I. Introduction

Mandatory benefits in the Philippines arise from a network of statutes: the Labor Code, the Social Security Act, National Health Insurance laws, the Pag-IBIG Fund charter, and special social legislation like the Expanded Maternity Leave Law, Paternity Leave Act, Solo Parents’ Welfare Act, the Magna Carta of Women, and others.

A key practical question for employers is: when does a worker become entitled to a particular benefit, and does the size of the employer matter? This article focuses on minimum employee requirements—in terms of number of employees, tenure, status (probationary/regular, part-time/full-time, project-based), and other conditions—for mandatory benefits in the Philippine private sector.

This is a general overview for information only and is not a substitute for tailored legal advice.

II. Core Principles on Coverage

Before diving into each benefit, a few recurring themes appear across Philippine laws:

Employment relationship, not “regular” status, triggers many benefits. For most statutory benefits (SSS, PhilHealth, Pag-IBIG, minimum wage, overtime, maternity leave, etc.), coverage starts once an employer–employee relationship exists, even if the employee is:
- probationary
- casual
- seasonal
- project-based
- part-time
“Regularly employing less than 10 employees” matters a lot. Several Labor Code provisions and special laws exempt very small establishments (usually those regularly employing less than 10 workers) from certain benefits such as:
- Service incentive leave (SIL)
- Holiday pay (for particular categories of establishments)
- Statutory retirement pay for small retail/service/agricultural enterprises
Tenure conditions often apply to leave and retirement. Many benefits require a minimum length of service:
- 1 year for service incentive leave
- ~1 year (by regulations) for paternity leave
- 5 years for mandatory retirement pay
- 6 months (within last 12 months or similar) for certain special leaves
Social insurance vs. employment benefits.
- Social insurance (SSS, PhilHealth, Pag-IBIG): Coverage is broad and starts upon employment; no minimum number of employees.
- Employment benefits (13th month pay, SIL, overtime, statutory leaves): Governed by the Labor Code and special laws, with exemptions and tenure rules.

III. Social Security System (SSS) and Employees’ Compensation (EC)

A. Coverage and Minimum Requirements

Who must be covered? All private sector employees under 60 years old at the time of initial coverage, regardless of:
- position or rank
- nature of appointment (regular, casual, project, seasonal, probationary)
- working time (full-time or part-time)
Minimum number of employees? None. Even a single employee triggers the employer’s obligation to:
- register as an employer
- report and register the employee
- deduct and remit monthly contributions
Tenure requirement? For coverage and contribution: none. Coverage starts from the time a person is employed and reported to SSS. For benefit eligibility (e.g., sickness, maternity, disability, retirement, funeral, death benefits), SSS law imposes minimum contribution requirements (e.g., a certain number of monthly contributions before the contingency), but these are not employer-size thresholds.

B. Employees’ Compensation (EC)

EC coverage is compulsory for all SSS-covered employees.

No minimum number of employees.
No tenure requirement for basic EC coverage — as long as the injury/illness is work-related and arises during covered employment, the EC system may apply.

IV. PhilHealth (National Health Insurance Program)

Who must be covered? All private sector employees (often called “direct contributors”) must be enrolled and contributed for, from the first day of employment.
Minimum number of employees? None. A single employee obligates the employer to:
- register with PhilHealth
- remit the employee and employer share of contributions
Tenure requirement? None for coverage itself. For benefit availment (e.g., hospital benefits), PhilHealth rules require a minimum number of paid contributions within a reference period, but this is a matter of social insurance qualification, not whether the employer was obligated.

V. Pag-IBIG Fund (HDMF)

Who must be covered? Essentially all employees who are:
- SSS or GSIS members, and
- earning at least a minimum level of monthly compensation (historically low; in practice almost all employees qualify).
Minimum number of employees? None. Any employer with employees is required to:
- register with Pag-IBIG
- enroll employees
- remit monthly contributions
Tenure requirement? For coverage, virtually none; being an employee suffices. For loans and housing programs, the Fund requires a minimum number of contributions and/or membership years, but again this is employee-level qualification, not a size threshold.

VI. 13th Month Pay

A. Coverage

Under Presidential Decree No. 851 and its implementing rules:

Entitled employees: all rank-and-file employees in the private sector, regardless of:
- position
- designation
- employment status
- method of wage payment (monthly, daily, piece-rate, commission-based, etc.)
Minimum tenure: The employee must have worked at least one (1) month during the calendar year. The 13th month pay is pro-rated based on actual basic pay received.
Minimum number of employees? None. A business with only one rank-and-file employee is still obligated.

B. Exemptions

Government and its political subdivisions (covered by different rules).
Employers already providing the equivalent of a 13th month pay (e.g., “Christmas bonus” at least equal to 1/12 of annual basic pay) may be considered compliant.
Historically, “distressed employers” and others could apply for exemption, but this requires DOLE authority; it is not automatic.

VII. Service Incentive Leave (SIL)

Article 95 of the Labor Code grants five (5) days of service incentive leave with pay per year.

A. Minimum Employee Requirements

Tenure: Employee must have rendered at least one (1) year of service, whether:
- continuous or broken
- for at least 12 months, including authorized absences and days when work is not required, if employee is considered to have worked
Minimum number of employees (size exemption): SIL does not apply to establishments “regularly employing less than ten (10) employees.” Key points:
- “Regularly employing” refers to the usual or consistent workforce, not momentary fluctuations.
- All employees across branches may be counted; not just regular employees.

B. Employees Excluded from SIL

Employees not entitled to SIL include, among others:

Those in establishments regularly employing less than 10 employees
Those already enjoying vacation leave with pay of at least 5 days per year
Government workers
Domestic helpers (now covered by a specialized regime under the Kasambahay Law)
Managerial employees, field personnel, and others specifically exempted by DOLE regulations (especially where the nature of work and conditions render monitoring of work hours difficult, and where the employee already enjoys equivalent or better benefits)

VIII. Holiday Pay, Premium Pay, Overtime Pay, Night Shift Differential

A. Holiday Pay

Holiday pay entitles covered employees to their regular daily wage for unworked regular holidays, and additional pay if they work on a holiday.

Minimum number of employees? Certain retail and service establishments “regularly employing less than 10 workers” are exempt from regular holiday pay for unworked days. Larger employers must comply.
For establishments not covered by the exemption, any non-exempt employee (rank-and-file, non-managerial) is entitled.

B. Premium Pay (Special Non-Working Days, Rest Days)

Applies to covered employees who work on:
- special non-working holidays
- their rest days
No size threshold in the law, but exemptions can apply to special categories of workers (e.g., managerial employees, field personnel, etc.).

C. Overtime Pay

Who is entitled? All employees not specifically exempted (non-managerial, not true field personnel, etc.) who work beyond 8 hours a day.
Minimum number of employees? None. Any employer with a covered employee who renders overtime is obliged to pay the overtime premium.

D. Night Shift Differential

Employees who work between 10:00 p.m. and 6:00 a.m. (unless exempt) are entitled to a night shift differential over and above their regular wage.
No minimum employer size; the rule attaches to the nature of work and hours, not headcount.

IX. Minimum Wage and Cost of Living Allowance (COLA)

Coverage: Minimum wage orders issued by the Regional Tripartite Wages and Productivity Boards generally apply to:
- all non-exempt employees in the region and sector (non-agriculture, agriculture, etc.), subject to specific exclusions (e.g., certain domestic workers, apprentices, learners, family drivers).
Minimum number of employees? Usually none, though wage orders may create different wage rates based on enterprise size, especially for:
- small-scale retail or service establishments
- small farms However, even small establishments with one employee are not automatically exempt; they might simply fall into a lower wage bracket.

X. Retirement Pay (RA 7641)

RA 7641 supplements the Labor Code and mandates retirement benefits in the absence of a company retirement plan more favorable than the law.

A. Minimum Employee Requirements

Employee-level requirements:
- At least 60 years old but not more than 65 years old (compulsory retirement age, unless a different age is set by agreement, but not beyond 65); and
- Has rendered at least 5 years of service with the employer, whether:
  - continuous or broken
  - spanning several contracts or re-engagements
Employer-level size exemption: The law generally exempts:
- Retail, service, and agricultural establishments that regularly employ not more than ten (10) employees. Thus, a micro retail store with 8 workers may be exempt from RA 7641’s mandatory retirement pay, while a company with 20 workers is clearly covered.

B. Interaction with Existing Retirement Plans

If an employer has a retirement plan or CBA granting benefits equal to or better than RA 7641, that plan supersedes the statutory minimum. The plan, however, may itself set tenure conditions (often 5–10 years of service) but cannot provide less than the statutory minimum where RA 7641 applies.

XI. Maternity Leave and Benefits

A. Expanded Maternity Leave (RA 11210)

Who is covered? All female workers in:
- private sector
- public sector
- informal economy (subject to separate rules) including:
- probationary, project, seasonal, part-time, casual employees
Minimum tenure with employer? None for entitlement to leave, provided that:
- she is an employee at the time of childbirth/miscarriage/emergency termination of pregnancy, or
- the event occurs within a defined period (e.g., within 15 days) from separation in certain circumstances (while still covered by SSS contributions).
Contribution requirement (SSS benefit): To receive monetary maternity benefits under SSS, the employee must have paid at least the minimum number of contributions within a specified 12-month period before the semester of contingency. This is not a requirement for the employer to grant maternity leave, but it determines SSS reimbursement.
Benefit duration:
- 105 days with full pay for live childbirth, regardless of mode
- additional 15 days for solo mothers (subject to Solo Parent ID)
- 60 days for miscarriage or emergency termination of pregnancy

Employers must advance the pay and then claim reimbursement from SSS (up to the allowable amount), subject to regulations.

XII. Paternity Leave (RA 8187)

Who is entitled? Every married male employee, in both public and private sectors, for the first four (4) deliveries of his legitimate spouse with whom he is cohabiting.
Minimum tenure: The Implementing Rules require that:
- the male employee must have been employed at least one (1) year, whether continuous or broken, to be entitled to paternity leave with pay.
Number of employees? None. Even a small enterprise with a single qualified male employee must grant the leave.

XIII. Solo Parent Leave (RA 8972 as amended)

Who is a solo parent? An employee classified as a solo parent under law (e.g., solo custodial parent, spouse of an OFW under certain conditions, survivors of domestic violence, etc.) and issued a Solo Parent ID by the DSWD or LGU.
Minimum tenure: The law and its rules generally require that the solo parent must have:
- rendered at least six (6) months of service, continuous or broken, within a specified period (e.g., last 12 months) in the company.
Benefit: At least seven (7) working days of parental leave with pay per year, in addition to other leave benefits.
Minimum number of employees? None; the obligation arises once an employee in the establishment qualifies as a solo parent and meets the tenure requirement.

XIV. Special Leave for Women (Magna Carta of Women)

Under the Magna Carta of Women and implementing rules, women are entitled to a special leave benefit of up to two (2) months with full pay for gynecological surgery.

Minimum tenure:
- At least six (6) months of continuous aggregate service in the 12 months immediately preceding the surgery.
Minimum number of employees? None. Whenever a qualified female employee meets the tenure requirement and undergoes covered surgery, the employer must grant the leave.

XV. Leave for Victims of Violence Against Women and Their Children (VAWC Leave – RA 9262)

Female employees (and in some cases, a woman’s child, if also an employee) who are victims of violence covered by RA 9262 may be granted up to ten (10) days leave with full pay, extendible as necessary upon court order.

Minimum tenure: Regulations commonly require that the employee must have rendered at least a minimum period of service (often 6 months) to be entitled, although the central element is being a VAWC victim with a protection order or similar evidence.
Minimum number of employees? None. The requirement attaches to the presence of a qualified victim-employee, regardless of employer size.

XVI. Domestic Workers (Kasambahay Law – RA 10361)

Domestic workers (kasambahay) are a special category, but they illustrate the theme of headcount and tenure:

Mandatory benefits:
- SSS, PhilHealth, Pag-IBIG coverage, with the employer (household) bearing all or most of the contributions depending on wage level.
- Service incentive-type leave: after one (1) year of service, domestic workers are entitled to five (5) days of service incentive leave with pay per year, which is not convertible to cash and not cumulative if unused within the year.
Minimum number of employees? A household with just one kasambahay is already obligated to provide these benefits.

XVII. Probationary, Project-Based, Seasonal and Part-Time Employees

A recurring misconception is that only regular employees are entitled to statutory benefits. In reality:

SSS, PhilHealth, Pag-IBIG: Coverage is based on being an employee, not on regularity or full-time status.
Minimum wage, overtime, premiums, 13th month pay: As long as the employee is non-exempt, these benefits apply whether:
- probationary
- project-based
- seasonal
- casual
- part-time
Tenure-based benefits (SIL, retirement, certain leaves):
- Service incentive leave: counts years of service regardless of number or type of contracts, as long as there is employment continuity as interpreted by law.
- Retirement: the required 5 years of service may accrue over intermittent or seasonal engagements with the same employer.
- Paternity, solo parent, and special leaves: minimum tenure is computed per law and regulations; “broken” service often counts if still within the reference period.

XVIII. Counting Employees for Thresholds (“Regularly Employing Less Than 10”)

Where laws use phrases like “regularly employing less than ten (10) employees,” several practical rules generally apply:

Headcount includes all employees, not only regulars:
- probationary
- casual
- seasonal, if regularly engaged (e.g., every harvest season)
- project-based employees, if the business consistently operates using them
“Regularly employing” is about the normal pattern, not:
- temporary spikes during peak seasons
- very short-term casual labor
Multiple branches or outlets of the same employer are usually consolidated. A chain of small stores with 3 employees each but 5 branches is unlikely to qualify as an establishment “regularly employing less than 10” in total.

Because of these nuances, whether an establishment truly falls below the 10-employee threshold is often a fact-intensive inquiry.

XIX. Documentation, Compliance, and Penalties

While not “benefits” themselves, the following obligations shape how mandatory benefits are administered:

Registration:
- Employers must register with SSS, PhilHealth and Pag-IBIG, and report employees within prescribed periods.
Payroll and records:
- Accurate recording of daily time records, wages, leaves, contributions, and benefits is critical to demonstrate compliance.
Remittance schedules:
- Monthly or periodic remittance deadlines for contributions (SSS, PhilHealth, Pag-IBIG) must be observed to avoid penalties and surcharges.
DOLE inspections:
- The Department of Labor and Employment conducts labor inspections to verify compliance with minimum labor standards (wages, benefits, OSH, etc.).
Penalties:
- Non-compliance may lead to:
  - administrative fines
  - criminal liability for certain violations (e.g., failure to remit SSS contributions)
  - payment of deficiencies, damages, and attorney’s fees in labor disputes

XX. Non-Mandatory Benefits (For Context)

The law sets a floor, not a ceiling. Many employers grant benefits beyond what is mandatory, such as:

additional vacation and sick leaves
bereavement, emergency, calamity leave
medical and dental insurance
educational allowances
flexible work arrangements

These do not usually have statutory minimum employee requirements, except where an employer voluntarily imposes them on itself or under a CBA.

XXI. Conclusion

In the Philippine setting, mandatory benefits are triggered more by the existence of an employment relationship and the tenure of the individual employee than by the size of the workforce, with a notable exception for establishments “regularly employing less than 10 employees,” particularly in SIL, holiday pay (for certain industries), and statutory retirement pay under RA 7641.

Broadly:

No minimum headcount is required to obligate an employer to:
- enroll employees in SSS, PhilHealth, and Pag-IBIG
- pay minimum wage, 13th month pay, overtime, night differential, and grant maternity/paternity, solo parent, and special leaves (once individual conditions are met)
Tenure thresholds are critical for:
- SIL (1 year)
- Paternity leave (~1 year under implementing rules)
- Solo parent leave (6 months service)
- Special women’s leave (6 months within last 12 months)
- Retirement pay (5 years, age 60–65)

Because statutes and implementing rules evolve, employers and employees alike should regularly review updated issuances and, where necessary, consult legal counsel or DOLE for specific situations.