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Employee Benefits in the Philippines

Employee benefit refers to other non-monetary forms of compensation or indirect payments to


employees. These benefits are usually paid by the organization but they may also be co-paid with
the employee. For instance, the organization may pay in full or share the medical insurance
premium with the employee.

It is important to note that employee benefits are usually non-performance based. This means
that employees receive the benefits regardless of their performance. Therefore, employee
benefits as a whole have no direct impact on the employees’ performance.

However, the benefits that different employees receive in the same organization may differ due
to differences in length of service, job responsibilities and job grade. Examples of employee
benefits in the Philippines include:

List of Employee Benefits in the Philippines

 SSS Benefits;
 Philhealth Benefits;
 HDMF Benefits;
 Retirement Benefits;
 Insurance Plans such as Life Insurance, Health Insurance, etc;
 Leave Provisions such as Vacation Leave, Sick Leave, Bereavement Leave, etc;
 Work Life Balance such as Flexible Work Arrangements, Shorter Working Hours, etc; and,
 Organization sponsored activities such as Holiday Trips, Team Building activities, etc;
 Other non-monetary benefits such as Gift Vouchers, Gifts, etc.

Organizations may also join programs that provide flexible employee benefits. It helps
organizations to be able to provide a wide range of benefits to their employees without the cost
of maintaining them individually. On the other hand, it also allows employees to choose the
benefits with the highest perceived value to them.

When designing the compensation and benefits strategy, different organizations need to
understand their own strengths in attracting and retaining employees. Not every organization can
afford to pay in the 75 percentile or provide tons of benefits to their employees. Therefore, an
organization needs to design a compensation strategy that suits them.

Mandatory Government Benefits and Contributions

The following government contribution will be automatically deducted from regular employees
based on their salary, with the following benefits:
Social Security System (SSS) benefits

The SSS Employees’ Compensation (EC) program has been in place to help workers who
encounter work-related illnesses or injury resulting in disability or death. This includes
compensation for: medical services, appliances, and supplies in an accredited hospital;
rehabilitation services, including medical, surgical, and hospital treatment; and income cash
benefit. More information can be found here.

Pag-IBIG benefits

This entitles employees to avail of a Housing Loan, Calamity Loan, and Multi-Purpose Loans
that aim to provide financial assistance to their needs. For a full list of Pag-IBIG benefits and
membership requirements, visit their website.

PhilHealth benefits

Provides financial assistance for inpatient and outpatient hospitalization, as well as Z


Benefit Packages for patients undergoing prolonged hospitalization and expensive treatments and
suffering from Millennium Development Goal (MDG)-related illnesses.

Leave Benefits

While sick leave and vacation leave benefits are not specifically stated under the law, it stipulates
that private employees are allowed to provide employees a yearly Service Incentive Leave of
five days with pay. This applies to employees with work tenure of at least one year within the
company.

Maternity Leave

Any pregnant woman employee who has worked with the company for at least six months will
be granted a maternity leave of at least two weeks prior to her due date (expected date of
delivery) and four weeks after normal delivery or miscarriage with full pay based on her regular
salary.

A total of 60 days is granted for government employees, and 60 to 80 days for employees in the
private sector.

The Maternity Leave benefit is effective up to the first four deliveries of the woman employee
working in the company.

However, Senate Bill 2982, or the Expanded Maternity Leave Law of 2015, has been approved
on its third (3rd) reading on January 18, 2016. If enacted into law, will grant 100 days of
maternity leave for employees in the government and private sector, regardless of the type of
delivery.

Paternity Leave

The R.A No. 8187, or Paternity Leave Act of 1996, grants seven days of fully paid leave to
married fathers. This is effective up to the first four deliveries of the legitimate spouse.

Parental Leave for Solo Parents, or Solo Parenting Leave (SPL)

Seven days leave with pay for every year of service, on top of other leave privileges, e.g.
Maternity or Paternity Leave.

Special Leave Benefits for Women

This entitles women who underwent surgery due to gynecological disorders to two months’ leave
with full pay, as stipulated in R.A. 9710 or the Magna Carta of Women. This applies to
employees who have rendered at least six months of service with the company.

On the other hand, victims of violence against women, as stipulated in R.A. 9262 or the Anti-
Violence Against Women and Their Children Act of 2004, are entitled to 10 days leave with full
pay.

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