Employee Benefits Philippines Guide [update 2023]

Employing Filipino labor offers several benefits for businesses trying to capitalize on the worldwide workforce marketplace. Filipinos are quick learners who are adaptive and motivated.

However, in addition to the benefits received, employers also need to ensure the basic uses for their employees. They must comply with the law protecting workers’ rights against illegal labor acts. Here is the employee benefits Philippines guide for both employers and employees.

Table of Contents

What Are Employee Benefits In The Philippines? 

Benefits for workers in the Philippines are advantages provided to employees in addition to their base income. It constitutes a passive payment for works done by labor. Employee perks include leave loans, pharmaceutical and dentistry coverage, lunch payments, and other benefits.

What Are Employee Benefits In The Philippines? 

The majority of laborer perks are mandated by law. Corporations in the Philippines, on the other hand, are allowed to provide extra benefits if they think it essential. They may use gifts to attract and keep skilled labor in their organization. 

Staff perks may differ depending on their job, staff demographics, and the scope of their organization. It is critical to offer a worker’s benefits plan carefully to protect the well-being of the staff. 

Businesses that fail to provide these government-mandated perks may face severe fines.

Types Of Employee Benefits Philippines 

Wage And Compensation Benefits

The mandatory minimum wage is distinct by location, with private and public entities’ pay influenced by various factors such as business scale, field, and agreements on labor relations. From 2022, the minimum wage in the Philippines fluctuates between P250 and P540.

Wage And Compensation Benefits

According to the Code, laborers are obligated to be paid not less than 25 percent more than their regular rate when they work over eight hours per day when obliged to work.

The nighttime work premium is not to exceed less than ten percent of the worker’s usual compensation from 10 p.m. to 6 p.m.

Workers who operate during holidays or days off have the right to a minimum of 30% more than their regular wage for all hours worked. 

Individuals who have worked for a company for at least one month receive 13th-month compensation. 

Every year, this additional pay must be processed by December 24. Because it is distributed in December, it is incorrectly seen as an incentive for Christmas.

Types Of Employee Benefits Philippines 

It is equal to one-twelfth of an employee’s standard annual compensation. Individuals working for just under a year will receive their bonus adjusted according to the previous months worked for the firm.

Leave Benefits

Businesses may be required to give each worker who has labored for at least twelve months a total of five days of leave with pay. This benefit can be employed as either illness or taking a break leave.

If the Social Security Administration protects workers, they are entitled to nearly ninety percent of the median daily salary in case of home hospitalization or incapacity.

Leave Benefits

Pregnancy leaves are compensated and are available for those who have worked for at least 6 months. Paternal leaves are 7 paid days of leave granted to dads for the first four-month pregnancies of their legal wives on their chosen days.

Employees are entitled to no longer than three days of unpaid absence during a family bereavement.

Apart from that, Philippines women who are sufferers of assault have the right to 10 days of paid absence. 

Mandatory Government Contributions

This type of benefit entails workers making payments to the appropriate governmental authorities, often with a comparable amount paid by the company they work for.

This action qualifies them for some employment benefits the state provides, such as medical treatment and pensions for retirement. The charge typically comes directly from the income of ordinary employees. 

Workers and their employer obligations differ depending on the taxable earnings tax brackets specified by the Social Security Administration. Contributions by workers vary between PHP 140 and PHP 1,120, whereas employers’ contributions vary between PHP 260 and PHP 2,200. 

Benefits For Foreign Workers

Benefits For Foreign Workers

Because of its tropical environment, the Philippines is an attractive choice for foreign workers. As a result, the government has incentivized foreigners who choose to make a career in this nation. 

It also encourages and attracts international investors to invest and create more employment for its residents. 

Foreign employees are allowed the same perks as local employees. On the other hand, employers might give extra bonuses to assist their international staff in settling comfortably. 

Additional Benefits To Recruit Top Personnel In The Philippines

Additional Benefits To Recruit Top Personnel In The Philippines

Job applicants diligently seek specific benefits in the worldwide talent marketplace where working is widely offered. As a result, firms frequently provide extra perks besides the requirements required by local employment legislation.

Putting together an internationally viable and legal benefits program does not have to be difficult. Specifically, your company can organize itself for employees to participate in long or short trips, bonding sessions, camping, or simply related sessions. 

Currently, some companies also attract talent by creating a comfortable working environment and supporting employees with food and accommodation.

Are Employee Benefits Taxed In The Philippines?

Unfortunately, yes. Benefits offered to workers such as those stated are included in salary and taxed because they make up a portion of what employees get regularly. 

This rule does not apply to supplementary advantages referred to as De minimis rewards. These perks are often provided as supplemental remuneration to employees. 

It is a little addition to the employees’ obligatory salary. Gift awards, food payments, rice incentives, unused days of leave exchanged for money, healthcare, and uniform reimbursement are among the advantages. 


The article has given the tools to the employee benefits Philippines guide. Understanding the legal requirements and best practices for a useful document for employees and employers is essential.

This comprehensive guide will teach you all you need to learn about compensation and advantages in the Philippines, covering laws governing salary minimums, time off, and more.

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