EMPLOYEE

BENEFITS
AND
SERVICES
Eva B. Lawiyan
 Compensation
Compensation Management (Wages and Salaries)
•

Direct Compensation E.g. Incentives & Profit Sharing (Pay for Performance)

Indirect •Security, Safety and Health (Legally mandated benefits)

•Benefits and Services (“Fringe” benefits)
Compensation

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 Benefits and Services- are called indirect compensation and are also known as
“fringe benefits” and “perks”.

Perks (services) are something in addition to the Fringe benefit means something extra that is given by
payment an employer to workers in addition to their regular
pay.
e.g. car fuel and free parking, clothing, and
educational supports e.g. vacation time

Such benefits and services are used to persuade, to motivate, and/or to retain employees
and not linked with the employee’s performance.

e.g. stimulating them to greater effort and higher performance

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 Definition of Benefits and Services

Employer- provided rewards and services, other than wages or salaries, arising from the
following categories:
Legally required social insurance payments, private insurance and retirement plans; payment for time
not worked; extra cash payments other than bonuses based on performance; and cost of services.
(Ivancevich & Konopaske)

Employee benefits are non-cash provisions within the pay and benefits package, although
they have a financial value or cost for employers- for example, paid holidays, pensions
and company cars. (CIPD, 2013)

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 Definition of Benefits and Services

Employee services encompasses “recreation programs, community services, recognition

programs, event planning, childcare/eldercare services, convenience services and travel
offerings.” (Employee Services Management Association)

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.

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 Objectives of Benefit Programs
The main objective is to attract (recruit) and to retain employees.

• To Improve Morale
• To Meet Health and Safety Needs
• To attract Good Employees
• To Reduce Turnover
• To Maintain a Competitive Position
• To Enhance the Organization’s Image

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 Types of Benefits

• Insurance benefits
• Health benefits (and services)
• Security benefits
• Time-off benefits
• Work scheduling benefits
• Retirement benefits
• Disability benefits

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 Mandatory Government Benefits and
Contributions
Covered by the Philippine Labor Law
1. Social Security System (SSS) Contributions
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.

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 Mandatory Government Benefits and
Contributions
Covered by the Philippine Labor Law
2. Contribution to 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 (PhilHealth). Monthly employee
contribution depends on the employee’s monthly salary. The monthly schedule is
provided by PhilHealth.

Monthly Basic Salary Monthly Premium Personal Share Employer Share

X 2.75 %
₱10, 000 and below ₱275.00 ₱137.50 ₱137.50
₱10, 000 to ₱39,999.99 ₱275.02 to ₱1,099.99 ₱137.51 to ₱549.99 ₱137.51 to ₱549.99
₱40, 000 and above ₱1,100.00 ₱550.00 ₱550.00

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 Mandatory Government Benefits and
Contributions
Covered by the Philippine Labor Law
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 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 the employees, which is to be deducted from
his/her payroll.
Percentage of Monthly Compensation
Monthly Compensation Employee Share Employer
Share

₱1, 500 and below 1% 2%

Over ₱1,500 2% 2%

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 Mandatory Government Benefits and
Contributions
Covered by the Philippine Labor Law

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 Incentive Leave

Book III, Chapter III of the Labor Code of the Philippines covers the employees
benefits for the 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.

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 Mandatory Government Benefits and
Contributions
Covered by the Philippine Labor Law
6. Meal and Rest Periods
Under Article 83, the employee is provided one-hour employee benefit for regular
meals, when working on a 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.

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

Employee’s Compensation Program (ECP) - is a government program designed to

provide a compensation package to public and private employees or their dependents in
the event of work- related sickness, injury, or death.

1. Occupational Diseases- for an occupational diseases and resulting disability or

death to be compensated, 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.
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 Compensability of Illness or Injury
Under Employee’s Compensation Program (ECP)

The Increased Risk Theory

There is an increased risk if the illness is caused or precipitated by factors inherent

in the employees’ nature of work and working conditions. It does not indulge
aggravation of pre-existing illness.

To establish compensability of the claim under the Increased Risk Theory, the
claimant must show proof or work- connection. The degree of proof required varies on a
case to case basis.

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

2. Work- related Injuries

For the injury and the resulting disability or death to be compensated, the injury must be the result of
an accident arising out of and in the course of employment.
 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.
 Injuries resulting from an accident which happened while going to coming from the place of work.
Injuries resulting from an accident which happened ministering to personal comfort.
 Injuries resulting from an accident which the employee is inside the company shuttle bus.
Injuries resulting from an accident which occurred during a company- sponsored activity.
 Death of an Employee Due to Assault

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

Excepting Circumstances
No compensation shall be allowed to the employee or his/her dependents in cases when
the sickness, injury, disability, or death was occasioned by any of the following:
1. Intoxication- refers to a person’s condition in being under the influence of liquor or
prohibited drugs to the extent that his acts, words, or conduct is impaired visibly, as
to prevent him from physically and mentally engaging in the duties of his
employment.
2. Notorious Negligence- is something more than mere or simple negligence. It
signifies a deliberate act of the employee to disregard his own safety or ignore
established warning or precaution.
3. Willful Intent to Injure Oneself or Another- This contemplates a deliberate intent
on the part of the employee to inflict injuries on himself or another.
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 1. Minimum Wage 6. Leaves

2. Night Differential 7. Retirement Benefits

Pay
Philippines
Benefits 3. Overtime Pay 8. Separation Pay

Summary
4. Rest Days 9. Service Charges

Under the Philippine Labor

Code (Presidential Decree
5. Holidays 10. Midyear Bonus (14th
No.442) Month Pay)

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

1 2 3 4 5
Introduction Primary Goals Areas of Growth Timeline Summary

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Definition of Benefits
and Services
Employer- provided rewards and services, other
than wages or salaries, arising from the following
categories:
Legally required social insurance payments, private
insurance and retirement plans; payment for time not
worked; extra cash payments other than bonuses based
on performance; and cost of services. (Ivancevich &
Konopaske)

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Primary
goals
Annual Revenue Growth
 Quarterly performance
Q1

Q2

Q3

Q4

0 1 2 3 4 5 6

Series 1 Series 2 Series 3

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 Areas of growth
B2B Supply chain ROI E-commerce

Q1 4.5 2.3 1.7 5.0

Q2 3.2 5.1 4.4 3.0

Q3 2.1 1.7 2.5 2.8

Q4 4.5 2.2 1.7 70

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 “ Business opportunities are like
buses. There’s always another
one coming.

”
Richard Branson

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 Meet our team

Takuma Hayashi Mirjam Nilsson Flora Berggren Rajesh Santoshi

President Chief Executive Officer Chief Operations Officer VP Marketing

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 Meet our extended team

Takuma Hayashi Mirjam Nilsson Flora Berggren Rajesh Santoshi

President Chief Executive Officer Chief Operations Officer VP Marketing

Graham Barnes Rowan Murphy Elizabeth Moore Robin Kline

VP Product SEO Strategist Product Designer Content Developer
 Planning
Synergize scalable e-commerce

Marketing

Plan for
Disseminate standardized metrics

product
Design
Coordinate e-business applications

launch  Strategy
Foster holistically superior methodologies

Launch
Deploy strategic networks with compelling e-business
needs
 Timeline
Sep 20XX Jan 20XX May 20XX
Synergize scalable Coordinate e-business Deploy strategy networks
e-commerce applications with compelling e-business
needs

Nov 20XX Mar 20XX

Disseminate standardized Foster holistically superior
metrics methodologies
 Areas of focus
•Develop winning strategies to keep ahead of the competition
B2B market •Capitalize on low-hanging fruit to identify a ballpark value

scenarios​ •Visualize customer directed convergence

•Iterative approaches to corporate strategy

Cloud-based opportunities •Establish a management framework from the inside

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 How we get there​
ROI​ Niche markets Supply chains​

Envision multimedia-based Pursue scalable customer Cultivate one-to-one customer

expertise and cross-media
growth strategies​
Visualize quality intellectual
capital​
service through sustainable
strategies​
Engage top-line web services
with cutting-edge deliverables​
service with robust ideas​
Maximize timely deliverables
for real-time schemas

Engage worldwide
methodologies with web-
enabled technologies​
​

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Summary
At Contoso, we believe in giving 110%. By using our
next-generation data architecture, we help organizations
virtually manage agile workflows. We thrive because of
our market knowledge and great team behind our
product. As our CEO says, “Efficiencies will come from
proactively transforming how we do business.”

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Thank you
Mirjam Nilsson
mirjam@contoso.com
www.contoso.com