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.
Manila, Cebu, Davao, Zamboanga, Cagayan de Oro, Baguio, and Vigan
ICT Professionals, Marketing, Creative and Design Professionals, Customer Service Professionals, Sales and Retail Professionals, Logistics and Delivery Professionals
The top local universities in Philippines are:
Local: 1
World : 804
Local: 2
World : 1,245
Local: 3
World : 1,775
Local: 4
World : 1,794
Local: 5
World : 1,828
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 |
Jobstreet, Kalibrr, Indeed, Boss Job, LinkedIn
13,210,000
Robert Walters, Manila Recruitment, Alliance Recruitment Agency
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.
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.
The probationary period for employees ranges from 1 – 6 months.
| 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 |
| 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.
Workers are paid twice a month. Paydays are generally once every two weeks and must not exceed 16 days for the second.
The minimum wage in the Philippines is 570 PHP per day.
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.
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.
Full-time employees in the Philippines are ensured to have insurance benefits such as
| 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 |
| 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 |
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%.
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:
Or the company is retrenching or expanding with the following reasons:
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.
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.
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. |
