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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.
Basic Benefits for Employees covered by the Philippine Labor Code: 1. 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,
3. 4. 33-P) 2. regardless of the nature of his/her employment. 5. Service Incentive Leave . not later than December 24 of every year. The 13th Month Pay As mandated by the Presidential Decree No.such as sickness. Monthly employee contribution depends on the employee's actual monthly salary. disability. old age and death. maternity. Contribution to Home Development and Mutual Fund (HDMF) The employer(s) is required to contribute per month not less than P100. 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.00 to the employee's Home Development and Mutual Fund. The contribution schedule is provided by Philhealth. the employee shall receive a bonus salary equivalent to one (1) month. which is to be deducted from his/her payroll. Monthly employee contribution depends on the employee's actual monthly salary. the employer(s) will remit this contribution. 851. 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). In accordance to the periodic remittance schedule provided by HDMF. or other such contingencies not stated but resulted in loss of income or results to a financial burden. (See: Circular No. in addition to that of the employee's.
Meal and Rest Periods Under Article 83. but not limited to: 1. 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 . 2. According to Article 95. Chapter III of the Labor Code of the Philippines covers the employee's benefit for Service Incentive Leaves. the employee is provided a one-hour employee benefit for regular meals. 3. Other regular Philippine employees benefits furnished by the employer(s) but are outside of the mandated employee benefit includes. Employees are also provided adequate rest periods in the morning and afternoon which shall be counted as hours worked. Conditions of Employment) 6. (See: Article 95. 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.Book III. (See: Article 83. an employee who has rendered at least one year of service is entitled to a yearly five days service incentive leave with pay. Conditions of Employment). when working on an eight (8 hour) stretch. 4.
maternity. Home Development Mutual Fund (Pag-ibig Fund) contributions. 8282). old age and death. special holiday/rest day rates. Philippine Health Insurance (PhilHealth) contributions. All employees hired by private companies are required to become an SSS member (Republic Act No.The following are government-mandated benefits: Social Security System (SSS) contributions. This system aims to protect its members for when they are unable to work such as sickness. SSS gives the employee 2 months worth of salary to compensate for the time she will be off from work due to childbirth. while 70% is subsidized by the employer. or other such contingencies not stated but will result in loss of income or results to a financial burden. overtime pay. SSS will reimburse them with their equivalent daily salary multiplied by the number of days absent.The amount of SSS monthly contribution is determined from the actual monthly salary an employee receives. Members . Other more common benefits that are not mandated but are given by a lot of companies are: holiday bonus. and night shift differentials. 30% of total monthly contribution is deducted from an employee¶s salary. When a female member gives birth. disability. y Philippine Health Insurance (PhilHealth) ± The Philippine Health Insurance Corporation is the medical insurance company of the Philippines. The SSS also serves as a pension plan for its members as SSS returns members¶ monthly contributions after they retire from work. y Social Security Sytem (SSS) ± The Social Security System was created by the Philippine government. and paid holiday and vacation leaves. service incentive leave. All employees are required to be contributors of this service (Republic Act 7875). When an employee gets sick. mid-year bonus. 13th month pay. meal and rest periods.
to be given at the end of each year. every year.are given health and hospitalization subsidies should they or a dependent be hospitalized. y Service Incentive Leave ± According to Article 95 of the Labor Code of the Philippines. The 13th month pay is to be given no later than December 24 of every year a worker is employed. or convert these unavailed paid leaves to their cash equivalents. Employees are also entitled to adequate rest periods in the morning and afternoon. an employee who has worked for at least one (1) year in a company is entitled to five (5) days leave of absence. y Home Development Mutual Fund (Pag-ibig Fund) ± Employers are also required to contribute. of short durations. If the employee does not avail of these paid leaves. y Meal and Rest Periods . Monthly contributions are based on actual employee monthly salaries and the amount of employee contribution is matched equally by the employer. This gives every Filipino worker an opportunity to own a house in easy-payment plans that can directly be deducted from their monthly wages. the company may opt to have them do a mandatory leave of absence. all Filipino employees are entitled to a year-end bonus equivalent to one (1) month salary regardless of the nature of their employment. employees are entitled to one (1) hour break for meals on an eight-hour work day. y 13th Month Pay ± Based on Presidential Decree No. to the Home Development Mutual Fund (Republic Act 7835). that will be counted as hours worked.According to Article 83 of the Labor Code of the Philippines. 851. with pay. This company provides the lowest interest housing and land acquisition loans to its members that are payable for up to 30 years. These rest . on behalf of their employees. with pay.
when the country¶s school year starts.Under Article 87. y Overtime Pay and Holiday/Rest Day Pay . the employee shall be paid an additional compensation of at least thirty percent (30%) of his regular wage. This is to assist employees in school enrollment fees for their children. Cost of Living Allowances ± Some companies provide their employees with yearly rice. and clothing allowances. y Night Shift Differential ± According to Article 86. on top of the 13th month pay. Mid-Year Bonus ± This is given in June. medicine.periods normally last for 15 minutes and can be used by employees as coffee or snack breaks. Paid Holiday and Vacation Leaves ± On top of the mandated 5 days/year leave with pay. The . Under Article 93. 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. y Other company benefits ± Other company benefits that are not but are usually given to employees anyway are: government mandated. Holiday/Christmas Bonus ± This is given in December. This is considered as the company¶s Christmas gift to their employees. This is also known as an educational assistance plan. 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. if an employee is asked to work on their scheduled rest day or on a non-working holiday. some companies give their employees additional paid holiday and vacation leaves.
and of course. All the benefits mentioned above. they would have to shoulder the entire contribution themselves to cover for both employee contribution and employer subsidy. Freelancers can opt to enroll themselves to SSS. However. are what ³sweetens the deal´ more than the regular salaries that they receive. PhilHealth. an employee will always consider company benefits in order to make a sound decision. if they¶d wish to become members. sometimes more. companies who know how to take good care of their employees will have a lower employee turn-over rate than those that give no more than government-required benefits.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. In the end. The amount of the contribution will depend upon the income that freelancers will declare. . When faced with a choice between two jobs that pay more or less the same in terms of salary. and HDMF as selfemployed individuals to avail of the benefits these institutions offer. that are enjoyed by Filipino employees. These benefits are equivalent to 30-50% of an employee¶s yearly wage. benefits will also vary based on the amount of monthly contributions.