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ZTAG Filipino Team HR Policies

Comprehensive Framework for Filipino Employees & Contractors

Effective Date: February 2026
Scope: ZTAG's 4 Filipino team members (remote-based contractors/employees)
Legal Basis: Philippine Labor Code + RA 11210 (Maternity Leave) + RA 11199 (SSS Act)

1. EXECUTIVE SUMMARY

ZTAG currently employs/engages 4 Filipino team members as remote contractors, paid via Wise. This HR policy establishes:

2. TEAM MEMBER CLASSIFICATION

Current ZTAG Filipino Team (as of Feb 2026)

Name Role Status Compensation Location
Paula Design + Social Media Remote Contractor Weekly Wise Philippines
Carmee Design Remote Contractor Weekly Wise Philippines
[Team Member 3] [Role] Contractor/Employee Wise Philippines
[Team Member 4] [Role] Contractor/Employee Wise Philippines

Classification: Contractor vs. Employee

Legal Question: Is a Filipino remote worker a contractor or employee?

ZTAG Position: Treat as self-employed contractor for SSS purposes if:

If the above applies: Worker classified as "Self-Employed" under SSS Act 2018 (RA 11199)

If any of the above NOT true (e.g., fixed schedule, exclusive engagement, ZTAG controls hours): Could be reclassified as "Dependent Employee" and ZTAG would need to:

⚠️ ACTION: Quantify each Filipino team member's actual engagement to confirm contractor status.

3. PAYMENT STRUCTURE

For Contractors (Current Model)

Gross Payment (via Wise):

Contractor Responsibilities:

Example:

For Potential Employees (Future Model)

If classification changes to employee:

Gross Salary: ₱60,000/month (example)

Deductions:

ZTAG Employer Cost:

4. MATERNITY LEAVE POLICY (RA 11210)

Eligibility

For SSS-Covered Contractors (Self-Employed Members):

For Employees (if status changes):

Leave Duration & Payment

Leave Type Duration Payment Notes
Standard Maternity Leave 105 days 100% full pay Live birth (normal or caesarian)
Miscarriage/ETP 60 days 100% full pay Emergency termination of pregnancy
Solo Mother Bonus +15 days Paid If qualifies under RA 8972
Extended Leave (unpaid) 30 days Unpaid Optional; requires notice
Return-to-Work Flexible Varies Varies Negotiable part-time options

Maternity Notification Process

Step 1: Employee Responsibility

Step 2: SSS Notification (for contractors)

Step 3: Apply for Benefit After Birth

Maternity Benefit Payment Calculation

For Self-Employed Contractors:

  1. Registered monthly income with SSS: e.g., ₱20,000
  2. Daily maternity allowance: ₱20,000 ÷ 180 = ₱111.11/day
  3. 105-day benefit: ₱111.11 × 105 = ₱11,667 total
  4. Payment method: SSS transfers to contractor's enrolled bank account
  5. Timeline: Within 30 days of MBA approval

For Employees (future):

  1. Employer advances full pay: For 105 days of work (based on salary)
  2. SSS reimburses employer: 100% of maternity benefit portion
  3. Employer covers difference: If salary > SSS benefit (except small business exemption)

ZTAG Maternity Benefit Top-Up (Optional Company Policy)

ZTAG Commitment (recommended for contractor team):

"For female contractors who meet SSS maternity benefit eligibility, ZTAG will provide a monthly top-up payment to bridge any gap between SSS benefit and the contractor's normal weekly earnings, for the duration of maternity leave (105 days)."

Top-Up Calculation:

Alternative Top-Up (Conservative):

Decision: Quan/Kristin to decide % top-up offered. Recommend documenting in writing before announcement.

Return-to-Work Options

Option A: Full-Time Return

Option B: Part-Time Async Return (Recommended)

Option C: Extended Leave

Job Protection Under RA 11210

✅ Guaranteed Rights During & After Maternity Leave:

⚠️ Penalty for Non-Compliance:

5. SICK LEAVE POLICY

Entitlement

For Contractors (Self-Employed):

For Employees (future):

Process

  1. Notify employer/coordinator ASAP (email to Quan or project lead)
  2. For >3 days: Submit medical certificate from accredited physician
  3. SSS Sickness Benefit (if SSS member): Can claim if hospitalized
  4. Payment: Depends on contract terms (employer discretion for contractors)

Medical Reimbursement

ZTAG Position: Not applicable (contractor = responsible for own healthcare)

If Employee Status (future): PhilHealth coverage would apply (employer-provided)

6. VACATION / REST DAY POLICY

Entitlement

For Contractors:

For Employees (future):

Process

  1. Request vacation 2-4 weeks in advance (email to Quan)
  2. Specify dates and project coverage plan (who covers your work?)
  3. Manager approval required (Quan for current contractors)
  4. Update project management system (Notion/Asana)
  5. Pause Wise payments during unpaid vacation (contractor), or continue with reduced rate

Rest Days & Work-Life Balance

ZTAG Policy:

7. BENEFITS FRAMEWORK

For Contractors (Current)

Benefit Coverage ZTAG Provides Contractor Pays Notes
SSS (Social Security) Maternity, sick, retirement, death No Optional (~₱240/wk) Contractor must register as voluntary member
PhilHealth Basic health insurance No Own cost (~₱250-500/mo) Contractor responsibility
Pag-IBIG (Housing) Housing loan fund No Optional (~₱100-200/mo) Contractor can register voluntarily
Income Tax Personal income tax (BIR) No Contractor pays If income exceeds ₱250k/year
Life Insurance N/A No N/A Contractor can purchase privately
Health Insurance N/A No Private (optional) Contractor responsible
Retirement N/A No Self-funded SSS retirement benefit only if member

For Employees (Future Model)

Benefit Coverage ZTAG Provides Employee Pays Notes
SSS (Social Security) Maternity, sick, retirement, death Yes (employer share) Yes (6.2%) Mandatory for employees
PhilHealth Basic health insurance Yes (employer share) Yes (2.75%) Mandatory for employees
Pag-IBIG Housing loan fund Yes (employer share) Yes (~2%) Mandatory for employees
Income Tax (BIR) Personal withholding tax ZTAG deducts & files Automatic Based on income
Work Injury Benefit Accident/illness at work Yes (via SSS) No Automatic coverage
13th Month Pay Bonus (1 month salary) Yes No Mandatory in December
Annual Bonus Performance-based ZTAG discretion N/A Not mandatory

Recommended Contractor Benefit Package (Optional)

ZTAG could improve contractor benefits without legal obligation:

  1. Maternity leave top-up (as discussed above): Bridges SSS-salary gap
  2. Bonus for milestones: Annual performance bonus (discretionary)
  3. Health subsidy: Offer ₱5,000/year toward PhilHealth or private insurance
  4. Professional development: Annual training/course allowance (₱3,000-5,000)
  5. Productivity bonus: Extra month's pay if quarterly goals exceeded

8. CONTRACTOR VS. EMPLOYEE DECISION TREE

Use This to Classify ZTAG Team Members

Question 1: Is the person paid weekly or monthly on a fixed payroll?
  YES → Likely Employee
  NO  → Continue to Q2

Question 2: Does ZTAG control WHEN the person works (fixed schedule)?
  YES → Likely Employee
  NO  → Continue to Q3

Question 3: Does ZTAG control HOW the work is done (detailed supervision)?
  YES → Likely Employee
  NO  → Continue to Q4

Question 4: Can the person refuse work or take on outside clients?
  YES → Likely Contractor
  NO  → Likely Employee

Question 5: Does the person provide their own equipment/tools?
  YES → Contractor
  NO  → Mixed (could be employee with company equipment)

RESULT:
  5+ "Likely Employee" answers → Classify as EMPLOYEE (RA 11199 applies)
  3+ "Likely Contractor" answers → Classify as CONTRACTOR (self-employed SSS)
  Mixed → Discuss with legal counsel; likely trending toward employee

Recommendation: Run this analysis for Paula, Carmee, and other team members to confirm classification.

9. DISPUTE RESOLUTION

Employment Dispute Process

If contractor/employee has complaint about:

Step 1: Informal Resolution (ZTAG)

Step 2: Formal Mediation

Step 3: Philippines Labor Authorities

Applicable Philippine Labor Laws

Issue Law Governing Body
Maternity Leave RA 11210 DOLE, SSS
Wages & Compensation Labor Code Article 98-107 DOLE, NLRC
Termination Labor Code Article 277-278 NLRC
Social Security RA 11199 SSS
Health Insurance RA 7875 PhilHealth
Discrimination RA 9710 (Women) DOLE, CHR
Work Accidents Labor Code Article 167-184 SSS

10. CONTRACTOR COMPLIANCE CHECKLIST

ZTAG to verify for each Filipino team member:

11. SAMPLE CONTRACTOR ENGAGEMENT LETTER

CONTRACTOR ENGAGEMENT AGREEMENT

This Agreement is entered into between:

ZTAG, Inc. (Company)
And
[Filipino Team Member Name] (Contractor)

Effective Date: [Date]

1. ENGAGEMENT TERMS
   - Position: [Design / Social Media / etc.]
   - Scope: [Specific deliverables]
   - Duration: [Ongoing / Fixed term]
   - Classification: Self-Employed Contractor (not employee)

2. COMPENSATION
   - Weekly Rate: ₱[amount]/week
   - Payment Method: Wise transfer to [Bank Account]
   - Payment Schedule: Every [Friday/Monday]
   - Currency: USD or PHP (specify)
   - No deductions for SSS, taxes, or benefits (Contractor responsibility)

3. SCHEDULE & HOURS
   - Expected Hours: ~40 hours/week
   - Schedule: Flexible (no fixed clock hours)
   - Communication: Via [Slack/Email/Notion]
   - Time Zone: Philippines hours (no after-hours expectation)

4. TERMINATION
   - Either party may terminate with 2 weeks written notice
   - Immediate termination for breach of confidentiality
   - Final payment within 30 days of termination
   - Contractor is independent; responsible for own taxes/benefits

5. MATERNITY LEAVE (if applicable)
   - RA 11210 provides 105 days paid leave
   - SSS maternity benefit to be claimed directly by Contractor
   - ZTAG may provide top-up payment (to be agreed)
   - Job protected upon return

6. CONFIDENTIALITY
   - All client/company information is confidential
   - NDA terms: [Specify duration and scope]

7. INTELLECTUAL PROPERTY
   - Contractor assigns all work product to ZTAG
   - ZTAG owns all designs, code, content created

8. GOVERNING LAW
   - Philippine Labor Code applies
   - Disputes resolved per DOLE/NLRC procedures

SIGNATURES:

Contractor: _________________________ Date: _______
ZTAG Representative: _________________________ Date: _______

12. RECOMMENDATIONS FOR ZTAG LEADERSHIP

Immediate Actions (Next 30 Days)

  1. Clarify Employment Status

    • Run the contractor/employee classification test for each team member
    • Confirm with Quan/Kristin: Do we intend these to be contractors or employees?
    • If contractor: Document in writing; have team acknowledge status
    • If employee: Calculate SSS/PhilHealth costs; update payroll process

  2. Maternity Leave Prep for Paula

    • Confirm Paula's SSS member status ASAP
    • If not member: Help her register + pay 3 months contributions (cost: ~₱720)
    • Agree on maternity leave top-up amount (₱25k-₱50k/month)
    • Set return-to-work flexibility option with Paula

  3. Update Contractor Agreements

    • Have all Filipino team members sign contractor engagement letter (if status confirmed)
    • Include clear maternity leave & top-up terms
    • Specify Wise payment details & frequency

  4. Create HR Handbook Section

    • Formalize these policies in employee/contractor handbook
    • Include Philippines-specific benefits & leave policies
    • Make available to all team members (English)

Medium-Term Actions (2-3 Months)

  1. Tax Compliance Review

    • Determine if ZTAG has Philippine tax obligations (likely minimal for contractor payments)
    • Consult with tax advisor on cross-border contractor payments
    • Ensure Wise transfers are properly documented

  2. Team Communication

    • Hold team meeting explaining: maternity leave, leave policies, benefits options
    • Translate key documents to Filipino (Tagalog) if helpful
    • Make HR policies transparent & accessible

  3. Financial Planning

    • Budget for maternity leave top-up costs (~₱87k-₱200k+ depending on option)
    • Plan for Carmee to cover design work during Paula's leave
    • Identify backup for social media if needed

  4. Legal Review

    • Have Philippines labor lawyer review contractor status (if high-value team)
    • Confirm compliance with RA 11210, RA 11199, RA 9710
    • Identify any retroactive liability risks

Long-Term Considerations (6+ Months)

  1. Employment vs. Contractor Model

    • If team grows, consider offering employee status (with SSS/PhilHealth)
    • Calculate true cost of employment vs. contractor arrangement
    • Develop career growth path for Filipino team members

  2. Benefit Enhancements

    • Offer optional health subsidy or professional development allowance
    • Consider annual bonus or productivity incentive for contractors
    • Build retention strategy for valued team members

  3. Documentation

    • Maintain clear records of: payments, leave, contributions, performance
    • Document any SSS benefit claims or disputes
    • Store contracts & acknowledgments securely

13. GLOSSARY OF TERMS

Term Definition Philippine Context
SSS Social Security System Government pension/benefits fund; mandatory for employees, voluntary for contractors
Maternity Benefit 105-day paid leave for childbirth Governed by RA 11210; covers all female workers regardless of employment status
Self-Employed Member Freelancer/contractor paying own SSS Must pay own contributions; eligible for benefits if 3+ months paid
Voluntary Member Contractor who pays SSS voluntarily Same benefits as employed; must pay own contributions
ADSC Average Daily Salary Credit Used to calculate daily maternity allowance; based on highest 6 months earnings
Solo Parent Single parent raising child alone Qualifies for +15 additional days maternity leave under RA 8972
PhilHealth Philippine Health Insurance Corporation Separate from SSS; covers medical/hospital costs
DOLE Department of Labor & Employment Philippine government agency overseeing labor laws
NLRC National Labor Relations Commission Court system for labor disputes in Philippines
BIR Bureau of Internal Revenue Philippine tax agency; self-employed contractors may owe taxes
RA (Republic Act) Philippine law Legislation passed by Senate & House of Representatives
ETP Emergency Termination of Pregnancy Medical emergency resulting in pregnancy loss (≥20 weeks gestation)
LGU Local Government Unit City/municipal government in Philippines; issues solo parent ID

14. DOCUMENT SIGN-OFF

This is the ZTAG Filipino Team HR Policies document.

Prepared by: Subagent (Research)
For: Quan & Kristin (ZTAG Leadership)
Date: February 16, 2026
Status: Ready for Review & Adoption

Approval Checklist:

15. APPENDICES

Appendix A: Philippine Labor Laws (Quick Reference)

Appendix B: Useful Government Websites

Appendix C: Cost Breakdown Example

For Paula's Maternity Leave (105 days):

Item Cost Notes
SSS maternity benefit (Paula claims) ₱11,667 Direct payment from SSS to Paula
ZTAG top-up (Option A: Full) ₱48,333/mo × 3.5 = ₱169,155 To bring Paula to normal pay level
ZTAG top-up (Option B: Half) ₱25,000/mo × 3.5 = ₱87,500 Goodwill gesture
Carmee's overtime coverage ~₱10,000-20,000 Extra design work during Paula's leave
ZTAG Total Cost (Option A) ~₱179,000 Premium for goodwill/retention
ZTAG Total Cost (Option B) ~₱97,500 Conservative approach

Comparison: If Paula were an employee:

16. CONTACT INFORMATION

ZTAG HR Contacts:

Philippine Government Contacts:

Contractor Resources:

END OF DOCUMENT

Last Updated: February 16, 2026
Next Review: August 2026 (post-Paula's maternity leave)