Just a review on Government-mandated benefits. So, what are the benefits that are REQUIRED by the Philippine government to be given to working Filipinos? =13th Month Pay – Based on Presidential Decree No. 851 , all Filipino employees are entitled to a year-end bonus equivalent to one (1) month salary regardless of the nature of their employment. The 13th month pay is to be given no later than December 24 of every year a worker is employed. =Overtime Pay and Holiday/Rest Day Pay - Under Article 87 , an employee who renders over eight (8) hours of service per day shall be given an overtime pay which is equivalent to his regular hourly wage plus at least twenty-five percent (25%) thereof. Under Article 93, if an employee is asked to work on their scheduled rest day or on a non-working holiday, the employee shall be paid an additional compensation of at least thirty percent (30%) of his regular wage. =Service Incentive Leave – According to Article 95 of the Labor Code of the Philippines, an employee who has worked for at least one (1) year in a company is entitled to five (5) days leave of absence, with pay, every year. If the employee does not avail of these paid leaves, the company may opt to have them do a mandatory leave of absence, with pay, or convert these unavailed paid leaves to their cash equivalents, to be given at the end of each year. =Night Shift Differential – According to Article 86 , every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work performed between ten o’clock in the evening and six o’clock in the morning. Other company benefits that are government mandated: Social Security Sytem (SSS) Philippine Health Insurance (PhilHealth) Home Development Mutual Fund (Pag-ibig Fund) Other company benefits that are not government mandated, but are usually given to employees anyway are: Holiday/Christmas Bonus Mid-Year Bonus Cost of Living Allowances Paid Holiday and Vacation Leaves All the benefits mentioned above, that are enjoyed by Filipino employees, are what “sweetens the deal” more than the regular salaries that they receive. When faced with a choice between two jobs that pay more or less the same in terms of salary, an employee will always consider company benefits in order to make a sound decision. In the end, companies who know how to take good care of their employees will have a lower employee turn-over rate than those that give no more than government-required benefits.
Posted on: Thu, 07 Aug 2014 05:56:50 +0000
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