Whether you’re a professional who’ve just landed a job or a business owner wanting to make sure your employees get what they’re entitled to, it is highly recommended that you have a full grasp of the standard wage and compensation, benefits, and mandatory individual contributions set by the government. After all, it is every employee’s right and responsibility to know their rights under the Department of Labor and Employment’s (DOLE) Labor Code to avoid instances of unfair or under-compensated employment.
More bills are currently being passed to improve our Labor Laws, but as of July 2016, here are a few things you need to know about employee benefits in the Philippines as mandated by the government:
Wage and compensation benefits
Minimum Wage Rate per Region and Industry in Philippine Peso:
|Region||Non-Agriculture||Agriculture – Plantation||Agriculture – Non-Plantation|
|NCR||454.00 – 491.00||454||454|
|CAR||255.00 – 285.00||255 – 270||255 – 270|
|Region I||213.00 – 253.00||233||227|
|Region II||260.00 – 300.00||280||280|
|Region III||238.00 – 357.00||298 – 334||298 – 334|
|Region IVA||219.00 – 362.50||267- 337||267 – 317.50|
|Region IVB||210.00 – 280.00||230 – 235||230 – 235|
|Region V||248.00 – 265.00||248||248|
|Region VI||256.50 – 298.50||266.50||266.50|
|Region VII||275.00 – 353.00||275 – 335||275 – 335|
|Region VIII||235.50 – 262.00||241||235|
|Region IX||235.00 – 280.00||255||235|
|Region X||291.00 – 318.00||291 – 306||291 – 306|
|Region XI||286.00 – 317.00||307||307|
|Region XII||255.00 – 275.00||257||257|
|Region XIII||248.00 – 268.00||268||268|
|ARMM||255.00 – 265.00||255||255|
*Househelpers are not included in the above list as a more specific law is in place under the Republic Act (R.A.) No. 10361, or Domestic Workers Act. A minimum monthly salary of P2,500 applies to house helpers in NCR, P2,000 in chartered cities and first-class municipalities, and P1,500 in other municipalities.
Upon the age of 60 years or more, the employee who has served at the establishment for at least five years may be granted a retirement pay equivalent to at least one-half month of salary for every year of service. A fraction of at least six months is considered as one whole year.
The “one-half month salary” includes:
1. 15 days salary based on the latest salary rate;
2. Cash equivalent of 5 days of service incentive leave;
3. One-twelfth (1/12) of the 13th month pay
The employee who renders overtime will be given additional compensation equivalent to his regular wage plus at least 25% premium.
Overtime pay for holiday or rest day shall be paid an additional compensation from the rate of the first eight hours on a holiday or rest day plus at least 30%.
On a Special Non-Working day, or rest day, an additional compensation of 30% premium will be paid in addition to the rate of the first eight hours on holiday or rest day.
Night shift differential (NSD)
Applies to employees who work between 10:00 p.m. and 6:00 a.m. An additional 10% premium is applied for every hour at work.
While sick leave and vacation leave benefits are not specifically stated under the law, it stipulates that private employees are allowed to provide employees a yearly Service Incentive Leave of five days with pay. This applies to employees with work tenure of at least one year within the company.
Any pregnant woman employee who has worked with the company for at least six months will be granted a maternity leave of at least two weeks prior to her due date (expected date of delivery) and four weeks after normal delivery or miscarriage with full pay based on her regular salary.
A total of 60 days is granted for government employees, and 60 to 80 days for employees in the private sector.
The Maternity Leave benefit is effective up to the first four deliveries of the woman employee working in the company.
However, Senate Bill 2982, or the Expanded Maternity Leave Law of 2015, has been approved on its third (3rd) reading on January 18, 2016. If enacted into law, will grant 100 days of maternity leave for employees in the government and private sector, regardless of the type of delivery.
The R.A No. 8187, or Paternity Leave Act of 1996, grants seven days of fully paid leave to married fathers. This is effective up to the first four deliveries of the legitimate spouse.
Parental Leave for Solo Parents, or Solo Parenting Leave (SPL)
Seven days leave with pay for every year of service, on top of other leave privileges, e.g. Maternity or Paternity Leave.
Special Leave Benefits for Women
This entitles women who underwent surgery due to gynecological disorders to two months’ leave with full pay, as stipulated in R.A. 9710 or the Magna Carta of Women. This applies to employees who have rendered at least six months of service with the company.
On the other hand, victims of violence against women, as stipulated in R.A. 9262 or the Anti-Violence Against Women and Their Children Act of 2004, are entitled to 10 days leave with full pay.
Mandatory Government Benefits and Contributions
The following government contribution will be automatically deducted from regular employees based on their salary, with the following benefits:
Social Security System (SSS) benefits
The SSS Employees’ Compensation (EC) program has been in place to help workers who encounter work-related illnesses or injury resulting in disability or death. This includes compensation for: medical services, appliances, and supplies in an accredited hospital; rehabilitation services, including medical, surgical, and hospital treatment; and income cash benefit. More information can be found here.
This entitles employees to avail of a Housing Loan, Calamity Loan, and Multi-Purpose Loans that aim to provide financial assistance to their needs. For a full list of Pag-IBIG benefits and membership requirements, visit their website.
Provides financial assistance for inpatient and outpatient hospitalization, as well as Z Benefit Packages for patients undergoing prolonged hospitalization and expensive treatments and suffering from Millennium Development Goal (MDG)-related illnesses.
If you want to get a detailed list of employee benefits in the Philippines, it’s always best to consult your human resources personnel, or visit the DOLE website here. –Kristel Serran