Fringe Benefits - For Managerial Employees Includes Housing, Vehicles Etc

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    **A salaryis a form of periodic payment from an

    employer (ER) to an employee (EE), whichmay be specified in an employment contract; a

    fixed amount of money or compensation paid

    to an EE by an ER in return for workperformed; paid in monthly or bi-monthly

    intervals of the 1/12 annual salary.

    *No allowance or benefits are included in salary.*Salary is taken on due basis only.

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    *

    The term salary is defined as

    *Wages; Annuity or pension; gratuity*Any payment received by an employee

    in respect of any period of leave not

    availed by him

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    *

    *Paid to an EE, as the remuneration or earnings

    however designated, capable of being expressed

    in terms of money, whether fix or ascertained on atime, task, piece, or commission basis, or other

    method of calculating the same, which is payable

    by an employer to an employee under a written or

    unwritten contract of employment for work done

    or to be done, or for services rendered or to be

    renderd and includes the fair and reasonable value

    of board, lodging, or other facilities customarilyfurnished by the ER to the EE. Art. 97 LC

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    *

    *Art. 102. Forms of payment.Not by promissorynotes, vouchers, coupons, tokens, tickets, chits,

    or any object other than legal tender, even when

    expressly requested by the employee.

    *Payment of wages by check or money order shall

    be allowed when such manner of payment is

    customary on the date of effectivity of LC.

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    *

    *Art. 103. Time of payment.Wages shall be paidat least once every two (2) weeks or twice a

    month at intervals not exceeding sixteen (16)

    days.

    *If on account of force majeure or circumstances

    beyond the employers control, ER shall pay the

    wages immediately after such force majeure orcircumstances have ceased. No employer shall

    make payment with less frequency than once a

    month.

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    *Art. 104. Place of payment.Paymentof wages shall be made at or near the

    place of undertaking, except asotherwise provided by such regulations

    as the Secretary of Labor and

    Employment may prescribe underconditions to ensure greater protection

    of wages.

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    *Art. 110. Worker preference incase of bankruptcy.In the eventof bankruptcy or liquidation of an

    employers business, his workers

    shall enjoy first preference asregards their wages and other

    monetary claims.

    *

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    *Art. 112. Non-interference in disposal of wages.

    *Art. 113. Wage deduction.except: payment of

    insurance premium; union dues;*Art. 114. Deposits for loss or damage.

    *Art. 115. No deduction from the

    *Art. 116. Withholding of wages and kickbacksprohibited.

    *Art. 117. Deduction to ensure employment.

    *Art. 118. Retaliatory measures.*Art. 119. False reporting.

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    Benefits intended to encourage employeeloyalty.

    Given to EE above rank-and-file and includehousing, vehicles, educational assistance,

    holiday or vacation expenses, membership

    fees and dues in social and athletic clubs;interest on loans; foreign travel; life, health

    and non-life insurance paid by ER and taxed

    32% of their gross monetary value

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    *Grossed-up Monetary Value = Monetary Value/68% so:

    *Fringe Benefit Tax = Grossed-up Monetary Value x

    32%*The grossed-up monetary value consists of the net

    amount of money/monetary property value received

    and the amount of fringe benefit tax due and paid by

    the employer on the employee's behalf.

    *

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    paid to all employeesindirect compensation

    help raise the living conditions

    may be statutory or voluntary

    *

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    Employee demands.

    Unions demands.

    Employers preference.

    As a social security.

    To improve human relations.

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    *To create & improve sound employee living condition.

    *To motivate the employees.*To provide security to the employees.

    *To protect the health of the employees.

    *To promote employees welfare.*To create a sense of belongingness.

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    Payment for time not worked.

    Employee security.Safety & health.

    Workmens compensation.

    Health benefits.

    Voluntary arrangements.

    Welfare & recreational facilities.

    Old age & retirement benefits.

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    *

    *Loanis a debtevidenced by a notewhichspecifies, among other things, the principal

    amount, interest rate, and date of repayment.

    *A loan entails the reallocation of the subject

    asset(s) for a period of time, between the lender

    and the borrower.

    http://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Promissory_notehttp://en.wikipedia.org/wiki/Assethttp://en.wiktionary.org/wiki/lenderhttp://en.wiktionary.org/wiki/borrowerhttp://en.wiktionary.org/wiki/borrowerhttp://en.wiktionary.org/wiki/lenderhttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Promissory_notehttp://en.wikipedia.org/wiki/Debt
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    A secured loanis a loan in

    which the borrowerpledgessome asset (e.g. a

    car or property) as

    collateral.

    A l i f d b

    http://en.wikipedia.org/wiki/Secured_loanhttp://en.wikipedia.org/wiki/Pledge_(law)http://en.wikipedia.org/wiki/Collateral_(finance)http://en.wikipedia.org/wiki/Collateral_(finance)http://en.wikipedia.org/wiki/Pledge_(law)http://en.wikipedia.org/wiki/Secured_loanhttp://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Mortgage_loan
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    A mortgage loanis a very common type of debt

    instrument, used by many individuals to purchase

    housing.

    Money is used to purchase the property. The financialinstitution, however, is given security a lienon the

    title to the house until the mortgage is paid off in

    full. If the borrower defaultson the loan, the bank

    would have the legal right to repossess the house and

    sell it, to recover sums owing to it.

    U d l l h

    http://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Househttp://en.wikipedia.org/wiki/Lienhttp://en.wikipedia.org/wiki/Default_(finance)http://en.wikipedia.org/wiki/Default_(finance)http://en.wikipedia.org/wiki/Lienhttp://en.wikipedia.org/wiki/Househttp://en.wikipedia.org/wiki/Mortgage_loan
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    *

    Unsecured loans are monetary loans that

    are not secured against the borrower's

    assets. These may be available from

    financial institutions under many differentguises or marketing packages:

    *credit carddebt *line of credits

    *personal loans *corporate bonds

    *bankoverdrafts

    C l l i l d t l l

    http://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Overdrafthttp://en.wikipedia.org/wiki/Overdrafthttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Mortgage_loan
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    *

    Common personal loans include mortgage loans, car loans,home equity lines of credit, credit cards, installment loansand

    payday loans.

    The credit scoreof the borrower is a major component in andunderwriting and interest rates of these loans.

    The monthly payments of personal loans can be decreased byselecting longer payment terms, but overall interest paid

    increases as well.

    http://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Installment_loanhttp://en.wikipedia.org/wiki/Payday_lendinghttp://en.wikipedia.org/wiki/Credit_scorehttp://en.wikipedia.org/wiki/Credit_scorehttp://en.wikipedia.org/wiki/Payday_lendinghttp://en.wikipedia.org/wiki/Installment_loanhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Mortgage_loan
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    *

    The fixed monthly payment Pfor

    a loan of Lfor nmonths and amonthly interest rate cis:

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    Company Cash Advances

    SSS Member LoansPag-ibig Member Loans

    Commercial Bank Personal Loans

    SME Loan

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    SSS Short-Term MemberLoans.

    It is a privilege granted bySSS to covered employees to

    meet the member's short-termcredit needs.

    1 All tl l d

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    *

    1. All currently employed,

    2. currently contributing self-employed

    For one (1)- month loan,the member-borrower must have 36 posted monthlycontributions, six (6) of which should be within

    the last twelve (12) months prior to the month

    of filing of application.

    For two (2) -months loan, the member-borrower must have 72 posted monthly

    contributions, six (6) of which should be within

    the last twelve (12) months prior to the month

    of filing of application.

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    *The member-borrower whose employer

    must be updated in the payment of

    contributions.*The member-borrower must be under sixty

    five (65) years of age at the time of

    application.*The member-borrower has not been

    granted final benefit (total permanent

    disability, retirement and death).*The member-borrower has not been

    disqualified due to fraud committed against

    the SSS.

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    *

    *A one-month salary loan is equivalent to the average of

    the member-borrower's latest posted 12 Monthly Salary

    Credits (MSCs), or amount applied for, whichever is

    lower.

    *A two-month salary loan is equivalent to twice the

    average of the member-borrower's latest posted 12

    Monthly Salary Credits (MSCs), rounded to the next

    higher monthly salary credit, or amount applied for,whichever is lower.

    *The net amount of the loan shall be the difference

    between the approved loan amount and all outstanding

    balance of short-term member loans.

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    The one-month or two-month

    salary loan shall be payable in 24monthly installment to start on

    the 2nd month following the date

    of the loan, which is due on orbefore the payment deadline for

    loans per Circular No. 2011-003.

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    The loan shall be charged an interest rate of

    10% per annum, based on diminishing principal

    balance, and shall be amortized over a periodof 24 months. If the loan is not fully paid at

    the end of the term, interest of 10% shall

    continue to be charged on the outstanding

    principal balance until fully paid.

    Any excess in the amortization payment shall

    be applied to the outstanding principal

    balance.

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    Loan amortization not remitted on due

    date shall bear a penalty of 1% per

    month until fully paid.

    A service fee of 1% of the loan amountshall be charged and deducted from the

    proceeds of the loan.

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    Art 287LC - Any employee may be retired upon

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    *

    Art 287LC - Any employee may be retired upon

    reaching the retirement age established in the

    collective bargaining agreement or other

    applicable employment contract."In case of retirement, the employee shall be

    entitled to receive such retirement benefits as he

    may have earned under existing laws and any

    collective bargaining agreement and otheragreements:

    "upon reaching the age of sixty (60)

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    *

    upon reaching the age of sixty (60)

    years or more, but not beyond sixty-five

    (65) years - compulsory retirement age,who has served at least five (5) years in

    the said establishment, may retire and

    shall be entitled to retirement payequivalent to at least one-half (1/2)

    month salary for every year of service, a

    fraction of at least six (6) months beingconsidered as one whole year.

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    *

    "the term one-half (1/2) month salary

    shall mean fifteen (15) days plus one-

    twelfth (1/12) of the 13th month payand the cash equivalent of not more

    than five (5) days of service incentive

    leaves.

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    1 It is a cash benefit either in monthly pension or lump sum

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    *

    1.It is a cash benefit either in monthly pension or lump sum

    paid to a member who can no longer work due to old age.

    2. A member who is 60 years old, separated form employment

    or ceased to be self-employed, and has paid at least 120

    monthly contributions prior to the semester of retirement.3.A member who is 65 years old whether employed or not and

    has paid at least 120 monthly contributions prior to the

    semester of retirement.

    4.Underground Mineworkers: Has reached the age of 55 yearsold and is an underground mineworker for at least 5 years

    (either continuous or accumulated) prior to the semester of

    retirement but whose actual date of retirement is not earlier

    than March 13, 1998; separated from employment or in the

    case of self-employed, has ceased self-employment, and haspaid at least 120 monthly contributions prior to the semester of

    retirement.

    5.Has reached the age of 60 years old whether employed or

    not.

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    1.The monthly pension- The monthlypension is a lifetime cash benefit paid to a

    retiree who has paid at least 120 monthlycontributions to the SSS prior to the

    semester of retirement.

    2.The lump sum amount- The lump sumamount is granted to a retiree who has

    not paid the required 120 monthly

    contributions. It is equal to the totalcontributions paid by the member and by

    the employer including interest.

    1 The sum of P300 plus 20 percent of the average

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    1.The sum of P300 plus 20 percent of the average

    monthly salary credit plus 2 per cent of the average

    monthly salary credit for each accredited year of

    service (CYS) in excess of ten years; or2.40 per cent of the average monthly salary credit; or

    3.P1,200, provided that the credited years of service

    (CYS) is at least 10 or more but less than 20 or P2,000,

    if the CYS is 20 or more. The monthly pension is paidfor not less than 60 months.

    Only advance payments shall be discounted on

    the date of the payment. The dependents pension

    and 13th month pensions are excluded from the 18months lump sum pension.

    The member will receive the monthly pension on

    the 19th month and every month thereafter.

    The retiree is entitled to a 13th month pension

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    *

    The retiree is entitled to a 13th month pension

    payable every December.

    All retiree pensioners are automatically considered

    members of PhilHealth and he and his legaldependents are entitled to its hospitalization

    benefits.

    have contributed 120 monthly Medicare

    contributions.A copy of DDR print-out indicating the type of claim

    is retirement in nature and the effectivity date of

    pensioner in its absence a copy of retiree-pensioner

    certification issued by SSS shall be required.They need to register under Philhealth for the

    issuance of a Philhealth ID card.

    Upon the death of a retiree pensioner the

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    *

    Upon the death of a retiree pensioner, the

    primary beneficiaries as of the date of

    retirement shall be entitled to 100 per cent of

    the monthly pension and the dependents tothe dependents pension.

    If the retiree pensioner dies within sixty (60)

    months from the start of the monthly pensionand has no primary beneficiaries, the

    secondary beneficiaries shall be entitled to a

    lump sum benefit equivalent to the totalmonthly pensions corresponding to the five-

    year guaranteed period excluding the

    dependents pension.

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    a Every employee who has rendered at least one (1) year

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    a.Every employee who has rendered at least one (1) yearof service shall be entitled to a yearly service incentive

    leave of five (5) days with pay.

    b.Not applyto those who are already enjoying the benefit

    those employed in establishments regularly employingless than ten (10) employees

    Exempted establishment or financial condition notviable

    c.The grant of benefit in excess of that provided shall notbe made a subject of arbitration.

    d.The service incentive leave may be used for sick andvacation leave purposes. And, at the end of the year, the

    unused SIL may be commuted to cash.

    *Those of the government and any of its political

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    Those of the government and any of its political

    subdivisions, including GOCC;

    *Domestic helpers and persons in the personal

    service of another;*Managerial employees;

    *Field personnel; engaged on task or contract

    basis; purely commission basis; paid a fixed

    amount for performing work*Those who are already enjoying the benefit

    *Those enjoying vacation leave with pay of at least

    five days; and

    *Those employed in establishments regularly

    employing less than ten employees.

    *C t bilit t h

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    *Commutability to cash

    the unused service incentive leave is

    commutable to its money equivalent at the end

    of the year.

    *Accumulation of Leave Credits

    Instead of using up SIL, the employee may

    accumulate it and opt for its commutation to

    cash upon his resignation or separation from

    employment.

    *Computation of SIL

    In computing SIL, the basis shall be the

    salary rate at the date of commutation. The

    availment and commutation of this benefit may

    be on a ro rata basis. DOLE Handbook

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    *Part-time Workers

    entitled to full five days SIL.

    Reason: LC speaks of number of months worked ina year, not number of hours worked in a day, as basis for

    entitlement.

    *Vacation and Sick leave

    LC treats vacation leave and sick leave under thesame category as Service Incentive Leave or leave with

    pay.

    Thus, the grant of vacation or sick leave with pay of

    at least five days may be credited as compliance with SIL.

    Example: Given 15 days vacation leave, five days

    of which is with pay, the five-days paid vacation leave

    may be credited as SIL.

    *Sick Leave Policies

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    Sick Leave Policies

    "The policy for sick leave is purportedly to benefit

    employees when the need arises.

    "Sick leave is one of the types of paid benefitsgranted to regular employees.

    Employees can avail of this benefit when unable to

    report to work due to an illness, accident, or any other

    debilitating medical causes.Even with this absence, it is a company's obligation

    to pay EE the equivalent to a full-day salary as mandated.

    Sick leaves, are the most abused benefits, EE just

    make up medical excuses to be absent from work.

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