HRM - 7: Employee Benedits Services

Flashcards covering definitions, legal requirements, and compensation formulas related to Philippine employee benefits under the Labor Code.

Benefits

Also known as fringe benefits or perks, these are indirect compensation given as rewards or incentives beyond wages and salaries.

Social Security System (SSS)

A program created to provide private employees and their families protection against disability, sickness, old age, death, and maternity through various grants and benefits.

Philippine Health Insurance Corporation (PhilHealth)

A program providing employees with a practical means of paying for adequate medical care, including inpatient and outpatient benefits.

Home Development Mutual Fund (HDMF)

Also known as the Pag-IBIG Fund, it is a provident savings system that provides multi-purpose, calamity, and housing loans to employees.

13th Month Pay

A mandatory obligation for employers to provide a payment no later than December 24, calculated as:

$$\frac{\text{Total Basic Salary} \times \text{Employment Length}}{12 \text{ months}}$$

Meal Periods

A mandated time-off of not less than 60 mins time off for their regular meals, day time usually at 12:00 pm

Rest Period

A duty of the employer to provide each employee with not less than $24 \text{ consecutive hours}$ of rest after every $6 \text{ consecutive normal work days}$.

Service Incentive Leave

An entitlement to a yearly $5 \text{ days}$ leave with pay for employees who have rendered at least one year of service.

Minimum Wage (NCR)

As of October 2017 in the National Capital Region, the minimum gross basic wage is $\text{₱}600.00$ per day.

Night Shift Differential

An additional compensation of at least $10 \%$ of an employee's applicable wage rate for work performed between $10 \text{ p.m.}$ to $6 \text{ a.m.}$ of the following day.

Overtime Pay

Compensation for work in excess of $8 \text{ hours}$ a day, equivalent to the wage rate plus at least $25 \%$ thereof.

Regular Holiday Pay

Compensation for work performed on a regular holiday, which is equivalent to $200 \%$ or double pay.

Special Holiday Pay

Compensation for work on a special holiday, which is the regular daily pay plus 30%

Maternity Leave

A leave of $60 \text{ days}$ for normal delivery, abortion, or miscarriage, or $78 \text{ days}$ for caesarean delivery, with a benefit of $100 \%$ of average salary credit.

Paternity Leave

A benefit of $7 \text{ days}$ leave with full pay for all married male employees for the first $4 \text{ deliveries}$ of their lawful wife.

Layoff

The employer-initiated separation of an employee due to authorized causes like labor-saving devices, redundancy, retrenchment, or business closure.

Resignation

When an employee voluntarily decides to end their employment, usually requiring a $30 \text{-day}$ advance written notice if without cause.

Back Pay

The final payment to a resigned employee including the last salary, pro-rated 13th month pay, tax refund, and possible leave conversions.

Retirement

Separation from employment upon reaching the age 65 or more with at least $5 \text{ years}$ of service, entitling the worker to specific benefits.

Termination/Dismissal

The practice of ending employer-employee relations initiated by the employer due to grounds like serious misconduct, fraud, or commission of a crime.

Constructive Dismissal

A situation where an employee resigns because the employer created a hostile work environment, making the resignation effectively a termination.