All About Offering Employee Benefits in the Philippines
Hire the best talent in the Philippines with the information you need to offer a competitive benefits package and stay compliant.
Required Benefits in the Philippines
The Philippines has an extensive universal healthcare system and social security system. Understanding which benefits and perks to offer helps employers hire more competitively. Justworks EOR provides guidance and access to tailored benefits, saving small businesses time and resources while skipping local entity setup. Now, let's dive into what employers should provide.
PhilHealth
In the Philippines, universal healthcare is called PhilHealth. PhilHealth covers inpatient and outpatient services, benefits for long-term hospitalizations and care, and disease treatment. Both employers and employees are required to contribute.
13th-month Pay
All employees in the Philippines receive a yearly 13th-month bonus salary, equal to or more than 1/12 of their base salary.
Time Off
Employees in the Philippines receive at least five days of service incentive leave (SIL) after one year of employment for sick or personal leave time. Many employers offer more vacation leave as part of their compensation package.
Social Security
Pension contributions in the Philippines are regulated under the social security system. Monthly stipends vary depending on how long an employee has made contributions.
Home Development Mutual Fund
The Home Development Mutual Fund (HDMF) is an affordable housing fund that provides low home loan prices. Employees who earn less than ₱1,500 per month contribute 1% of their salary to the fund. Employees earning over ₱1,500 per month contribute 2%. Employers must contribute 2% regardless of employee contributions.
Philippines Offer Competitive Benefits
A great employee benefits package can help you attract and hire the best talent and foster happier and healthier teams. Here are some benefits worth considering.
Extra Bonus
Offering an extra performance bonus on top of the required 13th-month salary is an excellent way to show employees appreciation for their hard work.
Wellness Programs
Employers may offer wellness programs that promote employee health and well-being. Some examples include gym membership stipends, wellness workshops, mental health support, and company-led initiatives to encourage healthy lifestyle choices.
Added Vacation Leave
Many companies offer up to 20 days of paid vacation leave per year in addition to the required five days of service incentive leave.
Ready to Offer Benefits in the Philippines?
Justworks EOR makes building your global team seamless by helping you access localized benefits to attract top talent in the Philippines. Simplify international hiring today.
