MABALACAT CITY COLLEGE

 Rizal, Barangay Dolores, Mabalacat, Pampanga

REVIEWER in ENTREP CORE 2

HUMAN RESOUCE MANAGEMENT
Chapter 12 Employee Benefits

STATUTORY BENEFIT are mandatory benefits that employers must

provide as directed by the federal and state governments

A.13th MONTH PAY-All employers are required to pay their rank-and-file

employees thirteenth-month pay, regardless of the nature of their employment and
irrespective of the methods by which their wages are paid, provided they worked
for at least one (1) month during a calendar year. The thirteenth-month pay should
be given to the employees not later than December 24 of every year.
The maternity leave benefit shall be for one hundred five (105) days with full
pay, and additional fifteen (15) days with full pay in case the female employee
qualifies as a solo parent under RA 8972, or the “solo Parents’ Welfare Act of
2000”. in case of miscarriage or emergency termination of pregnancy, the
maternity leave shall be for sixty (60) days with full pay.
The Paternity Leave Benefit -is granted to all married male employees in the
private sector, regardless of their employment status (e.g., probationary, regular,
contractual, project basis). The purpose of this benefit is to allow the husband to
lend support to his wife during her period of recovery and/or in nursing her
newborn child. Government employees are also entitled to the paternity leave
benefit. They shall be governed by the Civil Service rules.
BUSINESS BENIFITS
A. VACATION LEAVE● -We have vacation leave 1 day and sick leave in 1 day
after 24 days in a month , so in a year we have 15 days vacation leave and sick
leave -In can be monetized after we have 15 days of 15 days (VL) credits and we
are allowed to monetized of 10 days subject of availability of funds.
B.SICK LEAVE-The Labor Code of the Philippines requires that all employers
must provide their employees with five (5) days of paid sick leave every year. This
benefit can be used for any illness or injury, including those caused by accidents,
or for medical or dental consultations.
C.BEREAVEMENT LEAVE -Granting bereavement leave of (10days) with full
pay to all employees in the private and public sectors and for other purposes. -
companies have the discretion of whether or not to provide a bereavement leave.
D.HOSPITALIZATION PLAN- Employers can provide these allowances
separately or through an employee's paycheck. A healthcare benefit allowance is
any payment by an employer for an employee's healthcare expenses.
E.SICKNESS AND ACCIDENT INSURANCE PLAN -In simple terms personal
accident and sickness insurance covers accidents or illnesses that prevent you from
working, stepping in to pay out a lump sum in the event you suffer a serious injury,
or helping to replace monthly income if accident or illness keeps you from
working.
F.LIFE INSURANCE
-A contact between an insurer and a policy owner that quarantines the insurer pay a
sum of money to named beneficiaries when the insured dies. It provides a lump
sum payment to beneficiaries upon the insured person's death.
PENSION PLAN
-employee is committed to specified retirement benefits.
-retirement benefits are based on a formula that considers years of service
compensation level and age.
-employer bears all risk of pension fund performance.
G.CHRISTMAS AND MIDYEAR BONUS -These are bonuses given to
employees on the Christmas holiday. This is not mandatory. Giving these bonuses
totally depends on the employer unless written in a contract between the employer
and the employee. Employers are not required to grant Christmas bonuses to their
employees.
H. Housing Equity Assistance-Companies should help employees with housing—
in the form of a loan or guarantee for the employee's mortgage or backing for an
apartment developer.
This would pump relatively "lazy" capital on corporate balance sheets directly into
the economy.
For the company, it would mean interest on that loan and a nice incentive to help
solicit and retain talent.
I. Educational plan -An educational plan is like a cross between life insurance
and a savings account. It is designed to help employees save and ensure there
would be sufficient funds for their child’s college education in the future.
J. Recreational and fitness- activities are given anything done for a break, leisure,
pleasure or fun that helps workers relax, reduce stress and improve concentration,
socialize with their colleagues, as well a help improve employees productivity.
Modern companies are looking for the ways to maximize employees productivity
through recreational programs to remain competitive in the business world.
K. Legal aid
a set of laws that deal with the rights of employees and the responsibilities of
employers: Employment law covers a wide range of issues from pension plans and
retirement, to occupational safety, to discrimination in the workplace. It serves as a
legal framework that determines employment in the country and the best practices
that must be observed.
L. Car plan-A car plan is usually a "sharing" of cost between the employee and
employer. - employee's salary is deducted a specified amount to pay for the
remaining 50% in a fixed period, e.g. 4 years. Some companies charge minimal
interest (lower than bank rate), some companies don't even charge any - that's the
main benefit
M. Company service and transportation
The benefits of having company service and transportation are stress free commute
,health improvement, safety, Improve productivity in office ,cost saving and better
Workplace environment
N. Stock option plan-An employee stock ownership plan (ESOP) is a retirement
plan in which an employer contributes its stock to the plan for the benefit of the
company's employees.
O.Management Bonus - a performance-based reward system in which managers
and employees collaborate to set goals.
P.Emergency Leave - It is when an employee needs to a time off suddenly and
unexpectedly due to serious reasons such as: Funeral arrangements due to death in
the family, Arrange care for a sick family member, provide care for a dependent
family member, etc., - There's no legal timeframe needed. It depends on the
reasoning of the employee or time given by the employer.
Calamity Leave or Special Emergency Leave - In Philippines, emergency leave
are granted for all workers in the public and private sectors that are directly
affected by natural calamities or disaster. They are given a five day paid leave.
Q.Personal Leave - A type of employees benefit that provides personal time off
work for handling situations not covered by other policies. For example, an
individual may need a short period away from work to care for a child who is too
sick to go to school. however, employees do not receive payment for personal time
and is usually treated as an excused absence. - The number of personal leave days
a person gets is very limited.
R.Plans-production sharing agreement is a contract that can be between two or
more companies to share the costs, risks, and benefits associated with
producing an oil well. This arrangement aims to promote efficiency in operations
by taking advantage of economies of scale while reducing risk for all parties
involved.
TYPES OF PLANS
Cash Plan - is an insurance policy that can help to cover the cost of everyday
healthcare, such as visits to the dentist, opticians or physiotherapy, by reimbursing
you for some or all of the cost of routine and/or unforeseen healthcare costs and
appointments. Employees immediate access to health services funded by a cash
plan is not just beneficial to the individual, but to the team
Purchased Plan - An employee stock purchase plan, or ESPP, is a benefit some
companies offer that allows employees who take part to purchase shares of
company stock at a discount. Employees who choose to participate generally make
contributions to the plan via payroll deductions. A trust fund to which the
contributions can be in the form of new shares of the company's stock or cash to
purchase existing stock. It is tax-deductible to a certain amount, and then the shares
will be allocated to all the individual employee accounts. For instance, after
completing at least one year of service with the organization, new employees who
join the plan will begin receiving their allocations or shares. The employee has a
right to the increasing number of shares of stocks resulting from depending on their
employment term. If the employees leave the company and are members of an
ESOP, they have a right to receive their stock. Additionally, if they retire or
separate from the company, their shares are sold, the employee gets reimbursed.
Profit Sharing Loan A profit-sharing plan gives employees a share in their
company’s profits based on its quarterly or annual earnings. Businesses decide
how much they want to allocate to each employee. A company that offers a profit-
sharing plan adjusts it as needed, sometimes making zero contributions in some
years. In the years when it makes contributions, however, the company must come
up with a set formula for profit allocation.
Deferred Profit Sharing Plan (DPSP) is a compensation plan wherein employers
share a part of their profits with employees. Under the DPSP scheme, employees
are entitled to get a share of the profits of the company. However, the amount thus
received is not immediately given to the beneficiary. It is first put into a deposit
account, where it is allowed to grow without being subject to taxes. Generally,
beneficiaries are allowed to decide how they want the money to be invested. It is
often used in conjunction with other types of employer-based retirement plans.
Profit-sharing plans are common schemes of employee compensation across
organizations and countries
Section 33(B) of the NIRC defines Fringe Benefits as “any good, service, or other
benefit furnished or granted by an employer, in cash or in kind, in addition to basic
salaries, to an individual employee such as, but are not limited to the following:
1.Housing;
2.Expense account;
3.Vehicle of any kind;
4.Household personnel, such as maid, driver and others;
5.Interest on loan at less than market rate to the extent of the difference between
the market rate and actual rate granted;
6.Membership fees, dues and other expenses borne by the employer for the
employee in social and athletic clubs or other similar organizations;
7.Expenses for foreign travel;
8.Holiday and vacation expenses;
9.Educational assistance to the employee or his dependents; and
10.Life or health insurance and other non-life insurance premiums or similar
amounts in excess of what the law allows.”

REFERENCES
https://www.questionpro.com/blog/employee-benefits/
#why_are_employee_benefits_important?

file:///C:/Users/User/Downloads/
2022_02_22_Handbook_on_Workers_Statutory_Monetary_Benefits_2022_edition
%20(1).pdf

https://dacpa.ph/?p=94#:~:text=According%20to%20Section
%2033(A,1603%20on%20a%20quarterly%20basis.
Prepared by: Mary Ruth Cemetara-BSE-1A