11. Employee Benefits

Social Security

In the Philippines, the Social Security Program is composed of package of benefits in the event of death, disability, sickness, maternity, old age and unemployment. The monthly contribution rate is currently at 14% of the employee’s monthly salary credit with the 9.5% thereof being contributed by the employer.

Healthcare and Insurances

There is in force a compulsory health insurance program of the government, the National Health Insurance Program, established to provide universal health insurance coverage and ensure affordable, acceptable, available and accessible health care services for all citizens of the Philippines. For 2024, the monthly premium rate was raised to 5% of the employee’s monthly basic salary.

Required Leave

Philippine laws require employers to provide the following paid leaves to their employees:

• Service Incentive Leave: Five (5) days for all employees who have rendered at least one year of service;
• Maternity leave: One hundred five (105) days for pregnant women, regardless of whether the woman gave birth by normal delivery or caesarean delivery. For miscarriages or emergency termination of pregnancy, the woman is given a 60-day leave. For solo parents, an additional 15 days maternity leave shall be granted. Further, the female employee, at her option, may allocate up to 7 days of paid leave credits to the child’s father (whether or not married) or to the alternate caregiver or to the female employee’s partner, as the case may be;
• Paternity leave: Seven (7) days for the first four (4) deliveries of the legitimate spouse with whom a married man is cohabiting;
• Parental leave for solo parents: Seven (7) days for solo parents who have rendered at least one year of sevice;
• Special leave benefit for women: Two (2) months following surgery caused by gynecological disorders; and
• Leave under the Violence Against Women Act: Ten (10) days extendible when the necessity arises as specified in the protection order.

Pensions: Mandatory and Typically Provided

All employees in the private sector, regardless of their job title, rank, or how they are paid, have the right to receive retirement benefits. These benefits are given when they reach the age of 65 for compulsory retirement, or at the age of 60 or older for optional retirement, but not beyond 65. The amount of retirement pay that employees are entitled to is calculated based on one-half month of salary for each year of service. If an employee has served for at least six months in a given year, it is considered as a whole year.