Philippines Statutory and Private Employee Benefits (including Social Security) – Insights into Statutory Employee Benefits such as Retirement Benefits, Long-term and Short-term Sickness Benefits, Medical Benefits as well as Other State and Private Benefits, 2023 Update

Philippines Statutory and Private Employee Benefits Report Overview

The Philippines is seen as one of Asia’s most socially progressive countries because of its commitment to providing citizens with secured livelihoods; the Philippine constitution guarantees individuals complete social, economic, and cultural rights. Female employees and the primary labor force are granted special rights. However, the country has a long way to go in terms of providing full social entitlement to all citizens. Furthermore, the distribution of benefits is unbalanced, and only a small proportion of the population benefits.

The Philippines employee benefits market research report provides in-depth industry analysis, information, and insights into employee benefits in Philippines, including an overview of the state and compulsory benefits in Philippines, detailed information about the private benefits in Philippines, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in Philippines.

Regulations Guiding Employee Benefits Market in Philippines

Some of the key regulations guiding the employee benefits market in Philippines are Labor Code of the Philippines of 1974 with amendments in 1987, 2011, 2013, 2015 and 2016, National Health Insurance Act, 2013, Social Security Act of 2018, implementing rules and regulations of Republic Act No. 11,199, and Department of Labor and Employment, implementing rules and regulations of Republic Act No. 11,036.

Philippines Employee Benefits Market Segmentation by State and Compulsory Benefits

The key state and compulsory benefits offered by employers in Philippines are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, maternity and paternity benefits, and other benefits.

Retirement Benefits: The Philippines pension system comprises the following pillars. The first pillar consists of a government-sponsored social assistance statutory defined benefit (DB) plans for the means-tested population. The second pillar consists of statutory DB plans for both government and private sector employees. The third pillar includes mandatory defined contribution (DC) plans for government and private employees (Pag-IBIG). The fourth pillar consists of voluntary private pension DC plans for private employees.

Short-Term Sickness Benefits: Short-term sickness benefits are regulated by the Social Security Act 2018, implementing rules and regulations of Republic Act No. 11,199. It is part of the Philippines social insurance system covering all private-sector employees, household workers, and self-employed individuals. Government employees in the Philippines are provided with sickness benefits under the GSIS. A tripartite Social Security Commission is responsible for the general management and supervision of the program. The SSS collects the contributions, pays the benefits, and administers the program.

Philippines Employee Benefits Market Segmentation by Private Benefits

The key private benefits offered by the employers of Philippines are retirement benefits, death benefits, medical benefits, disability benefits, accidental death and dismemberment benefits, and other benefits.

Retirement Benefits: The Philippines’ retirement system comprises a small basic pension and an earnings-related Social Security System (SSS and GSIS). The members receive a lifetime pension after contributing for a minimum of 120 months. The retiree will receive a lump sum upon retirement equal to the member and employer contributions plus interest if they failed to contribute for the minimum period.

Disability Benefits: In Philippines, the beneficiary must be an employee of the company to avail disability benefits. The employee must be aged 18–64 years. Groups must have at least 10–26 employees to opt for the disability benefits. An employer-employee group, labor unions, cooperatives, and associations are eligible.

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Scope

This report provides a detailed analysis of employee benefits in Philippines –

• It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits.
• It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen’s compensation insurance, maternity and paternity benefits, family benefits, unemployment benefits, Long-term care benefits, leaves and holidays, and private benefits.
• It highlights the economic and regulatory situations relating to employee benefits in Philippines.

Key Highlights

• The Social Security System (SSS) and Department of Social Welfare and Development (DSWD) are responsible for the functioning of the overall social security system.

• A person’s national insurance contribution is determined based on their income.

• An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to a credited contribution.

• In the Philippines, employers provide voluntary retirement benefits to their employees through a small basic pension scheme and earnings-related Social Security System.

Reasons to Buy

• Make strategic decisions using in-depth information related to employee benefits in the country.
• Assess employee benefits of the market, including state and compulsory benefits and private benefits.
• Gain insights into the key employee benefit schemes offered by private employers in the country.
• Gain insights into key organizations governing the employee benefits market, and their impact on companies.