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Employee Death Benefit in the Philippines

7:53 AM by PINOY STREETJOB · 0 comments



"The Labor Code of the Philippines covers at length the death benefits available to every employee in the Philippines.."
In Chapter VII, Book IV of the Labor Code of the Philippines covers at length the death benefits available to every employee in the Philippines. The term "employee" denotes any person legally employed in the Philippines, any person compulsorily covered by the SSS under Republic Act 1161 or any person compulsorily covered by the GSIS under the Commonwealth Act 186.

Under Article 194, with the subheading Death, upon the covered employee's death his/her primary beneficiary (or beneficiaries) shall receive 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.

The term dependent denotes the legitimate, legitimated, acknowledged or legally adopted natural child who is not over twenty-one (21) years, unmarried, and not gainfully employed. A dependent would also include a child who may be over twenty-one (21) years of age provided he/she is incapable of self-support due to a physical or mental defect which is congenital or his/her defect was acquired during minority. The term dependent would also indicate a legal spouse living with the covered employee, and/or the parent(s) of the said employee who are wholly reliant upon him for daily support.

As amended by Section 4, Presidential Decree No. 1921, this employee death benefit monthly income shall be provided for five (5) years by the System. If the covered employee has no listed primary beneficiary, or that his/her list of primary dependents are no longer valid under the regulations of the term "dependent", the System shall forward employee death benefit to his secondary beneficiaries a monthly income benefit which will be provided for sixty months - provided that the minimum employee death benefit shall not be less than fifteen thousand pesos (P15,000).

As amended by Section 4, Presidential Decree No. 1921, upon the death of a covered employee who was also under the permanent total disability program, or covered by the Article 192, the System shall pay to the primary beneficiaries of the deceased employee eighty percent (80%) of his/her monthly income benefit. Additionally, his/her dependents are entitled to the dependents' pension - provided that the covered employee's marriage has been validated to exist at the time of the employee's disability. If the covered employee has no listed primary beneficiary, or that his/her list of primary dependents are no longer valid under the regulations of the term "dependent", the System shall pay to his secondary beneficiaries a monthly pension of the remaining balance of the five (5) year guaranteed period, but which will not include the benefit of a dependents' pension. Finally, the minimum death benefit of the employee shall not be lesser than the amount of fifteen thousand pesos (P15,000).

As amended by Section 8 of the Presidential Decree No. 1368, upon the approval of this decree, the monthly income death benefit provided under Chapter VII, Title Death Benefits, shall be the new amount of the monthly income death benefit for the surviving beneficiaries.

A funeral benefit worth three thousand pesos (P3,000) will be made available upon the death of a covered employee or permanently totally disabled pensioner, as amended by Section 3 of the Executive Order No. 179.
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Employee Income Benefits in the Philippines

7:53 AM by PINOY STREETJOB · 3 comments


Employee Income BenefitsChapter VIII, Book IV of the Labor Code of the Philippines detail the provisions common to the program's several employee income benefits: Chapter V Medical Benefits, Chapter VI Disability Benefits and Chapter VII Death Benefits.

The provisions common to these employee income benefits are determined by the Medical Director of the System and then approved by the Employees' Compensation Commission. The term "employee" still denotes to the person who is legally employed in the Republic of the Philippines, or any person compulsorily covered by the GSIS under the Commonwealth Act 186, or any person compulsorily covered by the SSS under Republic Act 1161.

The provisions under this title are as follows:

Article 195, Relationship and Dependency
Only at the time of death of a covered employee, or of a member of the government health care programs (SSS, GSIS) shall all questions of relationship and dependency shall be addressed.

Article 196, Delinquent Contributions
Article 196 covers mostly the failure of the employer(s)'s part, and by extension the company's failure to make timely monthly contributions to the program, whose employee benefits may have been enjoyed by his/her employees or their dependents.

Article 197, Second Injuries
If an employee who is already covered by the Permanent Partial Disability program suffers another subsequent injury which results to his qualification to a higher employee income benefit than his previous injury, he/she shall be offered by the State Insurance Fund the income benefit for the new disability, provided only that the new disability should be related to his/her previous disability. The System shall only pay the compensation difference of both original and upgraded employee income benefits.

Article 198, Assignment of Benefits
Compensation claims under this Title is neither transferable nor liable to tax, garnishment, attachment, seizure or levy by or any other legal process whatsoever, by the person(s) entitled thereto, either before or after receipt.

Article 199, Earned Benefits
Under a Collective Bargaining (or other forms of agreement) and in accordance with this title, a covered employee should receive the employee income benefits if he/she is entitled to receive wages, salaries or allowances for holidays, vacation or sick leaves and any other award of benefit - with respect to the episode of his/her disability.

Article 200, Safety Devices
This provision protects the interest of the state in case of the employer(s)'s negligence to install and maintain safety devices, or to comply with any law resulting to an employee's injury or death.

For the unabridged version of this document, See:
The Labor Code of the Philippines, Chapter VIII, Provisions C
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Is the 13th Month Pay in the Philippines Mandatory or Optional?

7:52 AM by PINOY STREETJOB · 1 comments



"The 13th Month Pay is fundamentally a Government implementation of monetary assistance equivalent to the monthly basic salary received by an employee."
Under the Presidential Decree No. 851, or what is otherwise known as the 13th Month Pay Law, the 13th month pay in the Philippines is mandatory and will be received by every employee in the Philippines who have rendered service for at least one month within a calendar year, regardless of his/her salary (amended with the removal of the salary ceiling, See: Memorandum Order No. 28, August 13, 1986).

The term 13th Month Pay' denotes the one twelfth (1/12) of the employee's basic salary within a calendar year. The term 'Basic Salary' denotes the wage or salary the employee receives from the employer(s) for services rendered with the payouts set according to the predetermined schedule agreed by both employer and employee. The term 'calendar year' refers to the Gregorian calendar that starts from January 1 and ends on December 31.

The 13th Month Pay is fundamentally a Government implementation of monetary assistance equivalent to the monthly basic salary received by an employee. This is computed pro rata - according to how many months within the calendar year that the employee has worked for the employer(s), computed as follows:

(Basic Monthly Pay) ÷ 12 * (Number of Months worked within the Calendar Year)

Those not covered by the Labor Code's 13th Month Pay Law are as follows:
  • Distressed businesses which are at present sustaining significant losses, or whose profits have consistently declined by more than forty (40%) percent of their usual income for the last two (2) years may qualify for exemption from the requirement of the Decree (See: Presidential Decree No. 851, Section 7).
  • Non-profit institutions and organizations, such as those where their income rely on contributions, donations, grants and other similar earnings from any source.
  • The Government and any of its businesses in the political sector, which include government-owned and controlled businesses, with the exception of those operating wholly as private subsidiaries of the Government.
  • An employee who is already enjoying a yearly 13th Month Pay or its equivalent.
  • An employee who is in the personal service of another, such as household helpers, personal stylists, personal assistants, directly employed butlers, attendants, and individuals related to such workers.
  • An employee whose nature of compensation is based purely on commission, task dependent, boundary, and those who are paid a fixed amount for performing a specific work, irrespective of the time consumed.
(This article cites the Presidential Decree No. 851 and Memorandum Order No. 28. By no means shall this article be used to substitute Presidential Decree No. 851)
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Safety Employee Benefits in the Philippines

7:51 AM by PINOY STREETJOB · 0 comments



"Covered on this comprehensive list of health, social and safety benefits are the standards that provide occupational safety to the workers and general safety to the immediate vicinity and within the workplace."
In the second Title of Book IV in the Labor Code of the Philippines covers the medical benefits available to every employee in the Philippines. 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. Covered within the second Title is a comprehensive listing regarding the employee's compensation and state insurance funds. This section is broken into nine chapters.

Book IV of the Labor Code of the Philippines covers at length the safety benefits available to every legally employed worker in the Philippines. Covered on this comprehensive list of health, social and safety benefits are the standards that provide occupational safety to the workers and general safety to the immediate vicinity and within the workplace.

This section of the Labor Code of the Philippines is divided into two distinct safety benefit categories. The first title covers the medical, dental and occupational safety, subdivided into two separate chapters, and the second title covers mostly on employees' compensation and state insurance funds.

Here are the safety benefits available to the legally employed Filipino worker, according to the provisions set in Book IV of the Labor Code of the Philippines:
(See: Labor Code of the Philippines, Book IV)

Title I: Medical, Dental and Occupational Safety
Chapter 1 Medical and Dental Services

Article 156 First-aid Treatment
Every employer(s), and by extension, the working establishment shall provide first-aid kits and medicines readily accessible by the employee, in accordance to the safety employee benefit regulations prescribed by the Department of Labor and Employment. Other medicine and first-aid equipment should also be provided should the nature and conditions of work may require it.

Furthermore, the employer(s) should take extra measures to see that a sufficient number of employees are trained in using the available first aid equipment.

Article 157 Emergency Medical and Dental Services
Every working area is required to have free medical and dental attendance and facilities, the disparities of which are detailed as follows:
  • a full-time registered nurse is required if the number of employees is more than 50 but less than 200
  • a full-time registered nurse, a part-time physician and dentist and an emergency clinic are required for workplaces with population exceeding 200 but less than 300
  • a full-time registered nurse, a full-time physician and a dentist, plus an infirmary with a one-bed capacity for every one hundred employee - for workplaces with population that exceeds 300
Article 158 When Emergency Hospital Not Required (sic)
When the emergency clinic of the establishment is sufficiently provided to treat an employee, emergency hospital is not required.

Article 159 Health Program
The employed company physician should develop and implement a comprehensive occupational health program as a safety employees' benefit for the company.

Article 160 Qualifications of Health Personnel
The health personnel tasked for the safety employee benefits shall have the essential knowledge in occupational safety and health, as well as the know-how in industrial medicine. These health personnel shall pass the qualifications, criteria and conditions of employment established by the Secretary of Labor and Employment.

Article 161 Assistance of Employer
The employer(s) and by extension the establishment is to provide all the necessary assistance, medical and dental, to an injured or sick employee in case of emergency. In event the severity of the injury and/or ailment supersedes the available medical equipment, the employer(s) and by extension the establishment should make arrangements to any hospitals in the locality for the employee's treatment.
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Holiday Pay: What You Need to Know

7:50 AM by PINOY STREETJOB · 0 comments



"The Philippines has 14 public holidays per annum - a number that can increase if the state calls a public occasion a special holiday."
The Philippines has 14 public holidays per annum - a number that can increase if the state calls a public occasion a special holiday. Aside from the euphoria that public holidays create among everyone affected by the day off, working individuals should be interested in the extra cash parceled in holiday premiums.

Philippine holiday pay rules are stipulated in the Labor Code which states that employees are entitled to 200% of their basic daily pay for the first eight hours and an additional 30% of their hourly rate for work rendered in excess of eight hours.

If you filed a leave with pay on this day, you are still entitled to the 100% premium provided that you were present on the day before the holiday. Otherwise, a holiday pay will not be added to your pay.

Some Philippine holidays, we're referring to the religious ones, don't fall on the same dates of the year. Maundy Thursday, Good Friday, and Eid Ul Fitr are among the holidays with pay that vary in date from year to year. Holidays pay stays the same, however.

A holiday with pay can be legal or special, and each Philippine province can call their own holidays when given approval in Congress.

Holiday Pay Law: Distinguishing Employee Type

Monthly-paid employees receive pay for an entire month, including non working rest days, special holidays, and regular holidays.

Daily-paid employees are those paid on the days they render work which doesn't include non working regular holidays in which they still receive their basic pay if they work or on leave with pay on the working day immediately preceding the holiday.

If it is your rest day, you are entitled to a 230 percent holiday pay and an additional 30 percent for work rendered in excess of eight hours. Should you decide not to work on your rest day you are still entitled to 100 percent of your daily rate.

For more information about working holiday pay, you may refer to Book Three of the Labor Code that explains the Conditions of Employment.
 
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What You Should Know About Employee Income Tax in the Philippines

7:49 AM by PINOY STREETJOB · 2 comments



"Taxes are what keep a country thrive in the financial sense."
Here's an overview of employee income tax in the Philippines. This summarizes the Philippine Bureau of Internal Revenue's guidelines on employees' income tax.

Why pay your income tax?

Taxes are what keep a country thrive in the financial sense. The government uses your taxes to pay foreign debts, maintain public institutions (hospitals, government offices and corporations, the Armed Forces, etc.), subsidize schools, provide health care, and finance many other government projects. Without people's taxes, the government would be dysfunctional in distributing social services to its constituents.

What is employee income tax?

The personal tax you pay is called employee income tax, and it is a tax on your personal income, remuneration for work, profits accumulated from properties and assets, income from practice of profession, income from trade or business, and other gross income specified in the Tax Code of 1997.

Who should pay employee income tax?

Regardless where your income is coming from, within or outside the Philippines, all employed or earning citizens in the Philippines are obligated to pay their income taxes, specifically:
  • Individuals who draw compensation from two or more employers simultaneously or successively within the taxable year;
  • Employees who get compensation income (regardless of the amount) from a single or several employers within the calendar year, whose income taxes were not accurately withheld;
  • Employees whose earnings do not exceed 5,000 Philippine pesos or the statutory minimum wage, whichever is higher, and who decides not to withhold tax on this income;
  • Individuals who earn income from other non-business, non-professional sources in addition to their compensation that are not subject to a final tax;
  • Individuals who are receiving income from just one employer, and even though the tax is correctly withheld, but whose spouse is not entitled to substituted filing;
  • Non-resident citizens who receive income from within the Philippines;
  • Citizens who work abroad but who receive income from Philippine sources;
  • Aliens, whether resident or not, who receive income from Philippine sources;
  • Domestic or foreign corporations that receive income from within the Philippines; and
  • Estates and trusts engaged in any form of business or trade.


What to bring when filing for income tax for employee?

Take these documents with you when filing for your income tax:
  • Certificate of income tax withheld on compensations (BIR Form 2316)
  • If applicable, waiver of your husband's right to claim additional exemption
  • Duly approved tax debit memo, if applicable
  • Proof of foreign tax credits, if applicable
  • Return of previously filed return and proof of payment, if amended return


What are the quarterly deadlines of employee income tax filing?

Earning individuals should take note of these deadlines, which fall three times in a taxable year, which are as follows: April 15 - for the first quarter August 15 - for the second quarter November 15 - for the third quarter

Be sure not to fail in filing for your employee income tax before the deadlines to ensure smooth filing.
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Employee Wages and Wage-Related Benefits in the Philippines

7:48 AM by PINOY STREETJOB · 1 comments



Employee WagesUnder the Philippine Labor Code, employee wage implies of the monetary equivalent the legally employed worker in the Philippines will receive from his/her employer(s) upon completion of eight (8) hours of work, whether consecutive or broken, and that falls on a 24-hour period, or one workday. One work day commences from the minute the employee starts to work and counting twenty-four (24) hours later. The eight-hour work rendered by the employee need not be continuous and may be staggered as long as its falls within the one work day stretch.

The employee wage may be reduced proportionately if work rendered is less than the prescribed eight (8) hours of work a day.

According to the employer - employees' arrangement, the employee's wage may be paid on a predetermined period, whether it is calculated hourly, daily or monthly. For a predetermined period of work, the minimum employee compensation for eight (8) hours of work will not be lower than the salient minimum daily wage applicable to the region as determined by the Regional Tripartite Wage and Productivity Board.

If the employee wage is paid by results of the work, the employee will receive the minimum daily wage for the eight (8) hours of work.

The employer(s) cannot make any adjustment on the employee's wage without the permission of the employee, except for insurance premiums, for withholding taxes, SSS contribution premiums and other deductions expressly authorized by law, such as union dues or similar.

Employee wages also include related benefits such as overtime, rest day, holiday, night differential and the 13th month pay. By extension, the term 'wage benefit' implies the facilities customarily furnished by the employer(s), the value of board and lodging, the expense accounts (which in a strict sense imply the expenses used solely for the benefit of the employee), health or life insurance premiums including other non-life insurance premiums or similar, interest on loans that are better than market rate, and discounts on other goods and services.

Overtime Work
Article 87 states that work rendered in the excess of the prescribed eight (8) hours a day will be treated as Overtime Work. The employee will be paid for the overtime work the wage benefit equivalent to his/her regular wage plus at least twenty-five percent (25%) thereof. On rest days and holidays, the employee will be paid the compensation equivalent to the rate of a non-working day, plus the wage benefit equivalent plus at least thirty percent (30%) thereof.
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Medical Employee Benefits in the Philippines

7:47 AM by PINOY STREETJOB · 2 comments



" The Philippine Government shall protect every worker in the Philippines in the event of work-connected disability or death."
If you are looking for the health insurance program Medicare, it is covered in Title III of the Philippine Labor Code, Article 209, under the subheading Medicare. (See: Republic Act 6111, Philippine Medical Care Act of 1969)

The medical health benefits available to the employee are discussed in detail in Chapter V of the second Title in Book IV of the Philippine Labor Code (See: Labor Code of the Philippines, Book IV).

In Chapter I, Article 166, under the Policy subheading, it is stated that the Philippine Government shall protect every worker in the Philippines in the event of work-connected disability or death. By developing, promote and upholding a tax-exempt compensation program, the employee and his/her dependent(s), may promptly secure ample income and medical-related benefits.

Article 167 may be used to identify the contextual meaning of the terms being used in this section (or other sections, unless indicated otherwise).

One example of the System's medical employee benefits provided is in the event a legally employed member employee in the Philippines sustains an injury or contracts sickness, he/she shall be provided with the appropriate medical treatment and devices required by the nature of his sickness or injury. Furthermore, appropriate medical services and devices required for the progress of his recovery will also be provided. This medical benefit is subject to the expense limitation prescribed by the Commission. This medical benefit is also available only during the subsequent period of his disability, or as prescribed by the Commission.

Refusal of the Government sanctioned examination or treatment will void the medical benefits, during such time the refusal persist. However, the Employees' Compensation Commission will study the reason of the employee's refusal and by its own initiative determine the character, necessity, and sufficiency of the medical benefits offered (or to be offered). (See: Article 188).

Article 190 further expands the Rehabilitation Services medical benefit. The System will establish a continuing rehabilitation program for the injured and handicapped member employees or those who are entitled to the System's rehabilitation services. The Rehabilitation Services also include medical, hospital, and surgical treatment, and will also provide all the necessary equipment for them to become physically independent.

The System states of the authority to designate a physician, hospital or rehabilitation facility for the employee. Any aggravation of the employee's sickness or injury, or any additional medical compensation due to unauthorized changes by the employee will not be held liable to the System (See: Article 186).

Fees for the medical services including other charges, e.g. for hospital services, medicine and appliances, professional fees - shall not be higher than the standard fee incurred if when in a hospital ward for similar general medical treatment. All medical fees for employee benefits are subject to the regulations of the Commission (See: Article 189).
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Six Facts on Employee Allowance

7:46 AM by PINOY STREETJOB · 1 comments



"Employee allowance is a universal benefit awarded to employees in the various levels in an organization."
Employee allowance is a universal benefit awarded to employees in the various levels in an organization, and with variations depending on a country, corporate culture, amount, and a company's financial stability, among other working factors.

You may be familiar with your own employee allowance and fringe benefits, such as rice allowance, performance bonuses, transportation allowance, and the like. Governments typically hold off taxes on employee allowances as they are considered benefits separate from your earnings and because a company reserves the right to change the benefits it gives to its employees at any time.

Here are other important things you should know about your employee allowance:
  1. They are non-taxable. Allowances for employees are exempt from tax, such as clothing, mileage, or meal allowances. Fringe benefits are also included in this tax exemption, and this holds true in most countries where companies provide allowance to employees.
  2. They come in different forms the most common would be clothing allowances, meal allowances, transportation allowances, while extravagant companies can offer discounts on health insurances, and give fringe benefits to executives, such as private use of the company jet, grand vacations, use of company fitness facilities, and other such privileges.
  3. Employee allowances are exempt from tax if they do not exceed the price ceilings set by law.
  4. Fringe benefits that exceed the price limit on benefits are no longer tax-exempt, and the benefactor is the one to shoulder the tax imposed on it.
  5. Only the "de minimis" benefits with small value and limited only to facilities and privileges your company furnishes you with to promote goodwill, health, efficiency, and contentment to your employees.
  6. Employee allowance is given at a company's discretion and goodwill - it is not a law-mandated benefit. Thus, you cannot demand it from your company if it does not provide any to its employees. Many companies, meanwhile, use employee allowance to compensate for lower pays and to appease employee demands for higher wages.

As not all companies furnish employees with employee allowance, and other companies use it as a scheme to delay or forestall any wage increases. Be sure to distinguish between mandated benefits and employee allowances.
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Health Benefits for Employees in the Philippines

7:46 AM by PINOY STREETJOB · 0 comments



Health Benefits for employeesBook IV of the Labor Code of the Philippines covers the entirety of the social welfare, safety and health benefits available to every employee in the Philippines. Take note that the term "employee" denotes to 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 (See: Article 167 Definition of Terms).

Book IV of the Philippine Labor Code is divided into two main titles, which in turn is divided into a number of subchapters. The first title covers mostly on the physical aspect of protecting an employee's health and well being within the workplace. The second title mostly refers to mostly the intangibles that promote the employee's benefits of health and wellbeing.

The contents of Book IV of the Philippine Labor Code are as follows:

Title I: Medical, Dental and Occupational Safety
Chapter I Medical and Dental Services

Article 156, First-aid Treatment

Every workplace, regardless of its nature, should have first-aid medicines and equipment readily available for use as a primary health benefit.

Article 157, Emergency Medical and Dental Services
Every workplace, regardless of its nature, should have free medical and dental facilities plus, a health specialist in attendance, as part of the health care benefit to be enjoyed by the employee.

Article 158, when emergency hospital not required (sic)
The article determines when an emergency hospital or dental clinic should be made available. When there is an access clinic in the workplace and one that can sufficiently meet the requirements for treating a particular injury or disease, emergency hospital is not required.

Article 159, Health Program
The physician employed by the company shall develop and implement a healthcare benefit program to be used for the employees.

Article 160, Qualifications of Health Personnel
The health personnel employed or tasked with the health benefits and welfare of the employees shall pass the qualifications, criteria and conditions of employment as set by the Secretary of Labor and Employment.

Article 161, Assistance of Employer
The employer shall provide for the necessary assistance to ensure that the workplace meets the adequate criteria of safety. In cases of emergency, the employer should also provide adequate and immediate medical and dental aid to a sick or injured employee.

Title II: Employees' Compensation and State Insurance Fund

Chapter I, Article 166 details the System's policy. It is stated here that the Government shall promote and develop a tax-exempt employees' compensation program whereby the member employees and/or their dependents may promptly secure adequate financial health benefits and/or medical related health benefits in the event of work-connected disability or death by the member employee.

For information regarding Medical benefits, see: Medical Employee Benefits in the Philippines

For information regarding disability benefits, see: Employee Disability Benefits in the Philippines

For information regarding death benefits, see: Employee Death Benefit in the Philippines
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Employee Disability Benefits in the Philippines

7:45 AM by PINOY STREETJOB · 3 comments


Employee Disability BenefitsIn Chapter VI, Book IV of the Philippine Labor Code covers at length the disability benefits available to every employee in the Philippines. 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.

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.

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.

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

Under Article 192 Permanent Total Disability, the following disabilities are considered total and permanent:
  1. 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
  2. total loss of sight on both eyes is automatically deemed permanent disability
  3. loss of both limbs, or the loss of an appendage part starting from the ankle or wrist is automatically permanent
  4. total paralysis of a limb or both limbs, whether hands or feet is considered permanent
  5. brain injury that results in permanent imbecility or mental illness
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.

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:
Complete and Permanent Injury No. 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
Sight of one eye 25
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Philippine Housing Benefits Through Pag-IBIG Fund

7:44 AM by PINOY STREETJOB · 3 comments



"Pag-IBIG Fund Law is a Philippine housing benefit provided by the government, wherein its members enjoy adequate housing through efficient savings plan."
Pag-IBIG Fund Law (contraction for Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industria at Gobyerno), otherwise known as the Presidential Decree No. 1752, as amended, or the Home Development Mutual Fund Law of 1980, is a Philippine housing benefit provided by the government, wherein its members enjoy adequate housing through efficient savings plan.


The Pag-IBIG Fund Law exists with several objectives:
  1. To provide affordable housing benefits and low-cost house and lot packages/condominium units either for rent or for sale to low income Pag-IBIG members who cannot afford the housing packages available in the market.
  2. To enable Pag-IBIG Fund to perform its mandate by using its funds to provide decent and affordable condominium units as well as house and lot packages for sale to eligible Pag-IBIG Fund members nationwide.
  3. To stimulate competition that will bring about better housing packages in terms of price and development that will redound to the benefit not only of Pag-IBIG Fund members but also of the public in general.
  4. To help solve the housing backlog by generating further demand for housing through the provision of affordable condominium units and house and lot packages.
  5. To equitably distribute nationwide economic opportunities generated from housing production, and in the process, stimulate stability brought about by economic development.
  6. To provide an opportunity for Local Government Units (LGUs) to comply with R.A. 7279 by identifying and providing land for socialized housing.
  7. To simplify and facilitate the processing of end-user financing for eligible Pag-IBIG Fund members, given that the projects are owned by Pag-IBIG Fund.
  8. To develop further sense of ownership, pride and confidence among members of the Fund, knowing fully well that the projects being constructed are direct investments made from their savings with the institution.
  9. To generate more membership to Pag-IBIG housing benefits.
  10. To develop and dispose acquired properties of the Fund.
Fund coverage of the Pag-IBIG housing benefit will be mandatory to all employees covered by the Social Security System (SSS) and the Government Service Insurance System (GSIS), as well as their respective employers, and by extension, the establishment. The funds will be used to afford Pag-IBIG housing loans to covered employees.

In accordance with Section 5 of the Presidential Decree 1752, upon membership of an employee, the employer(s) will contribute to the employee's Pag-IBIG 3housing benefit plan an amount of this based on the monthly compensation of covered employees.

However, employees whose monthly compensation is less than four thousand pesos (P4,000), fund coverage for the Pag-IBIG 3housing benefit will be voluntary.

(For more details regarding the Pag-IBIG Fund and recommendations whether to accept housing benefits, be sure to contact your local Pag-IBIG centers)

(This article features content derived from the Home Development Mutual Fund Law of 1980, Presidential Decree No. 1752. By no means shall this article be used to substitute the Presidential Decree No. 1752)
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Premium Pay in the Philippines: What You Should Know

7:43 AM by PINOY STREETJOB · 0 comments



"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."
What is premium pay? Should you be entitled to a premium pay? And how much should you get? These are the most common questions at the back of the minds of new employees as this is an entitlement that translates to additional cash in the coming payday.

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. The basis of the maximum number of work hours per day rests on the fact that humans are not machines. At the end of the day, we would have been worked out and need to rest. Thus, in many countries including the Philippines, governments set the maximum work hours to eight. Any hours of work rendered exceeding that shall be paid with a premium which is based on your daily regular wage.

When do premium pays apply?

In the Philippines, companies are obliged by law to pay premiums when you work on holidays, on your rest day, and when you render extra hours on any day (overtime). Premium pays are, however, mandated by law. In most cases, only regular employees are entitled to holiday premiums, while other companies may pay overtime premiums to probationary or contractual employees.

How are premium rates computed?

The Labor Code of the Philippines sets premium rates at 25% on your regular wage on 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 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)

Who are covered?

Whatever your employment status is, the Philippine Labor Code says you should be entitled to a premium for any work rendered beyond the maximum hours (eight hours) required of you by the law and your company. However, this law ceases to apply to employees in management positions, field personnel, the employer's family members who are dependent on him/her for support, and employees paid on a per project or output basis. If you are a government employee, you may refer to Civil Service Laws and rules on premium payment.

How about personnel in the health sector?

For health personnel in the cities and municipalities who serve a population of at least on million (1,000,000) or in hospitals with at least one hundred bed capacity, maximum work hours should only be eight (8) hours for five (5) days a week, excluding times for break. Categorized under health personnel are resident physicians, nurses, midwives, clinic attendants, pharmaceutical technicians, laboratory technicians, social workers, dieticians, nutritionists, and other hospital personnel.

Employees in the health sector are, as a rule, not supposed to render overtime because of the high degree of physical work their jobs demands. Where exigencies of the service require, health personnel may render extra hours or one day provided that a 30% premium payment shall be added to his/her regular daily wage.
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Maternity Leave Benefits in the Philippines

7:42 AM by PINOY STREETJOB · 1 comments



"Maternity leave benefits in the Philippines have helped millions of women get through the maternity period financially."
Maternity leave benefits in the Philippines are stipulated by law, for both the public and the private sectors in the land, in favor of women workers. If you know someone who need time off for maternity reasons, this FAQ will answer common questions to maternity leave and benefits.

Who are eligible for maternity leave benefits?

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.

However, these benefits are subject to these conditions:
  1. 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;
  2. Your employer will make the advance payments which shall be paid in two equal installments within 30 days from the day you filed your maternity leave application;
  3. In case of delivery through caesarian 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;
  4. 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;
  5. 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;
  6. 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;
  7. 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.

If there aren't any problems in verification, benefits during maternity leave are immediately reimbursed to you by your employer even prior to discharge from the hospital. Maternity leave benefits in the Philippines have helped millions of women get through the maternity period financially. If you are expecting, notify your employer and SSS the soonest time you can for the timely processing of your maternity leave benefits.
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Employee Retirement Benefits in the Philippines

7:41 AM by PINOY STREETJOB · 3 comments



"The retirement benefit plan is a life annuity."
Book VI of the Labor Code of the Philippines, under the heading Post Employment covers the employee's retirement and benefits and social insurance. The section covers the support and funds an employee benefits for retirement from the Government under the stipulation of the Philippine law, either through pensions or savings.

The term 'employee' represents an individual who is legally employed under the Philippine law, or any person compulsorily covered by the SSS under Republic Act 1161 or any person compulsorily covered by the GSIS under the Commonwealth Act 186.

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.

Characteristically, the retirement benefit plan is a life annuity, a financial contract wherein the life insurance company GSIS or SSS makes a series of payments to the annuitant in the future in exchange for a series of regular immediate payments, prior to the onset of the annuity.

Under existing laws and any collective bargaining agreement and other agreements, when the annuity is in effect, the employee is entitled to receive the employee retirement benefits, or in the strictest sense, the pension according to the amount as he/she has earned. Provided, however, that the employee's retirement benefits shall not be less than those provided therein under any collective bargaining and other agreements.

In the absence of a retirement plan (or its similar) 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. The age of sixty (60) years or more, but not beyond sixty-five (65) years is the considered compulsory retirement age. If the employee has served the least of five (5) years in the said establishment, 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 least six (6) months is considered as one whole year.

Unless acknowledged by both parties otherwise, 'one-half (1/2) a month salary' shall represent the fifteen (15) working days in addition to the one-twelfth (1/12) for the mandated 13th month pay. This also includes the cash equivalent of not more than five (5) days of paid leaves.

Establishments that are agricultural, retail or service in nature or business operations whose population do not exceed ten (10) employees are exempted from the coverage of this provision.

Under Article 288 of this Code, violation of this provision is declared unlawful.

To read more about retirement benefits, or to check the unabridged version of this document, See: The Labor Code of the Philippines, Book VI, Title II, Retirement from the Service
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Social Security System in the Philippines

7:41 AM by PINOY STREETJOB · 0 comments



"The social security system is aimed at providing protection for the SSS member against socially recognized hazard conditions"
Republic Act No. 8282, otherwise known as the Social Security Act of 1997, refers to the social security system in the Philippines that is initiated, developed and promoted by its Government. This social security system is aimed at providing protection for the SSS member against socially recognized hazard conditions, such as sickness, disability, maternity, old age and death, or other such contingencies not stated but resulted in loss of income or results to a financial burden. Towards that goal, the Social Security Act of 1997 also endeavors to extend the social security system not only to the SSS member but also to his/her beneficiaries.

The Social Security Act of 1997 is compulsory to the employee who is under the age of sixty (60) and his/her monthly income exceed the value of one thousand pesos per month (P1,000). Non-employed Filipino citizens, such as spouses who are devoted to full-time duties of managing the household or other family affairs may voluntarily cover themselves for the social security system. Employees who are recruited by foreign-based employers may voluntarily cover themselves for the social security system in Philippines.

The Social Security Act of 1997 is compulsory to the self-employed. Under such rules and regulations determined by the Commission, a self-employed worker has compulsory coverage if he/she is a professional, he/she is in a single (or in a partnership) proprietorship business, is an actor and actress who doesn't necessarily fall within the definition of the term employee (according to Section 8 of the Social Security Act), professional athlete, trainer, coach, or jockey, or a fisherman or a farmer.

The effective start of an SSS member's coverage will take effect on the employee's first day of his/her employment, or for the employer, his/her first day of operation.

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.

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.

(This article features content derived from the Social Security Act of 1997, Republic Act No. 8282. By no means shall this article be used to substitute Republic Act No. 8282.)
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2010 Philippines Holidays

7:40 AM by PINOY STREETJOB · 0 comments



A new year 2010 has come bringing in another set of holidays for us to take note of. Last July 2009, Pres. Gloria Macapagal-Arroyo has already signed Proclamation 1841 stating the following as Philippine Holidays for 2010:

Regular Holidays
Holiday Name Date Description
New Year's Day January 1
(Friday)
First Day of the year
Maunday Thursday April 1
(Thursday)
Part of the holy week celebration, observes the Lord's last supper
Good Friday April 2
(Friday)
Observes the Death of Jesus
Araw ng Kagitingan April 9
(Friday)
Remembers the Bataan Death March
Labor Day May 1
(Saturday)
A day dedicated for workers
Independence Day June 14 (Monday),
shifted from June 12
Anniversary of the Declaration of the Phil. Independence
National Heroes' Day August 30
(Monday)
Honors the Katipunan's Cry of Pugad Lawin
Bonifacio Day November 29(Monday),
shifted from Nov. 30(Saturday)
Andres Bonifacio's Birthdate
Christmas Day December 25
(Saturday)
Annual celebration of the birth of Jesus
Rizal Day December 27 (Monday),
shifted from Dec. 30
Death anniversary of Jose Rizal, the National hero


Special Non-working Holidays
Holiday Name Date Description
Ninoy Aquino Day August 23 (Monday),
shifted from August 21
Commemorates the death of Benigno S. Aquino, Jr.
All Saint's Day November 1
(Monday)
A day commemorating all the saints of the church
Ninoy Aquino Day August 23 (Monday),
shifted from August 21
Commemorates the death of Benigno S. Aquino Jr.
All Saint's Day November 1
(Monday)
A day commemorating all the saints of the church
All Soul's Day November 2
(Tuesday)
Remembering the dearly departed
Christmas Eve December 24
(Friday)
The day before Christmas day
New Year's Eve December 31
(Friday)
The day before New Year's Day


Other Holidays
Holiday Name Date Description
EDSA People Power Anniversary February 22 (Monday),
shifted from Feb. 25 - Special Holiday for schools
Commemorating the 1986 EDSA People Power Revolution
Eid'l Fitr and Eid'l Adha 2010 Yet to be announced Celebration for the Filipino Muslim community, Feast of Ramadan
Iglesia ni Christo Founding Anniversary July 27
(Tuesday)
In recognition of INC's founding anniversary
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Your Guide to Sick Leave Policies

7:39 AM by PINOY STREETJOB · 10 comments



"The policy for sick leave is purportedly to benefit employees when the need arises."
Sick leave is one of the types of paid benefits granted to regular employees - regularization in the Philippines are granted to employees on the sixth month of tenure. Employees can avail of this benefit when you are unable to report to work due to an illness, accident, or any other debilitating medical causes. Even with this absence, it is a company's obligation to pay you equivalent to a full-day salary as mandated in the Philippine Labor Laws, given that an employee still has leave "credits" equivalent to seven work days or a total of 56 hours in a year.

Sick leaves, however, are the most abused benefits everywhere with employees thinking they can just make up medical excuses to be absent from work. Although it's inviting to have a paid leave using your sick leave, there are actually more important reasons why employees should not use sick leaves for the wrong reasons.

Understanding your Sick Leave Policy

Although technically called "sick" leaves and used supposedly only when you're sick, some times will require you to get advance leave approval for a non-emergency sick leave, such as a visit to your doctor. For sudden occurrences, such as a sudden onset of fever that prevents you to report to work, a standard policy on sick leave would be to inform the human resource office and/or your supervisor at least a couple hours before your shift. Failing to call may invalidate your sick leave and consider it unauthorized.

You may use your sick leaves for medical, dental, or optical appointments, and in the following medical cases:
  • Suffering from a sickness or injury;
  • Maternity reasons;
  • To care for a sick or injured member of the family;
  • If reporting to work can jeopardize your health and that of your colleagues;
  • Death of a member of your immediate family.

A sick leave policy is to have your medical leave supported by a medical certificate as proof and for documentation purposes.

Why You Should Save Your Sick Leave

Sick leaves are created as benefits for a reason because, after all, we are not perfectly healthy. You can never tell when you'll get seriously ill and need your sick leaves just when you've used up all your credits. With your sick leaves untouched and a medical situation arrives, you still enough leave to cover your entire absence.

Policies on sick leave entitles employees to paid leaves, but also mandates the following when you are left with a limited to zero leave credits:
  • Salary deduction equivalent to the number of days you are absent;
  • You will not earn vacation and sick leave during holidays

Sick Leave Abuse

The policy for sick leave is purportedly to benefit employees when the need arises. This is why abusing your sick leave when you use it on non-medical and non-emergency events are never a good idea. You also risk losing your job when found loitering around the city when you called in for a sick leave.
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Employee Maternity Benefits in the Philippines

7:38 AM by PINOY STREETJOB · 23 comments



"The provision Article 133 states that the Secretary of Labor and Employment shall implement and maintain strict standards that will guarantee the health and safety of women employees."
Book III, Title III of the Philippine Labor Code covers the rights of women and the Government's steps to ensure the welfare and protection of women employees in the Philippines. Also covered within the title are the Maternity Benefits available for women (See: Article 133).

The provision Article 133 states that the Secretary of Labor and Employment shall implement and maintain strict standards that will guarantee the health and safety of women employees. In such, the Government will, by regulations, mandate the employer(s) to endow a pregnant employee appropriate maternity benefits, e.g. maternity leave of not less than two (2) weeks before the expected date of delivery and an additional four (4) weeks following normal delivery or abortion, for a total of sixty (60) days maternity leave. This maternity benefit is with full pay and is based on her regular compensation, whether on weekly or monthly schedule, without deductions unless stated otherwise (as defined under the Social Security Law, See: Social Security Act of 1997, Republic Act No. 8282).

In case of caesarian section delivery, the allotted maternity leave becomes seventy-eight (78) days, as opposed to sixty (60) days in case of normal delivery. The maternity leave benefits are available to every pregnant woman in the private sector, whether married or unmarried.

Provided, however that the expecting woman employee has rendered service to the employer and the establishment at least six (6) months (or aggregate of) for the last twelve (12) months.

Provided also, that the expecting woman employee applying for the employee maternity benefits can procure, for the employer or the establishment to check, a medical certificate that indicate the expecting woman employee's delivery that will take place, in likelihood, within two weeks.

These maternity benefits are good only as far as the projected date, in fulfillment of the maternity leave period stated above, or as stated in Article 133. The maternity leave may be extended on account of an illness that arose out of the pregnancy operation, stemming from delivery, abortion or miscarriage, which renders the woman unfit for work. Provided that the woman applying for the benefits for maternity can procure a medical certificate for the employer or the establishment to check that indicates of the said illness. The subsequent days of extension will be without pay; however, unused leave credits may be used.

The employer or the establishment will cover the benefits for maternity leave only on the first four (4) deliveries by the availing woman employee. These employee maternity benefits are non-transferable.

(This article cites the Article 133 of the Philippine Labor Code)
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Philippine Service Incentive Leave for Employees

7:37 AM by PINOY STREETJOB · 4 comments



Incentive Leave for EmployeesBook III, Chapter III of the Labor Code of the Philippines covers the employee's right for Service Incentive Leaves. This basically entitles the employee working in the Philippines a yearly service incentive leave, or in other words, a paid leave of five days.

The term 'employee' represents an individual who is legally employed under the Philippine law, or any person compulsorily covered by the SSS under Republic Act 1161 or any person compulsorily covered by the GSIS under the Commonwealth Act 186.

The phrase 'one year of service' indicates an employee's length of service, if he/she has provided service to the same establishment that would total 12 months, whether uninterrupted or broken, and starting on the day the employee started working for the establishment. Authorized absences, normally unworked days (restdays and/or weekends), and paid legal and regular holidays are counted as part of the year of service.

Article 95 or what is otherwise known as the Right to Service Incentive Leave is only applicable to any employee who has at least rendered one year of service in the same establishment.

There are employees exempt from Article 95 or the Right to Service Incentive Leaves. These are the employees in the civil service (government employees), administrative employees as defined in Book III of the Philippine Labor Code, field employees or other employment category whose hours of work are unascertained, domestic helpers and like (persons whose nature of employment is in personal service of another), employees who are on task or contract basis, purely on commission basis, or those paid a fixed amount irrespective of the time involved.

Furthermore, those employees not covered above but who are already enjoying a paid leave in kind, such as a vacation leave with pay comprising at least five days, are exempt from Article 95. Employees who are working on establishments with population of less than 10 workers are also exempt of this provision.

The Service Incentive Leave may be used as a Sick Leave and/or Vacation Leave. However, service leave incentives may not be interchanged with Vacation Leave as the latter is not a standard of law but a prerogative of the employer and by extension the establishment or the management.

If unused after a one year period, the Service Incentive Leave will be commuted to its monetary equivalent by the end of the year. In computing, the basis shall be the salary rate at the date of commutation.

(This article features content derived from Art. 95 of the Philippine Labor Code. By no means shall this article be used to substitute Art. 95 of the Philippine Labor Code)
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Contractual and Regular Employee Benefits in the Philippines – An Overview

7:36 AM by PINOY STREETJOB · 19 comments



"Knowing your benefits even as a contractual employee will lessen tension and build trust in the organization you belong in."
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.

How do contractual and regular employee benefits compare?

Within the probationary period, a new-hire continues to undergo evaluation on a daily basis, although formal performance reviews may not come until the first, third, or sixth month. This evaluation period somewhat gives companies the right to waive benefits enjoyed by regular employees, including holiday pay and sick leaves. In most cases, sick leaves are converted as "absences" which in turn are limited to a few number of days only (typically only seven days within the six-month period).

Expectedly, contractual employee benefits do not level with regular employee benefits, and companies have some good excuse for this. First, contractual employees, being new to the job, do not perform as well as regular employees (although this is not always the case). They lack the experience which makes for their lower pay and fewer benefits than have regular employees.

Contractual or probationary employees are not deprived of a few benefits, though. When you are a contractual employee in the Philippines, you can enjoy a day off on holidays (depending on your company's operations) and will also be paid a holiday premium commensurate to your daily pay.

The differences between contractual employee benefits and regular employee benefits are in the paid vacation and sick leaves which total to 15 days per year. Many companies now also provide social security benefits to probationary employees from day one.

This chart below elucidates the differences in benefits between these two employment statuses:
Benefits Contractual Employees Regular Employees
Sick Leaves none yes
Vacation Leaves none yes
Social Security System (SSS) - private sector GSIS - public sector company discretion yes
Home Development Mutual Fund (HDMF) none yes
HMO none yes
Philippine Health Insurance Corp. (PhilHealth) none yes
Other company benefits (e.g. rice allowance, transportation allowance, etc.) Typically none yes


Many companies in the Philippines now provide company benefits to employees, including rice allowance, transportation allowance, boarding allowance, and so on. Knowing your benefits even as a contractual employee will lessen tension and build trust in the organization you belong in.
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