THE FIRM ATTORNEY PROFILES PRACTICE AREAS CLIENT EXTRANET LOGIN
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Primary Contact

316 Mile Long Building

Amorsolo Street

Legaspi Village

Makati City

1200 Philippines

Telephone: (632) 8941441

TeleFax: (632) 8124296

e-mail: gtalaw@gtalawphil.com

 

Office Hours

9:30AM to 5:30PM PH Time

Monday - Friday

 

www.gtalawphil.com

 

 
     
     
 

Labor & Employment Concerns

 
 

 

Wages
 

Latest data on compensation in the Philippines shows the following annual total compensation of selected executive and non-executive positions.
 

Position

Salary

 

CEO

 

$159,196.00

Head of Finance

   46,975.00

Head of Human Resources and Administration           

   45,383.00

Head of Information Technology

   39,738.00

Head of Manufacturing

   44,819.00

Head of Sales and Marketing

   65,345.00

Production Manager

   18,189.00

Sales Manager

   31,708.00

Accountant

     6,936.00

Systems Analyst

     7,157.00

PC Analyst/Programmer

     7,519.00

Production Supervisor

     6,911.00

Secretary

     5,125.00


*Report figures which are in Philippine peso have been converted into

 US $ at the rate of US $1 = Php53

Social security
 

The Social Security System (SSS) was created to provide private-sector employees and their families with protection against the hazards of disability, sickness, old age and death. All private employees, including resident foreign employees, are compulsorily covered from the date of employment. Standard social security benefits include disability pension, retirement pension, a funeral benefit, sickness allowance, maternity and paternity leave, and miscellaneous loans.

Pensions
 

Compulsory retirement age is 65 years. An employee may also retire upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract. In the absence of such retirement plan or agreement, an employee may retire upon reaching the age of 60 if he has served the company for at least five years. Retirement pay is equivalent to at least one-half month’s salary for every year of service.

Holiday, vacation and sick pay
 

There are 11 regular holidays and two special days. (See page 3 for a list of these holidays.) Employees are entitled to their regular daily wage on these days. Most companies give two weeks of paid vacation for each year of service. (Under the law, every employee who has rendered at least one year of service is entitled to a yearly service incentive leave of five days with pay.) Although it is not required by law, most companies also give two weeks of paid sick leave.

13th-month pay
 

Annual payment of a 13th-month salary is mandatory. Employees who resign or are separated from the company before the time of payment of the 13th-month salary are entitled to this benefit in proportion to the length of time they worked with the company during the year.

Maternity leave
 

Companies are required to pay female employees a daily maternity benefit for 60 days in case of normal delivery and 78 days in case of Caesarean delivery. The maternity benefit (which companies advance to the employee and is subsequently reimbursed by the SSS) is a fraction of the employee’s monthly salary computed according to specific guidelines. Many companies advance the employee’s full salary and shoulder the amount that is not reimbursed by the SSS.

Paternity leave
 

Every married male employee is granted seven days of paternity leave for each of the first four deliveries of his legitimate spouse with whom he lives. This paid leave is not reimbursed by the SSS.

Health care
 

Health insurance is automatic and compulsory for SSS members. The benefits include allowances for hospitalization, surgery, medicine and doctor’s fees.

Although not required by law, many companies provide additional benefits in the form of premiums for health insurance or reimbursable or fixed amounts of medical allowances. Employees are not taxed on premiums paid by employers for group insurance of employees or on medical benefits up to Php10,000 per year.

Labor Protection
 

Individual employee rights are governed by the Labor Code, the basic policy of which are to protect labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed, and regulate the relations between workers and employers. Supplemental laws include the Magna Carta for Disabled Persons, Special Protection of Children Against Child Abuse and Discrimination, the Wage Rationalization Act and the Anti-Sexual Harassment Act, among others.

Unions


The Constitution and the Labor Code guarantee workers’ rights to self-organization. Union membership is most common in the manufacturing sector. One of the usual objectives of unions is to secure a labor contract from the employer, which defines the rights and duties of both management and workers. The contract typically covers wages, hours of work and working conditions.

Entry Visas
 

Entry visas and work permits are required for foreign personnel hired on either a permanent or a temporary basis. The government has liberalized visa requirements for foreign entrants to encourage foreign participation in the economic development of the Philippines.

Foreign Nationals


Foreign nationals may come to the Philippines for reasons of business, pleasure or health with a temporary visitor’s visa which allows stays for periods of 59 days, extendable to six (6) months. To extend their stay, visitors must register with the Bureau of Immigration or with the office of the municipal or city treasurer in areas outside of Manila. Executive Order No. 408 allows foreign nationals, except some specifically restricted nationalities, to stay in the Philippines for up to 21 days without a visa.

Work permits


In general, foreign nationals seeking employment in the Philippines, whether residents or non-residents, must secure alien employment permits from the Department of Labor and Employment (DOLE). An employment permit is valid for one year from the date of issue and may be renewed subject to the approval of the DOLE. Executives of area or regional headquarters and offshore banking units, as well as treaty trader visa holders, are exempt from the requirement to obtain alien employment certificates.

A local employer who wishes to employ a foreign national must apply for a permit with the DOLE on behalf of the foreign national. The petitioning company must prove that the foreign national possesses the required skills for the position and that no Filipino is available who is competent, able and willing to do the specific job for which the foreign national is desired.                      

 

 

 
     

 

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Guzman Tañedo & Acain Law Offices
316 Mile Long Building, Amorsolo Street, Makati City, Philippines - Telephone: 894.14.41; Telefax: 812.42.96

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Philippine Labor Management & Consultancy Philippine Labor Management & Consultancy Philippine Labor Management & Consultancy