BENEFITS OF WORKERS

GROUP 4:
SZE, TULAY, VALENCIA, VILLACAMPA, VILLAFUERTE, VILLALINO, VILLANUEVA, WE, WU

WHAT IS PHILIPPINE LABOR CODE?

The Labor Code of the Philippines is the legal code
governing employment practices and labor relations in
the Philippines.
The Labor Code sets the rules for hiring and firing of
private employees; the conditions of work including
maximum work hours and overtime; employee benefits
such as holiday pay, thirteenth-month pay and
retirement pay; and the guidelines in the organization
and membership in labor unions as well as in collective
bargaining.

WHAT IS AN EMPLOYEE BENEFIT?

Employee benefits and benefits
in kind (also called fringe
benefits, perquisites, or perks)
include various types of nonwage compensation provided to
employees in addition to their
normal wages or salaries.

6 BASIC EMPLOYEE BENEFITS IN THE PHILIPPINE LABOR CODE

Social Security Systems (SSS) Contributors
Contribution to National Health Insurance Program (NHIP)
Contribution to Home Development and Mutual Fund (HDMF)
The 13th Month Pay
Service Incentive Leave
Meal and Rest Periods

*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.

DIFFERENCE BETWEEN CONTRACTUAL AND REGULAR EMPLOYEES BENEFITS

BENEFITS

Contractual
Employees

Regular
Employees

Sick Leaves

None

Yes

Vaca0on Leaves

None

Yes

SSS Private Sector

Company Discre0on Yes

GSIS Public Sector

Company Discre0on Yes

Home Development Mutual Fund (HDMF)

none

Yes

Philippine Health Insurance Corpora0on ( PhilHealth)

none

Yes

HMO

none

Yes

Other company benets (e.g. rice allowance, transporta0on

allowance, etc.)

Typically none

Yes

GENERAL BENEFITS

HOLIDAYS
Under Proclamation No. 1105
2016 Declared Holidays
11 paid regular holidays
9 national special hoilidays
1 local special holiday

VACATION
13 vacation days
Additional 1 vacation day
nd
every year starting on the 2
year of service
Maximum total vacation leave
is 18 days

RETIREMENT
100% funded by the company
One months base salary per year of service base on
employees latest rate upon normal retirement at age
60, death, or total and permanent disability
Early retirement benefit can be available to 10 years of
service equal to 50% of normal retirement benefit

HEALTH CARE
Comprehensive health care coverage through Medicard accredited
hospital and doctors

LEAVES
Sick Leave

Solo Parent Leave

Paternity Leave

Calamity Leave

Bereavement

Magna Carta for

Women

DISABILITY / LIFE INSURANCE

Employee life insurance is 100% funded by the company
Life Insurance Benefit Limit: 26 x monthly base salary
based on the employees latest basic rate
Accident, Death, and Disability Benefit Limit: 13 x
monthly salary
Total Permanent Disability Benefit Limit: 26 x monthly
salary
Terminal Illness Benefit Limit: 50% of Life, maximum of
Php 3.5M
Critical Illness Benefit: 60% of Life, maximum of Php 1M

OTHER BENEFITS
13 Month: w/ one year of service as of Nov. 20 = 1 months pay
th

Mid-year Bonus: equivalent to half month pay

Rice Allowance: rice subsidy in cash; incorporated in the payroll,
tax-free, every month
Meal Subsidy: to partially cover meals every day that the associate
reports for work and to alleviate his expenses; employee must
render minimum no. of hours
Tuition Fee Subsidy: P2,500 given in April each year

OTHER BENEFITS
Employees Educational Assistance: reimbursement of educational
expenses if the degree or course is relevant to the employees job
Kapwa Tulong Program: cash assistance provided in cases of death
of death of immediate dependents or calamity
Attendance Bonus: 1 month of perfect attendance = 1 day salary
Prolong Sickness (PSL) Benefits: provide regular employees w/
salary protection during recuperation period
Loyalty Token: every 5 years of continuous service = gift check or
token & plaque of appreciation

SOCIAL SECURITY SYSTEM

A social insurance program in the Philippines to workers
in the private sector, wage earners as well as selfemployed persons. It is implemented in accordance with
the Republic Act No.1161, better
known as Social Security Act of 1954.

BENEFITS
SICKNESS - The sickness benefit is a daily cash
allowance paid for the number of days a member is
unable to work due to sickness or injury.
MATERNITY - The maternity benefit is a daily cash
allowance granted to a female member who was
unable to work due to childbirth or miscarriage.
DISABILITY - medical management of illnesses and
injuries and their corresponding impairment ratings.

BENEFITS
RETIREMENT - The retirement benefit is a cash
benefit either in monthly pension or lump sum
paid to a member who can no longer work due to
old age.
DEATH - It is a cash benefit either in monthly
pension or lump sum paid to the beneficiaries of a
deceased member.
FUNERAL - It is a cash benefit given to whoever
pays the burial expenses of the deceased member
or pensioner.

LOANING
SALARY - calculated based on a member's
particular monthly salary
CALAMITY - for instances when the government
has declared a state of calamity in the area where an
SSS member lives, following disasters such as
flooding and earthquakes

COVERAGE
1. COMPULSORY COVERAGE
Employers
Employees
Self-employed Persons
2. VOLUNTARY COVERAGE
Separated members
Overseas Filipino Workers
Non-working spouse of SSS members

THEGOVERNMENT SERVICE INSURANCE SYSTEM(GSIS)

Paseguruhan ng mga Naglilingkod sa Pamahalaan
Government owned and controlled corporation (GOCC) of the Philippines
created by Commonwealth Act No. 186 passed on November 14, 1936.

G.S.I.S. BENEFITS
The GSIS is mandated to provide and administer the following social security
benefits for government employees:
compulsory life insurance
Optional life insurance
Retirement benefits
disability benefits for work-related contingencies and death benefits.
Active GSIS members are entitled to the following loan privileges:
consolidated, policy, and emergency loans.
In addition, the GSIS is entrusted with the administration of the General
Insurance Fund by virtue of RA656 of the Property Insurance Law. It provides
insurance coverage to assets and properties which have government insurable
interests.

G.S.I.S. BENEFITS
Updated list of GSIS benefits in the Philippines. GSIS gives and
supports amazing benefits to all government employees and members
including insurance, retirement, pension, loans, scholarship and many
more.
These are the types of beneficiaries:
Active Members government employees at present who are
working in any government agency or government oce
Old Age Pensioners these are retired government employees
or ocials who are already receiving pension from GSIS
Survivorship Pensioners these are beneficiaries or dependents
of deceased GSIS member or old age pensioner (example: spouse
of a deceased pensioner or member, minor child of the deceased)

LIFE INSURANCE BENEFITS:

Enhanced Life Policy (ELP) is an enhanced life insurance coverage that gives death
benefits to the members family or beneficiaries and cash in the form of termination value
which you can withdraw upon retirement or separation of service. In a nutshell, with ELP
youll get Cash Termination Value + death benefits + policy loan + dividendsif any.
If you entered the government service after July 31, 2003, you are automatically covered
with this policy.
Life Endowment Policy (LEP) this is known as the old insurance policy oered to
members who entered the government service before August 1, 2003. This insurance
policy will givematurity benefit + cash surrender value + death benefit + policy
loan + dividendsif any. If you are under LEP, you can also convert your policy into ELP
according to GSIS approval.

RETIREMENT BENEFITS:
Retirement under RA 8291 (5 year lump sum cash payment or instant pension + monthly
pension for life) this is the most common type of retirement plan and pension chosen by
many government retirees in the Philippines because you will get a lump sum amount of money
and monthly pension for life.
Retirement under RA 660 a.k.a. Magic 87 (annuity + lifetime pension) if your age + years
of service = 87, then you can avail of this retirement plan.
Retirement under RA 1616 (refund all your GSIS premiums + gratuity payment from
employer) under this option, you must have rendered at least 20 years of service regardless of
age and employment status

RETIREMENT BENEFITS:
Portability Law RA 7699 (Combine your GSIS + SSS CYS)you have the option to
combine both your GSIS and SSS creditable years of service to qualify for retirement
programs oered by both pension funds
Retirement under Presidential Decree 1146 (Basic monthly Pension or Cash
Payment) this retirement plan is for those who have been working in the government
after May 31, 1977 but before June 24, 1997. You have the option if you want to receive
pension every month and cash payment.

OTHER BENEFITS:
GSIS Survivorship Benefits:
These are cash and/or pension benefits provided for the surviving legal spouse (as long as he/she
doesnt remarry), dependent minor children, or incapacitated beneficiary, when a member or a
pensioner dies
GSIS Burial Benefit:
Burial benefits are funeral benefits given to GSIS retirees survivors or any person who shouldered
the funeral expenses of the deceased GSIS member.
GSIS Disability Benefits:
These are benefits resulting from disability or incapacity to work because of physical or mental
injury, impairment or disease. GSIS assigns medical evaluator for members who avail disability
benefits.

OTHER BENEFITS:
GSIS EC Benefits:
It is also known as Employees Compensation benefit. It is another disability benefit provided for public and
private sector workers and their dependents in the event of work-related injury, sickness, disability or death.
Housing:
Their acquired assets are available for cash basis and as is where is policy for interested members
General Insurance:
GSIS also oers very cheap insurance products such as personal accident insurance coverage, fire,
comprehensive insurance for vehicles, and other traditional insurance products like aviation, bonds, property
floater, marine cargo and marine haul.
GSIS Scholarship:
The Government Service Insurance System also oers scholarship program every academic year for children of
low-income GSIS members. The selected qualified scholars will receive up to P 200,000 tuition and
miscellaneous fees per semester plus monthly allowance of P2000.

GSIS SCHOLARSHIP PROGRAM (GS) FOR THIS YEAR

Opening of scholarships for any college level during the K to 12
programs transition period from AY 2016-2017 to AY 2017-2018.
The eligibility requirement shall revert back to the original policy
allowing only college freshman applicants in AY 2018-2019 onwards.
Aside from active and regular GSIS members with salary grade of 24
or below or its equivalent job level.
All Permanent Total Disability (PTD) pensioners who are below
sixty (60) years of age may now apply their children using their last
compensation as basis for the selection process.
Childless married or single member may nominate their dependent
but once chosen, a childlress married or single member grantee may
only avail of the scholarship once.
Increase of scholarship slots from 200 to 400

GSIS SCHOLARSHIP PROGRAM (GS) FOR THIS YEAR

With at least 40 slots allotted for the special sectors of Persons with
Disabilities (PWD), Indigenous People (IP) and Solo/Single Parents
(SP) as defined under Republic Act No. 8972 (Solo Parents Welfare
Act of 2000).
Increase in monthly stipend from Php 2,000 to Php 3,000.
Grant of monetary incentive to those who will graduate with latin
honors:
cum laude Php 20,000
magna cum laude Php 30,000
summa cum laude Php 50,000

G.S.I.S. ECARD

Programs & Services OWWA is the government welfare institution that protects and
promotes the interest of member-Overseas Filipino Workers. It develops responsive
programs and services for the social protection of its members. With a membership fee of
US$25.00, an OFW is entitled to the following benefits and services

OVERSEAS WORKERS WELFARE ADMINISTRATION (OWWA)

SOCIAL BENEFITS
Disability and Dismemberment Benefit Disability / dismemberment benefit of up to Php
100,000.00 for injuries sustained due to accidents while working abroad.
Death Benefit A Php 100,000.00 benefit in case of death due to natural cause and Php
200,000.00 in case of death due to accident, shall be received by the legal heirs.
Burial Benefit On top of the death benefit, a rider of Php 20,000.00 shall be received by
the legal heir for the funeral expenses

EDUCATION AND TRAINING BENEFITS

A. Pre-Departure Education Program (PDEP)
A mandatory orientation / training for all departing OFWs. It consists of the following:
1. Country Specific Pre-Departure Orientation Seminar (PDOS)
A whole day orientation to OFWs consisting of a comprehensive module on employment contract
familiarization, profile of the country of destination, stages of the OFWs life, health and safety, airport
procedures, government programs and services.
2. Comprehensive Pre-Departure Education Program (CPDEP)
A 3 to 6-day live-out training for Household Service Workers (HSWs) consisting of language training,
culture familiarization and stress management to prepare them for life overseas

EDUCATION AND TRAINING BENEFITS

Scholarship and Incentive Programs for OFWS / Seafarers
a) Seafarer's Upgrading Program (SUP) - Scholarships for attendance to short-term
upgrading courses for seafarers. First avail consists of Php 7,500.00 training assistance.
Avail in another training course every after 3 recorded membership

EDUCATION AND TRAINING BENEFITS

Scholarship for Dependents
a) Education for Development Scholarship Program (EDSP) - Scholarships for qualified dependents of OFWs
consisting of a maximum of Php 60,000.00 per school year, leading to a four-to-five year baccalaureate course in
any college or university.
b) OFW Dependents Scholarship Program (OFWDSP) - Scholarships consisting of a maximum of Php
20,000.00 assistance per school year leading to a baccalaureate or associate degree in a state college or
university. OFW parents must have a monthly salary of not more than US$400.00.
c) Education and Livelihood Assistance Program (ELAP) - Scholarships for survivors of deceased OFWs
consisting of Php 5,000.00 for elementary, Php 8,000.00 for high school, Php 10,000.00 for college (per school
year) and livelihood assistance of Php 15,000.00 for the surviving spouse

WORKERS WELFARE ASSISTANCE PROGRAM

A. On-Site Welfare Case Management
Includes requests for assistance on OFWs' whereabouts, pscho-social consoling, conciliation,
airport assistance, hospital/prison/work camp visitations and legal assistance to OFWs who
wish to pursue labor / welfare case in the court of the host country.
B. In-Country Welfare Case Management
Includes requests by families and NOKs (next-of-kin) for assistance from Post, post-repatriation
assistance, counseling, referrals, and other concerns. Requests for assistance from NOKs or from
OFWs can be channeled through the 24/7 Operation Center and the OWWA Regional Oces.

REPATRIATION PROGRAM
Includes bringing distressed OFWs back to the country or bringing back of human remains.
Emergency repatriation is carried out in the event of any of political unrest or natural
calamities.
Repatriated OFWs are accorded with airport assistance, temporary shelter at the Halfway
Home, psycho-social counseling, stresss debriefing, and provision of transport services or
fares for their on-ward travel to their provinces.

REINTEGRATION PROGRAM
Reintegration is a way of preparing for the return of OFWs into the Philippine society.
A. Reintegration Preparedness (On-Site)
Includes trainings on value formation, financial literacy, entrepreneurial development
training (EDT), techno-skills and capacity building trainings.

REINTEGRATION PROGRAM
B. Reintegration (In-Country)
Consists of job referrals, business counseling, community organizing, financial literacy seminar, networking with
support institutions and social preparation programs. Reintegration Program is being implemented by OWWA and
DOLE-National Reintegration Center for OFWs (NRCO).
2 Billion-Peso Reintegration Fund for enterprise development is a loan facility in cooperation with the Land Bank of
the Philippines and the Development Bank of the Philippines, where a member or their legal dependent can avail of
Php 300,000.00 to Php 2 million.
"Balik-Pinas, Balik Hanapbuhay" is a program of DOLE-OWWA where displaced / distressed workers can avail of
either starter kits worth Php 7,500.00 or a livelihood assistance of Php 10,000.00

PHILHEALTH - PHILIPPINE HEALTH INSURANCE CORPORATION

PhilHealth, which administers the National Health Insurance Program of the Philippines,
is a tax-exempt, government-owned and government-controlled corporation (GOCC) of
the Philippines, and is attached to theDepartment of Health.

BENEFITS
In-patient care:
room and board
services of health care professionals
diagnostic, laboratory, and other medical
examination services
user of surgical or medical equipment and
facilities
prescription drugs and biologicals
health education

BENEFITS
Out-patient medical and surgical care:
services of health care professionals
diagnostic, laboratory and other medical
services
personal preventive services
prescription drugs and biologicals
health education
Emergency and transfer services
Health Education Packages

PATIENT GROUPS
Group

Formal

Premiums

Enrollment

Employer and worker

each pay half, up to 2.5%
(maximum of 3%) of
As of hire date
income up to 3,000
pesos

Payment

3 months

Indigent

2,400 pesos annually

National
Government, Local
Goverment a fully
None
subsidizes
enrollment
annually.

Retiree

Free lifetime coverage

(RA 10645)

Age 60 years and

up .

Non-Formal

2,400 pesos annually for

members earning
P25,000 and below
3,600 pesos annually for
members earning more
than P25,000

Enrollment date.

OFW
(Landbased)

2,400 pesos annually

Emigration date

No subsidy.
Payment is on
emigration date
then annually.

APPLICATION FOR PHILHEALTH MEMBERSHIP

1.First, bring the required papers:
2.At least one valid ID.
*Birth Certificate (recommended), Social Security System (SSS ID),
Government Service Insurance System (GSIS ID), Driver's
License, PRC ID, Senior Citizen's ID, OWWA ID, DSWD ID,
OFW ID etc.
*More requirements if Married, have children and have retiree
parents.
3.Go to the PhilHealth oce.
4.Apply for PhilHealth membership.
5.Fill up the PhilHealth Member Registration Form

APPLICATION FOR PHILHEALTH MEMBERSHIP

6.The application will be processed
7.Pay for initial contribution (Php 600 good for 3 months)
8.Claim PhilHealth ID after a week or two weeks depending
on the PhilHealth oce.
*PhilHealth members and/or their dependents are entitled to avail of the benefits if
either of the following is met:
*Paid premium contribution for at least three (3) months within six (6) months
prior to the first day of availment; or
*Paid in full the required premium for the calendar year

PAG-IBIG MEMBERSHIP
MANDATORY MEMBERSHIP:
All employees who are ought to be covered by the
Social Security System (SSS). It shall include, but are
not limited to:
A private employee (permanent, temporary or
provisional) who is not over 60 years old
A self-employed person regardless of trade,
business or occupation, with and income of at least
P1000/month and not over sixty (60) years old
An expatriate who is not more than sixty (60)
years old and is compulsorily covered by the SSS,
regardless of citizenship, nature and duration of
employment, and the manner by which the
compensation is paid. In the absence of an explicit
exemption from SSS coverage, the said expatriate,
upon assumption of oce, shall be covered by the
Fund.

PAG-IBIG MEMBERSHIP
MANDATORY MEMBERSHIP:
All employees who are subject to
mandatory coverage by the Government
Service Insurance System (GSIS),
regardless of their status of
appointment, including members of the
judiciary and constitutional
commissions
Filipinos employed by foreign-based
employers, whether they are deployed
here or abroad or a combination thereof

PAG-IBIG MEMBERSHIP
VOLUNTARY MEMBERSHIP:
An individual at least 18 years old but not more than
65 years old may register with the Fund under
voluntary membership. However, said individual shall
be required to comply with the set of rules and
regulations for PAG-IBIG members including the
amount of contribution and schedule of payment. In
addition, they shall be subject to the eligibility
requirements in the event of availment of loans and
other programs/benefits oered by the fund.
The following shall be allowed to apply for voluntary
membership:
Non-working spouses who devote full time to
managing the household and family aairs, unless
they also engage in another vocation or employment
which is subject to mandatory coverage, provided the
employed spouse is a registered Pag- IBIG member
and consents to the Fund membership of the nonworking spouse

PAG-IBIG MEMBERSHIP
VOLUNTARY MEMBERSHIP:
Filipino employees of foreign government or
international organization, or their wholly-owned
instrumentality based in the Philippines, in the
absence of an administrative agreement with the
Fund
Employees of an employer who is granted a
waiver or suspension of coverage by the Fund
under RA 9679
A member separated from employment, local or
abroad, or ceased to be self-employed but would
like to continue paying his/her personal
contribution. Such member may be a pensioner,
investor, or any other individual with passive
income or allowances
Such other earning individuals/groups as may be
determined by the Board by rules and regulations

PAG-IBIG BENEFITS CLAIM

Pag-IBIG Fund guarantees the refund of
member's total accumulated savings (TAV),
which consists of the member's accumulated
contributions, the employer counterpart
contributions, if any, and the dividend earnings
credited to the member's account upon
occurrence of any of the following grounds for
withdrawal:
Membership maturity. The member must
have remitted at least 240 monthly
membership contributions with the Fund.
For Pag-IBIG Overseas Program (POP)
members, membership with the Fund shall
be at the end of five (5), ten (10), fifteen
(15), or twenty (20) years depending on the
option of the member upon membership
registration.

PAG-IBIG BENEFITS CLAIM

Retirement. The member shall be compulsorily
retired upon reaching age 65. He may however, opt
to retire upon the occurrence of any of the following:
Actual retirement from the SSS, the GSIS or a
separate employer provident/retirement plan,
provided the member has at least reached age 45.
Upon reaching age 60
Permanent and Total Disability or Insanity. The
following disabilities shall be deemed total and
permanent:
Temporary total disability lasting continuously
for more than 120 days
Complete loss of sight of both eyes
Loss of two limbs at or over the ankle or wrist

PAG-IBIG BENEFITS CLAIM

Permanent complete paralysis of two limbs
Brain injury resulting in incurable imbecility or
insanity
Such other cases which are adjudged to be total
and permanent disability by a duly licensed
physician and approved by the Board of
Trustees.
Separation from the service due to health reason
Permanent departure from the country
Death. In case of death, the Fund benefits shall be
divided among the member's legal heirs in
accordance with the New Civil Code as amended by
the New Family Code.

PAG-IBIG FUNDS

MULTI-PURPOSE LOAN
House Repair
Minor Home Improvement
Home Enhancement
Tuition/ Educational Expenses
Health and Wellness
Livelihood
Other purposes

MULTI-PURPOSE LOAN
NEW LOAN
- With 24 monthly contributions
- Active member, with 5 monthly contributions for the last
6 months
- Member-applicants net take home pay shall not fall below
the minimum requirement of the General Appropriations
Act (GAA) or company policy, whichever is applicable.
- If with existing calamity loan, a member shall be allowed
to avail of the MPL only after payment of at least six (6)
monthly amortizations.

MULTI-PURPOSE LOAN
LOAN RENEWAL
- With 6 monthly amortizations
- Active member, with 5 monthly contributions for the last
6 months
- Member-applicants net take home pay shall not fall below
the minimum requirement of the General Appropriations
Act (GAA) or company policy, whichever is applicable.

CALAMITY LOAN
Resides in an area which is declared by the Oce of the President or the Local Sanggunian
concerned as under a state of calamity

HOUSING LOAN
DEVELOPER-ASSISTED
the developer assists the member in his/her housing loan
application

RETAIL
the member applies directly to the Fund

HOUSING LOAN
Purchase of a fully developed residential lot or adjoining
lots not exceeding 1,000 square meters;
Purchase of a residential house and lot, townhouse, or
condominium unit;
Construction or completion of a residential unit on a lot
owned by the member

REFERENCES
http://pinoystreetjob.blogspot.com/2010/11/contractual-and-regular-employee.html
http://www.fgil.wikipilipinas.org/index.php/Contractualization
http://www.laborlaw.usc-law.org/category/employee-wages/
http://www.dayananconsulting.com/payroll-salary-compensation-benefits-philippines/
http://pinoyworkers.weebly.com/wage-and-monetary-benefits.html
http://kittelsoncarpo.com/labor-employment/employee-benefit-contributions/
http://joblisting45.blogspot.com/2012/03/6-basic-employee-benefits-in.html
https://www.sss.gov.ph/sss/appmanager/pages.jsp?page=memberloans
https://www.sss.gov.ph/sss/appmanager/pages.jsp?page=ssbenefits
http://philpad.com/list-of-gsis-benefits-in-the-philippines/
http://www.teacherph.com/gsis-scholarship-program-2016-2017/
http://www.teacherph.com/
http://www.aordablecebu.com/load/philippine_government/4_steps_to_apply_for_philhealth_membership/5-1-0-29928
https://en.wikipedia.org/wiki/Philippine_Health_Insurance_Corporation