Employee Health Care Company Proposed to Receive Tax Incentives

JAKARTA - Companies that run employee health and fitness programs are proposed to receive tax relief. The proposal was submitted by Senator Imee Marcos to encourage a healthier and more productive workplace.

Reported by the Philippine News Agency (PNA), Thursday, April 30, Marcos submitted Senate Bill No. 1928 or the draft "Workers Health and Wellness Act". The bill provides tax credits for companies that run qualified employee health programs.

The value is up to 1,000 Philippine pesos per employee for companies with less than 200 workers. For companies with more than that number of workers, their tax credit is up to 500 Philippine pesos per employee.

Marcos said this rule aims to encourage the business world to support the physical, mental, and emotional health of workers.

"Studies show that workplace fitness programs and improvements to the work environment can significantly reduce health risks, lower absenteeism rates, increase employee engagement, and strengthen productivity," said Marcos.

According to Marcos, many companies, especially micro, small, and medium enterprises or MSMEs, face limitations in funding to carry out comprehensive workplace fitness and improvement programs.

"However, many companies, especially micro, small, and medium enterprises, face financial constraints that make them unable to implement comprehensive fitness or workplace improvement programs," he said.

The bill includes periodic health checks, health education, employee involvement, behavior change programs, and supportive workplace policies. Including flexible work arrangements and increased awareness of mental health.

In addition to the fitness program, incentives are also given for workplace improvements. For example, improving ventilation systems, using energy-saving technology, and implementing smart building systems.

Companies can also obtain additional depreciation costs that can be deducted by 30 percent. There is also an option to accelerate depreciation for tax purposes.

Marcos said that the incentive is expected to make companies more encouraged to pay attention to workers' welfare.

"If companies can get incentives to lower their tax obligations, they will be encouraged to prioritize and focus on the welfare of their workers," said Marcos.

This bill also supports policies that are already in place in the Philippines, such as the Mental Health Law and government occupational health standards. The government and the private sector are encouraged to work together to strengthen employee welfare.