^pnai?
of tl)J
NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
senY^24
S.B. No. ^ 
1
23 JAN 23 P12 -03
RtCEiVtD bV;
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 
3.9 million Filipinos and killed over 63,000. As the world shifted during the last two 
years, businesses, most 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 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 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
c. Installation of office or building management systems and smart 
technology to reduce energy use or such eguipment, 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 credit 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'\Nh\d\ 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-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 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.
EE R. MARCOS


Mh Beimtc 
1. 0( ti)f
NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
S.B. No.
SENATE
1724
23 JUN 23 PI2:03
RtCEIVED BY;
Introduced by SENATOR IMEE R. MARCOS
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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:
SECTION 1. Short Title. - This act shall be known as the "Workplace and 
Workers Wellness Act."
SEC. 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 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 
development;
primary social economic force in promoting sustainable


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(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 (Php 
1,000.00) and the number of employees of the employer not in excess of Two 
Hundred (200) employees, and (ii) the product of Five Hundred Pesos (Php 500.00) 
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.


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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


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III.
IV.
senior citizens, individuals with underlying conditions, minors below 
the age of seven (7) years of age and pregnant women;
Tobacco, electronic cigarette or vape use at the worksite;
The nutrition of food available at the worksite through cafeterias, 
restaurants and vending options; and
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 empioyer heaith 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.


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SEC. 8. Participation Requirement - No tax credit shall be allowed unless the 
DON 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.


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SEC. 11. Qualified Workplace Improvement Program. - 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


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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,