The Philippines pairs a huge English-speaking talent pool with one of the region's lowest employer burdens (~18%). The rules that matter most: the mandatory 13th month, the three statutory funds, and night-shift premiums for teams on US hours.
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.
Set regionally; Metro Manila sits around PHP 645 per day as of 2025*. Professional salaries run well above the floor.
Semi-monthly payroll is standard. The 13th-month pay (one-twelfth of annual basic salary) is mandatory for rank-and-file employees and due by December 24.
Around 18 days across regular holidays and special non-working days*, with different pay rules for each class.
SSS, PhilHealth, and Pag-IBIG enrollment precede the first payroll. Probation is capped at 6 months. A TGTC hire typically starts within days.
The Philippines has one of the lightest statutory loads in our coverage: roughly 18% on top of gross once the funds and the 13th-month accrual are counted.
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.
Employees pay progressive income tax (0-35%) plus their shares of SSS, PhilHealth, and Pag-IBIG, withheld through payroll*.
5 days of service incentive leave after one year is the statutory floor; competitive employers offer 12-15 vacation days, and TGTC benchmarks offers accordingly.
105 days at full pay funded through SSS, plus 15 extra days for solo parents, extendable unpaid.
7 days paid for married fathers, plus transferable days from the maternity allocation.
Sick leave beyond the service incentive floor is contractual; SSS sickness benefit covers longer absences. Special leaves exist for women's health procedures and solo parents.
Termination requires a just cause (conduct) or authorized cause (redundancy, closure) with written due process: the twin-notice rule plus a hearing for just-cause cases. Resignation requires 30 days' notice.
Authorized-cause separations owe severance of one month, or one-half to one month per year of service depending on the ground. Just-cause dismissals owe none, but the process must be airtight.
6 months maximum; after that the employee is regular and protected by security of tenure.
Labor-only contracting is prohibited: an individual contractor working under your control, on your hours, doing your core business is an employee on reclassification, with back benefits and 13th months owed.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant local contract, SSS, PhilHealth, Pag-IBIG, 13th month, and night differentials - handled. One invoice, flat $399/month.