Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA 
AND HON. NICOLAS “NICK” C. ENCISO VIII 
EXPLANATORY NOTE 
As of August 2022, the Coronavirus Disease 2019 (COVID-19) pandemic has affected 
more than three million Filipinos and killed over 61,000.1 As the world shifts, businesses, 
especially micro, small, and medium enterprises, are scrambling to mitigate losses and 
return to normalcy or at least a ''new normal". Understandably, once the Philippines 
begins to normalize, businesses will be prioritizing the recovery of their losses. 
The Philippines has seen business enterprises adopting measures to keep their workers 
physically healthy to become productive at work, including support for the technology 
needed to work from home, the new hygiene standards for the workers and workplaces, 
and introducing COVID-19 responsive leave benefits. However, once the country attains 
a sense of normalcy, it is reasonable to assume that businesses will again be shifting to 
on-site work arrangements. 
Under this new normal, employers should not ignore an issue of paramount importance 
for sustained success throughout this crisis and beyond—the mental and physical health 
of their workers. Employers must recognize that they are dependent on the agility, 
adaptive capacity, and emotional well-being of their people, which require them to stay 
healthy not just physically, but also emotionally. Thus, the use by employers of effective 
worksite policies and programs can reduce health risks and improve job satisfaction and 
the quality of life for their employees. 
In view of the limitations to helping businesses recover from the financial crisis and 
nurture their workers who have suffered dire effects of the pandemic, the Philippine 
government should enact measures to complement existing initiatives and incentivize 
employers for the benefit of their workforce. 
1 https://covid19.who.int/region/wpro/country/ph 
August 23, 2022
2:00 pm
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In consonance with Section 18, Article II of the 1987 Constitution which declares that the 
State shall protect the rights of workers and promote their welfare, this bill is proposed to 
incentivize employers to educate, inform, and empower their employees in making 
healthier lifestyle choices. This is an important step, not only to lowering healthcare costs 
and keeping our population and our workers healthy but to promoting job satisfaction 
across all industries. 
This bill also proposes to grant employers incentives when they implement any or all of 
the two categories of programs, namely Employee Wellness Programs and Workplace 
Improvement Programs. Employee Wellness Programs are composed of at least four of 
the following five components: (a) health awareness, (b) health education, (c) employee 
engagement, (d) behavioral change, and (e) supportive worksite. Meanwhile, Workplace 
Improvement Programs include financing energy efficiency, renewable energy, and 
energy retrofitting project. To add, these include the installation or improvement of 
sufficient ventilation systems, building management systems, and smart technology in 
office spaces or work areas.  
For the implementation of the Employment Wellness Program, a tax credit to employers 
will also be given subject to a few conditions. Further, this bill provides for a sunset 
provision of six years on the availment of incentives, thereby encouraging businesses to 
adopt as soon as possible while giving ample time to allot funds, plan, and develop such 
measures. 
The passage of this bill will support the initiatives promoted under Republic Act No. 
11036, otherwise known as the "Mental Health Act” which mandates employers to 
develop appropriate policies and programs on mental health in the workplace and the 
"Smoke-Free" policy of the government. Further, this bill will complement the minimum 
public health standards of the government in workplaces under DOH Order No. 
2020-0015. 
If business enterprises can avail incentives to bring down their tax liabilities, they will be 
encouraged to prioritize and focus on the wellness of their workers. The country can be 
assured of a healthier and happier workforce, as well as ensure better job satisfaction 
that will boost productivity and support our efforts on the road to economic recovery. 
In view of the foregoing, the approval of this bill is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
MIGUEL LUIS R. VILLAFUERTE  
TSUYOSHI ANTHONY G. HORIBATA  
NICOLAS “NICK” C. ENCISO VIII 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA 
AND HON. NICOLAS “NICK” C. ENCISO VIII 
AN ACT 
PROMOTING WORKERS' HEALTH AND WELLNESS BY PROVIDING INCENTIVES 
TO EMPLOYERS FOR THE IMPLEMENTATION OF WORKFORCE WELLNESS AND 
WORKPLACE IMPROVEMENT PROGRAMS 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
ARTICLE I 
GENERAL PROVISIONS 
SECTION 1. Short Title. – This Act shall be known as the "Workplace and Workers 
Wellness Act". 
SECTION 2. Declaration of Policy. – The Coronavirus Disease 2019 (COVID19) 
pandemic has greatly affected nations worldwide, including the Philippines, and the 
measures adopted by the government to contain the outbreak have unavoidably caused 
serious economic setbacks and tremendous financial pressure on business enterprises, 
particularly micro, small, and medium enterprises. 
The State recognizes the unique role of employers to promote the health and safety of 
their employees and that the use by employers of effective worksite policies and 
programs can reduce mental and health risks and improve the quality of life for their 
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employees. Thus, in order to encourage employers to adopt policies, measures, and 
programs aimed to benefit their workforce through the granting of tax incentives, it is 
necessary to lay down appropriate policies in order to address the wellness of workers 
who have likewise suffered the adverse effects of the COVID-19 pandemic. It is hereby 
declared the policy of the State to: 
a. 
affirm labor as a primary social economic force in promoting sustainable 
development; 
b. 
afford full protection to labor, local and overseas, organized and unorganized, 
and promote full and productive employment and equality of employment 
opportunities for all; and 
c. 
promote the rights of the people to a balanced and healthful ecology in accord 
with the rhythm and harmony of nature. 
 
SEC. 3. Coverage. – This Act shall apply to all business enterprises and employers, 
including government owned and controlled corporations performing proprietary 
functions. 
 
ARTICLE II 
Employee Wellness Program 
SEC. 4. Employee Wellness Program Tax Credit. – 
(1) 
The Employee Wellness Program credit for any taxable year during the credit 
period with respect to any employer is an amount equal to fifty percent (50%) of 
the costs paid or incurred by the employer in connections with a qualified 
wellness program during the taxable year. For purposes of the preceding 
sentence, in the case of any qualified Employee Wellness Program offered as 
part of an employer-provided group health plan, including health insurance 
offered in connection with such plan, only costs directly attributable to the 
qualified wellness program and not to the group health plan or health insurance 
coverage may be taken into account. 
(2) 
Limitation. – The amount of tax credit allowed under paragraph (1) for any 
taxable year shall not exceed the sum of: (i) the product of One Thousand Pesos 


 
 
(PhP1,000.00) and the number of employees of the employer not in excess of 
Two Hundred (200) employees, and (ii) the product of Five Hundred Pesos 
(PhP500.00) and the number of employees in excess of Two Hundred (200) 
employees. 
 
SEC. 5. Qualified Employee Wellness Program. – The term "Qualified Employee 
Wellness Program" means a program: 
(1) 
Consists of at least four (4) of the employee wellness program components set 
forth under Section 6 hereof; and 
(2) 
Certified by the Department of Health (DOH), as a qualified employee wellness 
program under this Section. 
 
SEC. 6. Employee Wellness Program Components. – The wellness program 
components are the following: 
(1) 
Health Awareness Component. – A health awareness component which provides 
for the opportunity for periodic health screenings for health problems and 
referrals to appropriate follow-up measures. 
 
(2) 
Health Education Component. – The dissemination of health information through 
seminars, on-line programs, counselling and other materials, which addresses 
the specific needs and health risks of employees. 
 
(3) 
Employee Engagement Component. – An employee engagement component 
which provides for: 
(i)  The establishment of a committee to actively engage employees in the 
employee wellness programs through program assessment and program 
planning, delivery, evaluation, and improvement efforts; and 
(ii)  The tracking of employee participation in the programs. 
 
 
(4) 
Behavioral Change Component. – A behavioral change component which 


 
 
provides for altering employee lifestyles to encourage health living through 
counseling, seminars and on-line programs, or self-help materials which provide 
technical assistance and problem-solving skills. This component may include 
programs relating to: 
(i)   
obesity; 
(ii)  
stress management; 
(iii)  
physical fitness; 
(iv)  
nutrition; 
(v)  
substance abuse; 
(vi)  
depression; 
(vii)  
anxiety; and 
(viii)  
mental health management and promotion. 
 
(5) 
Supportive Worksite Component. – A supporting worksite component which 
includes policies and services at the worksite which promote a healthy and 
balanced lifestyle, such as policies relating to: 
(i)  The adoption of alternative work schemes/flexible work arrangements, 
especially for employees or personnel who reside with senior citizens, 
individuals with underlying conditions, minors below the age of seven (7) 
years of age and pregnant women; 
(ii)  Tobacco, electronic cigarette or vape use at the worksite; 
(iii) The nutrition of food available at the worksite through cafeterias, 
restaurants and vending options; and 
(iv) Minimizing stress and promoting mental health in the worksite, and 
encouraging physical activity before, during or after work hours; 
Provided, however, that such policies shall be compliant with the minimum public 
health standards that may be issued by the DOH. 
Provided further, that despite availment of tax credit by an employer, the employee 
wellness program may include in the '''Sustainability Report" as may be required by the 
Securities and Exchange Commission (SEC) to report significant economic, 
environmental and/or social contributions, in accordance with the globally accepted 


 
 
standards. 
 
SEC. 7. DOH Certification. – The DOH, shall, as part of the certification process, 
encourage employees to make the programs culturally competent and to meet the health 
literacy needs of the employees covered by the programs. 
 
The DOH shall not certify a program as a qualified employee wellness program unless 
the program has the following requisites: 
(1) consistent with evidence-based research and best practices, as identified by 
persons with expertise in employer health promotion and wellness programs; 
(2) includes multiple, evidence-based strategies which are based on the existing and 
emerging research and careful scientific reviews; and 
(3) includes strategies which focus on employee populations with a disproportionate 
burden of health problems. 
 
The DOH shall establish procedures for annual review of the implementation of the 
programs. Such procedures shall require revisions of programs, if necessary, to ensure 
compliance with the requirements and require updating of the programs to the extent the 
DOH determines necessary to reflect new scientific findings or minimum public health 
standards. 
 
SEC. 8. Participation Requirement. – No tax credit shall be allowed unless the DOH 
certifies that each employee wellness program component of the qualified wellness 
program applies to all qualified employees of the employer. The DOH shall prescribe 
rules under which an employer shall not be treated as failing to meet the requirements 
merely because the employer provides specialized programs for employees with specific 
health needs or unusual employment requirements or provides a pilot program to test 
new wellness strategies. 
For purposes of this Act, "qualified employee” shall mean: 
(1) For employers offering health Insurance coverage, an employee who is eligible for 
such coverage; or 


 
 
(2) For employers not offering health insurance coverage, an employee who works an 
average of not less than twenty-five (25) hours per week during the taxable year. 
 
SEC. 9. Tax Credit Period. –  
(1) 
In General. – Tax Credit period means the period of three (3) consecutive taxable 
years beginning with the taxable year in which the qualified employee wellness 
program is first certified by the DOH. 
(2) 
Special Rules for Existing Programs. – An employer (or predecessor) which 
already operates a wellness program for its employees prior to the date of the 
effectivity of this Act shall be eligible for certification by DOH and may avail of the 
incentives for five (5) consecutive taxable years beginning with the taxable year 
in which the qualified employee wellness program is certified by the DOH. The 
DOH shall prescribe rules under which the incentives under this paragraph shall 
not apply if the employer is required to make substantial modifications in its 
existing wellness program in order to qualify such program for certification as a 
qualified employee wellness program. 
 
ARTICLE III 
Workplace Improvement Programs 
SEC. 10. Workplace Improvement Program Incentive. – For the purpose of 
encouraging employers to undertake any qualified workplace improvement program, as 
provided in Section 11 of this Act, employers shall enjoy an additional deduction 
equivalent to thirty percent (30%) of the cost deductible as depreciation expense, with 
the option to use the accelerated depreciation method for income tax purposes. 
 
SEC. 11. Qualified Workplace Improvement Program. – A “Qualified Workplace 
Improvement Program” means any of the following:  
(1) 
Retrofitting of office spaces occupied by or wherein at least ten (10) rank and-file 
employees are stationed or hold office, which shall include finance energy 
efficiency, renewable energy, and energy retrofitting projects, as certified by the 
local government unit having jurisdiction of the site; 


 
 
(2) 
Installation or improvement of ventilation systems in office spaces or work areas, 
as certified by the local government unit having jurisdiction of the site; or 
(3) 
Installation of office or building management systems and smart technology to 
reduce energy use or such equipment, systems or installations integrating the 
use of renewable sources of energy, as certified by the Department of Energy 
(DOE). 
Provided, that such construction works, or installations are in accordance with Republic 
Act No. 6541, otherwise known as the “National Building Code". 
 
ARTICLE IV 
FINAL PROVISIONS 
SEC. 12. Period to Avail of Incentives. – The incentives granted under this Act can be 
availed of within six (6) years from the effectivity of this Act, without prejudice to periods 
granted to fully claim such Incentives. 
 
SEC. 13. Special Rules. – No tax credit or incentive under this Act shall be allowed with 
respect to any program of any taxpayer who receives a grant provided by the 
government in connection which such program. The DOH and DOE shall prescribe rules 
for the waiver of this section with respect to any grant which does not constitute a 
significant portion of the funding for the qualified program. 
 
SEC. 14. Implementing Rules and Regulations. – Within one hundred eighty (180) 
days from the effectivity of this Act, the Department of Finance (DOF) and the DOH, in 
coordination with the DOE, shall formulate the necessary rules and regulations to 
effectively Implement the provisions of this Act. 
 
SEC. 15. Information Campaigns. – The DOH, Department of Finance (DOF), and 
Department of Trade and Industry (DTI) shall institute information campaigns and 
outreach programs to inform businesses about the availability of the incentives under this 
Act, as well as, to educate businesses on how to develop programs according to 
recognized and promising practices and on how to measure the success of implemented 


 
 
programs. 
 
SEC. 16. Appropriations. – The funds needed for the initial implementation of this Act 
shall be charged against the appropriations of the DOF, DOH, and the DOE. Thereafter, 
such amount as may be necessary for its full implementation shall be included in the 
annual General Appropriations Act as a distinct and separate item. 
 
SEC. 17. Separability Clause. – If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the Act or the provision not otherwise affected shall 
remain valid and subsisting. 
 
SEC. 18. Repealing Clause. – Any law, presidential decree or issuance, executive order, 
letter of instruction, rule or regulation contrary to, or inconsistent with the provisions of 
this Act is hereby repealed, modified or amended accordingly. 
 
SEC. 19. Effectivity Clause. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette and in a newspaper of general circulation. 
 
Approved,