MANDATORY EMPLOYEE BENEFITS

One of the most important needs in improving the business is to provide benefits

to employees in order for them to be productive at work. These benefits create a good

connection between employees and employer. It will make the employees feel

appreciated. Thus, the employees are usually evaluated to determine whether they

work effectively and efficiently as it would be a great help in the growth of the business.

Social Security System (SSS) Contribution

Republic Act. No 1161, better known as Social Security Act of 1954 law was

amended by Republic Act. No. 8282 in 1997 or referred to as the Social Security

System in the Philippines. It is a social insurance program that provides retirement and

health benefits to all paid up employees. It aims to provide employees and their families’

protection and insurance against sickness, old age, disability and death. The employee

and the employer are required to contribute in accordance with a given schedule by the

Philippine Social Security System. The monthly contribution of employees is based on

their actual monthly salary.

Philippine Health Insurance Benefit (PhilHealth)

Premium contributions are shared by the employee and the employer, the

amount of which is determined using the table of contributions provided by the

PhilHealth. The monthly contribution depends on the employee’s actual monthly salary.
All employees covered by SSS shall be registered with Philippine Health Insurance. It

aims to ensure a sustainable national health insurance program for all.

Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industria at Gobyerno (PAG-IBIG)

Republic Act. No. 9679 This Act shall be known as the “Home Development

Mutual Fund Law of 2009, otherwise known as Pag-IBIG (Pagtutulungan sa

kinabukasan: Ikaw, Bangko, Industriya at Gobyerno) Fund”. It harnesses these four

sectors of our society to provide its members with adequate housing through as

effective savings scheme. This is mandatory to the employee whose salary. It is

mandatory for employees to pay Pag-ibig Fund contributions every payroll or whenever

they receive their salaries. This is automatic and done by the employer every payroll.

Based on HDMF, it aims to provide every Filipino with both savings and shelter.

13th Month Pay

The company provides a benefit wherein it is paid to employees based on

different terms of law or contract of employment. The company will give a 13 th month

pay which is equivalent to one month’s pay to all eligible employees every before or not

later than December 15 each year. It is every employee's right to receive their 13th

month pay proportional to the time the employee has worked for his/her employer.

Retirement

The company provides cash paid either in monthly pension or as a lump sum to

the employees who can no longer work if they already reach full retirement age at 60,
death or total and permanent disability. The minimum eligibility period for receipt of

pension is 10 years.

Leaves

a. Sick Leave

Permitted absence from work because of illness is 30 days or 136 in every 3yrs

cycle.

b. Calamity Leave

Employees are given 2 day-leave those who were affected by calamities like

floods, fire, typhoons.

c. Bereavement Leave

A benefit granted to employee in case of death of an immediate family. The

employee is given 3 days.