued by PhilHealth last April 22, the corporation detailed the contribution and collection of payment from OFWs, who are classified as direct contributors under the Universal Health Care (UHC) Law.
OFWs Required to Pay 3% Monthly Contribution – PhilHealth
According to PhilHealth Circular 2020-0014, all OFWs including those on vacation and those waiting for documentation are covered.
This means that anyone who falls under the following is subject to the mandatory 3% increase in monthly contributions:
- land-based OFWs;
- seafarers and sea-based workers;
- Filipinos living abroad;
- Filipinos with dual citizenship;
- Overseas Filipinos in distress; and
- other overseas Filipinos not previously classified elsewhere.
The authority explained that the OFWs’ 3% premium rate will be computed based on their declared monthly income, with the range set from PhP 10,000 (income floor) and PhP 60,000 (income ceiling). All premiums shall be paid in their Philippine peso equivalent.
Payment shall be based on the terms and corresponding due dates prescribed by the corporation, the circular noted.
The circular stated that 2020 is considered a transition year, with a PHP 2,400 initial payment prescribed which can be paid in full or in quarterly payments under a settlement period of one year.
It also pointed out that “any member who fails to pay the premium after the due date set by the Corporation shall be required to pay all missed contributions with monthly compounded interest.”
Starting in January 2021, however, an OFW needs to make a three-month initial payment before opting to pay the remaining balance in full or quarterly payments within the same year.
For example, an OFW who earns a monthly basic salary of PHP 20,800 must pay 3% (PHP 7,488) for their total annual PhilHealth premium. They can make an initial payment worth PHP 2,400 before they could settle the remaining balance of PHP 5,088 in full or quarterly in 2020.
For the next year though, the same OFW with a monthly income of PHP 20,800, must pay 3.5% (PHP 8,736) as a total annual premium. They must make an initial payment of PHP 2,184, then pay the remaining balance of PHP 6,552 in full or quarterly payments.
It’s also worth noting that PhilHealth’s latest circular has outlined a yearly increase in premium rate as and income ceiling between 2019 and 2024 as follows:
Premium Rate:
2019 – 2.75%
2020 – 3.0%
2021 – 3.5%
2022 – 4.0%
2023 – 4.5%
2024 onwards – 5.0%
Income Ceiling:
2019 – PHP 50,000
2020 – PHP 60,000
2021 – PHP 70,000
2022 – PHP 80,000
2023 – PHP 90,000
2024 onwards – PHP 100,000
Though it will hurt our pockets, especially at the start, let us not forget that the new schedule falls under a wider Universal Health Care (UHC) Law, which aims to provide healthcare to ALL Filipinos, regardless of class or status.
In the same way, let us hope that the increase in premium contributions will offer better health coverage for all members.