2. “The purpose of compensation is
to attract, motivate and to
maintain employees.”
3. e.g. Incentives & Profit Sharing (Pay for
Performance)
Compensation Management (Wages and Salaries)
Direct Compensation
Security, Safety & Health (Legally mandated
benefits)
Benefits and Services (“Fringe” benefits and
“Perks”)
Indirect Compensation
Employee Benefits and Services
4. Something in addition to the payment like car fuel,
free parking, clothing, and educational supports.
Perks (Services)
Something extra (such as vacation time) that is
given by an employer to workers in addition to their
regular pay.
Fringe Benefits
Employee Benefits and Services
5. In general, indirect and non-cash (or sometimes in
cash) compensation paid by an employer to
employees in addition to their regular pay.
Benefits tends to be necessities for many people.
Some benefits are mandated by law (such as SSS,
Pag-IBIG, and PhilHealth), others vary from firm to
firm or industry to industry.
Employee Benefits
6. Employee Services Management Association,
employee services encompasses "recreation
programs, community services, recognition programs,
event planning, childcare/eldercare services,
convenience services, and travel offerings.“
Employee services can include anything an employer
deems necessary to provide as a perk for employees.
No real limit exists as to what can be included as an
employee service.
Employee services are more of a convenience than a
true benefit.
Employee Services
7. The main objective is to attract (recruit) and to retain employees.
To improve morale
To meet health and safety needs
To attract good employees
To reduce turnover
To maintain a competitive position
To enhance the organization’s image
Objectives of Benefits Program
8. Social Security System (SSS) Contributions
Government Service Insurance System GSIS
Contribution to National Health Insurance Program (NHIP)
Contribution to Home Development and Mutual Fund
(HDMF/Pag-IBIG)
The 13thService Incentive Leave
Month Pay
Meal and Rest Periods
Mandatory Government Benefits
and Contributions
10. Loss of Income Benefit
Medical Services
Career Allowance
Rehabilitation Services/KaGabay Program
Death Benefits
Funeral Benefits
Benefits under ECP
11. Minimum Wage (Republic Act 6727)
Night Shift Differential
Overtime Pay
Rest Days
Holidays
13th Month Pay (Presidential Decree No. 851)
Retirement Benefits (Section 1. Article 287 of Presidential
Decree No. 422)
Separation Pay (Article 283 and 284 of the Labor Code of the
Philippines)
Services Charges
Disability Benefits
Mid-year Bonus (14th month pay) (RA No. 6758, as amended
by Congress Joint Resolution No. 1, s. 1994 and No. 4, s. 2009)
Benefits Under the Philippine
Labor Code
12. Maternity Leave
Paternity Leave
Solo Parents Leave (Solo Parents Welfare,
Republic Act No. 8972
Leave due to Domestic Violence
Leave due to Gynecological Disorders for
Women Employees
Leaves
14. Benefits have positive effects on the attraction and
retention of employees (Balkin & Werner, 2023)
Related Studies/Researches
There is an empirical relationship between proportion
of female board members and better employee
benefits. Female board members are stakeholder
friendly and are more likely to establish policies that
support employees’ welfare (Mia, 2022)
Discretionary benefits can have strategic
importance is through their effects on individual
employee performance (Balkin & Werner, 2023)
15. Increasing employee compensation motivates
employees to perform better, however, it does not
stimulate the part-time to improve thier
performance (Kim & Jang, 2020)
Related Studies/Researches
Compensation affects on employee satisfaction
and employee performance (Darma and
Supriyanto, 2017)
16. REFERENCES
Balkin, D. B., & Werner, S. (2023). Theorizing the relationship between discretionary
employee benefits and individual performance. Human Resource Management Review,
33(1), 100901.
Darma, P. S., & Supriyanto, A. S. (2017). The effect of compensation on satisfaction and
employee performance. Management and Economics Journal (MEC-J), 1(1).
https://www.slideshare.net/geomarbalajo/employee-benefits-and-services-philippines
Kim, H. S., & Jang, S. S. (2020). The effect of increasing employee compensation on firm
performance: Evidence from the restaurant industry. International Journal of Hospitality
Management, 88, 102513.
Mia, M. A. (2022). Do women on boards affect employee benefits? Evidence from the global
microfinance industry. Economics Letters, 210, 110194.