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6 Basic Employee Benefits in the Philippine LABOR CODE

Under the Philippine Labor Code are six basic employee benefits, for an individual
who is legally working in the Philippines. These basic employee benefits cover
most occupations, agricultural or non-agricultural, provided that the associated
compensation for every salient Daily Minimum Wages still apply.

Under general circumstances, any legally employed worker who work eight (8) hours a day on a 48 hours
a week schedule is covered under the Philippine Labor Code. Commencing from the time the employee
starts to work and until twenty-four (24) hours later is considered one work day. The eight-hour work need
not be continuous and may be staggered within the one workday stretch.

The term "employee" denotes any person legally employed in the Philippines, any person compulsorily
covered by the GSIS under the Commonwealth Act 186, or any person compulsorily covered by the SSS
under Republic Act 1161. Such employee is automatically covered for these government mandated
employee benefits.

Here are the Basic Benefits for Employees covered by the Philippine Labor Code:

1. Social Security Systems (SSS) Contributions

Republic Act No. 8282, otherwise known as the Social Security Act of 1997, refers to the social
security system in the Philippines that is initiated, developed and promoted by its Government. The
social security system is aimed at providing protection for the SSS member against socially
recognized hazard conditions, such as sickness, disability, maternity, old age and death, or other
such contingencies not stated but resulted in loss of income or results to a financial burden.

The employee and his/her employer(s) are to contribute for the social security benefits of the said
employee in accordance to a given schedule by the Philippine Social Security System. Monthly
employee contribution depends on the employee's actual monthly salary. (See: Circular No. 33-P)

2. Contribution to National Health Insurance Program (NHIP)

The employee and his/her employer(s) are to contribute for the medical insurance of the said
employee in accordance to the Republic Act 7835 on Medicare Program which is administered by
the Philippine Health Insurance Corporation (Philhealth). Monthly employee contribution depends
on the employee's actual monthly salary. The contribution schedule is provided by Philhealth. (See:
Philhealth Premium Contribution Schedule)
3. Contribution to Home Development and Mutual Fund (HDMF)
The employer(s) is required to contribute per month not less than P100.00 to the employee's Home
Development and Mutual Fund. In accordance to the periodic remittance schedule provided by
HDMF, the employer(s) will remit this contribution, in addition to that of the employee's, which is to
be deducted from his/her payroll.
4. The 13th Month Pay
As mandated by the Presidential Decree No. 851, the employee shall receive a bonus salary
equivalent to one (1) month, regardless of the nature of his/her employment, not later than
December 24 of every year.

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 5. Service Incentive Leave
Book III, Chapter III of the Labor Code of the Philippines covers the employee's benefit for Service
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. (See: Article 95, Conditions
of Employment)
6. Meal and Rest Periods
Under Article 83, the employee is provided a one-hour employee benefit for regular meals, when
working on an eight (8 hour) stretch. Employees are also provided adequate rest periods in the
morning and afternoon which shall be counted as hours worked. (See: Article 83, Conditions of
Employment).

All these provisions apply in addition to every new employee benefits furnished that are in excess of what
is stipulated by the Philippine Labor Code. Other regular Philippine employees benefits furnished by the
employer(s) but are outside of the mandated employee benefit includes, but not limited to:

1. Housing and housing plans

2. Expense Account
3. Company sponsored vehicle
4. Paid Holiday and Vacation
5. Educational assistance or plans to the employee and/or his direct dependents.

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