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- AUG (Authorized User Group) Certified
- Nasscom Certified
- SNA Certified
AUG (Authorized User Group) CertifiedNasscom CertifiedSNA CertifiedAUG (Authorized User Group) CertifiedNasscom CertifiedSNA Certified
The Philippines offers a young, highly skilled workforce, especially in IT and BPO sectors, with defined statutory benefits and strong employee protections under the Labour Code. Employers must follow wage orders, social security contributions, and mandatory leave policies. This guide summarizes everything you need to know before hiring or paying employees in the Philippines.
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Currency
Languages
Minimum Wage
Employment Cost
Working Hours
Probation Period
Paid Leave
Hiring in PhilippinesEnsure compliance with wage orders, employment contracts, and statutory contributions. Explore compensation norms, payroll taxes, employment costs, and legal requirements for hiring in the Philippines.
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Employment ContractEmployment contracts must be written and include:
Notice Periods:
Termination of Employment:
Permitted for:
Note:Philippine termination rules are strict, requiring documentation and due process.
Employee BenefitsMandatory Benefits:
Leave PoliciesAnnual Leave:
Sick Leave:
Parental Leave:
HealthcarePhilHealth provides national healthcare coverage.
Many employers provide HMO (private medical insurance) as an additional benefit.
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Taxes in PhilippinesUses progressive income tax under the TRAIN law.
Personal Income Tax Rates:
0%–35% progressive
Tax Allowances & Reliefs:
Payroll in PhilippinesBase Salary:
Must meet regional minimum wage requirements.
Payment Schedule:
Semi-monthly or monthly, depending on the company.
Additional Payments:
Taxes and Social SecuritySSS:
Retirement, disability, benefits
PhilHealth:
Health insurance
Pag-IBIG:
Savings & housing
Employer and employee contribute jointly.
Payroll ReportingMonthly:
Annual:
Payroll Currency:PHP
About payroll
Legal RegulationsPhilippine labour laws cover wages, working hours, leave, and termination.
Total Employment Cost:
Employer contributions add 10–15% to gross salary.
Work Permits & Visas for the Philippines
Foreign nationals need:
Employer of Record in PhilippinesEOR services in the Philippines allow companies to hire employees legally without establishing a local entity, while ensuring full compliance with Philippine labor laws. This enables businesses to expand into the Philippines quickly and cost-effectively.All local employment responsibilities are managed on your behalf, reducing administrative and compliance risks.
Your EOR handles:
PEO Services in PhilippinesPEO services in the Philippines support companies with a local entity by managing HR, payroll, and compliance functions. This helps employers streamline workforce operations while retaining direct control over their employees. Local HR expertise ensures ongoing compliance with Philippine labor laws and regulations
PEO services assist with:
| COUNTRY | TAXES / COSTS | NETPAY |
|---|---|---|
|
$52,600 | $430,820 |
|
$52,600 | $430,820 |
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An Employer of Record (EOR) manages payroll, tax filings, statutory contributions, and local compliance on your behalf.
Applicable labour laws cover wage orders, employee rights, leave entitlements, and statutory benefits.
Employees are paid on a semi-monthly or monthly basis, with all mandatory deductions applied.
You can hire quickly by using an EOR service or by setting up your own legal entity.
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