Reporter:Sr. Jovita E. Cendaña,

SSpSLiceo del Verbo DivinoTacloban City

In addition to a salary, employees may receive a range of benefits and services from their employers. Benefits and services may vary depending on the employee's position or seniority, but most employees of a company will generally share the same basic benefits package. Benefits and services packages also differ among companies

• Under the Philippine Labor Code there are six basic employee benefits, for an individual who is legally working in the Philippines. These basic employee benefits cover most occupations, agricultural or non-agricultural, provided that the associated compensation for every salient Daily Minimum Wages still apply.

Under general circumstances, any legally employed worker who work eight (8) hours a day on a 48 hours a week schedule is covered under the Philippine Labor Code. Commencing from the time the employee starts to work and until twenty-four (24) hours later is considered one work day. The eight-hour work need not be continuous and may be staggered within the one workday stretch.

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. Such employee is automatically covered for these government mandated employee benefits.

An employer is required by law to pay his employees the following mandated economic benefits:

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.

Art.87 states that work rendered in the excess of the prescribed eight (8) hours a day will be treated as Overtime Work.

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.

“All employees qualified to a premium pay are entitled to premium payments as compensation for work hours rendered exceeding the maximum number of working hours”

The Labor Code of the Philippines sets premium rates at 25% on your regular wage on a regular days. This is increased to 30% if you render overtime on your rest day or on a holiday. Holidays, meanwhile, are categorized into special and legal holidays – different rates apply to each category.

The law mandates that employees be paid an additional 30% on their regular daily wage on a special holidays. An additional 100% premium (equivalent to 100% of your daily wage) is given to qualified employees. Computations are as follows:A special holiday (130% x basic pay)A special holiday that falls on a rest day (150% x basic pay)A regular holiday ( 200% x basic pay)A regular holiday that falls on a rest day (260% x basic pay)

Plus 10% of the basic / regular rate for work rendered from 10PM to 6AM.

An employee must have rendered at least one year of service to be entitled to service incentive leave pay.

“All employers are obligated by law to grand paternity benefit to all married male employees whose spouse is about to or has given birth”

7 days with full pay to attend the needs of legal wife before, during and after delivery.

“ The provision Article 133 states that the Sec of Labor and Employment shall implement and maintain strict standards that will guarantee the health and safety of women employees””’

Maternity leave benefits in the Philippines have helped millions of women get through the maternity period financially.

A covered female employee who is able to contribute at least three monthly contributions within the twelve-month period prior to the semester that she gave birth, had an abortion or miscarriage is eligible for benefits for maternity leave. This, given that she is employed would be eligible for benefits of maternity leave. A female employee shall be given financial benefit which is a cash equivalent to one hundred percent of her current basic salary, allowances, and other benefits. 

However, these benefits are subject to these conditions: 

That you shall have notified your employer about your pregnancy and your due date, which should also be transmitted to SSS and subject to their rules and regulations; 

Your employer will make the advance payments which shall be paid in two equal instalments within 30 days from the day you filed your maternity leave application; 

In case of delivery through caesarean section, you shall be paid 70 days worth of benefits while on maternity leave, one day

is equivalent to 100 percent of your daily wage; 

Payment of benefits for maternity leave shall be considered your sickness benefits as provided by law for an equivalent of 60 days for the same childbirth, miscarriage, or abortion; 

Your maternity leave benefits is only limited to the first four deliveries, which shall be paid the same compensable period of 60 days equivalent to 100 percent of your daily wage per day; 

SSS shall reimburse your employer one hundreds percent (100%) of the amount given to you immediately after all verifications of the requirements you submitted together with your maternity leave application; 

When you have given birth, suffer an abortion, or have a miscarriage and your employer failed to remit the required contributions or transmit your application for a maternity leave benefit to SSS at the time of your pregnancy, it is the employer's responsibility to pay the SSS the same amount of maternity leave benefits due to you and the latter shall in turn pay such amount to you.

Includes January 1 or New Year’s 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).

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 “non-diminution” rule.

The Social Security System was created by the Philippine government.  All employees hired by private companies are required to become an SSS member (Republic Act No. 8282).  This system aims to protect its members for when they are unable to work such as sickness, disability, maternity, old age and death, or other such contingencies not stated but will result in loss of income or results to a financial burden.  When an employee gets sick, SSS will reimburse them with their equivalent daily salary multiplied by the number of days absent.  When a female member gives birth, SSS gives the employee 2 months worth of salary to compensate for the time she will be off from work due to childbirth.  The SSS also serves as a pension plan for its members as SSS returns members’ monthly contributions after they retire from work.The amount of SSS monthly contribution is determined from the actual monthly salary an employee receives.  30% of total monthly contribution is deducted from an employee’s salary, while 70% is subsidized by the employer.

The Retirement Benefit is granted when an employee retires from work upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract.

The Death Benefit is granted in event of the deceased SSS member's beneficiaries, receiving 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 Disability Benefit is granted depending 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 benefits accompanying them.

is a government-owned and -controlled corporation (GOCC) of the Philippines. Created by Commonwealth Act No. 186 passed on November 14, 1936, the GSIS is mandated to provide and administer the following social security benefits for government employees: compulsory life insurance, optional life insurance, retirement benefits, disability benefits for work-related contingencies and death benefits. In addition, the GSIS is entrusted with the administration of the General Insurance Fund by virtue of RA656 of the Property Insurance Law. It provides insurance coverage to assets and properties which have government insurable interests.

The principal benefit package of the GSIS consists of compulsory and optional life insurance, retirement, separation and employee's compensation.

Active GSIS members are entitled to the following loan privileges: salary, policy, emergency and housing loans.

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. 

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

total loss of sight on both eyes is automatically deemed permanent disability

loss of both limbs, or the loss of an appendage part starting from the ankle or wrist is automatically permanent

total paralysis of a limb or both limbs, whether hands or feet is considered permanent

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

N0. of Months

One thumb 10

One index finger 8

One middle finger 6

One ring finger 5

One little finger 3

One big toe 6

One toe 3

One arm 50

One hand 39

One foot 31

One leg 46

One ear 10

Both ears 20

Hearing of one ear 10

Hearing of both ears 50

Sight of one eye 25

“The retirement benefit plan is a life annuity”The term “retirement plan”(or superannuation)

refers to a pension (benefits in retirement) granted when an employee retires from work upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract.

In the absence of a retirement plan that provides for the employee’s retirement benefits in the establishment, an employee shall be entitled to an employee retirement benefit upon reaching the compulsory retirement age.

60 yrs or more not beyond 65 year – compulsory retirement age

If the employee served the least of five (5) years,he/she may retire and enjoy the retirement benefits equivalent of at least one-half (1/2) month salary for his/her every year of service. A fraction of at east six (6) months is considered as one whole year.

The Philippine Health Insurance Corporation is the medical insurance company of the Philippines.  All employees are required to be contributors of this service (Republic Act 7875).  Members are given health and hospitalization subsidies should they or a dependent be hospitalized.  Monthly contributions are based on actual employee monthly salaries and the amount of employee contribution is matched equally by the employer.

Employers are also required to contribute, on behalf of their employees, to the Home Development Mutual Fund (Republic Act 7835).  This company provides the lowest interest housing and land acquisition loans to its members that are payable for up to 30 years.  This gives every Filipino worker an opportunity to own a house in easy-payment plans that can directly be deducted from their monthly wages.

Based on Presidential Decree No. 851, all Filipino employees are entitled to a year-end bonus equivalent to one (1) month salary regardless of the nature of their employment.  The 13th month pay is to be given no later than December 24 of every year a worker is employed.

– According to Article 95 of the Labor Code of the Philippines, an employee who has worked for at least one (1) year in a company is entitled to five (5) days leave of absence, with pay, every year.  If the employee does not avail of these paid leaves, the company may opt to have them do a mandatory leave of absence, with pay, or convert these unavailed paid leaves to their cash equivalents, to be given at the end of each year.

- According to Article 83 of the Labor Code of the Philippines, employees are entitled to one (1) hour break for meals on an eight-hour work day.  Employees are also entitled to adequate rest periods in the morning and afternoon, of short durations, that will be counted as hours worked.  These rest periods normally last for 15 minutes and can be used by employees as coffee or snack breaks.

Under Article 87, an employee who renders over eight (8) hours of service per day shall be given an overtime pay which is equivalent to his regular hourly wage plus at least twenty-five percent (25%) thereof.  Under Article 93, if an employee is asked to work on their scheduled rest day or on a non-working holiday, the employee shall be paid an additional compensation of at least thirty percent (30%) of his regular wage.

According to Article 86, every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work performed between ten o’clock in the evening and six o’clock in the morning.

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.

Benefits Contractual Employees

Regular Employees

Sick Leaves None yes

Vacation Leaves None yes

Social Security System –private sectorGSIS – public sector

Company discretion

yes

Home Development and Mutual Fund (HDMF)

none yes

HMO none yes

Phil. Health Insurance Corp. (PhilHealth)

none yes

Other company benefits(e.g. Rice allowance, transportation allowance)

Typically none yes

Other company benefits that are not government mandated, but are usually given to employees anyway are:

Holiday/Christmas Bonus – This is given in December, on top of the 13th month pay.  This is considered as the company’s Christmas gift to their employees.Mid-Year Bonus – This is given in June, when the country’s school year starts.  This is to assist employees in school enrollment fees for their children.  This is also known as an educational assistance plan.Cost of Living Allowances – Some companies provide their employees with yearly rice, medicine, and clothing allowances.

Paid Holiday and Vacation Leaves – On top of the mandated 5 days/year leave with pay, some companies give their employees additional paid holiday and vacation leaves.  The number of days allocated for these leaves usually vary from company to company and depends on the number of years an employee has been of service to the company.

Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if Labor had not first existed. Labor is superior to capital, and deserves much the higher consideration” –

Abraham Lincoln.

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