All employed members in the Formal Economy and all employers in the government and private sectors are encourage to know and understand the guidelines, legal bases and rationale of the PHILHEALTH CIRCULAR No. 2018-001 in relation with the Clarificatory Guidelines on the Computation of Premium for the Members Under the Formal Economy.
This circular emphasizes the Guidelines on the Reporting of Employees’ Monthly Basic Salary and the Computation of Premium for the Members of both government and private sectors.
GUIDELINES
The term Monthly Basic Salary (MBS) shall be understood to mean as the fixed basic rate of an employee which shall not include sales commissions, overtime pay, allowances, thirteenth month pay, bonuses or other gratuity payments. For to this, those deductions to the employee’s pay occasioned by his/her undertime, tardiness, leave(s) without pay, absences, or other similar circumstances shall also be excluded in this computation.
For the monthly-paid and daily-paid employees, the MBS shall be computed based on the estimated Equivalent Monthly Rate (EMR) consisted with the 2010 Edition of the Department of Labor and Employment-Bureau of Working Condition’s Handbook on Worker’s Statutory Monetary Benefits wherein the MBS is clarified as follows:
In addition with, all government and private employers are required to register their employees and their qualified dependents by submitting a list of their employees complete with their salary base and other dependents by submitting a list of their employees complete with their salary base and other documents as may be required. No exemptions will be granted as this is a mandatory disclosure demanded from all government and private employees to ensure that they remit their employees’ premiums in accordance with the prescribed rates.
Relative to employees with no earnings due to a lengthy leave without pay for more than six (6) months, provisions of PHILHEALTH Circular No. 32, s-2003 shall still be in effect.
To read the full text, please refer PHILHEALTH CIRCULAR No. 2018-001.
