Mandatory employee benefits in the Philippines

Philippine law requires every employer to give these benefits. Each has its own law, and some have exemptions for small businesses. The figures below were checked against the official source on 26 October 2026; rates change, so confirm the current figure with the agency before you run payroll.

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The Department of Labor and Employment’s Bureau of Working Conditions explains each pay benefit in its Handbook on Workers’ Statutory Monetary Benefits (2024 Edition, bwc.dole.gov.ph).

Government contributions

• SSS. Coverage is compulsory for employees not over 60 and their employers (RA 11199, Sec. 9(a)). From January 2025 the contribution rate is 15% of the monthly salary credit, 10% paid by the employer and 5% by the employee, on salary credits from PHP 5,000 to PHP 35,000 (RA 11199 Sec. 4(a)(9); SSS Circular 2024-006). The employer also pays the Employees’ Compensation (EC) contribution, which has its own column in the employer’s share of the SSS contribution schedule (SSS Circular 2024-006). See the SSS guide.
• PhilHealth. Every Filipino is part of the national health insurance programme (RA 11223, Sec. 5). The premium is 5% of the monthly basic salary, with an income floor of PHP 10,000 and a ceiling of PHP 100,000 (RA 11223 Sec. 10; PhilHealth Advisory 2025-0002). PhilHealth restated the 5% rate in 2026 (PhilHealth Advisory 2026-0042, 21 July 2026). For employees, the premium is shared equally by employee and employer (PhilHealth Circular 2020-0005). See the PhilHealth guide.
• Pag-IBIG. Employer and employee each pay 2% of the monthly fund salary; employees earning not more than PHP 1,500 a month pay 1% (RA 9679, Sec. 7). Since February 2024 the maximum fund salary is PHP 10,000, so the most each side pays is PHP 200 a month (Pag-IBIG Fund, Regular Savings page). See the Pag-IBIG guide.

Pay required by law

• 13th month pay. At least one-twelfth of the basic salary earned in the calendar year, for all rank-and-file employees, paid not later than 24 December (PD 851 and its rules; Memorandum Order 28, 1986).
• Holiday pay. A day’s regular wage on regular holidays, and twice the regular rate for work on a regular holiday. Retail and service businesses regularly employing fewer than ten workers are exempt (Labor Code Art. 94).
• Overtime. At least 25% more than the regular hourly wage for work beyond eight hours. Overtime on a holiday or rest day is paid at the holiday or rest-day rate plus at least 30% of it (Art. 87).
• Rest day. At least 24 consecutive hours of rest after every six working days (Art. 91), and at least 30% more for work on a rest day (Art. 93).
• Night shift differential. At least 10% of the regular wage for each hour worked between 10 pm and 6 am (Art. 86). The DOLE handbook lists exemptions, including retail and service businesses regularly employing not more than five workers.

The Labor Code pay items above do not apply to managerial employees, and each has its own list of exemptions in the DOLE handbook. Check the handbook for the employees you have.

Leave required by law

• Service incentive leave. Five days of paid leave a year after at least one year of service. Not required for employees who already get at least five days of paid vacation leave, or in businesses regularly employing fewer than ten employees (Labor Code Art. 95).
• Maternity leave. 105 days with full pay for live childbirth, with an option of 30 more days without pay; 15 more days for solo parents; 60 days for miscarriage or emergency termination of pregnancy (RA 11210, Sec. 3). Up to seven of the days can be given to the child’s father (Sec. 6).
• Paternity leave. Seven days with full pay for a married male employee, for the first four deliveries of his lawful wife with whom he lives (RA 8187, Sec. 2).
• Solo parent leave. Up to seven working days with pay a year, after at least six months of service (RA 11861, Sec. 7).
• Leave for victims of violence. Up to ten days of paid leave for women employees who are victims of violence under RA 9262, extendable as the protection order requires (Sec. 43).
• Special leave for women. Two months with full pay after surgery for a gynecological disorder, for women with at least six months of service in the last twelve months (RA 9710, Sec. 18).

Retirement pay

If there is no company retirement plan, or the plan pays less, an employee who retires at 60 to 65 with at least five years of service is owed at least half a month’s salary for every year of service. Half a month’s salary means 15 days’ pay plus one-twelfth of the 13th month pay and up to five days of service incentive leave. Retail, service and agricultural businesses employing not more than ten employees are exempt (RA 7641). See the retirement pay law guide. The retirement pay calculator works out an estimate.

What is not required

None of the laws on this page requires a private employer to provide an HMO plan or group life insurance, and the DOLE handbook does not list them among statutory benefits. Employers who offer them do so by choice, or because an employment contract or collective bargaining agreement says so. See employee benefits in the Philippines for common extras. Small tax-free benefits are explained in de minimis benefits.

This page is general information, not legal advice. For your own case, check with the Department of Labor and Employment (DOLE) or a lawyer.