Philippines Employee Benefits Guide 2026

The SSS monthly salary credit is capped at PHP 35,000 and PhilHealth premiums are computed on basic salary between PHP 10,000 and PHP 100,000. All three agencies require monthly remittance and reporting of new hires and separations.

• Five days of paid service incentive leave per year after one year of service
• Usable as either vacation or sick leave under the Labor Code minimum
• Unused days are convertible to cash at the end of the year
• Employers offering more generous leave, typically 10 – 15 vacation and 10 – 15 sick days, are deemed compliant
• Most international employers grant separate vacation and sick leave banks

Work on a regular holiday is paid at 200% of the daily rate, and 100% is paid even when no work is performed. Special non-working days follow the no-work-no-pay rule, with a 30% premium when work is rendered. Proclamations each year add Eid'l Fitr, Eid'l Adha and additional special days.

• There is no statutory paid sick leave beyond the five days of service incentive leave
• SSS sickness benefit pays 90% of the average daily salary credit after four days of confinement
• Payable for up to 120 days per year, advanced by the employer and reimbursed by SSS
• A medical certificate and notification to the employer within five days are required
• PhilHealth covers inpatient and selected outpatient treatment through case rates
• Most employers grant 10 – 15 paid sick days and an HMO plan on top

• 105 days of paid maternity leave for live childbirth, regardless of delivery method
• An additional 15 days for a qualified solo parent, for a total of 120 days
• 60 days for miscarriage or emergency termination of pregnancy
• Benefit is 100% of the average daily salary credit, paid by SSS and advanced by the employer
• Up to 7 days may be transferred to the child's father or an alternate caregiver
• An optional extension of 30 days without pay may be requested

Paternity leave applies to married male employees cohabiting with their spouse. Solo parent leave requires a Solo Parent ID issued by the local social welfare office.

The 13th month pay is mandatory for all rank-and-file employees and equals one twelfth of the basic salary earned in the calendar year. It must be paid on or before 24 December and is tax-exempt, together with other benefits, up to PHP 90,000 per year. Many employers add a 14th month pay, a mid-year bonus or a performance bonus, which are contractual rather than statutory but become a demandable benefit once granted consistently.

• Separation pay of one month or half a month per year of service applies to authorised-cause terminations such as redundancy or retrenchment
• Retirement pay of at least 22.5 days of salary per year of service at age 60 with five years of service, compulsory at 65
• Retirement benefits are tax-exempt under a BIR-registered retirement plan
• Final pay must be released within 30 days of separation, with a certificate of employment
• SSS also pays a retirement pension or lump sum based on contributions

• HMO health card (Maxicare, Intellicare, Medicard) — the most expected supplementary benefit, often extended to dependants
• Rice subsidy of up to PHP 2,000 per month, tax-exempt as a de minimis benefit
• Meal, clothing, laundry and medical cash allowances within de minimis limits
• Transport or fuel allowance and internet allowance for hybrid and remote roles
• Group life and accident insurance
• Night shift differential above the statutory 10% in BPO operations
• Training budgets, tuition support and employee referral bonuses

A payroll provider administers statutory benefits, files sickness and maternity claims with SSS, keeps PhilHealth and Pag-IBIG records current, and makes sure de minimis benefits stay within tax-exempt limits — so your team in the Philippines is paid accurately and your company stays compliant.