Employee benefits and services in Ghion Industrial Chemical Sector

Compensation
“The purpose of the compensation is to attract, motivate and to maintain
employees”

Direct Compensation

E.g. Incentives & Profit Sharing (Pay for Performance) Compensation

Management (Wages and Salaries) Security, Safety and health (Legally mandated
benefits) Benefits and Services (“Fringe” benefits)

Benefits and Services are called indirect compensation and are also known as
“fringe benefits” and “Perks”. Perks (services) are something in addition to the
payment like car fuel and free parking, clothing, and educational supports.
Whereas fringe benefit means something extra (such as vacation time) that is given
by an employer to workers in addition to their regular pay. Such benefits and
services are used to persuade, to motivate, and/or to retain employees and are not
linked with the employees’ performance (e.g. stimulating them to greater effort and
higher performance

Definition of Benefits and Services

Employee Benefits

In general, indirect and non-cash (or sometimes in cash) compensation paid by an

employer to employees in addition to their regular pay. A benefit tends to be
necessities for many people. Some benefits are mandated by law and others vary
from firm to firm or industry to industry

Employee Services

According to the Employee cooperative union, employee services encompasses

"recreation programs, community services, recognition programs, event planning,
childcare/eldercare services, convenience services, and travel offerings. “Employee
services can include anything an employer deems necessary to provide as a perk
for employees. No real limit exists as to what can be included as an employee
employee services are more of a convenience than a true benefit.

Employment services shall include the following:

1/ assisting persons who are capable and willing to work to obtain employment;

2/ Assisting employers in the recruitment of suitable workers for their job

positions;

3/ determining the manner in which foreign national are to be employed in

Ethiopia;

4/ Cooperating with the concerned offices and organizations, in the preparation of

training programmers’;

5/ Conducting studies pertaining to the labor market;

6/ In collaboration with the concerned offices, conducting studies relating to the

manner of improving vocational training at the country level and disseminating
same to beneficiaries and implementing the employment policy properly.

Definition of Benefits and Services

Although employee services might be considered a benefit, they are usually

optional and not necessarily what job seekers first look for when conducting a job
hunt.

Objectives of Benefit Programs

•To Improve Morale

•To Meet Health and Safety Needs

•To Attract Good Employees

•To Reduce Turnover

•To Maintain a Competitive Position

•To Enhance the Organization's Image

The main objective is to attract (recruit) and to retain employees

Types of Benefits

•Insurance benefits

•Health benefits (and services)

•Security benefits

•Time-off benefits

•Work scheduling benefits

•Retirement benefits

•Disability benefits
1. Social Security System

The Social Security System aims to protect the SSS member against socially recognized
calamities such as sickness, disability, maternity, old age and death or other emergencies.

It is not stated, but it has resulted in loss of income or financial burden.

The employee and the employer shall contribute social security benefits to the said employee as
per the schedule prescribed by the Social Security System of Ghion Industrial Chemical Sector.
employee cooperative unions.

2. Health Insurance Program

In accordance with the company's administrative rules on the Medicare program administered by
Ghion Industry and Chemical Sector, the employee must contribute to the medical insurance of
the said employee.

3. Service Incentive Leave

Book III, Chapter III of the Labor Code of the Philippines covers the employee benefits for
Incentive Leaves. According to Article 95, an employee who has rendered at least one year of
service is entitled to a yearly five days service incentive leave with pay.

4. Meal and Rest periods

The employee is provided one-hour employee benefit for regular meals, when working on an
eight-hour (8-hours) stretch. Employees are also provided adequate rest periods in the morning
and afternoon which shall be counted as hours worked.

All these provisions apply in addition to every new employee benefits furnished that are in
excess of what is stipulated by the

EMPLOYMENT INJURIES

Injury benefits shall be paid in accordance with the provisions of this Chapter

1/ an employer shall have to discharge the following obligations:

a) To provide the injured with first aid in time;

b) To take the injured by an appropriate means of transport to the nearest medical facility;

c) To notify the occurrence of occupational injury to the r e l e v an n t organ.

2/ the employer shall have the obligation to cover the funeral expenses specified under

Article 110 (1) (b) of this Proclamation

1. Loss of Income Benefit

Under the ECP, it is the disability, or the incapacity to work, which is being compensated and not
the illness or the injury.

3 Types

1. Temporary Total Disability (TTD)

For advisability that prevents an employee from performing his work for a continuous period not
exceeding 120 days. The amount of daily income benefit shall be ninety percent (90%) of the
employee’s average daily salary credit as determined by the Systems.

2. Permanent Total Disability (PTD)

A monthly income benefit granted for disabilities, such as, but not limited to, complete loss of
sight of eyes, loss and function loss of both limbs, and brain injury resulting to imbecility or
insanity.

3. Permanent Partial Disability (PPD)

A monthly income benefit is granted for disabilities that result in physical loss (amputation) or
functional loss of a body part. The number of monthly pensions is based on the corresponding
body part loss or functional loss and EC schedule of Compensation
2. Medical Services

Types of medical services

Where a worker sustains employment injury, the employer shall cover the following medical
service expenses:

1/ General and specialized medical and surgical care;

2/ Hospital and pharmaceutical care;

3/ any necessary prosthetic or orthopedic appliances

It includes reimbursement of the cost of medicines for the illness or injury, payment to providers
of medical care, hospital care, surgical expenses, and the costs of rehabilitation appliances and
supplies. The medical services are limited to ward services of hospitals duly accredited by the
Department of Health (DOH).

A. Hospital Confinement

The benefit in case of sickness and injury shall not exceed the actual cost of ward services in
accredited hospital equipped with facilities necessary for the treatment of the disease and injury.

B. The subsequent attendance by an accredited physician

C. Medicines

Medicine reimbursements shall be in accordance with the amount prescribed under Republic
otherwise known as “Universally Accessible Cheaper Quality Medicine.

3. Career’s Allowance

Under this program, qualified beneficiaries are entitled to:

A. Physical Restoration Provision of physical or occupational therapy services to PWRDs

Including assistive devices, subject to funding limitations.

B. Skills Training for Re-employments can acquire new competencies, subject to his/her
potential and residual functional capacity.

C. Entrepreneurship Training Employees who want to set up their own livelihood undertaking
are given the chance to take part in entrepreneurship training.
All these benefits and services are provided to qualify Employees for free. Incentives for
Employers Hiring Persons with Disabilities otherwise known as the Magna Carat for Disabled
Persons

- Private entities are entitled to an additional deduction, from their gross income, equivalent to
twenty-five (25%) of the total amount paid as salaries and wages to disabled persons who meet
the required skills or qualifications, either as regular employee, apprentice, or learner

4. Death Benefits

The beneficiaries of the deceased employee are entitled to an income benefit if the employee
died as a result of a work-related injury or sickness. The surviving legitimate spouse is entitled to
receive income benefit until he or she remarries. Each dependent child, not exceeding five,
counted from the youngest and without substitution, shall receive ten percent (10%) more as
dependent’s pension

5. Funeral Benefits

- An amount of 20,000 may be granted for the Private Sector upon the death of an employee who
died as a result of a work-related accident or disease.

- Simultaneous Granting of EC Disability Benefits and Sick Leave Benefits for Private Sector.

- Simultaneous Granting of EC Disability Benefits and Special Leave Benefits for Women in the
Private and Public Sector.

- In the event that an employee’s gynecological disorders were found to be work-connected, all
qualified women employees in the private and in the public sector can still avail of EC disability
benefits in addition to Special Leave Benefits under Republic

Term and Conditions of Employment

1. Minimum Wage

The Wage Rationalization sets the minimum wage rates applicable per region, province and
industry sector. Workers that render services for a total of 48hours per week (8 hours per day,6
days per week) are entitled to receive at least the daily minimum wage.

2. Night Shift Differential

This refers to additional compensation of at least 10 percent of an employee’s applicable wage

rate, payable to employees (except exempt employees) who perform work between 10 p.m. to 6
a.m. of the following day.

3. Over time pay

1/ In addition to his normal wage, a worker who works over-time shall be entitled at least on the
following rate of payments:

a) In the case of work done between 6:00a.m. In the morning and l0:00 p.m. in the evening, at
the rate of 1.5 multiplied by the ordinary hourly rate;

b) In the case of night time work between 10p.m. in the evening and 6 a.m. in the morning, at the
rate of 1.75 (one and three fourth) multiplied by the ordinary hourly rate;

c) In the case of work done on weekly rest day, at the rate of 2 multiplied by the ordinary hourly
rate;

d) In the case of work done on a public holiday, at the rate of 2.5 multiplied by the ordinary
hourly rate.

2/ Payment for over-time work shall be effected on the day fixed for payment of wage and
together with wage

4. Rest Days

1/ Where the nature of the work or the service provided by the employer is such that the weekly
rest cannot fall on Sunday, another day may be made a weekly rest instead.

2/ the provisions of Sub-Article (1) of this Article shall be applicable to the following and other
similar activities:

a) Work that has to supply the necessities of life to meet the health, recreational or cultural
requirements of the general public;

b) Essential public services as stipulated under Article 137(2) of this Proclamation.

c) Work which, because of its nature or for technical reasons, if interrupted or postponed could
cause difficulties or damages.

5. Holidays

Public holidays observed under the relevant law shall be paid Public Holidays.

1/ A worker who is paid on a monthly basis shall incur no reduction of his wages on account of
having not worked on a Public Holiday.

2/ the payment of wages on a Public Holiday to a worker other than workers mentioned under
Sub-Article (1) of this Article shall be determined by his contract of employment or collective
agreement.
Payment for Working on Public Holidays

1) A worker shall be paid his hourly wages multiplied by two for each hour of work on a public
holiday.

2) Where a public holiday coincides with another public holiday or falls on a rest day designated
by law, a worker shall be entitled to only one public holiday payment for working on such a day.

6. LEAVES

- Maternity Leave

1/ An employer shall grant leave to a pregnant worker with pay, for medical examination
connected with her pregnancy, provided, however, that she m a y b e r e q u i r e d to present a
medical certificate of her examination.

2/ A pregnant worker shall, upon the recommendation of a physician, be entitled to a leave with
pay.

3/ A pregnant worker shall be granted a period of 30 consecutive days of leave with pay of pre-
natal leave and a period of 90 consecutive days of leave post- natal.

4/ Where a pregnant worker does not deliver within the 30 working days of her pre-natal leave,
she is entitled to an additional leave until her confinement in accordance with Sub-Article (2) of
this Article. However, if birth takes place before the expiry of the pre-natal leave, the 90 working
days of post-natal leave shall commence.

5/ on any pregnant worker certified her giving up pregnancy by physician shall not be
implemented Article 86 provision of leave without pay.

Leave for family events

1/ A worker shall been titled to leave with pay for three working days where;

a) He concludes marriage; or

b) His spouse, descendants, ascendants, brother, sister, uncle, aunt relative whether

By consanguinity or affinity dies entitled 3 Working days leave with pay.

2/ A male employee shall be entitled to three Consecutive days paternity leave with full pay

3/ A worker shall be entitled to leave without pay for up to five consecutive days in the Case of
exceptional and serious events. However, such leave may be granted only twice in a budget year.

Leave for special purpose

1/ A worker who appears at hearings before bodies competent to hear labor disputes or to enforce
labor laws shall be granted leave with pay only for the time utilized for the said purpose.

2/ A worker shall be granted leave with pay for the purpose of exercising his voting rights or
discharging his obligation as a witness before judicial or quasi-judicial organs.

3/the manner in which educational or training leave is to be granted and the form and extent of
the financial assistance to be provided may be determined in a collective agreement or work
rules.

Duration of Leave

1/ Where a worker, after having completed his probation, is rendered incapable of working due
to sickness other than employment injury, he shall be entitled to a sick leave.

2/ The leave referred to in Sub-Article (1) of this Article shall, in no case, be more than six

Months counted consecutively or separately in the course of any twelve months’ period starting
from the first day of his sickness.

3/ where a worker absents himself from work due to sickness, he shall, except where the
employer is in a position to be aware of the sickness or it is impractical, notify the employer on
the day following his absence.

8. Retirement Benefits

Section 1.HArticle 287 of Presidential Decree No. 442 60 years of age (but not beyond 65) and
served for at least 5 years Benefits = 15 days salary + service incentive leave (cash equivalent) +
13th month pay

9. Separation Pay

Basis of separation pay:

1. Introduction of labor-saving devices

2. Redundancy

3. Retrenchment

4. Closure or Cessation of business

5. Disease the employee found to be suffering and whose continued employment is prohibited by
law or is prejudicial to his health as well as the health of his co-employees.

10. Service Charges

All service charges collected by hotels, restaurants and similar establishments shall be distributed
at the rate of eighty-five percent (85%) for all covered employees and fifteen percent (15%) for
management .The share of the employees shall be equally distributed among them. In case the
service charge is abolished, the share of the covered employees shall be considered integrated in
their wages

11. DISABILITY BENEFITS

-Temporary Total Disability ( TTD )

income benefit = 90% of his average daily salary

coverage = continuous benefit pay must not exceed 129 working days

-Permanent Total Disability ( PTD )

income benefit = equivalent to his monthly income benefit + 10% for each dependent child (not
exceeding 5 dependents).guaranteed monthly benefit = five years

-Permanent Total Disability ( PTD )

The following disabilities shall be deemed total and permanent:

(1) Temporary total disability lasting continuously for more than one hundred twenty days,
except as otherwise provided for in the Rules;

(2) Complete loss of sight of both eyes;

(3) Loss of two limbs at or above the ankle or wrist;

(4) Permanent complete paralysis of two limbs;

(5) Brain injury resulting in incurable imbecility or insanity; and

(6) Such cases as determined by the Medical Director of the System and approved by the

12. Mid-year Bonus (14th month pay)

4Shall apply to all personnel occupying regular, or contractual positions, rendering full-time
basis, covered by the Compensation and Position Classification System (CPCS) under RA No.
6758, as amended by Congress Joint Resolution No.1, Series of 1994, and No.4, Series of
2009.Equivalent to 1 month basic pay = given not earlier than May 15 (of current

-The following are excluded from the MC: Government personnel that are exempted from RA
No. 6758, as amended; those hired without employee-employer relationships and funded from
non-Personal Services appropriations/budgets, as follows:
1. Consultants and experts hired for a limited period to perform specific services or Activities
with expected outputs;

2. Laborers hired through job contracts and those paid on piecework basis;

3. Students workers and apprentices; and

4. Individuals and groups of people whose services are engaged through job orders, contracts or
service, or others similarly situated.

Employee Services

Employee services can include anything an employer deems necessary to provide as a perk for
employees. No real limit exists as to what can be included as an employee service.

4Common Types of Employee Services

- Flexible Work Schedules

These programs are arranged to meet an organization's goals while assisting employees with
their personal lives.

Example:

Because of technological advances, some employers allow employees to work from home one or
several days per week.

This gives employees some flexibility to maintain a balanced personal life and continue to
successfully complete their work responsibilities

-Wellness Program

In 2008, the Harvard School of Public Health noted a national study by Harris Interactive
showing that 91% of employers "believed they could reduce their health care costs by
influencing employees to adopt healthier lifestyles. “Many” employers offer wellness programs
to improve employees' health. These programs can be applied in a variety of ways, including
reimbursable gym membership costs, on-site fitness facilities, and events to promote healthy
living and eating.

-Child Care Services

Working parents having access to a work-site child care center positively affects their ability to
successfully concentrate on the job and be productive

-Product/Service Discounts
Most individuals clip coupons and shop for sales to save money. Some employers work with
local and national retail product and service providers to offer employees discounts for their
personal needs. These types of programs can include everything from discounts on groceries to
purchasing a vehicle at a lower cost. Free or discounted on-site food and drink services such as
lunch, snacks and coffee can also assist employees by saving them time and money.

These types of services are often appreciated by employees and can be implemented at little or
no cost