PHILEXPORT General Membership Meeting 19 March 2019 Mr

PHILEXPORT General Membership Meeting 19 March 2019 Mr. Jose Roland A. Moya Director General Employers Confederation of the Philippines

Today’s Presentation will address TELECOMMUTING ACT EXPANDED MATERNITY 2 NEW SSS CHARTER

1 Telecommuting Act Institutionalizing Telecommuting as an Alternative Work Arrangement for Employees in the Private Sector 3

Definition of Telecommuting: According to the law, telecommuting is a work arrangement that allows and employee in the private sector to work from an alternative workplace with the use of computer technologies 4

Salient Features 5 • Voluntarily offered • Terms of the agreement in line with minimum labor standards • Differences in interpretation of policies are considered as grievances under the company’s grievance mechanism

Employers are required to: ◈ Ensure fair treatment ◈ Prevent feelings of isolation ◈ Ensure data protection 6

ECOP Flash Survey 01 -19: Telecommuting Practices

�� 98 respondents Survey period: 11 February – 4 March 2019 8

28 companies have a telecommuting arrangement That is 29% of the respondents 64% of the respondents with a telecommuting arrangement come from small enterprises (10 -99 employees). 21% comes from the IT/BPM industry 9

Reasons for adopting telecommuting Heavy traffic Promotion of work-life balance Business need Enhancement of employee engagement and retention 10

Coverage ◉ Managerial employees ◉ Supervisory employees In terms of employment status, consultants and project staff 11

86% of companies with telecommuting answered that telecommuting employees receive the same benefits as that of their nontelecommuting counterparts. 12

For companies that responded otherwise, Telecommuting employees are no longer eligible for the following: • • Transportation allowance Meal allowance Overtime pay Additional pay for additional days worked 13

On Data Protection ◉ 68% of the respondents with telecommuting have provisions for data privacy. ◉ Employees have to work in a secure environment ◉ Employees need to ensure that company data remains ◉ ◉ ◉ confidential Meetings in public places are prohibited Laptops are encrypted Equipment use is monitored 14

36% have encountered differences in the interpretation of the telecommuting policy The nature of the grievances are as follows: ◉ Payment of overtime ◉ Need for the employee to stay contactable during work hours ◉ Determination of hours worked. 15

Benefits Employee benefits Company benefits • Allows employees to work amidst treatment for medical conditions/illnesses • Minimal disruptions in operations • Higher employee retention • Promotes flexibility in work schedules and work life • balance • • Increases productivity and efficiency • • Enhances self-esteem and confidence from feeling • trusted • Saves time, transportation cost and meal cost Better employee engagement Less work-related casualties and injuries Savings on operational costs Optimization of working space (e. g. seating arrangements) • Ensures safety from calamities and disasters 16

Current Status The Act took effect on 4 January 2019. The Implementing Rules and Regulations will be released by the end of March 2019. 17

2 105 -Day Expanded Maternity Leave Law Increasing the Maternity Leave Period to 105 Days for Female Workers with an Option to Extend for an Additional 30 Days without Pay, and Granting An Additional 15 days for Solo Mothers and For Other Purposes 18

From 60/78 days, the maternity benefit is now for 105 days Regardless whether the delivery is normal or through caesarian section. 19

Salient Features 20 • Coverage • Leaves are transferable • Option to extend without pay • Additional days if miscarriage • No pregnancy cap • No distinction based on marital status • Employers pay the salary differential • No discrimination • Penalties

ECOP Flash Survey 02 -19: Expanded Maternity Leave (Preliminary Results)

�� 70 respondents Survey period: 11 March – 15 March 2019 22

In terms of possible coverage 51 and above employees 39% 27% 1 -10 employees 21 -30 employees 14% 31 -40 employees 10% 11 -20 employees None 41 -50 employees According to the law, pregnant female workers who are SSS members may avail of the 105 -days maternity leave if they have paid at least 3 monthly contributions in the 12 month period preceding the pregnancy, miscarriage, or emergency termination of pregnancy. 9% 1% 39% of the respondents mentioned that they have more than 50 employees who could potentially avail of the maternity benefit. 0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 23

Qualification as Solo Parent* 1 -10 employees 54% 11 -20 employees 54% of the respondents have 1 to 10 employees that are eligible to the additional 15 days of maternity benefit available to single parents 19% None 13% 51 and above employees 11% 21 -30 employees 3% 41 -50 employees 0% 31 -40 employees 0% 0% 10% 20% 30% 40% 50% 60% *As defined in Republic Act 8972 or the Solo Parents’ Welfare Act 24

Salary Ceiling 20, 000. 00 16, 000. 00 51% of the respondents have more than 50 employees who earn more than PHP 16, 000. 00 per month. Only 36% of the respondents have more than 50 employees who earn more than PHP 20, 000. 00 per month. 25

Rank. From cost impact from 1 -5 ‘Very Minimal’ to ‘Very Substantial’ 4 Is the most chosen rank (20 out of 70 respondents) 3. 63 Is the average score 26

Support for the Measure Indifferent ; 17% YES; 49% Most respondents were supportive of the proposed expansion of the maternity leave benefit (49%) NO; 34% . 27

34% of respondents were indifferent to the passage of the Law while 27% were happy. Some had mixed emotions (happy for the employee, sad for the employer) 28

68% of the respondents said that the new law will affect their decision in hiring women Let’s unpack that 29

On hiring women Out of the 34 respondents who supported the new law, 4 said it will affect their decision in hiring women Out of the 24 respondents who did not support the new law, 10 respondents said that the passage won’t affect their decision in hiring women. 4 respondents who were indifferent to the passage of the law said that it will affect their decision in hiring women. 30

Y Why yes? • • • Compromises the productivity of the company Female-dominated smaller enterprises are adversely affected Higher cost implications in terms of the benefit and the cost of hiring and training a temporary replacement 31

N Why no? • • • Equal employment opportunity and gender equality Qualifications should be the basis in hiring Women are more organized, more detail-oriented, and generally more reliable. 32

33 3 respondents expressed disagreement with the new provision that states that it is the duty of the employer to pay the salary differential. “

Current Status Took effect on 8 March 2019. Awaiting deliberations for the Implementing Rules and Regulations 34

3 Social Security Act of 2018 Rationalizing and Expanding the Powers and Duties of the Social Security Commission to Ensure the Long-term Viability of the Social Security System, Repealing for the Purpose Republic Act No. 1161, as amended by Republic Act No. 8282 Otherwise Knows as the Social Security Act of 1997 35

Social Security Act of 2018 Expands the powers and duties of the Social Security Commission (SSC) and professionalizes the SSS board. 36

Contribution Rate of Employer and Employee Year of Contribution Implementation Rate Share Monthly Salary Credit Employer Employee Minimum Maximum 2019 12% 8% 4% P 2, 000. 00 P 20, 000. 00 2020 12% 8% 4% P 2, 000. 00 P 20, 000. 00 2021 13% 8. 5% 4. 5% P 3, 000. 00 P 25, 000. 00 2022 13% 8. 5% 4. 5% P 3, 000. 00 P 25, 000. 00 2023 14% 9. 5% 4. 5% P 4, 000. 00 P 30, 000. 00 2024 14% 9. 5% 4. 5% P 4, 000. 00 P 30, 000. 00 2025 15% 10% 5% P 5, 000. 00 P 35, 000. 00 37

Sample Computation ER SSS 2018 Php 537. 00 x 22 Days = Php 11, 814 (Php 12, 000. 00 monthly salary credit) + EC (Php 10. 00) EE 7. 37% 3. 63% Php 894. 00 Php 436. 00 ER SSS 2019 Php 537. 00 x 22 Days = Php 11, 814 (Php 12, 000. 00 monthly salary credit) + EC (Php 10. 00) 38 EE 8% 4% Php 970. 00 Php 470. 00

Power of the Commission ◈ Investments ◈ Implement increases in premiums ◈ Condone penalties 39

Coverage of OFWs 40

Unemployment Insurance 41

Current Status Took effect on 5 March 2019 Implementing Rules and Regulations in progress Updated Table of Contributions issued by the SSS (effective April 2019) 42

Thanks! Any questions? You can find me at: research@ecop. org. ph | secretariat@ecop. org. ph 44