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employee benefits

Total Rewards highlights

  • Total reward package designed to attract, motivate, and retain.
  • Regular benchmarking to ensure market competitiveness.
  • Pay for performance philosophy.
  • Culture of health and well-being.

Compensation Overview:

Well-designed and executed compensation plans represent a major component of Philips' competitive advantage in the global market. We align compensation directly with performance to encourage superior business performance and to align employee and shareholder interests. 

How do we ensure competitiveness?
  • We regularly perform market reviews of our competitors' compensation data to ensure we are competitive. While a market review is useful as a general indicator of the market, each employee's salary will be influenced by factors such as performance and experience.

Cost of Labor vs. Cost of Living
  • Regarding base salary, the industry standard is to focus on the cost of labor rather than cost of living for a region.
  • Cost of living: The cost of maintaining a certain standard of living in a specific area.
  • Cost of labor: The "going rate" for a job in a specific area - this is what companies use for benchmarking and setting pay rates.

Paying for performance
  • In addition to regular benchmarking, Philips runs an Annual Compensation Review process to acknowledge employee performance, reinforce Philips Behaviors, and keep pace with the market. At Philips, our success is driven by a growth and performance culture. The key objectives of Annual Incentives are to build stronger links between pay and individual performance and reward employees for their contribution to business results.

Work/Life Balance

Vacation
Flexible vacation for exempt (salaried) employees to take time off when needed without a fixed vacation day entitlement. Nonexempt (hourly) employees accrue time based on years of service with a minimum of 3 weeks. Philips provides 14 holidays each year, including 4 floating holidays.
New Parents
8 weeks paid maternity leave for all births, 4 weeks of paid parental leave for new mothers and fathers after birth or adoption, followed by a 4- week parental transition period at conclusion of parental leave at part-time hours with full-time pay.
Flexible Work Arrangements
Telecommuting, flex work schedules, and compressed workweeks may be available depending on business needs and the employee's role. The goal is to improve employee engagement and productivity, as well as enable innovative and collaborative ways of working.
Family Members
2 weeks of paid time off to take care of family members with a serious health condition.
Paid Sick Leave
Receive up to 56 hours each January and carry over unused hours up to 112 hours per year.
Caregiver Support
Access to free resources to help find caregivers for your children and elderly parents through the adult & elder care program and Care.com.
Philips Cares
Paid volunteer time for employees.

Physical Health

Medical Plans
Choice of three national medical plans, a high- performance medical plan in most locations, and, depending on your location, a local medical plan option may be available.
Dental Plans
Choice of two national dental plans with full coverage of in-network preventative care.
Targeted Programs
Customized digital and virtual health programs for inspiring health habits, blood pressure and heart health, addiction treatment, digestive health, early detection cancer screenings and managing chronic conditions, such as diabetes and back or knee pain.
Wellness Program
Earn up to $400 to engage in wellness-based activities, including biometric health screenings.
Fitness Reimbursement
Philips will reimburse 100% of eligible fees up to $240 (grossed up for taxes).
Vision Plan
Coverage for exams and glasses with discounts on other vision care services.​​​​​​​

Financial Health

Philips 401(k) Plan
When an eligible employee contributes 6% of eligible pay, Philips contributes an additional 7% for a total of 13%.
Voluntary Benefits
Purchase supplemental benefits at discounted rates such as optional life insurance, home & auto insurance, identity theft protection insurance, legal insurance, pet insurance, life & long-term care (LTC) insurance, hospitality indemnity insurance, accident injury insurance and critical illness insurance.
Flexible Spending Accounts (FSA)
Set aside pre-tax dollars to pay for eligible healthcare and/or day care-related expenses.
Employee Stock Purchase Program
Employees can purchase Philips stock with a 15% discount.
Health Savings Account (HSA)
When an eligible employee is enrolled in a Philips national medical plan, Philips makes an annual contribution of up to $1,200 to the employee's HSA.
Commuter Benefits
Set aside pre-tax dollars to pay for eligible commuter related expenses. Philips may offset certain commuting costs associated with travel from an employee's home to a Philips work location (offered in select locations).
Employee Store
Up to 60% off available Philips products.
Deals & Discounts
Access to a wide variety of products and services at discounted prices through Perkspot.
Employee Assistance Plan
Receive free financial planning and legal services for issues such as purchasing a home, debt management, adoption, and divorce.
Survivor Support Services
Ayco Survivor Support Services are available to help navigate financial issues following the loss of a loved one.
Disaster Relief
Immediate financial assistance to lessen the financial burden and stress of employees impacted by a disaster that affects their residence, transportation, and ability to report to work.

More information on these benefits and programs can be found by visiting the Philips HR Portal or the
​​​​​​​Reference Center located in the Philips Benefits Center.

Focus on people

Our powerful mission to improve billions of lives coupled with our employee-focused Total Rewards package aims to attract and retain the best talent and ensure we remain competitive amongst our peers.

This document contains only highlights of the Philips benefit plans and programs. Receipt of this document does not guarantee eligibility for any Philips sponsored plan or program of benefits. Eligibility for and entitlement to a benefit is governed by the terms of the official Plan Document. In the event of a discrepancy between the official Plan Document and this document, the official Plan Document will control. Philips reserves the right to modify, or terminate completely, any benefit plan or program, at any time and without notice. This document does not constitute an express or implied contract of employment. Your employment remains at will.
Health plan price transparency helps consumers know the cost of a covered item or service before receiving care. Beginning July 1, 2022, the Transparency of Coverage rules set forth requirements for most group health plans and health insurers to post payment information for covered health care items and services on a public internet site in a machine-readable file format. The information posted includes in-network provider negotiated rates and out of network provider charges.  

Use the links below to access payment information for the Philips Blue Cross Blue Shield (BCBS) and University of Pittsburgh Medical Center (UPMC) medical plans. Note: If you are enrolled in BCBS you will be required to enter the employer EIN by using the Select Plan Type drop down which is 133429115 to locate the files. If you are enrolled in UPMC, the Table of Contents must be opened with Microsoft Word.

For local plans, such as Kaiser or Geisinger, contact member services for instructions on how to access the machine-readable files.

BCBS (ABHP 1, ABHP 2, & EPO medical plans) –
Click HERE for Machine Readable Files
Click HERE to access a Transparency in Coverage FAQ
 
UPMC (ABHP 1, ABHP 2 & EPO medical plans) –
Click HERE for Machine Readable Files