Manila: Companies that invest in employee health and wellness to boost productivity and strengthen workforce performance should be given tax incentives, Senator Imee Marcos said Thursday.

According to Philippines News Agency, under Senate Bill No. 1928, or the proposed 'Workers Health and Wellness Act' which Marcos filed, employers implementing qualified wellness programs may avail of tax credits of up to PHP1,000 per employee for firms with fewer than 200 workers, and up to PHP500 per employee for those exceeding the threshold. She said the measure aims to encourage businesses to adopt programs that support the physical, mental, and emotional well-being of employees.

'Studies have shown that workplace wellness programs and improved working environments can significantly reduce health risks, lower absenteeism, improve employee engagement, and enhance productivity,' Marcos said. She noted that many enterprises, particularly micro, small, and medium enterprises (MSMEs), face financial constraints that limit their ability to implement comprehensive wellness initiatives.

The bill outlines key components of employee wellness programs, including periodic health screenings, health education, employee engagement initiatives, behavioral change programs, and supportive workplace policies such as flexible work arrangements and mental health awareness. In addition to wellness programs, the measure also incentivizes workplace improvement initiatives such as upgrading ventilation systems, adopting energy-efficient technologies, and integrating smart building systems. Employers may avail of an additional 30 percent deductible depreciation expense, with an option for accelerated depreciation for tax purposes.

Marcos emphasized that the proposed incentives aim to create healthier workplaces while improving job satisfaction and overall workforce productivity. '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,' she said.

The measure also supports existing policies such as the Mental Health Act and government workplace health standards, while promoting collaboration between the public and private sectors in advancing employee welfare.