Happy employees are more productive, engaged and loyal. They’re more likely to be personally invested in their work and deliver stellar results.

But how do you increase employee satisfaction? A recent survey by JobStreet Philippines found that employee benefits are the biggest factor for Filipino workers’ happiness and morale.

Sixty-four percent of survey participants said that they wanted competitive salary packages, incentives, and benefits like medical coverage and leave credits. These helped them feel rewarded for their efforts and supported personal goals like financial stability and work-life balance.

Find out how your company can build a comprehensive employee benefits program and create an environment where your people can shine.

Importance of employee benefits

Numerous studies show that happy workers are better workers. That’s why investing in employee benefits eventually contributes to a company’s revenue and reputation, and thus makes good “business sense.”

• Increased productivity. A study by the University of Warwick found that workplace happiness leads to a 12% increase in productivity, while unhappiness or distress leads to a 10% decrease.
• Lower employee turnover. Satisfied employees are five times more likely to stay with their company, which prevents the costs associated with hiring and training their replacements.
• Lower absenteeism. Chronic stress has been linked to numerous health problems. Unhappy employees are more likely to call in sick — or pretend to be sick.
• Higher engagement. Employees who feel motivated and valued will be more passionate about their work and eager to contribute. This may explain other studies that link employee satisfaction with higher creativity and accuracy.

Here is a list of employee benefits that companies have used to build a happier, healthier and more productive workplace.

Mandatory employee benefits in the Philippines

Some employee benefits are required by Philippine law. Failure to comply can lower employee satisfaction and even lead to legal claims and fines.

1. Service Incentive Leaves

The Department of Labor and Employment (DOLE) doesn't differentiate between sick or vacation leaves. It labels all paid time off as Service Incentive Leave (SIL).

According to the law, employees with 12 months of service are entitled to five SIL days. Unused SILs should be converted to cash.

2. Special leaves

Aside from SILs, regular employees can get additional paid leave for special personal circumstances if they present medical certificates or other supporting documents.

• Maternity leave: 105 working days for normal delivery or miscarriage or caesarean section
• Paternity leave: seven days
• Solo parent leave: seven days
• Women’s leave (for surgery for gynecological disorders like hysterectomy or mastectomy): up to two months 
• VAWC leave (for victims of acts of Violence Against Women and Children): up to 10 days 

3. Subsidized payments for government-run benefits programs

Filipino workers can enroll in national programs like SSS, PhilHealth and PAG-IBIG to get health insurance benefits and build funds that can be used for personal loans and retirement income.

Companies are required to subsidize part of their employees’ monthly contributions. For example, the SSS monthly contribution amounts to 14% of the employee’s salary. The employer shoulders 9.5% so the employee just pays for the remaining 4.5%.

The employer also takes care of 50% of the PhilHealth and Pag-IBIG contributions.

Employers must declare any salary deductions for SSS, PAG-IBIG and PhilHealth contributions in the pay slips and remit these payments on time.

4. Additional compensation 

Regular employees are entitled to these salary perks:

• 13^th month pay: 1/12^th of their basic salary in a year (required for rank and file, optional for managers and supervisors)
• Night shift differential pay: additional 10% of their regular wage for work done between 10 PM and 6 AM
• Holiday pay: additional 30% of their regular wage for work done on non-working holidays

However, these mandatory benefits do not apply to contractual workers who are paid a fixed amount for performing specific tasks. 

Supplemental benefits 

Many companies provide additional benefits and incentives so they can offer a more competitive salary package. This helps them attract and keep the best talent and boosts their reputation as one of the best places to work.

1. Additional leaves

Most private corporations go way beyond the minimum number of leave credits – hitting an average of 10 to 15 vacation leaves and sick leaves, according to a news report by Spot.ph.

Some companies also provide birthday leaves and bereavement leaves (also known as compassionate leaves). Others allow compensatory leaves, where employees who rendered extra hours are allowed to take the equivalent time off.

However, unlike the five SILs mandated by law, these unused additional leaves are not always convertible to cash.

2. Flexible working arrangements

Eighty percent of HR managers and 90% of Filipino workers prefer hybrid or remote work, reveals a 2022 survey published in Manila Bulletin.

A flexible working arrangement isn’t just one of the most popular employee benefits in the Philippines; it is also mutually beneficial.

For employees, it enables work-life balance, reduces commuting costs, and spares them from the heavy traffic. For employers, it prevents absenteeism and eliminates some of the overhead costs of maintaining a physical office.

3. Training and development

Some companies add personal and career development programs to their employee benefits package, especially for supervisors and managers who play key roles in the organization.

Examples include workshops, life coaching, or training allowances for online classes or post-graduate education.

4. Incentive programs

Companies can motivate and reward employees with performance bonuses and incentives, commissions, profit-sharing, or awards and recognition.

These types of employee benefits also help build a positive work culture where employees feel that they are valuable members of a team.

5. Team building

Team building activities, team dinners and company outings can help foster camaraderie and teamwork and help alleviate stress.  

Some companies also create clubs or social media groups where employees can bond over hobbies or other shared interests.

6. Health and wellness programs

One of the latest trends in employee benefits is providing holistic wellness programs that support people’s physical, mental, emotional and financial health. Examples include:  

• Seminars on topics like diet and nutrition, stress management, or managing personal income
• Digital support groups or bonding activities for remote workers
• Counselling or life coaching for anxiety and stress
• “Wellness allowance” that employees can use for gym memberships, fitness equipment or apps
• Emotional wellness training to enhance interpersonal relationships, communication, and conflict resolution

Comprehensive health coverage

Today, more companies worldwide give extra importance to employee health benefits, especially since the pandemic. According to a survey by McKinsey & Company, 11% more executives, HR leaders, and benefits managers believe these are critical for attracting top talent and creating a healthy work environment.

The survey reports that 80% of companies either already have or are interested in special health programs, with some of them increasing coverage to include dental, vision, and short-term disability.

There are two ways that companies can provide group health insurance. First, they can automatically include it in their employee benefits package, and cover all the costs. Second, they can make it voluntary: employees pay for it but enjoy lower rates.  

The types of group insurance are:

• Group medical insurance. PhilHealth may not be able to cover all hospital fees, especially for serious illness or injury.  Additional medical insurance provides an additional financial safety net.
• Group life insurance.  Life insurance covers any cause of disability or death due to illness or accidents. It also comes with a fixed daily benefit to supplement income lost during hospitalization or recovery and has additional benefits for critical or terminal illness.
• Group accident insurance. This policy covers work-related injuries or accidents. It is one of the best supplemental benefits for industries that have inherently risky environments or jobs (i.e, construction, manufacturing, transportation and logistics).

Boost your company’s employee benefits package

Hiring employees in the Philippines? Attract, motivate and keep the best talent by offering good benefits that address their needs and show them that you care about their health and well-being.

BPI AIA offers different types of group health insurance for business owners and large corporations. Contact us for a free consultation with our Bancassurance representatives, who can explain the options and recommend the best plans for your company’s size and needs.

BPI AIA is a partnership between BPI and AIA Insurance, two of the most trusted financial brands in the Asia Pacific region. Get reliable and accessible life insurance packages for your company and your family.

Resources

• Adina, A. (2016, November 7). Lowly paid Filipinos happiest with their jobs | Global News. INQUIRER.net. https://globalnation.inquirer.net/128088/lowly-paid-filipinos-happiest-with-their-jobs
• Guiao, M. A. (2023, January 25). How many paid leaves are workers entitled to under the PH Labor Code? SPOT.PH. https://www.spot.ph/newsfeatures/policy/103527/dole-labor-code-on-paid-leaves-a5229-20230125
• Ph, L. L. (2023, November 2). Service Incentive Leave - Labor Law PH. Labor Law PH. https://laborlaw.ph/service-incentive-leave/
• Philippine Commission on Women. (2022, November 14). Availment of Special Leave Benefit FAQs - Philippine Commission on Women. https://pcw.gov.ph/faq-availment-of-special-leave-benefit/
• Employers look to expand health benefits while managing medical costs. (2022, May 25). McKinsey & Company.
  https://www.mckinsey.com/industries/healthcare/our-insights/employers-look-to-expand-health-benefits-while-managing-medical-costs
• Majority of Filipinos prefer hybrid work model — survey. (2022, January 21). Manila Bulletin. https://mb.com.ph/2022/01/21/majority-of-filipinos-prefer-hybrid-work-model-survey/
• The Top 10 Employee Wellness Trends for 2023. (n.d.). Corporate Wellness | Employee Well-Being. https://www.corporatewellnessmagazine.com/article/the-top-10-employee-wellness-trends-for-2023