EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
SENATE
S.B. No. 2349
2021 m
Introduced by SENATOR IMEE R. MARCOS
AN ACT PROMOTING WORKERS' HEALTH AND WELLNESS BY PROVIDING 
INCENTIVES TO EMPLOYERS FOR THE IMPLEMENTATION OF WORKFORCE 
WELLNESS AND WORKPLACE IMPROVEMENT PROGRAMS
EXPLANATORY NOTE
The Coronavirus Disease 2019 (COVID-19) pandemic has affected more than 1 
million Filipinos and killed over 19,000. As the world shifted during the last year, 
businesses, most especially miao, 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 on keeping 
their workers physically healthy to become productive at work, including supporting 
social distancing with the technology needed to work from home, to new hygiene 
standards for the workers and workplaces, to 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.
Workers spend at least eight (8) hours a day, or one-third of their day on the 
job and, as a result, employers are In a unique position to promote the health and 
safety of their employees. 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 of what the government can offer to help businesses 
recover from financial crisis and at the same time, nurture their workers who are at
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the forefront of economic recovery and who have likewise suffered the dire effects of 
the pandemic, it is fitting that the Philippine government enact measures to 
complement existing initiatives and incentivize employers who adopt programs and 
implement programs for the benefit of their workforce.
The primary objective of the bill is to encourage and 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 promote job satisfaction across all 
industries.
The Bill would grant incentives to employers that implement any or all of the two 
(2) categories of programs, namely;
1. "Employee Wellness Programs", composed of at least four (4) of the 
following five (5) components:
a. 
Health awareness component which provides employees the 
opportunity for periodic health screenings for health problems and 
referrals to appropriate follow-up measures;
b. 
Health education component which involves the dissemination of 
health Information which addresses the specific needs and health risks 
of employees;
c. 
Employee engagement component where the employees are engaged 
and are part of the implementation and assessment of the programs;
d. 
Behavioral change component which involves the adoption of policies, 
counseling, seminars and programs relating to, among others: (i) 
obesity; (ii) stress management; (iii) physical fitness; and (iv) 
nutrition;
e. 
Supportive worksite component which involves, among others, the 
adoption of policies relating to alternative work schemes/flexible work 
arrangements, tobacco, e-cigarettes or vape use on the worksite, 
nutrition of food available on worksite, minimizing stress and 
promoting mental health In the worksite, and encouraging physical 
activity before, during, or after work hours.
2. Workplace Improvement Programs
a. 
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;
b. 
Installation or improvement of sufficient ventilation systems in office 
spaces or work areas; or
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c. 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.
For the implementation of the Employment Wellness Program, this Act shall 
provide a tax aedit of up to PhP 1,000 per employee for employers with less than 200 
employees, and up to PhP 500 per employee in excess of 200 employees. The tax 
credit would be available to an eligible employer for a period of three (3) years from 
when the program was first certified by the Department of Health (DOH).
As for the adoption of Workplace Improvement Programs, an additional 30% 
of the cost deductible as depreciation expense, with the option to use the accelerated 
depreciation method for income tax purposes shall be provided.
Further, the Act provides for a sunset provision on when availment of the 
incentives will expire. Any employer will have six (6) years to avail the incentives under 
this Bill, thereby encouraging businesses to adopt the qualified measures as soon as 
possible, and at the same time allowing businesses enough 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 that 
employers ''shall develop appropriate policies and programs on mental health in the 
workplace designed to raise awareness on mental health issues, correct stigma and 
discrimination associated with mental health condition, identify and provide support 
for individuals at risk, and facilitate access of individuals with mental health conditions 
to treatment and psychosocial support' and the "Smoke-Fred' 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 of 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.
IMEE R. MARCOS


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EIGHTEEISTTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
SENATE
S.B. No. 2349
Introduced by SENATOR IMEE R. MARCOS
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 die Senate and House of Representatives of die Philippines in 
Congress assembled:
ARTICLE I 
General Provisions
SECTION 1. Short Tide. 
Workers Wellness Act."
This Act shall be known as the "Workplace and
SECTION 2. Declaration of Policy. -The Coronavirus Disease 2019 (COVID- 
19) 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 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


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(c) promote the rights of the people to a balanced and healthful ecology in accord
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with the rhythm and harmony of nature.
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SEC. 3. Coverage. - This Act shall apply to all business enterprises and
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employers, including government owned and controlled corporations performing
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proprietary functions.
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ARTICLE II
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Employee Wellness Program
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SEC. 4. Employee Wellness Program Tax Credit -
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(l)The Employee Wellness Program credit for any taxable year during the
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credit period with respect to any employer is an amount equal to fifty
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percent (50%) of the costs paid or incurred by the employer in
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connections with a qualified wellness program during the taxable year.
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For purposes of the preceding sentence, in the case of any qualified
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Employee Wellness Program offered as part of an employer-provided
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group health plan, including health insurance offered in connection with
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such plan, only costs directly attributable to the qualified wellness
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program and not to the group health plan or health insurance coverage
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may be taken into account.
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(2) Limitation. - The amount of tax credit allowed under paragraph (1) for
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any taxable year shall not exceed the sum of: (i) the product of One
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Thousand Pesos (PhP 1,000.00) and the number of employees of the
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employer not in excess of Two Hundred (200) employees, and (ii) the
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product of Five Hundred Pesos (PhP 500.00) and the number of
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employees in excess of Two Hundred (200) employees.
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SEC. 5. Qualified Employee Wellness Program. -The term "Qualified Employee
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Wellness Program" means a program:
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(1) Consists of at least four (4) of the employee wellness program
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components set forth under Section 6 hereof; and
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(2) Certified by the Department of Health (DOH), as a qualified employee
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wellness program under this Section.
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SEC. 6. Employee Wellness Program Components. - The wellness program
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components are the following:
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(1) Health A wareness Component - A health awareness component which
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provides for the opportunity for periodic health screenings for health
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problems and referrals to appropriate follow-up measures.
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(2) Health Education Component - The dissemination of health
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information through seminars, on-line programs, counselling and other


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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.


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Provided further, that despite availment of tax credit by an employer,
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the employee wellness program may indude in the '''Sustainability
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Report" as may be required by the Securities and Exchange Commission
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(SEC) to report significant economic, environmental and/or social
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contributions, in accordance with the globally accepted standards.
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SEC. 7. DOH Certification. -The DOH, shall, as part of the certification process,
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encourage employees to make the programs culturally competent and to meet the
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health literacy needs of the employees covered by the programs.
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The DOH shall not certify a program as a qualified employee wellness program
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unless the program has the following requisites:
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(1) consistent with evidence-based research and best practices, as identified
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by persons with expertise in employer health promotion and wellness
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programs;
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(2) includes multiple, evidence-based strategies which are based on the
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existing and emerging research and careful scientific reviews; and
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(3) includes strategies which focus on employee populations with a
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disproportionate burden of health problems.
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The DOH shall establish procedures for annual review of the implementation of
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the programs. Such procedures shall require revisions of programs, if necessary, to
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ensure compliance with the requirements and require updating of the programs to the
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extent the DOH determines necessary to reflect new scientific findings or minimum
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public health standards.
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SEC. 8. Participation Requirement. - No tax credit shall be allowed unless the
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DOH certifies that each employee wellness program component of the qualified
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wellness program applies to all qualified employees of the employer. The DOH shall
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prescribe rules under which an employer shall not be treated as failing to meet the
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requirements merely because the employer provides specialized programs for
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employees with specific health needs or unusual employment requirements or
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provides a pilot program to test new wellness strategies.
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For purposes of this Act,"qualified employee^' shall mean:
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(l)For employers offering health Insurance coverage, an employee who is
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eligible for such coverage; or
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(2) For employers not offering health insurance coverage, an employee who
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works an average of not less than twenty-five (25) hours per week during
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the taxable year.
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SEC. 9. Tax Credit Period. -
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(1) In General. - Tax Credit period means the period of three (3)
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consecutive taxable years beginning with the taxable year in which the qualified
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employee wellness program is first certified by the DOH.
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(2) Special Rules for Existing Programs. - An employer (or predecessor)
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which already operates a wellness program for its employees prior to the date of the
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effectivity of this Act shall be eligible for certification by DOH and may avail of the
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incentives for five (5) consecutive taxable years beginning with the taxable year in
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which the qualified employee wellness program is certified by the DOH. The DOH shall
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prescribe rules under which the incentives under this paragraph shall not apply if the
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employer is required to make substantial modifications in its existing wellness program
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in order to qualify such program for certification as a qualified employee wellness
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program.
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ARTICLE III
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Workplace Improvement Programs
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SEC. 10. Workplace Improvement Program Incentive. - For the purpose of
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encouraging employers to undertake any qualified workplace improvement program,
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as provided in Section 11 of this Act, employers shall enjoy an additional deduction
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equivalent to thirty percent (30%) of the cost deductible as depreciation expense,
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with the option to use the accelerated depreciation method for income tax purposes.
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SEC. 11. Qualified Workplace Improvement Program. - A nQualified Workplace
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Improvement Progranl' means any of the following:
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(1) Retrofitting of office spaces occupied by or wherein at least ten (10) rank-
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and-file employees are stationed or hold office, which shall include finance
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energy efficiency, renewable 
energy, and energy retrofitting 
projects, as
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certified by the local government unit having jurisdiction of the site;
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(2) Installation or improvement of ventilation systems in office spaces or work
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areas, as certified by the local government unit having jurisdiction of the
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site; or
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(3) Installation of office or building management systems and smart technology
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to reduce energy use or such equipment, systems or installations integrating
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the use of renewable sources of energy, as certified by the Department of
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Energy (DOE).
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Provided, that such construction works or installations are in accordance with
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Republic Act No. 6541, otherwise known as the National Building Code".


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AR7TVLEIV 
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,