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Country hiring guide

Hiring in Philippines ๐Ÿ‡ต๐Ÿ‡ญ

The Philippines pairs a huge English-speaking talent pool with one of the region's lowest employer burdens (~11-13%). The rules that matter most: the mandatory 13th month, the three statutory funds, and night-shift premiums for teams on US hours.

Calculate a Philippines hire โ†’
Capital cityManila
CurrencyPhilippine peso (PHP)
LanguagesFilipino, English
Population~114 million
Payroll frequencySemi-monthly
VAT standard rate12%
Employer burden*~11-13% of gross
TGTC flat EOR fee$399/mo ยท Tier A
Overview

Employing in Philippines

Employment is governed by the Labor Code and DOLE regulations: written contracts, enrollment in the three statutory funds, and strong security of tenure once an employee is regularized. English-language contracts are standard, which keeps onboarding fast. TGTC employs your hire locally and runs all of it.

Minimum wage

  • Regional; NCR non-agri PHP 695/day in force
  • PHP 755 order (NCR-27) enjoined by court, Aug 2026*

Payroll cycle & extra pay

  • Paid at least twice monthly, intervals under 16 days
  • 13th month pay mandatory, on or before Dec 24

Public holidays

  • 12 regular holidays (paid if unworked)
  • ~8 special non-working days (no work, no pay)

Onboarding & probation

  • Probation max 6 months; standards disclosed at hiring
  • SSS, PhilHealth, Pag-IBIG registration required
Employer costs

What you pay on top of salary

The Philippines has one of the lightest statutory loads in our coverage: roughly 11-13% on top of gross once the funds and the 13th-month accrual are counted.

Employer contribution*Rate
SSS~10% of MSC
PhilHealth2.5%
Pag-IBIG (HDMF)2%
Employees' CompensationPHP 10-30

13th month and night differential

The 13th month is a legal obligation, not a bonus: one-twelfth of the year's basic salary by December 24, pro-rated for partial years. If your team overlaps US business hours, the night differential of at least 10% per hour between 10pm and 6am belongs in the cost model and the contract.

Employee-side taxes

Employees pay progressive income tax (0-35%) plus their shares of SSS, PhilHealth, and Pag-IBIG, withheld through payroll*.

Types of leave

Statutory leave in Philippines

Annual leave

  • 5 days Service Incentive Leave after 1 year
  • Unused SIL convertible to cash

Maternity & parental leave

  • 105 days maternity (SSS-paid), +15 for solo parents
  • Paternity 7 days for married male employees

Sick leave

  • No separate statutory sick leave; SIL is used
  • SSS sickness benefit covers qualifying illness

Other leave

  • Solo Parent leave 7 days; special women's leave 2 months
  • VAWC leave 10 days for affected employees
Employment termination

Ending employment in Philippines

Notice

  • Authorized cause: 30 days notice to employee and DOLE
  • Just cause: two-notice rule plus hearing

Severance

  • Authorized cause: 0.5-1 month pay per year of service
  • Just-cause dismissal carries no separation pay

Probation

  • Up to 6 months; regular status after
  • Failure of disclosed standards is valid ground

Contractor risk

  • Labor-only contracting banned (DOLE DO 174)
  • Four-fold control test can force regularization

*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.

Employ in the Philippines without opening an entity

Compliant local contract, SSS, PhilHealth, Pag-IBIG, 13th month, and night differentials - handled. One invoice, flat $399/month.

Get a Philippines quote