Talent Wiki - Philippines
Your quick guide on talent and labor compliance norms in Philippines
Capital
Manila
Currency
Philippine Peso (PHP)
Languages
Filipino, English
Payroll Frequency
Bi-Monthly
GDP per Capita
$3,597
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
RANKING
Local: 1
World : 804
Ateneo de Manila University
RANKING
Local: 2
World : 1,245
De La Salle University
RANKING
Local: 3
World : 1,775
University of the Philippines System
RANKING
Local: 4
World : 1,794
University of Santo Tomas
RANKING
Local: 5
World : 1,828
Salary Data
The following table provides the average salary data in the
Philippines:
| 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:
13,210,000
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
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.
Bonus
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
Taxes
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
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.
