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Talent Wiki - Philippines

Your quick guide on talent and labor compliance norms in Philippines




Philippine Peso (PHP)


Filipino, English

Payroll Frequency


GDP per Capita


Employer Tax

PHP 45,900

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:

University of the Philippines Diliman


Local: 1

World : 804

Ateneo de Manila University


Local: 2

World : 1,245

De La Salle University


Local: 3

World : 1,775

University of the Philippines System


Local: 4

World : 1,794

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 1357
Data Scientist 69,000 1248
Accounting Manager 66,400 1201
Project Manager 48,600 879
Mobile Developer 42,800 774

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 2023

Date Name Type
1 Jan New Year day Regular holiday
2 Jan New Year holiday Additional Special Non-working day
25 Feb EDSA people power revolution anniversary Special Non-working day
6 Apr Maundy Thursday Regular holiday
7 Apr Good Friday Regular holiday
8 Apr Black Saturday Special Non-working day
9 Apr Araw Ng Kagitingan Regular holiday
10 Apr Next Monday to Araw Ng Kagitingan Regular holiday
1 May Labor day Regular holiday
12 Jun Independence day Regular holiday
21 Aug Ninoy Aquino day Special Non-working day
28 Aug National Heroes day Regular holiday
1 Nov All Saints’ day Special Non-working day
2 Nov All Souls’ day Additional Special Non-working day
27 Nov Monday, closest to Bonifacio’s day Regular holiday
8 Dec Feast of the immaculate conception of Mary Special Non-working day
25 Dec Christmas day Regular holiday
30 Dec Rizal day Regular holiday
31 Dec Last day of the year Special Non-working day

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 according to the contract between the employee and employer.


Payroll Cycle

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

Minimum Wage

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

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) PHP 20,400 + PHP 5,100 for PF
Home Development Mutual Fund (HDMF) PHP 1,200
Philippine Health Corporation (PHIC) PHP 19,200

Employee Payroll Tax

Type of Contribution Tax Rate
Social Security System (SSS) PHP 10,800 + PHP 2,700 for PF
Home Development Mutual Fund (HDMF) PHP 1,200
Philippine Health Corporation (PHIC) PHP 19,200

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.

Streamline payroll and compliance for your international workforce


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.