While salary is among a worker’s biggest considerations for staying with an employer, employee benefits truly round out the employee experience. In the Philippines, these forms of indirect compensation are viewed as an essential part of feeling valued and supported at work and the minimum standards for worker benefits are outlined in their Labor Code.

While foreign employers aren’t bound by Philippine laws, we’ve found that aligning with these standards, or at least offering comparable support, is well appreciated. Social security allowances, paid leave, and Christmas bonuses are a few of the benefits Philippine workers have come to expect from employers, so matching these expectations strengthens long-term retention.

HEALTHCARE, HOUSING, AND SOCIAL SECURITY CONTRIBUTIONS

In the Philippines, employers are obligated to contribute to key social protection programs. We match these benefits by providing an allowance of $30 per month in total (or $15 per biweekly payout) for staff to voluntarily deposit into the following funds:

PhilHealth (Philippine Health Insurance Corporation)

Provides health insurance coverage to members and their dependents. Coverage includes financial assistance for hospitalization, medical and surgical expenses, and certain outpatient services. 

PAG-IBIG Fund (Home Development Mutual Fund or HDMF)

Focused on savings and funding for affordable housing. Contributors can avail of housing/multi-purpose loans and savings benefits. The HDMF also pays out annual dividends.

SSS (Social Security System)

General social security benefits for retirement, disability, death, and sickness. Contributors receive monthly pension upon retirement, sickness and maternity benefits, disability benefits, and burial assistance. They can also apply for loans.

PAID TIME OFF (PTO)

The Labor Code specifies several required and non-required leaves comprehensively covered in this blogpost. There are six required leave benefits:

1. Service incentive leave (SIL)

2. Maternity leave

3. Paternity leave

4. Parental leave for solo parents

5. Leave under the Violence Against Women and Children Act (VAWC)

6. Special leave benefit for women

So far, our team members have availed of the following:

Service Incentive Leave (SIL)

The PTO we grant full time staff is our equivalent of the SIL. In our version, the number of days a staffer is entitled to depends on their length of tenure outlined in the table below:

With at least 15 days of PTO, my companies provide thrice the minimum time off required in the SIL. As of 2024, the Philippine Labor Code grants five days of paid SIL a year after one year of service. Legislators have sought to expand this benefit to 10 days due to research showing positive effects of time off on productivity, morale, retention, and health. Many private companies in the Philippines already provide more than the mandated minimum as a retention practice.

Maternity leave

So far, two of our team members have taken maternity leaves. We currently don't have a formal policy, so we simply allowed as much time off as they needed. After four weeks, they decided to return to work which was earlier than expected. 

It’s worth noting that Philippine maternity leave laws provide more benefits than those of the U.S. Eligible employees are entitled to 105 days of paid maternity leave, and solo mothers are given 120 days off. Expect Filipino employees to request benefits closer to their country’s standards, or at least four weeks of paid leave. By contrast, the U.S. offers up to 12 weeks of unpaid leave under the Family and Medical Leave Act (FMLA). No state requires fully paid maternity leave.

Discretionary leave

Intended for one-offs, emergencies, and non-vacation occasions such as family events and local holidays. While discretionary leaves are technically unpaid time off, our team members can earn paid discretionary leave credits by clocking in on American holidays.

HOLIDAYS

Knowing the major public holidays in the U.S. and the Philippines helps with monthly planning between remote teams across both countries. Some holidays that fall on weekends or are based on lunar cycles vary slightly each year.

Public holidays between the U.S. and the Philippines

As mentioned earlier, Filipino staff can opt to work on a U.S. holiday and earn a paid discretionary leave credit. They commonly practice this and opt to use their credits to go on vacation, important personal dates, and observe locally celebrated holidays.

OTHER BENEFITS

Here are additional benefits we offer that are tailored to the online work setup and Filipino culture, all of which have received overwhelmingly positive feedback from the team:

Work-provided equipment

Upon request, we shoulder full-time staff’s computer hardware and peripherals essential for work. Team members have requested to replace outdated monitors, laptops, keyboards, and headphones. We also provide allowances for internet upgrades for employees who’ve had longstanding connectivity issues.

Profit-sharing

At Simple Financials, we’ve implemented a profit-sharing plan which has given staff a sense of ownership in the company and its financial performance.

Cash gifts

As an affirmation of good performance, we give bonuses on a discretionary basis. Team members also receive cash gifts on special dates like birthdays, Mother’s Day, and even housewarming celebrations. Christmas bonuses are especially valued in the Philippines where practically every local employer gives holiday season payouts.

Christmas parties

Speaking of the holiday season, we hold virtual company-wide Christmas parties with trivia games, team-building activities, and of course, tantalizing prizes to encourage competition while strengthening team bonds during a cherished time of the year.

Quarterly excursions

At one of my companies, a few core team members live in the same region and occasionally meet in person. We’ve formalized these meetups into quarterly excursions where they unwind and take a breather from work, with accommodations covered by the company.

If this seems like a lot to you as a business owner, just remember that this is what it takes to go above and beyond what other companies offer in the name of keeping your talented people looking for opportunities elsewhere. If a well-done recruitment and hiring process—like what we offer at Wise Scout—nets you good staffers who know their worth. You can’t offer a mediocre pay and benefits package and expect to keep them for the long haul.

Salary attracts talent and benefits help to keep them. At Wise Scout, we hire Filipino professionals that align with business owners’ needs. We also share our best practices in creating competitive packages that align with Filipinos’ expectations while staying sustainable for your company. With our services and experience, you get the tools to hire the right people who stay with you.