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EMPLOYEE BENEFITS: *6 BASIC EMPLOYEE BENEFITS:

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Social Security Systems (SSS) Contributions Republic Act No. 8282, otherwise known as the Social Security Act of 1997, refers to the social security system in the Philippines that is initiated, developed and promoted by its Government. The social security system is aimed at providing protection for the SSS member against socially recognized hazard conditions, such as sickness, disability, maternity, old age and death, or other such contingencies not stated but resulted in loss of income or results to a financial burden. The employee and his/her employer(s) are to contribute for the social security benefits of the said employee in accordance to a given schedule by the Philippine Social Security System. Monthly employee contribution depends on the employee's actual monthly salary. (See: Circular No. 33-P)

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Contribution to National Health Insurance Program (NHIP) The employee and his/her employer(s) are to contribute for the medical insurance of the said employee in accordance to the Republic Act 7835 on Medicare Program which is administered by the Philippine Health Insurance Corporation (Philhealth). Monthly employee contribution depends on the employee's actual monthly salary. The contribution schedule is provided by Philhealth. (See: Philhealth Premium Contribution Schedule) Contribution to Home Development and Mutual Fund (HDMF) The employer(s) is required to contribute per month not less than P100.00 to the employee's Home Development and Mutual Fund. In accordance to the periodic remittance schedule provided by HDMF, the employer(s) will remit this contribution, in addition to that of the employee's, which is to be deducted from his/her payroll. The 13th Month Pay As mandated by the Presidential Decree No. 851, the employee shall receive a bonus salary equivalent to one (1) month, regardless of the nature of his/her employment, not later than December 24 of every year. Service Incentive Leave Book III, Chapter III of the Labor Code of the Philippines covers the employee's benefit for Service Incentive Leaves. According to Article 95, an employee who has rendered at least one year of service is entitled to a yearly five days service incentive leave with pay. (See: Article 95, Conditions of Employment) Meal and Rest Periods Under Article 83, the employee is provided a one-hour employee benefit for regular meals, when working on an eight (8 hour) stretch. Employees are also provided adequate rest periods in the morning and afternoon which shall be counted as hours worked. (See: Article 83, Conditions of Employment).

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All these provisions apply in addition to every new employee benefits furnished that are in excess of what is stipulated by the Philippine Labor Code. Other regular Philippine employees benefits furnished by the employer(s) but are outside of the mandated employee benefit includes, but not limited to: 1. 2. 3. 4. Housing and housing plans Expense Account Company sponsored vehicle Paid Holiday and Vacation

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Educational assistance or plans to the employee and/or his direct dependents.

(http://www.gopinoy.com/advice/employee-benefits/6-basic-employee-benefits-in-the-philippines.html)

*HEALTH BENEFITS FOR EMPLOYEES:

Book IV of the Labor Code of the Philippines covers the entirety of the social welfare, safety and health benefits available to every employee in the Philippines. Take note that the term "employee" denotes to any person legally employed in the Philippines, any person compulsorily covered by the GSIS under the Commonwealth Act 186, or any person compulsorily covered by the SSS under Republic Act 1161 (See: Article 167 Definition of Terms). Book IV of the Philippine Labor Code is divided into two main titles, which in turn is divided into a number of subchapters. The first title covers mostly on the physical aspect of protecting an employee's health and well being within the workplace. The second title mostly refers to mostly the intangibles that promote the employee's benefits of health and wellbeing. The contents of Book IV of the Philippine Labor Code are as follows: Title I: Medical, Dental and Occupational Safety Chapter I Medical and Dental Services Article 156, First-aid Treatment Every workplace, regardless of its nature, should have first-aid medicines and equipment readily available for use as a primary health benefit Article 157, Emergency Medical and Dental Services Every workplace, regardless of its nature, should have free medical and dental facilities plus, a health specialist in attendance, as part of the health care benefit to be enjoyed by the employee. Article 158, when emergency hospital not required (sic) The article determines when an emergency hospital or dental clinic should be made available. When there is an access clinic in the workplace and one that can sufficiently meet the requirements for treating a particular injury or disease, emergency hospital is not required. Article 159, Health Program The physician employed by the company shall develop and implement a healthcare benefit program to be used for the employees. Article 160, Qualifications of Health Personnel The health personnel employed or tasked with the health benefits and welfare of the employees shall pass the qualifications, criteria and conditions of employment as set by the Secretary of Labor and Employment.

Article 161, Assistance of Employer The employer shall provide for the necessary assistance to ensure that the workplace meets the adequate criteria of safety. In cases of emergency, the employer should also provide adequate and immediate medical and dental aid to a sick or injured employee. (http://www.gopinoy.com/advice/employee-benefits/health-benefits-for-employees-in-the-philippines.html)

*EMPLOYEE DISABILITY BENEFITS: In Chapter VI, Book IV of the Philippine Labor Code covers at length the disability benefits available to every employee in the Philippines. The term "employee" denotes any person legally employed in the Philippines, any person compulsorily covered by the GSIS under the Commonwealth Act 186, or any person compulsorily covered by the SSS under Republic Act 1161. The employee disability benefits offered by the System depends on the severity of the disability claim which is to be determined by the Medical Director of the System and approved by the Employees' Compensation Commission. Articles 191, 192 and 193 of the Philippine Labor Code cover the different degrees of the disability and the disability benefits accompanying them. In Article 191, under the subheading Temporary Total Disability, any employee who acquires temporary total disability due to a sustained injury or disease will enjoy a monetary aid paid by the Government. For each day of such a disability (or fraction of the disability period thereof) he/she will enjoy the income benefit equivalent to ninety percent of his average daily salary wage. Provided, as amended by Section 2, Executive Order No. 179, the disability benefit is subject to the following conditions: that the daily benefit income should not be less than ten pesos (P10) nor it should be more than ninety pesos (P90). Moreover, these disability benefits will extend only up to one hundred twenty days (120 days), except as otherwise stated by the Commission. In any event, the System will be notified of the injury or sickness. The disability benefit of such income benefit shall also reflect the regulations of the Commission, as amended by Section 19, Presidential Decree No. 850. Under Article 192 Permanent Total Disability, the following disabilities are considered total and permanent: 1.total disability, temporary or permanent (except as otherwise stated in the Rules) but which persisted for more than one hundred and twenty days is deemed already permanent 2.total loss of sight on both eyes is automatically deemed permanent disability 3.loss of both limbs, or the loss of an appendage part starting from the ankle or wrist is automatically permanent 4.total paralysis of a limb or both limbs, whether hands or feet is considered permanent 5.brain injury that results in permanent imbecility or mental illness Under this regulation as the Employees' Compensation Commission may approve, the employee who fall under this Title shall, for each month until his death, be paid an amount equal to his/her monthly income benefit, plus

ten percent thereof for every listed dependent. The list shall not exceed five, beginning with the youngest to the oldest. The list may not be substituted or appended when in effect. The payment will be handled by the System (SSS, GSIS or as the case may be) during such a disability, provided, that the monthly income benefit shall be the new amount of the monthly benefit for all covered pensioners. Article 193 covers the Permanent Partial Disability. A legally employed worker in the Philippines can apply for the disabled benefits under this Title if he/she sustains an injury or contracts a disease resulting in his/her permanent partial disability. Under this regulation as the Employees' Compensation Commission may approve, the employee who fall under this Title shall be paid by the System (SSS, GSIS or as the case may be) during such a disability an income benefit for a permanent total disability but not exceeding the period designated herein: Complete and Permanent Injury One thumb One index finger One middle finger One ring finger One little finger One big toe One toe One arm One hand One foot One leg One ear Both ears Hearing of one ear Hearing of both ears Sight of one eye No. of Months 10 8 6 5 3 6 3 50 39 31 46 10 20 10 50 25

(http://www.gopinoy.com/advice/employee-benefits/employee-disability-benefits-in-the-philippines.html) *EMPLOYEE DEATH BENEFIT: In Chapter VII, Book IV of the Labor Code of the Philippines covers at length the death benefits available to every employee in the Philippines. The term "employee" denotes any person legally employed in the Philippines, any person compulsorily covered by the SSS under Republic Act 1161 or any person compulsorily covered by the GSIS under the Commonwealth Act 186.

Under Article 194, with the subheading Death, upon the covered employee's death his/her primary beneficiary (or beneficiaries) shall receive from the System an amount equivalent to the deceased member's monthly income benefit, plus a ten percent (10%) fraction of the death benefit thereof for every listed dependent child, with the list not exceeding five, beginning with the youngest to the oldest. The list may not be substituted nor appended. The term dependent denotes the legitimate, legitimated, acknowledged or legally adopted natural child who is not over twenty-one (21) years, unmarried, and not gainfully employed. A dependent would also include a child who may be over twenty-one (21) years of age provided he/she is incapable of self-support due to a physical or mental defect which is congenital or his/her defect was acquired during minority. The term dependent would also indicate a legal spouse living with the covered employee, and/or the parent(s) of the said employee who are wholly reliant upon him for daily support. As amended by Section 4, Presidential Decree No. 1921, this employee death benefit monthly income shall be provided for five (5) years by the System. If the covered employee has no listed primary beneficiary, or that his/her list of primary dependents are no longer valid under the regulations of the term "dependent", the System shall forward employee death benefit to his secondary beneficiaries a monthly income benefit which will be provided for sixty months - provided that the minimum employee death benefit shall not be less than fifteen thousand pesos (P15,000). As amended by Section 4, Presidential Decree No. 1921, upon the death of a covered employee who was also under the permanent total disability program, or covered by the Article 192, the System shall pay to the primary beneficiaries of the deceased employee eighty percent (80%) of his/her monthly income benefit. Additionally, his/her dependents are entitled to the dependents' pension - provided that the covered employee's marriage has been validated to exist at the time of the employee's disability. If the covered employee has no listed primary beneficiary, or that his/her list of primary dependents are no longer valid under the regulations of the term "dependent", the System shall pay to his secondary beneficiaries a monthly pension of the remaining balance of the five (5) year guaranteed period, but which will not include the benefit of a dependents' pension. Finally, the minimum death benefit of the employee shall not be lesser than the amount of fifteen thousand pesos (P15,000). As amended by Section 8 of the Presidential Decree No. 1368, upon the approval of this decree, the monthly income death benefit provided under Chapter VII, Title Death Benefits, shall be the new amount of the monthly income death benefit for the surviving beneficiaries. A funeral benefit worth three thousand pesos (P3,000) will be made available upon the death of a covered employee or permanently totally disabled pensioner, as amended by Section 3 of the Executive Order No. 179.

(http://www.gopinoy.com/advice/employee-benefits/employee-death-benefit-in-the-philippines.html) *CONTRACTUAL AND REGULAR EMPLOYEE BENEFITS: The Philippine Labor Code stipulates that an employee may be hired with a probationary period from one to six months upon date of engagement, and it shall not be continued further than that unless due to required period of apprenticeship. After the probationary period, an employer may continue or end an individual's employment based on pre-agreed Key Results Areas (KRA) or other forms of performance appraisals.

During the probationary period, however, an employer has no right to neither discriminate an employee nor waive his /her contractual employee benefits. And at the end of this period, hired individuals should receive regular employee benefits as provided by Philippine Laws on employment. How do contractual and regular employee benefits compare? Within the probationary period, a new-hire continues to undergo evaluation on a daily basis, although formal performance reviews may not come until the first, third, or sixth month. This evaluation period somewhat gives companies the right to waive benefits enjoyed by regular employees, including holiday pay and sick leaves. In most cases, sick leaves are converted as "absences" which in turn are limited to a few number of days only (typically only seven days within the six-month period). Expectedly, contractual employee benefits do not level with regular employee benefits, and companies have some good excuse for this. First, contractual employees, being new to the job, do not perform as well as regular employees (although this is not always the case). They lack the experience which makes for their lower pay and fewer benefits than have regular employees. Contractual or probationary employees are not deprived of a few benefits, though. When you are a contractual employee in the Philippines, you can enjoy a day off on holidays (depending on your company's operations) and will also be paid a holiday premium commensurate to your daily pay. The differences between contractual employee benefits and regular employee benefits are in the paid vacation and sick leaves which total to 15 days per year. Many companies now also provide social security benefits to probationary employees from day one. This chart below elucidates the differences in benefits between these two employment statuses: Benefits Sick Leaves Vacation Leaves Social Security System (SSS) - private sector GSIS - public sector Home Development Mutual Fund (HDMF) HMO Philippine Health Insurance Corp. (PhilHealth) Other company benefits (e.g. rice allowance, transportation allowance, etc.) Contractual Employees none none company discretion none none none Typically none Regular Employees yes yes yes yes yes yes yes

Many companies in the Philippines now provide company benefits to employees, including rice allowance, transportation allowance, boarding allowance, and so on. Knowing your benefits even as a contractual employee will lessen tension and build trust in the organization you belong in. (http://www.gopinoy.com/advice/employee-benefits/contractual-and-regular-employee-benefits-in-thephilippines-an-overview.html) *MANDATED EMPLOYEE BENEFITS:

An employer is required by law to pay his employees the following mandated economic benefits: Minimum Wage: The amount is determined per region or per industry by the Regional Tripartite Wage and Productivity Boards. Minimum wages, therefore, vary from one region to another. Minimum wages in the provinces are generally lower than in the cities. Overtime Pay Work in Excess of Eight Hours: If ordinary days: +25 percent of basic hourly rate, if special holidays, rest day and holidays: +30 percent of regular hourly rate on said day. Premium Pay for Work within Eight Hours: If special holiday or rest day: +30 percent of basic daily rate, rest day falling on a special holiday: +50 percent of basic daily rate, rest day falling on a regular holiday +30 percent of 200 percent of the basic daily rate. Nightshift Differential Pay: Plus 10% of the basic / regular rate for work rendered from 10PM to 6AM. Service Incentive Leave of Five Days: An employee must have rendered at least one year of service to be entitled to service incentive leave pay. Paternity Leave: 7 days with full pay to attend to needs of legal wife before, during and after delivery. Holiday Pay : Includes January 1 or New Years Day, Maundy Thursday, Good Friday, May 1 (Labor Day), June 12 (Independence Day), Last Day of August (National Heroes Day), November 30 (Bonifacio Day), December 25 (Christmas) and December 30 (Rizal Day). Benefits under Collective Bargaining Agreements (CBA) For unionized companies, union members are entitled to CBA benefits. Other existing benefits extended by employer to his employees cannot be withdrawn under the principle of nondiminution rule. (http://www.tradechakra.com/economy/philippines/employee-benefits-in-philippines-275.php)

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