Compensation and Benefits Administration

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.

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 YearProclamation
2021Proclamation No. 986,
series of 2020
HolidayDateType of Holiday
Chinese New YearMovableSpecial Non-Working Day
EDSA People Power Anniversary25 FebruarySpecial Non-Working Day
Maundy ThursdayMovableRegular Holiday
Good FridayMovableRegular Holiday
Black FridayMovableSpecial Non-Working Day
Araw ng Kagitingan or
Day of Valor
9 AprilRegular Holiday
Labor Day1 MayRegular 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.


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.

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