Philippines Mandatory Employee Benefits & Contributions (2024)

FAQs

What are the mandatory employee benefits and contributions in the Philippines? ›

In the Philippines, mandatory benefits encompass contributions to Social Security (SSS), PhilHealth, and the Pag-IBIG Fund. Both employees and employers are mandated to contribute to these institutions, ensuring coverage for insurance, loans, and retirement benefits.

What are the mandatory leave benefits in the Philippines? Philippine leave laws provide employees with six benefits: service incentive leave (SIL), maternity leave, paternity leave, parental leave for solo parents, leave under the Violence Against Women Act (VAWC), and a special leave benefit for women.

What is the SSS Contribution Rate for 2024? In 2021, the SSS contribution rate was set at 13%. However, it increased to 14% in 2023 and stands strong in 2024 as well. Of this 14%, 9.5% of SSS contributions are made by the employer, while employees contribute 4.5% of their monthly salary credit.

Medicare and social security, unemployment insurance, workers' compensation, health insurance, and family and medical leave are all benefits that the federal government requires businesses to provide. State governments may have other requirements.

Companies that hire full-time employees in the U.S. must provide federally mandated statutory benefits, including Social Security and Medicare, workers' compensation, and unemployment insurance.

What is the minimum amount of sick leave in the Philippines per year? Employers must give a minimum of 5 days of sick leave per year. However, it is customary to give 15 sick days per year.

Employees in the Philippines who have worked for a company for a full year are entitled to take five working days of paid leave per calendar year.

Grounds for Denial of Leave:

Denial of leave requests should be based on valid and justifiable reasons as outlined in company policy, which might include the unavailability of staff to cover duties, peak business periods, or prior allocation of leave slots to other employees.

In the Philippines, casual employees are a vital part of the workforce. Despite not having the same benefits as regular workers, they nonetheless have stable employment. They are paid well, including overtime for any work done above the standard eight hours per day and at least the minimum salary.

Under Philippine labor laws, the specific terms of providing health benefits, including HMO coverage, can vary based on the employment contract or company policies. However, standard practice encouraged by labor laws suggests that employers are responsible for the entirety or a significant part of HMO contributions.

What are the mandatory benefits for employees in the Philippines? ›

Philippine employees are entitled to 13th-month, holiday, night differential, and overtime pay. Employees in the Philippines are also entitled to service incentive leaves, maternity leave, and paternity leave. The local retirement age is 60, while the mandatory retirement age is 65.

Both private and government employees must contribute to the Pag-IBIG Fund and PhilHealth. Membership is optional, however, for self-employed persons, Overseas Filipino Workers (OFWs), and Non-Working Spouses (NWSs). Foreign nationals working in the Philippines must also make contributions to SSS, HDMF, and PhilHealth.

CAGAYAN DE ORO CITY (PIA) -- Pag-IBIG Fund increases its minimum monthly contribution rate from P200 to P400 effective February 2024, where P200 is collected from the employee and P200 from the employer.

The Employee Required Contribution is generally the employee share of the monthly cost for the lowest-cost, self-only minimum essential coverage that is offered to the employee.

Employee benefits mandated by the government make it: Easier to achieve full employment with stable prices.

De Minimis benefits are relatively small perks an employee receives as a form of compensation. It is not taxable as long as its value does not exceed Php 90,000 annually.