Philippines
Hire Employees & Contractors

Philippines

Compliantly hire your distributed team members in

the

Philippines

Person working on laptop

Hiring in

the

Philippines

isn't so simple. Borderless can help.

To hire new employees in

the

Philippines

, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in

the

Philippines

while staying fully compliant with local laws and compliance.

Primary Language

Filipino, English

Currency

Philippine Peso (PHP)

Payroll Frequency

Bi-Monthly or monthly

Public Holidays

18

Employer Taxes

11.28%

Cost of Living Index

$$ (34 of 140, 2023)

Statutory Leave

12

Sick Leave

0

Maternity Leave

105 days with possible 30 day extension of unpaid leave

Important: Risks of misclassification

In many countries like

the

Philippines

, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

The minimum wage in the Philippines is 570 PHP/ day.

Overtime Pay

The standard workweek in The Philippines is 48 hours per week (8 hours X 6 days). Employees can work an additional 4 hours per day at 150% of their standard rate. 

Overtime work beyond eight hours is paid at a rate of 25% and 30% on holidays. Employees in supervisory or managerial positions are excluded from overtime pay.

Additional Pay

Thirteenth and fourteenth-month salaries are mandatory in The Philippines.

Payroll Cycle

The payroll cycle in the Philippines is either bi-monthly or monthly.

Employer Costs & Taxes

  • 1.375%: Health Insurance
  • 2.0%: Home Development Mutual Fund
  • 73.70 PHP - 1,178.70 PHP: Social Security Contributions (employee salary dependent)

Employee Costs & Taxes

  • 0 – 35%: Personal Income Tax

Employment Information

Termination Process

Termination processes in The Philippines are complex and rely on the negotiated contracts or collective agreements in place. In general, termination after the probation period must be done for just cause, such as disciplinary dismissal or low performance.

Notice period

For resignations, employees in The Philippines must provide 30 days notice. Same goes for employees looking to dismiss an employee over an authorized cause.

Dismissals over employee misconduct do not require a notice period.

Probation Period

The probation period in the Philippines is 6 months.

Severance Details

Severance pay is only applicable if the employer terminates the employee for authorised causes.

Benefits of working in a country abroad

Borderless Benefits Packages in

the

Philippines

When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in

the

Philippines

Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo