PhilHealth Imposes 3% Mandatory Contribution for OFWs; Online Petition Seeks to Reverse the Order

The Philippine Health Insurance Corporation, also known as PhilHealth, had informed the public that it will be increasing the monthly contribution of overseas Filipino workers to three percent of their monthly salary. However, an increasing number of the online community are expressing their disagreement with this new ruling.

Under April 02, 2020, PhilHealth Circular 2020-0014, the government agency required that OFWs whose monthly salaries range from 10,000 to 60,000 Philippine peso are required to pay three percent of their monthly income as their PhilHealth contribution. The amount had increased from 2.75 percent in 2019.

The computation of the monthly PhilHealth contribution of OFWs will be based on their monthly income and will be paid in its Philippine pesos equivalent.

Here is an example computation of the PhilHealth Contribution:

If an OFW has a monthly earning of 50,000 Philippine pesos, he or she will be required to pay 3% of their income as their monthly contribution to PhilHealth. Based on the sample computation below, the annual premium of the OFW will be P18,000.

Sample Computation of the Annual Premium Contribution:

P50,000x3% = P1,500x12= 18,000

Since 2020 is a transition year, every OFW under this new ruling will be required to give an initial payment of P2,400. The balance can be paid in full or in quarterly payment, depending on the preference of the OFW. The settlement period for the premium is one year.

Additionally, the new ruling stated that by January 1, 2021, the minimum acceptable initial payment should be equivalent to the three-month contribution of the OFW. Similarly, the OFW is given the option to choose between paying the balance in full or quarterly.

Those who will fail to make payments on or before due dates will be required to pay for the unpaid contributions plus a monthly compounded interest, says the circular.

The new circular from PhilHealth had sparked an online petition through where 80,135 people had affixed their signatures as of April 30, 2:42pm. Given the COVID-19 crisis, the OFWs are requesting for the cancellation of the new circular.

PhilHealth is exempted to pay taxes to the Philippine government and it attaches itself to the Department of Health tasked to implement the country’s National Health Insurance Program. The agency provides healthcare services to all of the citizens of the Philippines.

According to the petition, it is unfortunate to see the modern heroes (OFWs) of the Philippines to be given such an additional burden. They ask the Philippine Health Insurance Corporation to take back the new circular order due to its nature of abusing and unfair treatment to hardworking OFWs.

Please be informed that PhilHealth Circular No. 2020-0014 entitled " Premium Contribution and Collection of Payment of...
Posted by Philippine Health Insurance Corporation on Tuesday, April 21, 2020

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