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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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