HOLY ANGEL UNIVERSITY

School of Business and Accountancy

Compensation and Benefits

Amendments in the 2020 Handbook Workers Statutory Monetary Benefits

In Partial Fulfillment of the Requirement of the Course

Human Resource Management

Submitted by:

MA-438
Alavaro, Andrhea

Capil, Kristine

Quizon, Hazel

Toquero, Fatima

Velasco, Kate

Submitted to:

Dr. Nancy Megallon

September 19, 2022

 MINIMUM WAGE

For the Minimum Pay, there have been NO AMENDMENTS. The minimum wage is
described as the floor balance of wages supplied to safeguard employees from excessive labor
pay prior to the performance of the employees. Regional pay orders outline the minimum wage
rates for each region, sometimes indicating a rate based on the number of employees and the
capitalization of the businesses.
HOLIDAY PAY

For the holiday pay, there are NO AMENDMENTS. Prior to the regularly scheduled
holiday that was not worked, the employees received this remuneration. Upon declaring the
applicable rules, the benefit changes based on the coverage of the aforementioned beneficiaries.
PREMIUM PAY

For the Premium Pay, there are NO AMENDMENTS. Employees who put in more than
the required eight hours of work must receive additional compensation. Unless the legislation
specifies differently, it applies to workers in certain sectors of the business.

OVERTIME PAY

Employees who went above and beyond their regular working hours were compensated
with overtime pay. This benefit hasn't undergone any AMENDMENTS. Although it is a
variable provided by the government to counteract the inflation rate's ongoing escalation, their
cost-of-living allowance is not taken into account when calculating overtime pay. In addition,
the overtime pay ratio differs depending on the type of day; regular working days correspond to
25% of the daily salary (per hour); scheduled rest days or special days correspond to 30% of the
daily salary (per hour); and a special day that falls on a regular working day is equivalent to
30% of the daily salary (per hour).

NIGHT SHIFT DIFFERENTIAL

Government employees, retail and service businesses with fewer than five employees,
kasambahay and other forms of personal service or commission, "some" managerial employees,
"some" officers and members of the managerial staff, employees who didn't spend 20% of their
working hours on duties, and field personnel are all tangible employees who are exempt from
receiving compensation, according to the Department of Labor and Employment handbook
distributed in 2014 and 2020. With this benefit, there are NO AMENDMENTS.
 SERVICE CHARGES

Clients pay service fees to hotels, restaurants, nightclubs, cocktail lounges, and other
types of lodging businesses in exchange for goods or services. Last 2014, the Department of
Labor and Employment issued an equal distribution of this collection to all employees except
for persons part of the managerial position. To compensate for anticipated losses and breakages,
the management changed this article in 2020 to 85% sharable collection and 15% retainable
collection; the distribution terms were left unaltered, and the 15-day interval was kept.
Additionally, collected tips should be distributed equitably using the same system as service
fees.
SERVICE INCENTIVE LEAVE

Everyone who has worked for the company for at least one (1) year is eligible for the service
incentive leave, which is a five-day paid vacation (SIL). However, there are several exceptions that
were indicated in article 95, so these benefits do not apply to everyone. For the employee to be
eligible for these benefits, they must have worked for a total of twelve months, either continuously or
intermittently, starting from the day they first began their employment. The term "year of service"
includes all permissible absences, unworked weekly rest days, and paid regular holidays. The
employee will receive this benefit even if the number of working days is less than twelve months,
which is already regarded to be one year, subject to consent and compliance with corporate policy.
Employees are allowed to use this incentive for both sick and vacation days. Unused service incentive
leaves can be converted to cash, and the conversion amount is calculated using the salary rate in effect
on the conversion date. Since 2014, there has not been ANY REVISION to this labor standard.
MATERNITY LEAVE

No matter their marital status, work, or the legality of their child, this benefit is available to
all female employees, married or not. Every pregnant employee in the private sector, married or
single, is entitled to sixty (60) days of maternity leave in the event of a normal birth or miscarriage,
according to the Department of Labor and Employment Handbook from last year. For C-section
deliveries, 78 days with benefits equal to 100% of the employee's average daily income credit under
the terms of the law. However, starting in 2020, if the worker qualifies as a single parent under RA
8972 or the Single Parent Welfare Act of the United States, maternity leave benefits will be 105 days
on full payment and an additional 15 days on full payment. the year of 2000. In case of miscarriage or
emergency abortion, maternity leave is her 60 days fully paid. Admission requirements remain
unchanged. To be eligible for maternity benefits, a female worker must have paid her SSS
contributions at least three times each month in her 12 months immediately preceding her maternity
trimester.
 PATERNITY LEAVE

Paternity leave is a right granted to all married male employees in the private sector,
regardless of their employment. This benefit is intended to enable the husband to support his
wife during her recuperation period and/or when nursing her new baby. Paternity leave is also
available to employees of the government. The Civil Service regulations shall apply to them.
Since 2014, this Department of Labor and Employment's labor standards have NOT BEEN
REVISED OR AMENDED.

PARENTAL LEAVE FOR SOLO PARENTS

Parental Leave refers to leave benefits provided to a single parent so they can fulfill
duties and responsibilities as parents that call for their physical presence. There are NO
AMENDMENTS to this labor standard, and changes take place. starting with eligibility,
coverage, benefits, termination benefits, and protection from workplace discrimination.

ANTI-VIOLENCE AGAINST WOMEN AND THEIR CHILDREN LAW

Under the guidelines set forth in the act, women employed in the private sector who
meet the criteria for victims under RA 9269 are entitled to paid leave. The leave benefit will
cover the days the female employee needs to handle work-related obligations in the legal and
medical fields. In addition to any paid leaves allowed by current labor laws, corporate policies,
and/or collective bargaining agreements, the qualified victim-employee is entitled to ten (10)
days of full pay, which includes base pay and necessary allowances determined by the Regional
Wage Board. The female employee's 10 days of leave are entirely up to her discretion. The
leave benefit is not cumulative if it is not utilized, and it cannot be converted into cash. This
labor standard has NOT BEEN AMENDED.

THIRTEENTH MONTH PAY

All employers in the private sector who are rated and filed offer thirteenth-month pay.
The showmanship of numerous managerial acts is required for this categorization. Additionally,
this extra payment equals around 1/12 of the annual wage of a tangible employee, which is paid
every December 24 or sooner. The Department of Labor and Employment further clearly stated
that all employees paid on a piecework basis, employees with fixed wages plus additional
commissions, government workers with other part-time jobs in other private enterprises and
decided to resign employees who worked for at least a month were included due to the
complicated situations of other workers. This labor standard has NOT BEEN AMENDED.
 SPECIAL LEAVE FOR WOMEN

Any female employee regardless of age or civil status, who has a gynecological
condition that necessitates surgical intervention is eligible for a special leave benefit if all of the
requirements outlined in RA 9710 have been met. The employee is entitled to full payment of a
two-month exceptional leave benefit based on her gross monthly wage. Obligatory allowances
set by local wage boards are included in the gross monthly compensation. This benefit will be
provided to the female employee following her operation, and unless otherwise specified in the
collective bargaining agreement (CBA), it should be cumulative and convertible to cash. There
has been NO AMENDMENT to this labor standard, thus it stays the same.

SEPARATION PAY

Employees who fall under the terms of Labor Code Sections 298 and 299 are entitled to
the separation pay benefit. The reason or basis for terminating an employee's employment
determines whether that employee is entitled to separation pay. A worker may be fired for a
valid reason, such as flagrant and sustained disloyalty to duty, fraud, or the commission of a
crime, in addition to the other reasons listed in Article 297 of the Labor Code. According to the
2014 labor law, separation pay must be given when the legal reasons for termination have been
verified. If an employee's termination is due to any of the three permitted services listed in
articles 298 and 299, they shall receive separation pay equal to one-half month's pay for each
year of service. According to a 2020 amendment to the handbook, the government has listed the
absence of security guards from service assignments for a continuous period of six (6) months
as a cause. The computation for separation pay is based on the employee's salary rate, and the
employee may be terminated for any of the approved reasons listed in the handbook. In
addition, the 2020 amendment includes an exemption from tax that an employee may be
entitled to in cases of death, illness, or other physical disabilities as well as other extenuating
circumstances like retrenchment, redundancy, or the end of business activities.

RETIREMENT PAY

Employees who retire at age sixty or no older than sixty-five and are still able to work
for their employer for at least five years are entitled to the retirement pay benefit. All people
are eligible for this benefit, with the exception of government workers and employees of
businesses that routinely employ no more than ten (10) people in the service, retail, or
agricultural industries. Regarding the amendment, the 2014 Handbook gave retirement
benefits to all surface mine workers; however, the 2020 Handbook was changed to only list
mill-plan employees, electrical, mechanical, and tailings pond personnel as surface mine
 workforce. The retirement age for professional racehorse jockeys licensed by PHILRACOM is
also being lowered in the 2020 revision by 55 years, and those who have worked for at least
five years and paid supplementary SSS premiums are already eligible to receive retirement
benefits. In addition, retirement benefits will be provided to Kasambahay and the individual in
the personal service. Benefits earned under RA 302 for retirement, as well as those that
officials and Individual or corporate employees of private companies receive in accordance
with an employer-maintained, reasonable private benefit plan, are currently exempt from tax if
the departing official or worker has worked for (10) years with the same employer and has
reached the age of fifty. This is in accordance with the 2020 handbook on Workers' Statutory
Monetary Benefits. At the time of his retirement, he was 50. Keep in mind that a representative
or employee may only profit from this once.

BENEFITS UNDER THE EMPLOYEES’ COMPENSATION PROGRAM

This program has NOT BEEN MODIFIED. In the event of work-related illness,
accident, disability, or death, it is a government program that offers benefits to employees in the
public and private sectors as well as their dependents.

PHILHEALTH BENEFITS

The National Health Insurance Program (NHIP), also known as Medicare, is a health
insurance plan for SSS members and their families in which the healthy people pay for the sick people
who could need financial help while they're hospitalized. The Medicare program must be
administered by PhilHealth, the Philippine Health Insurance Corporation.

Regarding the modifications, the 2014 Handbook's coverage was limited to employed
members, individually paying members, and non-paying members. Members of the formal economy,
sponsored members, members of the informal economy, lifetime members, indigent members, and
senior citizens are now included in the 2020 Handbook. There are no additional adjustments besides
the coverage..

SOCIAL SECURITY BENEFITS

The Social Security Program offers a range of benefits in the event of death,
disfigurement, illness, maternity, old age, or unemployment. Essentially, income lost as a result
of the aforementioned contingencies is replaced by the Social Security System (SSS). All
private employees, whether they are employed permanently, temporarily, or provisionally, may
access it.
The program's sickness benefits consist of a daily cash payment made in accordance with the
number of days a member is unable to work as a result of illness or injury. The sickness benefit
was calculated by multiplying the permitted number of days by the daily sickness allowance.
However, it was then changed to a credit equal to 90% of their average daily pay, which is only
given for a maximum of 120 days per year. Its disability payments were also changed, now
including the number of months based on the body part in addition to the indication of total and
permanent loss of any portions of the body. The qualifications for its members who can take
use of these benefits have been greatly expanded, and currently include a variety of
circumstances. The beneficiaries of a dead member are given its death benefits. The criteria
were also changed such that no matter how many contributions the member has made, only a
lump sum benefit is available to secondary or specified beneficiaries and legal heirs. Benefits
for funerals were also included. It is a monetary reward provided to the individual who covered
the funeral costs of the bereaved member. Its requirements included being subject to mandatory
coverage but not reported by the employer or being reported for coverage by the employer. A
financial compensation known as an unemployment benefit or involuntary separation benefit is
given to covered employees, such as kasambahay and OFWs who are forcibly terminated from
their jobs.

PAG-IBIG BENEFITS

With housing serving as the primary investment, the Pag-IBIG Benefits, also known
as the Home Development Mutual Fund, is a mutual provident savings system for private and
public sector employees as well as other earning groups. It is supported by matching
employer contributions. All SSS and GSIS-covered employees, uniformed members of the
Philippine Armed Forces, employees of the Bureau of Fire Protection, the Bureau of Jail
Management and Penology, the Philippine National Police, OFWs, and Filipinos working for
foreign-based employers either locally or abroad are now covered under this benefit.
Mandatory Membership and voluntary membership that meets certain requirements is also
now available. There have been no additional changes to the advantages than those already
listed.