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Philippines: legislative changes on Covid-19-related sick leave, social security contributions and unemployment insurance

The Filipino House of Representatives approved a series of Bills related to the pandemic and having important repercussions on employers

Three bills are worth of note:

  1. With Bill “Paid Pandemic Leave”, N. 7909, employees with confirmed, probable or suspected case of Covid-19 will receive a full 14-days of paid leave. The actual legislation foresees five days of paid leave in case of illness. By full pay the Bill intends the daily basic pay plus the employee’s additional fixed monetary allowance. The pandemic leave is also granted to “those involuntarily placed out of work or on floating status because of the effects of the pandemic but that remains employed” (for up to 60 days of 80% paid leave). The employer shall be reimbursed for the leave, either from the Department of Labor and Employment, or the Social Security System, or both.
  2. Following the request of social partners to suspend the increase of 1% in the Social Security System (SSS) contribution for 2021, a draft Bill was passed both in the House of Representatives (Consolidated House bill N. 8512) and Senate (Senate bill N. 2027).
  3. Finally, a “National Unemployment Insurance Program” Bill (House Bill N. 7028) was passed in order to provide dismissed employees with unemployment insurance equal to 80% of the employee’s basic pay. “The bill seeks to institutionalize a national unemployment insurance program wherein a worker earning a minimum wage of Php537.00 shall contribute around Php40.00 monthly, with employers and government also contributing Php40.00 monthly”.

The last two draft Bills have not been adopted yet.