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*A salary is a form of periodic payment from an

employer (ER) to an employee (EE), which may be specified in an employment contract; a fixed amount of money or compensation paid to an EE by an ER in return for work performed; 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.

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

*Paid to an EE, as the remuneration or earnings

however designated, capable of being expressed in terms of money, whether fix or ascertained on a time, 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 customarily furnished by the ER to the EE. Art. 97 LC

*Art. 102. Forms of payment. Not by

promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than legal tender, even when expressly requested by the employee.
be allowed when such manner of payment is customary on the date of effectivity of LC.

*Payment of wages by check or money order shall

*Art. 103. Time of payment. Wages shall be paid

at 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 or circumstances have ceased. No employer shall make payment with less frequency than once a month.

*Art. 104. Place of payment. Payment

of wages shall be made at or near the place of undertaking, except as otherwise provided by such regulations as the Secretary of Labor and Employment may prescribe under conditions to ensure greater protection of wages.

*Art. 105. Direct payment of wages. Wages

shall be paid directly to the workers to whom they are due, except:

*impossible circumstances, the worker may

be paid through another person under written authority given by the worker for the purpose; or

*Where the worker has died, ER may pay the

wages of the deceased to the heirs.

*Art. 110. Worker preference in

case of bankruptcy. In the event of bankruptcy or liquidation of an employers business, his workers shall enjoy first preference as regards their wages and other monetary claims.

*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 kickbacks

*Art. 117. Deduction to ensure employment. *Art. 118. Retaliatory measures. *Art. 119. False reporting.

Benefits intended to encourage employee


Given to EE above rank-and-file and include

housing, 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

*Grossed-up Monetary Value = Monetary Value/68% so: *Fringe Benefit Tax = Grossed-up Monetary Value x

*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.

paid to all employees indirect compensation help raise the living conditions may be statutory or voluntary

Employee demands. Unions demands. Employers preference. As a social security. To improve human relations.

*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.

Payment for time not worked. Employee security. Safety & health. Workmens compensation. Health benefits. Voluntary arrangements. Welfare & recreational facilities. Old age & retirement benefits.


oan is a debt evidenced by a note which specifies, among other things, the principal amount, interest rate, and date of repayment.
asset(s) for a period of time, between the lender and the borrower.

*A loan entails the reallocation of the subject

A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral.

A mortgage loan is a very common type of debt instrument, used by many individuals to purchase housing. Money is used to purchase the property. The financial institution, however, is given security a lien on the title to the house until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it.

Unsecured loans are monetary loans that are not secured against the borrower's assets. These may be available from financial institutions under many different guises or marketing packages:

*credit card debt *line of credits *personal loans *corporate bonds *bank overdrafts

Common personal loans include mortgage loans, car loans,

home equity lines of credit, credit cards, installment loans and payday loans. underwriting and interest rates of these loans.

The credit score of the borrower is a major component in and

The monthly payments of personal loans can be decreased by
selecting longer payment terms, but overall interest paid increases as well.

The fixed monthly payment P for a loan of L for n months and a monthly interest rate c is:

Company Cash Advances SSS Member Loans Pag-ibig Member Loans Commercial Bank Personal Loans SME Loan

SSS Short-Term Member


It is a privilege granted by

SSS to covered employees to meet the member's short-term credit needs.

1. All currently employed,

2. currently contributing self-employed

For one (1)- month loan, the member-

borrower must have 36 posted monthly contributions, six (6) of which should be within the last twelve (12) months prior to the month of filing of application.
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.

For two (2) -months loan, the member-

*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 *The member-borrower has not been

granted final benefit (total permanent disability, retirement and death). disqualified due to fraud committed against the SSS.

*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. 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.

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

*The net amount of the loan shall be the difference

between the approved loan amount and all outstanding balance of short-term member loans.

The one-month or two-month salary loan shall be payable in 24 monthly installment to start on the 2nd month following the date of the loan, which is due on or before the payment deadline for loans per Circular No. 2011-003.

The loan shall be charged an interest rate of 10% per annum, based on diminishing principal balance, and shall be amortized over a period of 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.

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 amount shall be charged and deducted from the proceeds of the loan.

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 other agreements:

"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 pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one whole year.

"the term one-half (1/2) month salary shall mean fifteen (15) days plus onetwelfth (1/12) of the 13th month pay and the cash equivalent of not more than five (5) days of service incentive leaves.

""Retail, service and agricultural establishments or operations employing not more than (10) employees or workers are exempted from the coverage Retirement Pay Law.

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 years old 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 has paid at least 120 monthly contributions prior to the semester of retirement. 5.Has reached the age of 60 years old whether employed or not.

1.The monthly pension - The monthly pension is a lifetime cash benefit paid to a retiree who has paid at least 120 monthly contributions to the SSS prior to the semester of retirement. 2.The lump sum amount - The lump sum amount is granted to a retiree who has not paid the required 120 monthly contributions. It is equal to the total contributions paid by the member and by the employer including interest.

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; or 2.40 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 paid for 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 18 months 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 payable every December. All retiree pensioners are automatically considered members of PhilHealth and he and his legal dependents 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 primary beneficiaries as of the date of retirement shall be entitled to 100 per cent of the monthly pension and the dependents to the dependents pension. If the retiree pensioner dies within sixty (60) months from the start of the monthly pension and has no primary beneficiaries, the secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the total monthly pensions corresponding to the fiveyear guaranteed period excluding the dependents pension.

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

of service shall be entitled to a yearly service incentive leave of five (5) days with pay.

b. Not apply to those who are already enjoying the benefit those employed in establishments regularly employing
less than ten (10) employees

Exempted establishment or financial condition not


c.The grant of benefit in excess of that provided shall not

be made a subject of arbitration.

d.The service incentive leave may be used for sick and

vacation 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

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.

*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 pro rata basis. (DOLE Handbook)

*Part-time Workers
entitled to full five days SIL. Reason: LC speaks of number of months worked in a 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 the same 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

"The policy for sick leave is purportedly to benefit employees when the need arises.
"Sick leave is one of the types of paid benefits granted 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.


1. 2. 3.

SL when sick,

non-emergency sick leave, such as a visit to your doctor.

sudden occurrences, onset of fever that prevents to report to work,

Note: a standard policy on sick leave would be to inform the human resource office and/or your supervisor at least a couple hours before the shift. Failing to call may invalidate your sick leave and consider it unauthorized. A sick leave policy is to have your medical leave supported by a medical certificate as proof and for documentation purposes. 4. SL for medical, dental, or optical appointments, and in the following medical cases:

Suffering from a sickness or injury; Maternity reasons; To care for a sick or injured member of the family; If reporting to work can jeopardize your health and that of your colleagues; Death of a member of your immediate family.