Know Your Mandatory Wages and Benefits as an Employee

Being an employee working in the Philippines entitles you to mandatory wages and benefits, thanks to prevailing labor laws. It’s a must for any Philippine-based worker to read and understand the fine print that govern these wages and benefits. If you’re a fresh graduate aiming to land your first job, or a seasoned professional who wants to make sure that your next company follows the law-mandated benefits, this guide can help you out with your company research.

Minimum wage

Majority of workers in the Philippines are earning the lowest acceptable pay mandated by law called the minimum wage. The minimum wage is the lowest daily rate for every Philippine-based worker. Every region in the country vary in their respective minimum wages, which is why we’re illustrating these variations on the following table that’s updated as of June 2019.

Region	Non-agriculture	Agriculture
		Plantation	Non-plantation
NCR	500.00 – 537.00	500.00	500.00
CAR	300.00 – 320.00	300.00 – 320.00	300.00 – 320.00
I	273.00 – 340.00	295.00	282.00
II	360.00	340.00	340.00
III	349.00 – 400.00	334.00 – 370.00	322.00 – 354.00
IV-A	317.00 – 400.00	303.00 – 370.00	303.00 – 356.00
IV-B	294.00 – 320.00	294.00 – 320.00	294.00 – 320.00
V	310.00	310.00	310.00
VI	295.00 – 365.00	365.00	365.00
VII	318.00 – 386.00	313.00 – 368.00	313.00 – 368.00
VIII	305.00	275.00	275.00
IX	316.00	303.00	303.00
X	343.00 – 365.00	331.00 – 353.00	331.00 – 353.00
XI	396.00	391.00	391.00
XII	311.00	290.00	290.00
Caraga	320.00	320.00	320.00
ARMM	280.00	270.00	270.00

Overtime pay

If your company lets you render overtime, you’re entitled to get paid for the hours you’ve worked beyond your normal working hours. When doing overtime on a regular working day, the standard overtime pay rate is 25% on top of your hourly rate, multiplied by the number of excess hours you’ve rendered. To illustrate:

Standard overtime pay = Hourly rate x 1.25 x Number of hours worked in excess

Working overtime on special holidays and rest days are also eligible for overtime pay. For working overtime on your scheduled rest day or on a special holiday, an overtime premium of 30% is given on top of the hourly rate.

Rest day or special holiday overtime pay = Hourly rate x 1.30 x Number of hours worked in excess

If you worked on your scheduled rest day and it’s a special holiday, you’ll earn an additional 50% on top of the 30% premium for the overtime hours you’ve worked. In short, you are eligible to earn 95% of your hourly rate for the excess hours you’ve rendered.

Rest day and special holiday overtime pay = Hourly rate x 1.50 x 1.30 x Number of hours worked in excess

Working overtime on a regular holiday entitles you to a much higher overtime pay, which is twice your hourly rate plus another 30% premium on top of the excess hours worked. To illustrate:

Regular holiday overtime pay = Hourly rate x 2.00 x 1.30 x Number of hours worked in excess

There are times that you may be asked to work overtime on your scheduled rest day which also happens to be a regular holiday. In this case, you’ll get the highest overtime pay rate equivalent to 260% on top of the 30% premium on excess hours rendered.

Rest day and regular holiday overtime pay = Hourly rate x 2.60 x 1.30 x Number of hours worked in excess

Premium pay

Philippine labor laws also qualifies employees who work on scheduled rest days or special holidays for a mandatory benefit called premium pay. If you’re working on either your scheduled rest day or a special day, you’ll get 30% premium pay on top of your regular rate.

In the event that you’re working on your scheduled rest day and it’s also a special holiday, you’ll get an additional 50% on top of your regular rate. For working on a regular holiday that coincides with your scheduled rest day, you’re entitled to get up to twice of your regular rate plus an additional 30% on top of that amount.

Holiday pay

If you’re not asked to work on a Philippine holiday, you’re still eligible to get paid the full amount equal to your daily rate for that day, given that you were present on the day before the holiday or you filed for a paid leave before the holiday. If you work on a regular holiday, you’ll get paid twice your daily rate. For working on a regular holiday that’s also your scheduled rest day, you are entitled to receive another 30% on top of the double daily pay.

13th month pay

Perhaps the most-awaited government-mandated perk of the year, the 13th month pay is the bonus pay given to rank-and-file employees equivalent to not less than one-twelfth (1/12) of the prorated annual basic pay for the year. Rank-and-file employees who haven’t rendered at least 1 month worth of work on or before 24 December aren’t entitled to receive 13th month pay.

To better understand how the 13th month pay is computed, here are some examples.

• If you were hired last year and you want to know your 13th month pay for this year, provided that you’re still in the company by the end of the current year, you’re entitled to get your entire month’s basic salary as 13th month pay.

 

• If you left the company on the same year you were hired, you’re still entitled for a prorated amount of your basic monthly salary as your 13th month pay. The computation is prorated from the month you were hired up to your last working month with your employer.
  

 

• If you were hired before January 1 of the current year and left the company before you could complete the entire work year, you’re also entitled for a prorated amount of your basic monthly salary as your 13th month pay. The computation is prorated from January 1 up to your last working month with your employer.

The 13th month pay is given to active rank-and-file employees not later than 24 December of each year, and it isn’t taxable if it’s equal to or below the Php 82,000 tax exemption ceiling. If you’ve already resigned before the year ends, your 13th month pay will be given as part of your back pay or final pay.

Retirement pay

Philippine-based workers aged 60 to 65 and has worked for at least five years from the time they turned 60 to 65 years old are eligible to receive retirement pay.

By law, retirement pay must be equal to at least half of the monthly basic salary multiplied by the number of years in service, where a fraction of a year that’s at least six months is considered a full year. The Department of Labor and Employment (DOLE) defines a retiree’s half-month salary as the sum of a) the retiree’s 15 days’ worth of pay based on the pre-retirement rate, b) the cash equivalent of five days’ worth of service incentive leave, and c) one-twelfth of the retiree’s 13th month pay. If the retiree’s company has a collective bargaining agreement (CBA), benefits given under the CBA may be included in the retirement pay.

To sum up what comprises the half-month salary for the computation of retirement pay, it is roughly equal to 22.5 working days. Put together, this formula can be used to compute the retirement pay:

Retirement pay = Daily rate x 22.5 x Number of years worked

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While this guide has been made to describe mandatory wages and benefits for anyone who works in the Philippines, the accuracy of computations may vary depending on your company’s payroll policies. Getting payroll runs right can be tough for companies who still do manual payroll processing, which is why payroll systems like Sprout Payroll can simplify payroll processing by automating payroll runs with support for all 32 pay rates.

The post Know Your Mandatory Wages and Benefits as an Employee appeared first on Sprout.

source https://sprout.ph/blog/mandatory-wages-benefits/

#ProjectSEED by Sprout: Give Back, Make an Impact

Claire – From Reliever to Rockstar (Sprout Rockstar of the Month)

Claire is Sprout’s Compensation and Benefits Associate. This month she tells us how she triumphed over personal hardships and finding herself in Sprout’s People Operations.

How did you begin your journey before getting into Sprout?

I began learning about human resources back in 2014 as a psychology student at the University of Perpetual Help Las Piñas, but after my first year I transferred to Adamson University to finish my degree.

Counseling initially motivated me to pursue a degree in psychology. Forensic psychology also became one of my interests, as I love to watch crime- and investigation-themed documentaries and shorts. But things changed towards the end of my studies when I got attracted into industrial psychology. I didn’t expect that I would excel in this area of psychology, which also driven me towards the field of human resources.

I attended lots of free events about human resources, such as events by the Philippine HR Group as well as the free HR and Payroll Tech Trainings hosted by Sprout, because I wanted to learn more about industrial psychology.

During one of the Sprout’s HR and payroll tech trainings, I met Robbie, who was one of the HR associates in that event. I tried my luck to ask if there were opportunities for fresh graduates like me. I sent my résumé later that day, and the rest was history.

Tell us about how you got yourself into Sprout, and how you launched your career.

I was hired by Sprout in May 2018 as a reliever for a Comp&Ben Associate who will be taking her maternity leave. My first three months into the job was the toughest, because I had to learn everything on my own.

My work outputs suffered during my first three months. Luckily, things started to turn around in my favor after that, thanks to the support of my colleagues and the lessons I’ve learned from my mistakes.

Before landing a job here in Sprout, I faced the harsh realities of job-hunting as a fresh graduate. I took many job interviews in the morning and attended HR events in the afternoon to maximize my day.

I planned my day ahead because I don’t want to waste my money on commutes for nothing. Sometimes I had to skip lunch or dinner, because I didn’t have enough money at the time. I was lucky enough to eat something at events that offered some food and drinks.

Many companies I’ve applied to rejected me over and over just like everyone else. But here’s what I learned: never give up because you just need to discover the right opportunity. What it takes to discover that opportunity is to keep on trying, and never feel discouraged about interview rejections.

Going back to where I am right now, I’m proud that all my hardships in the first year of my career were all worth it. Praying also gave me the strength to tackle any challenges that come my way. I’m very thankful and lucky that Sprout opened its doors for me to grow as a human resources professional and become successful in helping others.

You started your career in Sprout in a reliever post. What are your major takeaways in your transition from being a reliever to a full-fledged HR associate?

I’ve learned to stay focused on the people I’m working with – not only to those who mentor and support me but also to those who judge and criticize my work. It’s also important to give yourself due credit from time to time as a way to reward yourself. I also went through learning the concept of ownership the hard way. Don’t be afraid to heed advice from other people and learn to predict or anticipate the outcome of your actions.

Here’s my advice to people who are looking to succeed in whatever job they want: Don’t lower your standards. Always be prepared physically, mentally, and socially. Look for people who will give their unwavering support to you. Don’t be afraid to step out of your comfort zone, but also know your boundaries.

What are the next steps in your career?

I’m actively exploring the field of training and development. A new on-boarding initiative for new hires called Sprout University allows me to explore this side of human resources. I believe that it’s the perfect springboard for me to grow my career in human resources even further.

Being a training facilitator is completely different from being in compensation and benefits. It lets me step out of my comfort zone, because I’m naturally shy and introverted. Training sessions help me face my fear of public speaking. I believe that I can learn so many things while also interacting with different types of personalities.

The post Claire – From Reliever to Rockstar (Sprout Rockstar of the Month) appeared first on Sprout.

source https://sprout.ph/blog/claire-sprout-rockstar-may-2019/

Benefits and Perks That Employees Value Most in 2019

There’s no doubt that millennials dominate the present workforce. As a result, the way employees perceive compensation and benefits has drastically changed in recent years. Gone are the days when traditional benefits are seen as the norm. Today, companies are increasingly seeing the trend of employees valuing flexible and highly creative perks.

As employees start to see more value in benefits beyond salary, companies are playing catch-up in order to stay relevant. This poses a real challenge to traditional companies, since startups have paved the way for creative rewards programs for employees.

Defining modern compensation and benefits

The pure definition of compensation and benefits has gone a long way from what it was decades ago. Long before the digital era that we currently live in, workers greatly valued tangible benefits like gold, jewelry, and even real estate assets. Today, the modern workforce has redefined what they really want to get in exchange for their efforts. This has set the definition of modern compensation and benefits for employees.

Businesses now look into innovative rewards, because many startups have redefined what perks can be. This culture of offering perks and benefits, which emphasizes on dynamically-changing employee needs, is setting the bar for future compensation and benefits trends as well. In fact, even top executives have noticed and realized why flexible perks and benefits could help in avoiding work burnout.

For many modern workers, what they think of compensation and benefits goes far and beyond just plain salary. Millennials, in particular, are putting more value in non-monetary compensation. These benefits include flexible work arrangements, more paid time-offs, special kinds of rewards like attendance- and performance-based benefits, and recognition and awards for being valuable employees, among many other things.

Shifting from traditional to creatively unconventional rewards

The modern workforce is drawn towards changing, flexible perks that suit their ever-changing needs and wants. They demand benefits that fit their lifestyle, and can be changed based on how they see fit. Work-life balance is also a top priority, since many employees have many interests and pursuits outside of the workplace.

Many studies affirm that today’s employees are looking for ways to make their company benefits and perks work for them – not the other way around.

One of the top things that employees value the most is training and development programs. Our most recent report on the State of Human Resources in the Philippines for 2019 shows that a significant number of employees would like companies to provide them training and development opportunities. They believe that these programs help their careers grow, which they consider as an invaluable asset.

Having flexible work hours, competitive pay, medical and retirement plans, and a company that advocates great working culture are some of the top things that modern employees value the most. Other benefits that bring great value and importance to employees include travel perks, annual or biannual all-expense-paid company outings, continuing education programs, and gym memberships, to name a few.

Understanding the needs of the modern employee

For businesses, offering creative perks is just one way to attract and maintain talent while also keeping up with today’s workplace trends. For employees, working hard also means living smart, since they can now enjoy perks that suit the way they live.

More employees want to achieve a great balance of work and play through rewards that make more sense to them. Companies should understand the fact that employees now look beyond salary to motivate them at work. Startup and established businesses alike feel the increased pressure of keeping up with today’s trends in compensation and benefits, but it’s important for them to be relevant despite economic challenges.

Employees appreciate company stability and job security. A well-thought compensation and benefits structure rounds it all out.

How new benefits and perks affect companies

Companies try to be as creative as they can to stay relevant towards current and potential employees. Startup companies are notable for standing out in their pursuit of attracting and keeping loyal talent. How do startups do it? It starts in their creative ways of delivering employee rewards.

Employees also prefer companies that offer performance-based compensation structure, as opposed to tenure-based.

While employees look for more flexible work arrangements, companies also look for ways to accommodate without impacting operations too much. Some work types can’t be made flexible, but businesses should consider it to keep employees happy and loyal.

It’s true that the compensation and benefits landscape is evolving because of the modern workforce. It makes perfect sense for businesses to motivate employees to be productive while also rewarding them with flexible perks.

Modern employees value individuality more than ever, while also aiming for their personal and professional goals. This is why formulating a great compensation structure is vital to employee satisfaction and business growth.

The post Benefits and Perks That Employees Value Most in 2019 appeared first on Sprout.

source https://sprout.ph/blog/benefits-employees-value-2019/

Career Day at Sprout: Live Your Dream, Even For a Day

7 Tips to Help You Succeed in Growing Your Startup in the Philippines

The competition in any business niche is tough and if you’re a startup, it may dishearten you a bit. Nonetheless, there are many ways to grow your startup in the Philippines. It’s true that it may be difficult at first, but if you’ll consider these tips you may find the success and growth you’re aiming for at your doorstep.

Create a Website for Your Startup

One of the first steps you’ll need to take once you’ve established your business is to build a website. It is important that you have a specific place on the web where you can show your products and tell a little about your company and its strengths. Having a website can help you gain the trust of your customers because they’ll know that you are trustworthy.

According to Blue Corona, a marketing solutions provider, Americans spend about 23.6 hours online per week and 30% of online consumers won’t consider a business without a website. Lots of people look for products and services online, which means that it will be easier for people to find you if you have a website.

After building your website, focus on optimizing your site for search engines. This helps to increase traffic to your website and drive more customers.

Utilize Email Marketing

Email marketing can be a really effective marketing strategy if you know how to do it properly.

To start with, you can build an email list where your prospects and customers can subscribe. Make good use of your lead generation skills and find as many prospects as you can. You can send them newsletters, promotional emails and personalized messages.

Email marketing can help you generate a lot of sales if your content is interesting, engaging, and purposeful. You can also rely on different email marketing tools to keep track of your activities. One great marketing technique is scheduling email blasts, making it more convenient and hassle-free on your part. Make sure to keep your email list updated so you’ll know which among your list are still active and qualified as prospects.

Run Contests on Social Media

Social media is a great platform for every kind of business. As a startup, you can use social media to engage customers and prospects through your posts and videos. 

Launching social media contests is one way to connect with your target market, because it can bring in new audiences and engage the current ones.

Everyone loves freebies! If they’re getting something by joining your contests, they will not hesitate to join. Feel free to run different types of contests, but make sure they are interesting to generate buzz and drive more people to your website and other social media pages.

Sponsor for Different Events

Events marketing may be a traditional marketing approach, but you can’t miss any opportunity to introduce your business if you want to see it grow.

Rave parties and social events happen in the Philippines almost every day. You can use these events to promote your brand. As the main sponsor of an event, you will gain lots of exposure. You can even invite people to check your website, social media pages and your physical store, if you have any. If you have a café or a restaurant, you can offer free samples of some of your bestsellers.

Leverage Customer Feedback

Whatever type of business you have, one of the goals you should have is to get positive reviews. A lot of consumers rely on public opinion; one example is that when they consider buying a product, they read a lot of customer reviews first.

Positive reviews attracts people to your business, so make sure to ask your customers to leave positive feedback on your website or review sites.

If negative feedback outweighs the positives, it will be hard to convince your customers into buying your products. Use customer feedback to motivate you to enhance your products and improve your services.

Improve Team Processes

You can have the best marketing strategies but if you have a complicated team, it will be hard to achieve your business goals.

Teamwork is a very important element in your business. Your team members should work as one and find strength in each other. Many tasks require collaboration, and it’s your job to provide your employees with resources that will improve teamwork and coordination.

Your team members should also be on the same page all the time to communicate ideas and resolve problems faster. Feedback from your employees will also give you an insight into your management and help you improve certain policies and business processes.

Keep your Employees Happy and Well-Compensated

No matter how big or small your team is, they need to feel satisfied with their jobs. If things in the office become stressful, give them a little break to recharge and become more productive at work.

Happy employees are good for your business, so always give them reasons to smile and things to look forward to every day. This way they won’t be bored and feel left out. Take them to nice places as part of your team building activity, so they can feel that they are an important part of the company. Above all, make sure all your employees are well-compensated and offer them great benefits and rewards throughout your progress.

Growing a business is truly challenging. But if you know how to keep your customers, employees, and other stakeholders happy, you will quickly find your way to success. Don’t rush and take small steps until you get the hang of it.

Manual processes in your startup can slow down growth, so make use of smart software to bring out the full potential of your growing business. Sprout Solutions can help you automate your HR and payroll processes through our suite of smart HR and payroll software. You may book a demo with us and let’s see how we can help your startup grow.

The post 7 Tips to Help You Succeed in Growing Your Startup in the Philippines appeared first on Sprout.

source https://sprout.ph/blog/7-tips-startup-success-philippines/

10 Reasons Why Payroll Software Is A Must For Your Business

Businesses are rapidly moving into the new age. A lot of things done manually in the past are taking on radical concepts as technology has taken over simpler tasks. Process automation through payroll software is a big thing for businesses, because it frees up valuable time that you can use for more important things.

Payroll software gives accurate results and is harder to tamper with. Using payroll software is a no-brainer if you see that your team frequently makes errors in manual payroll processing. Automating your payroll processes could mean fewer errors which results in happier employees. See how payroll software can benefit your company in the long run.

Efficient Use of Time

Your team can consume lots of time doing payroll every month. This can really drain your employees and result in lots of human error. You also have to spend hours, days, or even months on year-end tax preparations. What payroll software does is that it automates your processes and eliminate errors in calculations. This can save you lots of time which you can use for more important tasks. You don’t have to commit as much time to payroll when you can finish it in a few clicks.

Eliminates Errors

Manual processing could lead to trouble caused by serious errors like incorrect tax filing. Manual processing just doesn’t cut it these days anymore where errors can lead to a miscalculation in taxes, ignoring taxable items, feeding forms with incorrect information, and much more. Remember, these errors are going to cost you a lot! Using the right payroll software means you can avoid headaches down the road.

Tailor-fit to Your Business Needs

Payroll software isn’t a one-size-fits-all solution. The good thing about payroll software is that it’s versatile enough to be tailor-fit to your business needs. One example is that payroll software can handle different types of payroll runs, such as weekly or monthly. You can also adjust the compensation structures for various roles, benefits, and bonuses. These can be customized to suit your team’s unique needs. Less effort is required to ensure that all requirements are met.

Accessible Employee Portals

Payroll software is meant to be easily accessible. Employees can gain access to it anytime and anywhere where they can see their work information at a glance. All important employee data are uploaded in the portal for easy browsing. Payroll software lets employees experience greater control of their work life and makes it easy for them to request information.

Easy Integration and Access

You can easily manage employee attendance by integrating payroll software with other tools such as a time tracker or biometric device. Whatever the demands are, software integration features in payroll software lets you collaborate with others, which lowers the pressure on administrative work and makes all processes smoother and more streamlined. Imagine a hassle-free monitoring of your employees even remotely through integration. Moreover, you offer seamless solutions in doing so.

Reduces Costs

Cost reduction is one of the advantages of using a payroll software, since it usually results in lower operational expenses. Ask yourself: what is the level of work involved in running your payroll and what is the right solution for it? If your software can finish the task in a few clicks, you would have saved a lot of time and money. Use your money wisely for more useful things like growth and expansion efforts.

Safety and Security

There’s a need for a secure payroll software because payroll information and related documents are sensitive in nature. Payroll software restricts access to information, and can only be accessed by the company administrator or an authorized employee. This makes information more tamper-proof and results in fewer errors.

Payroll Software Keeps Improving

Software companies continuously upgrade and improve their software. Getting your very own payroll software now gives you the ability to share feedback on how it should work for you, which developers can use to make improvements in future updates. You can be sure that your payroll processes run smoothly every time.

Technical Support & Customer Service

There’s no company that’s immune from technical glitches in using payroll software. Whether you are looking for customer service or technical support, your payroll services are likely to have one in place for their customers. If you are looking around for the best payroll software, consider the level of after-sales support they offer, because this is an indication that you’re getting top-notch support for any issues you may have in the future.

Employee Productivity

Traditional payroll systems usually require manual entry of leave requests, employee claims, and overtime applications.

It takes more effort in using spreadsheets to process payroll, because errors or changes in the formula could throw out the complex calculations in place. This usually results in incorrect payments, pay disputes, and unhappy employees. Using payroll software can streamline your team’s productivity and improve overall employee satisfaction, instead of wasting time and effort in doing grunt work.

Conclusion

If your business needs a cost-effective solution for payroll processing, a smart payroll software is a must-have. Simplify your payroll processes with a smart payroll software solution. Sprout Solutions offers a comprehensive suite of HR and payroll software that lets your team do complex things with just a few clicks.

The post 10 Reasons Why Payroll Software Is A Must For Your Business appeared first on Sprout.

source https://sprout.ph/blog/10-reasons-payroll-software/

State of HR in the Philippines: 7 Emerging Trends