Employee Benefits and Services

EMPLOYEE BENEFITS
AND SERVICES
Anthony Von D. Sayoto
Jester Ruth A. Sayoto
Human Resource Management
Prof. Ronan M. Cajigal

Definition of Terms
• Compensation- is the total cash or non-cash payments that you
give to an employee in exchange for the work they do for your
business.
• Direct Compensation- involves monetary payments to
employees.
• Indirect compensation- involves expenditures made by an
employer and is typically referred to as the “fringe benefits”.
Definition of Terms
• Benefits- are designed to help employees
meet the basic needs.
• Services- benefits that employers offer to
help instill loyalty among their workers.
Philippine Benefits Summary
• Overtime Pay
The employee who renders service beyond the
schedule indicated in the contract will be given
additional compensation equivalent to the regular
wage including at least 25% premium.
• Premium Pay
An overtime pay for rest days and official
holidays. Employee shall be paid an additional
compensation from the rate of the first eight hours
on a holiday/rest day plus at least 30%.
• Night Shift Differential
It applies to employees who work between
10:00 PM and 6:00 AM. Additional 10% premium
is applied for every hour at work.
• Separation Pay
It is also part of the Labor Code and is given
to employees terminated from the company.
The only exemption are those terminated
because of misconduct or crime involvement.
• Retirement Pay
• Upon the age of 60 years or more, an employee who has served at the
establishment for at least five years may be granted a retirement pay equivalent to at
least one-half month of salary for every year of service. A fraction of at least six
months is considered as one whole year.
• As stipulated by the DOLE National Wages and Productivity Commission, “The
minimum retirement pay shall be equivalent to one-half (1/2) month salary for every
year of service, a fraction of at least six (6) months being considered as one (1)
whole year.”
Leave Benefits Summary
• Parental leave (Maternity)
Any pregnant woman employee who has worked with the company for at least
six months will be granted a maternity leave of at least two weeks prior to her due
date (expected date of delivery) and four weeks after normal delivery or
miscarriage with full pay based on her regular salary. As of February 21, 2019,
the Expanded Maternity Leave (EML) Bill has been signed into law. This law
grants 105 days of paid maternity leave credits. The law also allows new mothers
to extend this leave for an additional 30 days, but this will be unpaid.
• Parental leave (Paternity)
The R.A No. 8187, or Paternity Leave Act of 1996, grants seven (7)
days of fully paid leave to married fathers. This is effective up to the
first four deliveries of the legitimate spouse. Under the EML, seven
days of a woman’s paid maternity leave credits can be transferred to
fathers, extending the allowed seven-day paternity to be extended to 14.
• Solo Parent
Solo or single mothers and fathers have seven days leave with pay
for every year of service, on top of other leave privileges, e.g.
Maternity or Paternity Leave. Solo mothers are covered by the EML,
so they also get 105 days of paid maternity leave credits. However,
solo mothers can extend their leave for 15 days and these should be
paid leaves.
Other Benefits
• De Minimis Benefits
These are either relatively small amounts of money or leave
credits that are optional for employers to grant.
Examples are calamity leave, rice subsidy,
transportation/clothing/laundry allowance, daily meal allowance,
other goods that are not monetary.
Public School
Teachers Benefits
Musing
References:
• https://
www.slideshare.net/mobile/geomarbalajo/employee-benefits-and-services
-philippines
• https://
www.slideshare.net/mobile/jigmeangchukbodh/employee-benefits-and-ser
vices-14295913
• https://
www.ecomparemo.com/info/heres-a-full-list-of-mandatory-benefits-for-re
gular-employees-in-the-philippines
• https://guroph.com

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EMPLOYEE BENEFITS

Prof. Ronan M. Cajigal

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