* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Philippine Peso (₱)


PHT (GMT +8)

Employment Cost

13.5% + 425 PHP

Annual Leave

5 days

In-demand Specialties*
It And Customer Services, Healthcare, Teaching And Education

The Ultimate Guide to Hiring Employees in The Philippines

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-The Philippines-guide

Key Considerations Before Hiring In The Philippines

Employing in The Philippines requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in The Philippines with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in The Philippines quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

The Philippines, ranked as the 12th most populous country globally, possesses a substantial talent pool, with 50% of its population being under the age of 25 and fluent in English. This demographic composition provides a rich source of professional skills for various industries and sectors.

In the Philippines, the business culture is centered on relationships. Success in this country requires third-party introductions, the cultivation of strong bonds, and the maintenance of open lines of communication with potential employees.

Employers in the Philippines are not legally obligated to provide paid sick leave to employees. Employees can utilize the "service incentive leave," which offers five days of paid vacation for either vacation or sick leave purposes.

In the Philippines, employees have the right to a 13th-month salary, equivalent to 1/12th of their annual earnings. This can be disbursed in full around December 24th or divided into two, with one half paid at the commencement of the school year in June.


Fundamental Aspects of Employment in The Philippines

When hiring In the Philippines, there is no legal obligation to establish a written employment contract. Employment contracts typically contain:

  • Start date (and duration for temporary contracts)
  • Description of the role, position, duties, and responsibilities
  • Advance notice requirements for terminating employment
  • Company code of conduct and complaint procedures

Probationary Period in The Philippines

In the Philippines, permanent employees undergo a mandatory probationary period of six months.

Working hours in The Philippines

Employees generally work eight hours per day, amounting to 40 hours per week. Certain industries operating on a six-day week can extend to 48 hours per week. Employers are obligated to grant a meal break of at least 60 minutes to their employees.

Overtime in The Philippines

Any work exceeding eight hours in a day is regarded as overtime and should be remunerated with an extra 25% of the standard basic rate, rising to 30% on special holidays. Overtime pay is not applicable to employees in supervisory or managerial positions.

Navigating Key Aspects of Payroll in The Philippines

The Philippines has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in The Philippines

1 January - 31 December is the 12-month accounting period that businesses in The Philippines use for financial and tax reporting purposes.

Payroll Cycle in The Philippines

The payroll cycle in The Philippines is usually bi-monthly, with employees being paid by the 16th and last working day of the month.
570 PHP p/h

Minimum Wage in The Philippines

The minimum wage for employees in The Philippines is typically 570 PHP per hour, amounting to ~91,200 PHP per month for a typical 40 hour work week.

Minimum wages and salaries in The Philippines

The Philippines has varying minimum wage rates across industries and regions, with the Department of Labor and Employment setting 51 different daily rates. Non agricultural workers' minimum wage is set at 570 PHP.

Bonus Payments in The Philippines

Employees are entitled to a 13th-month salary, which is 1/12th of their annual earnings, paid in full around December 24th or divided into two with one half in June.

Comprehensive Overview of Employment Taxes in The Philippines

Understanding the tax obligations for both employers and employees is crucial when operating in The Philippines's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in The Philippines.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 13.5% + 425 PHP on top of the employee salary in The Philippines.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In The Philippines, the typical estimation for employee payroll contributions cost is around 9.5%+225 PHP.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Individual income tax in the Philippines follows progressive rates ranging from 0% to 35%, with household status and the number of children being additional factors that can impact overall rates.

Tax Rate Income Bracket

Pension in The Philippines

Social security contributions fund the public pension system. Upon retirement due to old age, members are eligible for a retirement benefit, provided they've made a minimum of 120 monthly contributions. This benefit can be received as a monthly pension or a lump sum.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in The Philippines tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in The Philippines

When it comes to terminating employment in The Philippines, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

Terminating employment in the Philippines is permissible for 'just' or 'authorised' causes, with the employer required to prove the lawfulness in a proper forum. Authorised causes necessitate written notice from the employer while 'just' causes include:

Notice Period

Notice periods differ depending on whether termination is based on "just" or "authorised" cause:

Severance Pay

Severance pay is applicable in cases where the employer initiates termination for 'authorised' causes, and it amounts to one month's pay for each year of employment.

Annual Leave Entitlements and Company Policies in The Philippines

The annual leave entitlement in The Philippines is 5 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in The Philippines

In a calendar year, the Philippines observes 18 public holidays, which are separate from the minimum paid leave entitlement and are in addition to annual leave. The following are nationally recognized holidays in the Philippines:

Holiday Date

Paid Time Off in The Philippines

Maternity Leave in The Philippines

Paternity Leave in The Philippines

Sick Leave in The Philippines

Rehabilitation Leave

Special Leave For Women

Parental Leave In The Philippines

The Philippines's Benefits Built Into Playroll

Competitive benefits package in The Philippines

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in The Philippines's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In The Philippines

Make your benefits package in The Philippines a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in The Philippines

Playroll allows you to provide localized benefits for employees in The Philippines within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in The Philippines create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for The Philippines

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in The Philippines.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!