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Philippines Employment Guide

Your quick guide on talent and labor compliance norms in Philippines




Philippine Peso (PHP)


Filipino, English

Payroll Frequency


GDP per Capita


Employer Tax

12.75% - 14.75%

Talent Overview

The Philippines’ dynamic economy is rooted in the country’s labor market. The majority of the Philippine population comprises the young, attracting more foreign investors to venture into the country’s talent pool. Moreover, the Philippines’ archipelagic structure bears a lot of tourist spots for travelers and has contributed to the success of the country’s tourism industry.

Major economic hubs:

Manila, Cebu, Davao, Zamboanga, Cagayan de Oro, Baguio, and Vigan

Skills in demand:

ICT Professionals, Marketing, Creative and Design Professionals, Customer Service Professionals, Sales and Retail Professionals, Logistics and Delivery Professionals


Local Universities

The top local universities in Philippines are as follows:


University of the Philippines Diliman


Local: 1

World : 804


Ateneo de Manila University


Local: 2

World : 1,245

Uni4 1

De La Salle University


Local: 3

World : 1,775


University of the Philippines System


Local: 4

World : 1,794

Uni3 1

University of Santo Tomas


Local: 5

World : 1,828

Salary Data

The following table provides the average salary data in the

Job Title Average Monthly Salary (PHP) Average Monthly Salary (USD)
Sales Manager 75,000 1,378
Data Scientist 69,000 1,267
Accounting Manager 66,400 1,220
Project Manager 48,600 893
Mobile Developer 42,800 786
Talent Source

Talent Sourcing Tips

Top Local Job Boards:

Jobstreet, Kalibrr, Indeed, Boss Job, LinkedIn

Number of LinkedIn users:


Top Recruitment Agencies:

Robert Walters, Manila Recruitment, Alliance Recruitment Agency

Employing in the Philippines

Hiring in the Philippines requires you to be aware of the local employment laws, benefits, payroll, and taxes. Below, are everything you need to know on how to successfully onboard talents from the Philippines.

Employee Contract

As a general rule, employment in the Philippines does not require a formal or written contract. A consensual contract may be agreed upon by both parties with the exception of contractors and subcontractors which written contracts are required. Written contracts are generally written in English, however, the employer must provide a Filipino contract if the employee is a Filipino Citizen. This is to clarify points and agreements for the employee under the contract.

All contracts, consensual or written, must adhere to The Labor Code of the Philippines.

Probation Period

The probationary period for employees ranges from 1 – 6 months.

Public and Provincial Holidays

Date Name
January 1 New Year’s Day
February 10 Lunar New Year’s Day
March 28 Maundy Thursday
March 29 Good Friday
March 30 Black Saturday
April 9 The Day of Valor
April 10 Eidul-Fitar
May 1 Labor Day
June 12 Independence Day
June 17 Eid al-Adha (Feast of the Sacrifice)
August 21 Ninoy Aquino Day
August 26 National Heroes Day
November 1 All Saints’ Day
November 2 All Souls’ Day
November 30 Bonifacio Day
December 24 Christmas Eve
December 25 Christmas Day
December 30 Rizal Day
December 31 New Year’s Eve

Local Holidays

Date Name
February 7 Lailatul Isra Wal Mi Raj
June 18 Eid al-Adha Day 2
July 8 Amun Jadid
September 16 Maulid un-Nabi

Employee Leaves

Type of leave Time period Mandatory
Annual leave/Earned Leave 5 days Yes
Maternity Leave  15 weeks Yes

*Allotted sick leaves in the Philippines depend on the contract between the employee and employer.


Payroll 1

Payroll Cycle

Workers are paid twice a month. Paydays are generally once every two weeks and must not exceed 16 days for the second.

Payroll 2

Minimum Wage

The minimum wage in the Philippines ranges from PHP 315 to PHP 533 per day, depending on the industry section and the region.

Payroll 3

Overtime Pay

Any hours exceeding the regular 8 working hours per day are considered overtime and should get paid at 25% over their standard rate. The rate jumps to 30% when working overtime on a rest day, special or regular holiday.


13th Month Pay

All regular employees are entitled to a 13th-month pay provided that they have worked at least one (1) month during the calendar year. The pay must at least be 1/12 of the total basic salary earned for the year. It must be paid by December 24th.

Employee Benefits

Full-time employees in the Philippines are ensured to have insurance benefits such as

  • Social Security (SSS)
  • Medical (PhilHealth)
  • Housing benefits (PAG-IBIG)
  • Provident Fund


Employer Payroll Tax

Type of Contribution Tax Rate
Social Security System (SSS) 9.5%
Home Development Mutual Fund (HDMF) 1% to 3% (depending on monthly salary range)
Philippine Health Corporation (PHIC) 2.25%

Employee Payroll Tax

Type of Contribution Tax Rate
Social Security System (SSS) 4.5%
Home Development Mutual Fund (HDMF) 2% to 3% (depending on monthly salary range)
Philippine Health Corporation (PHIC) 2.25%

Employee Income Tax

Income tax is levied at a progressive rate on all monthly income as follows:

Taxable income (PHP) Tax on column 1 (PHP) Tax on excess (%)
Over Not over
0 250,000 0
250,000 400,000 15
400,000 800,000 22,500 20
800,000 2,000,000 102,500 25
2,000,000 8,000,000 402,500 30
8,000,000 2,202,500 35


VAT in the Philippines is 12%.

Offboarding & Termination

Letting go of an employee in the Philippines is by no means an easy task. Before you terminate one of your employees, you must follow The Labor Code of the Philippines. You can only dismiss an employee if:

They have behavioral issues such as:

  • Incurred serious misconduct;
  • Willful disobedience;
  • Gross and habitual neglect of duty;
  • Fraud or breach of trust;
  • Commission of a crime or offense against the employer, his family, or representative;

Or the company is retrenching or expanding with the following reasons:

  • Installation of labor-saving devices
  • Redundancy
  • Retrenchment to prevent losses
  • Closure and cessation of business; and
  • Disease / illness

The notice period before termination is up to 3 months for permanent employees and 1 month for probationary employees.

Terminated employees are entitled to a severance pay package adhering to The Labor Code of the Philippines. The computation of the severance pay depends on the cause of termination except relating to behavioral issues.

  • One month pay or at least ½ month pay for every year of service whichever is higher (a fraction of 6 months is considered a whole year) including the available allowances with the position
  • Separation pay is exempt from taxation

Visa and Immigration

If you’re looking to work as an expat in the Philippines, there are two primary relevant visas you can acquire. These visas depend on the nature of your contract or dealing with the company.

Visa And Immigration
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Minimum Wage

Overtime Pay

Visa & Immigration

If you’re looking to work as an expat in the Philippines, there are two primary relevant visas you can acquire. These visas depend on the nature of your contract or dealing with the company.

9(g) Pre-Arranged Employee Commercial Visa Requisite: Alien Employment Permit (AEP)

Validity: Depends on contract or Bureau of Immigration

Entitled to multiple entries in and out of the country.

Eligible to legitimately work and stay in the country approved by the Bureau of Immigration corresponding to the employment contract.

Special Non-Immigrant Visa or 47(A)(2) Validity: Contract or Term of Office or one (1) year whichever is shorter

Company-specific visa that has less than 5% foreign national workforce.

Must be sponsored / petitioned by the employer.