Mandatory Benefits
for Philippine
Employees
Discover the essential benefits Philippine employers must provide to their
workers, ensuring a fair and supportive work environment.
by Princess Gay Mariano
Social Security System (SSS)
Comprehensive Mandatory Contribution Accessible Benefits
Coverage Both employers and employees SSS benefits can be easily
The Social Security System (SSS) in the Philippines are required accessed through the
provides a wide range of to contribute a percentage of organization's extensive
benefits, including retirement, the employee's monthly salary network of branch offices and
disability, sickness, maternity, to the SSS, ensuring robust online services, making it a
and death, ensuring financial funding for the social security convenient and reliable social
protection for Philippine system. safety net for Philippine
employees and their families. workers.
Philhealth
Healthcare Coverage Employer Contribution
Philhealth is the national health Employers are required to contribute a
insurance program in the Philippines. It percentage of their employees' monthly
provides comprehensive healthcare salary to Philhealth. This contribution
coverage for employees, ensuring helps fund the healthcare system and
access to quality medical services. benefits for all members.
Benefits and Services
Philhealth members can access a wide range of medical services, including inpatient
care, outpatient consultations, diagnostic tests, and even specialized treatments.
Pag-IBIG Fund
What is Pag-IBIG Fund? Mandatory Contribution
Pag-IBIG Fund, also known as the Home All private and public sector employees in the
Development Mutual Fund, is a government- Philippines are required to contribute a
owned and -controlled corporation that provides percentage of their monthly salary to the Pag-
affordable housing loans and savings programs IBIG Fund. This contribution helps build the
for Filipino employees. employee's savings and ensures eligibility for
housing loans and other benefits.
13th Month Pay
Annual Benefit Calculated Payout Deadline for Payment
The 13th month pay is a The 13th month pay is Employers are required to pay
mandatory annual bonus for all calculated based on the the 13th month pay to their
employees in the Philippines, employee's basic monthly salary employees no later than
equivalent to one month's basic and is paid out before the December 24th of each year.
salary. Christmas holiday.
Service Incentive Leave
Paid Time Off Accrual and Use
Employees in the Philippines are SIL accrues on a pro-rata basis and
entitled to 5 days of paid service can be carried over to the next year if
incentive leave (SIL) per year, which not used. Employees can request to
can be used for personal reasons or use their SIL with their employer's
emergencies. approval.
Requirements
To qualify, an employee must have worked for at least 1 year with the company. SIL is
a mandatory benefit for all eligible employees in the Philippines.
Maternity Leave
Paid Leave Eligibility
Employees are entitled to 105 days of To qualify, employees must have
paid maternity leave, with the option contributed to the Social Security
to extend for an additional 30 days System (SSS) for at least 3 months
without pay. prior to the semester of childbirth.
Benefits
During maternity leave, employees receive a daily cash allowance from the SSS, based
on their average daily salary credit.
Paternity Leave
Family Time Duration Eligibility
Paternity leave allows new In the Philippines, private sector To be eligible, the employee
fathers to take time off work to employees are entitled to 7 must be married to the woman
bond with their newborn and calendar days of paid paternity who gave birth, and the leave
support their family during this leave, which can be extended to must be availed within 60 days
crucial period. 60 days under certain from the childbirth.
circumstances.
Retirement Pay
Paid Retirement Benefits Eligibility Criteria
Philippine employees are entitled to retirement Employees must have worked for at least 5 years
pay after meeting the requirements of the Labor and have reached the age of 60 (or 65 for private
Code. This includes a lump-sum payment sector), or have served for at least 5 years and
equivalent to one-half month's salary for every have become permanently disabled.
year of service.
Separation Pay
Legal Requirement Calculation Voluntary Resignation
Separation pay is a mandatory The amount of separation pay is While not required for voluntary
benefit for Philippine employees based on the employee's length resignations, some employers
who are terminated without just of service, with one month's may offer separation pay as a
cause, providing financial salary for every year worked, up gesture of goodwill to ease the
support during job transition. to a maximum of 6 months' pay. transition for departing
employees.
