Compensation and Benefits Administration is a function of the Human Resource Management Department in which payments and other benefits is administered and managed by a Human Resource Officer.
Companies would have a Compensation and Benefits Administration (COMPENBEN) Section that encompasses the administration of both Compensation and Benefits as both are under the "Total Rewards" given to employees.
Compensation Administration is the planning and management of the compensation package of the company. It covers the daily wages, overtime and other compensation-related benefits.
Benefits is simply an additional source or indirect compensation given to employees by a company. In the Philippines, there are mandatory benefits to be given to employees as prescribed by promulgated laws. Benefits Administration is a function of Human Resources that plans and manages the benefits given to such employees.
Table of Contents
Working Hours
Working Hours in the Philippines is established by the Labor Code of the Philippines and employees are allowed to work for a maximum of eight (8) hours a day.
Rest Days is not less than 24 consecutive hours after 6 consecutive normal work days. Employees that work on their scheduled Rest Day are entitled to additional compensation.
Premium Pay
Premium Pay is an additional payment on top of what is regularly given to an employee.
Overtime Pay
Overtime Pay is additional compensation for work performed beyond 8 hours and computation is based on the day work is performed.
Holiday Pay
Holiday Pay in the Philippines is categorized into Regular Holiday and Special Non-Working Days which determines the amount of payment.
Holidays in the Philippines
Holidays and Special Non-Working Days are declarations are dependent on the what is indicated on the law or proclamation that declare such days. Holidays and Special Non-Working Days are declared as such through proclamations issued by the Office of the President. The following are the holidays followed in the Philippines:
| Holidays for Year | Proclamation |
|---|---|
| 2021 | Proclamation No. 986, series of 2020 |
| Holiday | Date | Type of Holiday |
|---|---|---|
| Chinese New Year | Movable | Special Non-Working Day |
| EDSA People Power Anniversary | 25 February | Special Non-Working Day |
| Maundy Thursday | Movable | Regular Holiday |
| Good Friday | Movable | Regular Holiday |
| Black Friday | Movable | Special Non-Working Day |
| Araw ng Kagitingan or Day of Valor | 9 April | Regular Holiday |
| Labor Day | 1 May | Regular Holiday |
| Independence Day |
Regular Holiday Pay
Regular Holiday Pay is given to an employee who has reported for work during a Regular Holiday.
Special Non-Working Day Pay
Special Non-Working Day pay is given to an employee who has reported for work during a Special Non-Working day.
Leave Benefits
Leave Administration is a function in the Human Resource Management that deals with the administration of leave credits. Leaves are also synonymous with Personal Time-off, Planned Time-off and Paid Time-off (PTO).
Service Incentive Leave
Service Incentive Leave is a statutory mandatory leave benefit given to employees. The benefit provides 5 Service Incentive Leaves upon a year of employment with the company.
Vacation Leave and Sick Leave
Vacation Leave and Sick Leave are governed by company policies in the Philippines, as long as they provide at least more than what is mandatorily provided in Article 95 regarding Service Incentive Leave.
Statutory Benefits
13th Month Pay
13th Month Pay is 1/12th of the basic salary earned in a year by an employee.
Post-Employment
Separation Pay
Separation Pay is a payment given to an employee whose employment was involuntarily severed through authorized causes.
Final Pay
Final Pay is the sum totality of post-employment payment given to an employee.
Vyron earned his Bachelor of Arts in Psychology degree from De La Salle University – Manila and placed 9th in the 1st Psychometrician Board Exam held on 2014. A Human Resource Practitioner and an aspiring Attorney. He writes and answers questions regarding Human Resource Management for fun.
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