By Ashutosh Agarwal, Manager, Global Benefits, GoGlobal
The Philippines is experiencing a talent crunch as its labor market grows more competitive. With global companies like Tesla and EY tapping into the country’s talent pool, the demand for skilled workers is increasing. At the same time, unemployment rates are at an all-time low. In this environment, offering an attractive compensation package is no longer limited to salary. It’s critical for companies to provide comprehensive employee benefits to attract and retain top talent.
In the previous installment of this series, we looked at statutory benefits employees in the Philippines must administer. In this blog post, we explore the importance of supplementary benefits in the Philippines to go beyond the mandatory programs. These additional perks can help companies differentiate themselves in a highly competitive market and contribute to talent acquisition.
Why employee benefits matter in the Philippines?
As the job market tightens in the Philippines, benefits packages are playing an increasingly important role in recruitment and retention. As with other workforces around the world, Filipino employees are not just looking for a paycheck. They seek job security, career growth and work-life balance. Supplementary benefits are a key way to address these concerns and keep top talent engaged.
Salary increments across industries in the Philippines averaged 10.24% in 2023, according to data recently published by The Philippine Star. This represents 7.3% in 2022. While this reflects a growing effort by companies to stay competitive in compensation, according to the report, it’s the additional benefits that can truly set employers apart. For example, 15% of companies in the Philippines now offer birthday leave. Another 14% have introduced menstrual leave and 13% offer family care leave.
The trend toward expanded supplementary benefits directly enhances employee well-being and reflects the changing expectations of today’s workforce.
Going beyond the basics
Companies offering more comprehensive benefits can gain a competitive advantage in retaining talent, especially in a tight labor market. Here are some key supplementary benefits that companies in the Philippines can provide:
- Private Health Insurance: While PhilHealth provides basic health coverage, many employers opt to offer additional private health insurance to give their employees more robust coverage. This offering type often includes dental, vision and paramedical services such as physical therapy. These are not fully covered by the national system. Employees value this benefit because it provides greater peace of mind and financial security, especially in the event of serious illness or medical emergencies.
- Group Life Insurance: Another common offering is group life insurance. This provides coverage in case of work-related accidents, disabilities or life-threatening illnesses. This insurance is often cost-shared between the employer and the employee, making it a valuable and affordable option for companies. Offering life insurance can help employees feel more secure, knowing that they and their families are protected in case of unforeseen events.
- Bonuses: While 13th month pay is mandatory in the Philippines, some companies choose to go a step further by offering mid-year bonuses or even a 14th month pay. These additional financial incentives can significantly boost employee morale and make a company more attractive to potential hires.
- Quarterly Rice Subsidies: Given that rice is a staple food in the Philippines, some companies provide quarterly rice subsidies to their employees. This perk helps employees cope with inflation and rising food costs, contributing to their overall well-being. It’s a small but meaningful gesture that can make a big difference in the lives of workers and their families.
- Innovative Leave Policies: In recent years, there has been a growing trend in the Philippines toward more employee-friendly leave policies. Birthday leave, menstrual leave and family care leave are just a few examples of the innovative benefits companies are starting to offer. These policies acknowledge the personal needs of employees and promote a healthier work-life balance.
Is it time to reassess your benefits strategy?
In the evolving, dynamic Filipino job market, supplementary benefits are not just perks—they are powerful strategic tools that give companies a decisive edge
By offering a well-rounded benefits package, businesses demonstrate their commitment to employee well-being. This makes a workplace more attractive to top talent while fostering loyalty and engagement. When employees feel valued, secure and supported, they are more likely to stay, contribute and thrive.
As the race for talent intensifies, companies that go beyond the basic statutory requirements will stand out as employers of choice. Now is the moment to reassess your benefits strategy, ensuring it aligns with evolving employee expectations.
By investing in comprehensive benefits—ranging from enhanced health coverage to innovative leave policies—businesses can build a strong employer brand, reduce turnover and nurture a productive, satisfied workforce.
Learn more about regulations and hiring in the Philippines here: Hire in the Philippines | GoGlobal
Contact us today to discover how the GoGlobal Global Benefits Team can help you design benefits that fuel business expansion and hiring in the Philippines.