6 Basic Employee Benefits in the Philippines
Under the Philippine Labor Code 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.
Here are the Basic Benefits for Employees covered by the Philippine Labor Code:
- 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)
- 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).
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:
- Housing and housing plans
- Expense Account
- Company sponsored vehicle
- Paid Holiday and Vacation
- Educational assistance or plans to the employee and/or his direct dependents.