Employee Benefits and Services
Employee Benefits and Services
Employee Benefits and Services
Republic Act No. 8282 or otherwise known as the Social Security Act of 1997
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 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.
The employee and his/her employer(s) are to contribute to the medical insurance of the said employee in
accordance to the Republic Act 7835 on Medicare Program which is administered by the Philippine Health
Corporation (PhilHealth). Monthly employee contribution depends on the employee’s monthly salary. The monthly
schedule is provided by Philhealth
Home Development Fund Law of 2009, employer(s) is required to contribute per month not less than 100.00₱ to
the employees Home Development and Mutual Fund. In accordance to the periodic remittance schedule provided
by HDMF, employers will remit this contribution, in addition to that of the employees, which is to be deducted from
his/her payroll.
As mandated by the Presidential Decree No. 851, the employee shall receive a bonus salary equivalent to one (1)
month, regardless the nature of his/her employment, not later December 24 of every year.
Book III, Chapter III of the Labor Code of the Philippines covers the employee benefits for Incentive Leaves.
According to Article 95, an employee who has rendered atleast one year of service is entitled to a yearly five days
service incentive leave with pay.
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6. Meal and Rest periods
Under Article 83, the employee is provided one-hour employee benefit for regular meals, when working on an eight-
hour (8-hours) stretch. Employees are also provided adequate rest periods in the morning and afternoon which shall
be counted as hours worked.
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.
1. Occupational Diseases - For an occupational disease and the resulting disability or death to be compensable,
all of the following conditions must be satisfied:
The employee’s work and/or the working conditions must involve risk/s that caused the development of the
illness;
The disease was contracted as a result of the employee’s exposure to described risks;
The disease was contracted within a period of exposure and under such factors necessary to contract it; and
There was no deliberate act on the part of the employee to disregard the safety measures or ignore
established warning or precaution.
2. Work-related Injuries - For the injury and the resulting disability or death to be compensable, the injury must be
the result of an accident arising out of and in the course of employment.
1. Minimum Wage
The Wage Rationalization Act, Republic Act No. 6727, sets the minimum wage rates applicable per region, province
and industry sector.
Workers that render services for a total of 40 hours per week (8 hours per day, 5 days per week) are entitled to
receive at least the daily minimum wage.
National Capital Region - the minimum gross basic wage is ₱512.00 per day (as of October 2017).
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3. Overtime pay
The normal working hours is 8 hours per day.
An employee who renders work in excess of eight hours a day is entitled to overtime pay equivalent to the
applicable wage rate plus at least 25 percent thereof. The overtime rate will vary if the overtime work is rendered on
a rest day, regular holiday or special day.
Under Rest day: regular/special holiday – plus 30% of the regular daily salary.
4. Rest Days
Employees, except exempt employees, are entitled to a rest period without pay of not less than 24 consecutive
hours for every six consecutive normal working days (i.e. Sunday).
Work done on rest days = plus 30% of the regular daily compensation
5. Holidays
6. LEAVES
Paternity Leave
Paternity leave benefit is granted to all married male employees first 4 deliveries of lawful wife
7 days leave = full pay (consisting of his basic salary)
Solo-parent Leave
Solo Parents Welfare, Republic Act No. 8972
Employee must have been working for atleast 1 year
7 working days of leave in a year (with pay)
Women employees who have rendered continuous aggregate employment service of at least six
months for the last 12 months are entitled to the special leave benefit of up to two months with full
pay following surgery caused by gynecological disorders.
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8. Retirement Benefits
9. Separation Pay
The share of the employees shall be equally distributed among them. In case the service charge is
abolished, the share of the covered employees shall be considered integrated in their wages.
coverage = continuous benefit pay must not exceed 129 working days
Shall apply to all personnel occupying regular, or contractual positions, rendering full- time basis,
covered by the Compensation and Position Classification System (CPCS) under RA No. 6758, as
amended by Congress Joint Resolution No.1, Series of 1994, and No.4, Series of 2009.
Equivalent to 1 month basic pay = given not earlier than May 15 (of current year)
EMPLOYEE SERVICES
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Employee services can include anything an employer deems necessary to provide as a perk for employees.
No real limit exists as to what can be included as an employee service. Common Types of Employee
Services
Example:
Because of technological advances, some employers allow employees to work from home one or
several days per week.
This gives employees some flexibility to maintain a balanced personal life and continue to successfully
complete their work responsibilities.
Wellness Program
In 2008, the Harvard School of Public Health noted a national study by Harris Interactive showing that 91%
of employers "believed they could reduce their health care costs by influencing employees to adopt healthier
lifestyles.“
Many employers offer wellness programs to improve employees' health. These programs can be applied in
a variety of ways, including reimbursable gym membership costs, on-site fitness facilities, and events to
promote healthy living and eating.
Working parents having access to a work-site child care center positively affects their ability to successfully
concentrate on the job and be productive.
Product/Service Discounts
Most individuals clip coupons and shop for sales to save money. Some employers work with local and
national retail product and service providers to offer employees discounts for their personal needs.
These types of programs can include everything from discounts on groceries to purchasing a vehicle at a
lower cost. Free or discounted on-site food and drink services such as lunch, snacks and coffee can also
assist employees by saving them time and money.
These types of services are often appreciated by employees and can be implemented at little or no cost.