Employee

Benefits
By:
Daniel Adam P. Bandong
Jerald Capalad
Joseph Alexander Flores
Paul John Pio Roda
Kenneth M. Meking
What is Employee Benefits?

also known as perks or fringe benefits,

are provided to employees over and
above salaries and wages. These
employee benefits package may include
overtime, medical insurance, vacation,
profit sharing and retirement benefits.
Payroll Salary Compensation and
Benefits in the Philippines
Wage and Wage-Related Benefits Overview
At least the minimum wage per region and/or sector
Holiday wage and overtime pay for work during holidays or
rest day
Overtime pay when working in excess of 8 hour
Service Incentives Leave: 5 days of vacation per year of service
13 Month
Separation pay
Objectives of Benefits Program

To Improve Morale

To Meet Health and Safety Needs
To Attract Good Employees
To Reduce Turnover
To Maintain a Competitive Position
To Maintain the Organization's Image
Mandatory Government Benefits and
Contribution
Covered by the Philippine Labor Code
1. Social Security System (SSS)
-Republic Act no. 8282 or otherwise known as the Social Security act of
1997
2. Contribution of National Health Insurance Program (NHIP)
-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 (Phil Health).
3. Contribution to Home Development and Mutual Fund
(HDMF/Pag-IBIG)
-Home Development Fund Law of 2009, employer(s) is required to
contribute per month not less that ₱100.00 to the employees Home Development
and Mutual Fund.
Mandatory Government Benefits and
Contribution
Covered by the Philippine Labor Code
4. 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 the
nature of his/her employment, not later December 24 of every year.
5. Service Incentives Leave
-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 at least one year of service is entitled to a
yearly five days service incentives leave with pay.
Mandatory Government Benefits and
Contribution
Covered by the Philippine Labor Code

6. Meal and Rest periods

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.
 Compensability of Illness or
Injury
Under Employee’s Compensation Program (ECP)

1. Occupational Diseases
the employee’s work and/or the working conditions must involve
risk/s that caused the development of the illness;
2. Work –related Injuries
Injuries resulting from an accident which happened at the workplace.
Injuries resulting from an accident which happened while the
employee is performing his official function.
 Benefits under ECP
Under Employee’s Compensation Program (ECP)

1. Loss of Income Benefit

-under the ECP, it is the disability, or the incapacity to work,
which is being compensated and not the illness or the injury.

3 Types
1. Temporary Total Disability (TTD)
-for a disability that prevents an employee from performing his work for a
continuous period not exceeding 120days.
 Benefits under ECP
Under Employee’s Compensation Program (ECP)

2. Permanent Total Disability (PTD)

- a monthly income benefits granted for disabilities, such as, but
not limited to, complete loss of sight of both eyes, loss and function
loss both limbs, and brain injury resulting to imbecility or insanity.

3. Permanent Partial Disability (PPD)

- a monthly income benefit is granted for disabilities that result
in physical loss (amputation) or functional loss of a body part.
 Benefits under ECP
Under Employee’s Compensation Program (ECP)

2. Medical Services
-it includes reimbursement of the cost of medicines for the
illness or injury, payment to providers of medical care, hospital care,
and surgical expenses.
3. Death Benefits
- The beneficiaries of the deceased employee are entitled to an
income benefit if the employee died as result of a work-related injury
or sickness.
Philippines Benefits Summary
Under the Philippine Labor Code (Presidential Decree No. 442)

1. Minimum Wage
- The Wage Rationalization Act, Republic Act No. 6727, sets the minimum
wage rates applicable per region, province and industry sector.

2. Night Shift Differential

- This refers to additional compensation of at least 10 percent of an
employee’s applicable wage rate, payable to employees who perform work
between 10 p.m. to 6 a.m. of the following day.

3. Overtime pay

- The normal working hours is 8 hours per day

 Philippines Benefits Summary
Under the Philippine Labor Code (Presidential Decree No. 442

4. Holidays
-Unworked regular holiday (except exempt employees) = Regular
daily wage.
-Work on regular holiday = 200% or Double pay
-Work on Special Holiday = regular daily pay + 30%
-Rest day + Work on Special holiday = Regular daily pay + 50%
Philippines Benefits Summary
Under the Philippine Labor Code (Presidential Decree No. 442)

5. LEAVES
Maternity Leave
60 days leave in case of normal delivery, abortion or miscarriage
78 days for caesarean delivery
Maternity benefit = 100% of her average salary credit
Paternity Leave
Paternity leave benefits is granted to all married male employees
First 4 deliveries of lawful wife
7 days leave = full pay (consisting of his basic salary)

6. 13th Month pay (Presidential Decree No. 851

 all “rank and files” employee’s
 13th month pay = 1/12 (or 1 month) of the total basic salary
Philippines Benefits Summary
Under the Philippine Labor Code (Presidential Decree No. 442)

6. Retirement Benefits
Section 1. Article 287 of Presidential Decree No. 442
60 years of age (but not beyond 65) and served for at least
5 years
7. Service Charges
All service charges collected by hotels, restaurants and
similar establishments shall be distributed at the rate of 85% for all
covered employees and 15% for management.
Philippines Benefits Summary
Under the Philippine Labor Code (Presidential Decree No. 442)

8. Mid-year Bonus ( 14th month pay)

Equivalent to 1 month basic pay = given not earlier than

May 15 (of current year)
THANK YOU !