Mandatory benefits at a glance
Every employee in the Philippines is entitled to these benefits by law. When Remote Employee® is the employer, providing them is ours to handle.
| Benefit | What the law requires |
|---|---|
| SSS | 15% of the monthly salary credit: 10% employer, 5% employee |
| PhilHealth | 5% of basic salary, shared equally |
| Pag-IBIG | 2% each, on up to ₱10,000 of monthly pay |
| 13th month pay | 1/12 of the year’s basic salary, by December 24 |
| Service incentive leave | 5 paid days a year, after one year of service |
| Maternity leave | 105 days at full pay |
| Paternity leave | 7 days at full pay |
| Solo parent leave | Up to 7 working days a year |
| Leave for victims of violence | Up to 10 days |
| Special leave for women | 2 months after gynecological surgery |
| Retirement pay | At least half a month’s pay per year of service |
| Night shift differential | 10% more for work between 10 PM and 6 AM |
Social insurance: SSS, PhilHealth, and Pag-IBIG
Employers register every employee with the Social Security System, PhilHealth, and the Pag-IBIG Fund, and pay both the employer’s and the employee’s shares every month. The Payroll guide has the rates.
Leave set by law
- Service incentive leave: 5 paid days a year after one year of service, convertible to cash if unused (Labor Code, Article 95).
- Maternity leave: 105 days at full pay for a live birth, 15 more for solo mothers, and 60 days for a miscarriage; up to 7 days can be given to the father (Republic Act No. 11210).
- Paternity leave: 7 days at full pay for married fathers, for the first four deliveries (Republic Act No. 8187).
- Solo parent leave: up to 7 working days a year after 6 months of service (Republic Act No. 11861).
- Leave for victims of violence against women and their children: up to 10 days (Republic Act No. 9262).
- Special leave for women: 2 months at full pay after surgery for a gynecological disorder (Republic Act No. 9710).
See the Leave and holidays guide
13th month pay and tax-free benefits
13th month pay is at least 1/12 of the basic salary earned in the year, paid by December 24 (Presidential Decree No. 851). It’s tax-free together with other bonuses up to ₱90,000 a year.
Some small benefits are tax-free up to set limits, for example a rice subsidy of up to ₱2,500 a month, a uniform allowance of up to ₱8,000 a year, and medical assistance of up to ₱12,000 a year (Revenue Regulations No. 29-2025).
Premium pay
- Night shift: at least 10% more for work between 10 PM and 6 AM (Article 86).
- Overtime: 25% more per hour, or 30% more on a holiday or rest day (Article 87).
- Rest day work: 30% more (Article 93).
- Regular holiday work: 200% of the daily wage (Article 94).
Health insurance
Private health insurance (an HMO) isn’t required by law; PhilHealth is the mandatory health coverage. Once an HMO becomes an established company practice, it can’t simply be taken away.
With Remote Employee®, medical benefits are included in the monthly fee.
What Remote Employee® includes
On top of everything the law requires, your hire gets medical benefits, perks, and team events, plus a workstation, equipment, and a Class-A office. All of it is in the monthly fee.
See what the monthly fee covers
Sources
We checked the Philippine rules on this page against these official sources. Rates and rules change, so check the latest before you act on them.
- Labor Code of the Philippines (LawPhil)
- Republic Act No. 11210, Expanded Maternity Leave Law (LawPhil)
- Republic Act No. 8187, Paternity Leave Act (LawPhil)
- Republic Act No. 11861, Expanded Solo Parents Welfare Act (LawPhil)
- Republic Act No. 9262 (LawPhil)
- Republic Act No. 9710, Magna Carta of Women (LawPhil)
- Republic Act No. 7641, Retirement Pay Law (LawPhil)
- Presidential Decree No. 851, 13th month pay (LawPhil)
- BIR Revenue Regulations No. 29-2025, de minimis benefits
- SSS Circular No. 2024-006, contribution schedule
























