Arguably, employee benefits are the be-all and end-all of attracting and keeping top talent. They’re integral to the employee value proposition (EVP) that sets your company apart and demonstrates your commitment to the well-being and satisfaction of your team.
Offering the right benefits boosts employee morale, enhances productivity, and helps build a loyal and competitive workforce. It’s a strategic move that pays off in higher retention rates and reduced turnover, saving you time and resources in the long run.
This guide is a breakdown of the different types of employee benefits in the Philippines to give you a clearer picture of how you can elevate your EVP.
Mandatory Employee Benefits
As an employer, it’s essential to understand and provide the mandated benefits for employees in the Philippines. These benefits safeguard the welfare of your employees and promote financial security during key life events.
SSS (Social Security System)
SSS is a government-mandated program that provides social insurance to private-sector employees, household helpers (kasambahay), and self-employed individuals. Its purpose is to offer financial support during critical times, such as retirement, sickness, disability, maternity, or death.
As an employer, you should match your employees’ contributions to the SSS fund to ensure that covered members have a safety net during critical life events.
PhilHealth (Philippine Health Insurance)
PhilHealth provides affordable health insurance coverage to employees, offering a range of medical benefits like inpatient and outpatient care, surgeries, and preventive services.
Contribution rates depend on your employee’s monthly salary, but you must share the cost. This program ensures that your employees and their qualified dependents have access to quality healthcare without undue financial strain.
Pag-IBIG Fund (Home Development Mutual Fund)
The Pag-IBIG Fund is a housing fund that also serves as a savings mechanism for employees. It helps workers achieve their dream of homeownership through affordable housing loans while also allowing them to save for future financial needs.
You and your employees both contribute to the fund, fostering financial security and access to housing opportunities.
Bonuses and incentives
The 13th-month pay is a government-mandated benefit in the Philippines, serving as a financial boost during the year-end.
Companies can offer additional performance-based incentives to motivate employees and reward exceptional contributions, fostering a culture of achievement and recognition. Arvin Ramos shares, “The most common examples are individual performance-based incentives, team-based incentives, and company-wide incentives.”
Company-Initiated Benefits
According to Arvin Ramos, Client Services Director at Manila Recruitment, “Based on my experience, companies decide on rewarding employees according to their pay philosophy, the set of values and behaviors they wish to reinforce, the culture they want to build, and the results they aim to achieve.”
Naturally, you want to provide more than the government-mandated minimum to become a desirable employer. Benefits are more than just compliance. They’re a reflection of what your company stands for and how you care for your staff.
Here are some examples of employee benefits in the Philippines that go above and beyond:
Health and wellness programs
Providing health and wellness benefits, such as HMO coverage, dental care, and mental health support, ensures your employees can access essential medical services and resources.
These programs go beyond mandatory PhilHealth contributions and help create a healthier team with a better work ethic. Offering comprehensive health benefits also reinforces your company’s commitment to employee well-being.
Paid time off
In the Philippines, the government mandates a minimum of five days of service incentive leave and 105 days of maternity leave paid by SSS to qualified employees. Companies also observe two types of holidays: regular and special non-working, which have their own rules for holiday pay.
Many employers go beyond this by offering additional vacation leave, sick leave, and flexible time-off policies, allowing employees to recharge and maintain a work-life balance.
Additional perks
Some other frequently expected benefits of employees in the Philippines include:
- Flexible work arrangements: Options like remote work, flexible hours, and hybrid setups offer employees greater autonomy for increased morale and productivity.
- Career development opportunities: Training programs, certifications, and educational assistance not only enhance employee skills but also serve as an investment in their growth and future.
- Employee assistance programs (EAPs): EAPs provide vital support services such as financial advice, mental health counseling, and other resources to help employees navigate personal challenges effectively.
Invest in Benefits, Invest in Success
Employee benefits aren’t merely an expense—they’re a strategic investment in the success of your business. Your employees are one of your most valuable assets, contributing their skills and energy to achieve your goals. But they work in expectation of fair compensation and meaningful benefits that show you value them.
As an employer, it’s your responsibility—and to your advantage—to offer the best possible benefits. By prioritizing their well-being and satisfaction, you build a workplace culture that attracts top talent, boosts retention, and fuels productivity.
For committed and top-tier talent in the Philippines, Manila Recruitment is a Philippine recruitment agency that can connect you with professionals to help your organization thrive. Get in touch today to build a stronger, more dedicated team.
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