Attracting and retaining top Filipino talent goes beyond offering competitive salaries. Employees today are looking for comprehensive benefits that enhance their quality of life, ensure financial security, and support their long-term well-being. For companies hiring in the Philippines, understanding these benefits can be the key to building a strong and loyal offshore team.

 

The Essentials: Standard employee benefits in the Philippines

 

1. Social Security System (SSS)

 

The SSS provides financial support for employees through pensions, disability, maternity, and other benefits. Unlike freelancers who may opt out of paying into SSS, full-time employees in formal employment enjoy these crucial safety nets. Employers that ensure timely contributions help their teams secure long-term financial stability.

 

2. PhilHealth (National Healthcare System)

 

PhilHealth is the government-mandated healthcare system that helps cover medical expenses for employees. Ensuring compliance with PhilHealth contributions means employees have access to affordable medical care, easing financial burdens during health emergencies.

 

3. Pag-IBIG Fund (Housing and Loan Assistance)

 

This government-backed savings program provides employees with access to affordable home and cash loans. Many Filipino workers consider home ownership a major life goal, making Pag-IBIG contributions a highly valued benefit.

 

4. 13th month pay

 

A legally mandated bonus in the Philippines, the 13th-month pay is essential for employees’ financial planning, especially during the holiday season. However, proper calculation is crucial to ensure compliance and fairness—especially for employees who joined mid-year. Partnering with a professional employer organization can help businesses navigate these regulations smoothly.

 

5. Service incentive leave (SIL)

 

Regularized employees in the Philippines are entitled to a minimum of (5) five  days of paid leave per year. Companies that go beyond the legal requirement by offering additional leave days or vacation perks stand out as attractive employers.

 

6. Night differential pay

 

With many offshore employees working U.S. hours, understanding and properly compensating for night differential pay is critical. Employers must clarify whether the agreed salary includes this premium or if it’s an additional benefit to avoid misunderstandings with employees. 

 

As of writing, the night differential pay is at minimum 10% of the hourly rate for work done between 10 pm to 6 am.

 

7. Holiday pay

 

The Philippines has around 22 holidays, including regular and special non-working holidays. Employers must be aware of these dates and plan accordingly to ensure smooth operations while maintaining employee satisfaction.

 

Beyond the basics: Additional benefits that make a difference

 

1. Health Maintenance Organization (HMO) Plans

 

While PhilHealth provides basic healthcare, many companies offer private HMO coverage for extended medical services, dental and vision care, and even dependent coverage. Given that Filipino families are often multi-generational, offering HMO benefits that extend to elderly parents and other relatives is a highly attractive perk.

 

2. Transportation and meal allowances

 

Providing non-taxable allowances for meals and transportation helps employees manage daily expenses while also optimizing their taxable income. These allowances demonstrate an employer’s commitment to their workforce’s well-being.

 

3. Mental health support and nursing facilities

 

Companies with physical offices are required to have an on-site nurse once they reach a certain number of employees. This ensures immediate medical assistance when needed. Additionally, businesses that offer mental health resources—such as counseling sessions or wellness programs—stand out as progressive employers.

 

4. Flexible work arrangements

 

While many offshore employees work U.S. business hours, providing some level of flexibility (such as mid-shift options) can improve work-life balance. Employees with family obligations particularly value this perk.

 

5. Internet allowance

 

Given that remote work relies on stable internet access, many employers now offer internet allowances or direct reimbursements to ensure their employees have reliable connectivity.

 

6. Recognition of Philippine holidays

 

Filipino culture places great importance on certain holidays, such as Good Friday and All Saints’ Day. While offshore teams often work during U.S. holidays like Thanksgiving, businesses that acknowledge Philippine holidays in return build stronger employee loyalty and engagement.

 

7. Office perks 

 

Providing amenities like break nooks, free coffee, and entertainment lounges fosters a positive work environment. Additionally, forming employee clubs (ex. running, basketball, or Toastmasters clubs) strengthens team bonds — even for employees working on different accounts.

 

Why benefits matter more than ever

 

Providing above-and-beyond benefits isn’t just about compliance—it’s about creating a workplace where employees feel valued and motivated. A strong benefits package not only improves employee retention but also makes a company more attractive to top talent in the Philippines.

 

At Tahche, we go beyond the minimum, offering benefits that empower employees while ensuring compliance with Philippine labor laws. If you’re looking to build a highly engaged, top-performing offshore team with the right support and perks, let’s talk.

 

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