1. Reporter:
Sr. Jovita E. Cendaña, SSpS
Liceo del Verbo Divino
Tacloban City

2.  In addition to a salary, employees may
receive a range of benefits and services
from their employers. Benefits and services
may vary depending on the employee's
position or seniority, but most employees of
a company will generally share the same
basic benefits package. Benefits and
services packages also differ among
companies

3. • Under the Philippine Labor Code there are
six basic employee benefits, for an
individual who is legally working in the
Philippines. These basic employee benefits
cover most occupations, agricultural or non-
agricultural, provided that the associated
compensation for every salient Daily
Minimum Wages still apply.

4.  Under general circumstances, any legally
employed worker who work eight (8) hours a
day on a 48 hours a week schedule is covered
under the Philippine Labor Code. Commencing
from the time the employee starts to work and
until twenty-four (24) hours later is
considered one work day. The eight-hour work
need not be continuous and may be staggered
within the one workday stretch.

5.  The term "employee" denotes any
person legally employed in the
Philippines, any person
compulsorily covered by the GSIS
under the Commonwealth Act 186, or
any person compulsorily covered by
the SSS under Republic Act 1161.
Such employee is automatically
covered for these government
mandated employee benefits.

6.  An employer is required by law to pay his
employees the following mandated economic
benefits:

7.  The amount is determined per region or per
industry by the Regional Tripartite Wage and
Productivity Boards. Minimum wages,
therefore, vary from one region to another.
Minimum wages in the provinces are generally
lower than in the cities.

8. Art.87 states that work rendered in the excess of the
prescribed eight (8) hours a day will be treated as
Overtime Work.
 If ordinary days: +25 percent of basic hourly rate, if
special holidays, rest day and holidays: +30
percent of regular hourly rate on said day.

9.  “All employees qualified to a premium pay
are entitled to premium payments as
compensation for work hours rendered
exceeding the maximum number of
working hours”

10. The Labor Code of the Philippines sets premium rates at 25% on your regular
wage on a regular days. This is increased to 30% if you render overtime on
your rest day or on a holiday. Holidays, meanwhile, are categorized into
special and legal holidays – different rates apply to each category.
The law mandates that employees be paid an additional 30% on their regular
daily wage on a special holidays. An additional 100% premium (equivalent
to 100% of your daily wage) is given to qualified employees. Computations
are as follows:
A special holiday (130% x basic pay)
A special holiday that falls on a rest day (150% x basic pay)
A regular holiday ( 200% x basic pay)
A regular holiday that falls on a rest day (260% x basic pay)

11.  Plus 10% of the basic / regular rate for work
rendered from 10PM to 6AM.

12.  An employee must have rendered at least one
year of service to be entitled to service
incentive leave pay.

13. “All employers are obligated by law to grand
paternity benefit to all married male employees
whose spouse is about to or has given birth”
 7 days with full pay to attend the needs of legal
wife before, during and after delivery.

14. “ The provision Article 133 states that the Sec of Labor and
Employment shall implement and maintain strict standards that will
guarantee the health and safety of women employees””’
 Maternity leave benefits in the Philippines have helped
millions of women get through the maternity period
financially.
 A covered female employee who is able to contribute at least three
monthly contributions within the twelve-month period prior to the
semester that she gave birth, had an abortion or miscarriage is
eligible for benefits for maternity leave. This, given that she is
employed would be eligible for benefits of maternity leave. A female
employee shall be given financial benefit which is a cash equivalent
to one hundred percent of her current basic salary, allowances, and
other benefits.

15.  However, these benefits are subject to these
conditions:
 That you shall have notified your employer about
your pregnancy and your due date, which should
also be transmitted to SSS and subject to their
rules and regulations;
 Your employer will make the advance payments
which shall be paid in two equal instalments
within 30 days from the day you filed your
maternity leave application;
 In case of delivery through caesarean section,
you shall be paid 70 days worth of benefits
while on maternity leave, one day
is equivalent to 100 percent
of your daily wage;

16.  Payment of benefits for maternity leave shall be
considered your sickness benefits as provided by
law for an equivalent of 60 days for the same
childbirth, miscarriage, or abortion;
 Your maternity leave benefits is only limited to the
first four deliveries, which shall be paid the same
compensable period of 60 days equivalent to 100
percent of your daily wage per day;

17.  SSS shall reimburse your employer one hundreds percent
(100%) of the amount given to you immediately after all
verifications of the requirements you submitted together
with your maternity leave application;
 When you have given birth, suffer an abortion, or have a
miscarriage and your employer failed to remit the
required contributions or transmit your application for a
maternity leave benefit to SSS at the time of your
pregnancy, it is the employer's responsibility to pay the
SSS the same amount of maternity leave benefits due to
you and the latter shall in turn pay such amount to you.

18.  Includes January 1 or New Year’s Day, Maundy
Thursday, Good Friday, May 1 (Labor Day), June
12 (Independence Day), Last Day of August
(National Heroes Day), November 30 (Bonifacio
Day), December 25 (Christmas) and December
30 (Rizal Day).

19.  For unionized companies, union members are
entitled to CBA benefits.
 Other existing benefits extended by employer to
his employees cannot be withdrawn under the
principle of “non-diminution” rule.

22.  The Social Security System was created by the Philippine
government. All employees hired by private companies are
required to become an SSS member (Republic Act No. 8282). This
system aims to protect its members for when they are unable to
work such as sickness, disability, maternity, old age and death, or
other such contingencies not stated but will result in loss of
income or results to a financial burden. When an employee gets
sick, SSS will reimburse them with their equivalent daily salary
multiplied by the number of days absent. When a female member
gives birth, SSS gives the employee 2 months worth of salary to
compensate for the time she will be off from work due to
childbirth. The SSS also serves as a pension plan for its members
as SSS returns members’ monthly contributions after they retire
from work.The amount of SSS monthly contribution is determined
from the actual monthly salary an employee receives. 30% of total
monthly contribution is deducted from an employee’s salary, while
70% is subsidized by the employer.

23.  The Retirement Benefit is granted when an employee
retires from work upon reaching the retirement age
established in the collective bargaining agreement or other
applicable employment contract.
The Death Benefit is granted in event of the deceased SSS
member's beneficiaries, receiving from the System an
amount equivalent to the deceased member's monthly
income benefit, plus a ten percent (10%) fraction of the
death benefit thereof for every listed dependent child, with
the list not exceeding five, beginning with the youngest to the
oldest. The list may not be substituted nor appended.

24.  The Disability Benefit is granted depending
on the severity of the disability claim which is to
be determined by the Medical Director of the
System and approved by the Employees'
Compensation Commission. Articles 191, 192
and 193 of the Philippine Labor Code cover the
different degrees of the disability and the
benefits accompanying them.

25.  is a government-owned and -controlled corporation
(GOCC) of the Philippines. Created by Commonwealth
Act No. 186 passed on November 14, 1936, the GSIS is
mandated to provide and administer the following social
security benefits for government employees: compulsory
life insurance, optional life insurance, retirement
benefits, disability benefits for work-related
contingencies and death benefits. In addition, the GSIS
is entrusted with the administration of the General
Insurance Fund by virtue of RA656 of the Property
Insurance Law. It provides insurance coverage to assets
and properties which have government insurable
interests.

26.  The principal benefit package of the GSIS
consists of compulsory and optional life
insurance, retirement, separation and
employee's compensation.
 Active GSIS members are entitled to the
following loan privileges: salary, policy,
emergency and housing loans.

28.  The employee disability benefits offered by the System
depends on the severity of the disability claim which is to
be determined by the Medical Director of the System and
approved by the Employees' Compensation Commission.
Articles 191, 192 and 193 of the Philippine Labor Code
cover the different degrees of the disability and the
disability benefits accompanying them.
In Article 191, under the subheading Temporary
Total Disability, any employee who acquires temporary
total disability due to a sustained injury or disease will
enjoy a monetary aid paid by the Government. For each
day of such a disability (or fraction of the disability period
thereof) he/she will enjoy the income benefit equivalent
to ninety percent of his average daily salary wage.

29.  Provided, as amended by Section 2, Executive
Order No. 179, the disability benefit is subject
to the following conditions: that the daily
benefit income should not be less than ten
pesos (P10) nor it should be more than ninety
pesos (P90). Moreover, these disability benefits
will extend only up to one hundred twenty days
(120 days), except as otherwise stated by the
Commission. In any event, the System will be
notified of the injury or sickness.

30.  The disability benefit of such income benefit
shall also reflect the regulations of the
Commission, as amended by Section 19,
Presidential Decree No. 850.

31.  total disability, temporary or permanent (except as otherwise
stated in the Rules) but which persisted for more than one
hundred and twenty days is deemed already permanent
 total loss of sight on both eyes is automatically deemed
permanent disability
 loss of both limbs, or the loss of an appendage part starting
from the ankle or wrist is automatically permanent
 total paralysis of a limb or both limbs, whether hands or feet is
considered permanent
 brain injury that results in permanent imbecility or mental
illness

32.  Under this regulation as the Employees' Compensation
Commission may approve, the employee who fall under
this Title shall, for each month until his death, be paid an
amount equal to his/her monthly income benefit, plus ten
percent thereof for every listed dependent. The list shall
not exceed five, beginning with the youngest to the
oldest. The list may not be substituted or appended when
in effect. The payment will be handled by the System
(SSS, GSIS or as the case may be) during such a
disability, provided, that the monthly income benefit shall
be the new amount of the monthly benefit for all covered
pensioners.

33.  Article 193 covers the Permanent Partial Disability. A
legally employed worker in the Philippines can apply for
the disabled benefits under this Title if he/she sustains
an injury or contracts a disease resulting in his/her
permanent partial disability.
Under this regulation as the Employees' Compensation
Commission may approve, the employee who fall under
this Title shall be paid by the System (SSS, GSIS or as
the case may be) during such a disability an income
benefit for a permanent total disability but not exceeding
the period designated herein:

34. Complete and Permanent
Injury
N0. of Months
One thumb 10
One index finger 8
One middle finger 6
One ring finger 5
One little finger 3
One big toe 6
One toe 3
One arm 50
One hand 39
One foot 31
One leg 46
One ear 10
Both ears 20
Hearing of one ear 10
Hearing of both ears 50

35. “The retirement benefit plan is a life annuity”
The term “retirement plan”(or superannuation) refers to
a pension (benefits in retirement) granted when an
employee retires from work upon reaching the
retirement age established in the collective bargaining
agreement or other applicable employment contract.

36.  In the absence of a retirement plan that provides for
the employee’s retirement benefits in the
establishment, an employee shall be entitled to an
employee retirement benefit upon reaching the
compulsory retirement age.
 60 yrs or more not beyond 65 year – compulsory retirement
age
 If the employee served the least of five (5)
years,he/she may retire and enjoy the retirement
benefits equivalent of at least one-half (1/2) month
salary for his/her every year of service. A fraction of at
east six (6) months is considered as one whole year.

37.  The Philippine Health Insurance Corporation is the
medical insurance company of the Philippines. All
employees are required to be contributors of this
service (Republic Act 7875). Members are given
health and hospitalization subsidies should they or
a dependent be hospitalized. Monthly
contributions are based on actual employee
monthly salaries and the amount of employee
contribution is matched equally by the employer.

38.  Employers are also required to contribute, on
behalf of their employees, to the Home
Development Mutual Fund (Republic Act
7835). This company provides the lowest
interest housing and land acquisition loans to
its members that are payable for up to 30
years. This gives every Filipino worker an
opportunity to own a house in easy-payment
plans that can directly be deducted from their
monthly wages.

39.  Based on Presidential Decree No. 851, all Filipino
employees are entitled to a year-end bonus equivalent
to one (1) month salary regardless of the nature of
their employment. The 13th month pay is to be given
no later than December 24 of every year a worker is
employed.

40.  – According to Article 95 of the Labor Code of the
Philippines, an employee who has worked for at least
one (1) year in a company is entitled to five (5) days
leave of absence, with pay, every year. If the employee
does not avail of these paid leaves, the company may
opt to have them do a mandatory leave of absence,
with pay, or convert these unavailed paid leaves to
their cash equivalents, to be given at the end of each
year.

41.  - According to Article 83 of the Labor Code of the
Philippines, employees are entitled to one (1) hour
break for meals on an eight-hour work day. Employees
are also entitled to adequate rest periods in the
morning and afternoon, of short durations, that will be
counted as hours worked. These rest periods normally
last for 15 minutes and can be used by employees as
coffee or snack breaks.

42.  Under Article 87, an employee who renders over eight
(8) hours of service per day shall be given an overtime
pay which is equivalent to his regular hourly wage plus
at least twenty-five percent (25%) thereof. Under
Article 93, if an employee is asked to work on their
scheduled rest day or on a non-working holiday, the
employee shall be paid an additional compensation of
at least thirty percent (30%) of his regular wage.

43.  According to Article 86, every employee shall be
paid a night shift differential of not less than
ten percent (10%) of his regular wage for each
hour of work performed between ten o’clock in
the evening and six o’clock in the morning.

44.  The Philippine Labor Code stipulates that an employee may
be hired with a probationary period from one to six months
upon date of engagement, and it shall not be continued
further than that unless due to required period of
apprenticeship. After the probationary period, an employer
may continue or end an individual's employment based on
pre-agreed Key Results Areas (KRA) or other forms of
performance appraisals.
During the probationary period, however, an employer has
no right to neither discriminate an employee nor waive
his /her contractual employee benefits. And at the end of
this period, hired individuals should receive regular
employee benefits as provided by Philippine Laws on
employment.

45. Benefits Contractual
Employees
Regular
Employees
Sick Leaves None yes
Vacation Leaves None yes
Social Security System –private sector
GSIS – public sector
Company
discretion
yes
Home Development and Mutual Fund
(HDMF)
none yes
HMO none yes
Phil. Health Insurance Corp. (PhilHealth) none yes
Other company benefits(e.g. Rice
allowance, transportation allowance)
Typically none yes

46.  Other company benefits that are not
government mandated, but are usually given to
employees anyway are:

47.  Holiday/Christmas Bonus – This is given in
December, on top of the 13th month pay. This
is considered as the company’s Christmas gift
to their employees.
Mid-Year Bonus – This is given in June,
when the country’s school year starts. This is to
assist employees in school enrollment fees for
their children. This is also known as an
educational assistance plan.
Cost of Living Allowances – Some
companies provide their employees with yearly
rice, medicine, and clothing allowances.

48.  Paid Holiday and Vacation Leaves –
On top of the mandated 5 days/year leave
with pay, some companies give their
employees additional paid holiday and
vacation leaves. The number of days
allocated for these leaves usually vary from
company to company and depends on the
number of years an employee has been of
service to the company.

49. Labor isprior to, and independent of, capital.
Capital isonly thefruit of labor, and could
never haveexisted if Labor had not first
existed. Labor issuperior to capital, and
deservesmuch thehigher consideration” –
Abraham Lincoln.

50. THANK YOU FOR
LISTENING!!!