The Philippines mandates a comprehensive package of benefits for employees, ensuring financial security, healthcare access, and adequate rest. These benefits are designed to protect and empower the workforce while fostering a fair working environment.

Government-Mandated Programs

Filipino employees are required to participate in essential government programs:

Social Security System (SSS):

Provides retirement, disability, maternity, sickness, and funeral benefits. Contributions are shared between employers and employees.

PhilHealth:

This national health insurance covers hospitalization, outpatient care, and specific illnesses. Employers and employees equally split contributions, calculated at 4.5% of the employee’s salary (up to a cap of ₱90,000 as of 2023).

Pag-IBIG Fund:

A housing mutual fund enabling access to affordable loans and provident savings, with monthly contributions shared by both parties.

These programs form the backbone of employee welfare, ensuring coverage for various life events and needs.

Mandatory Monetary Compensation and Leave Benefits

Beyond social security, employees in the Philippines are entitled to monetary perks and paid leaves, including:

13th Month Pay:

A non-taxable bonus equivalent to one month's salary, distributed by December.

Minimum Wage:

Varies by region and industry to ensure fair compensation.

Leave Entitlements:

– Service Incentive Leave (SIL):

Five paid leave days annually after one year of service.

– Maternity and Paternity Leave:

Female employees are entitled to 105 days of paid maternity leave, while married male employees receive seven days of paternity leave.

– Sick Leave and Vacation Leave:

Many employers offer 10–15 days of additional leave, even though not legally mandated.

Employers offering leave policies exceeding the minimum enjoy a competitive edge in attracting top talent.