Facts & Stats
- Capital city
Philippine peso (₱, PHP)
Filipino and English
- Population size
- Ease of doing business
- Cost of living index
40.65 (89 of 139 nations)
- Payroll frequency
- VAT - standard rate
5% on goods, 6% on services
- GDP - real growth rate
The Philippines is a southeast Asian nation composed of over 7,000 islands. It is located between the South China Sea and the Pacific Ocean. With 108 million residents, it’s the thirteenth most populous country on Earth. As an archipelago, the Philippines is home to beautiful beaches and a wide variety of flora and fauna.
The economy has a strong agricultural presence, but other sectors are growing. The Philippines is one of the leading suppliers of nurses worldwide. A very low cost of living makes the Philippines very attractive for workers.
Grow your team in Philippines with Remote
Looking to employ workers in Philippines? Companies hiring in Philippines must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in Philippines on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Philippines team. You can also pay contractors now in Philippines with Remote.
Risks of misclassification
Philippines, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Philippines may lead to fines and penalties for the offending company.
Employing in Philippines
Minimum wage in the Philippines varies by region and ranges from PHP 282 to 537.
The work day is a maximum of eight hours. Employees working at night are paid a 10% differential.
Employees working overtime are paid a 25% differential.
Employees working on holidays are paid a 30% differential.
For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
All employers are also required to pay their "rank-and-file employees" a 13th month payment. All employees not considered managerial employees are considered rank-and-file employees.
The 13th month payment is required regardless of the nature of the worker's employment (with few exceptions) provided they worked for at least one month during the calendar year.
The 13th month pay shall not be less than 1/12 of the total basic salary earned by an employee in a calendar year and should be given to the employees no later than December 24.
We can help you get a new employee started in the Philippines fast. The minimum onboarding time we need is only 3 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
19 Public holidays
Competitive benefits package in the Philippines
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Philippines are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in Philippines
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Philippines.
Social Security: a monthly SSS (Social Security System) payment at the contribution rate of 8.5% of the employee salary is required
Mandatory Provident Fund: All employees covered by the SSS with earnings above PHP 20,000 per month are automatically enrolled in the MPF. Contributions are calculated at the same rate as the SSS. The employer’s contributions will range from PHP 42.50 up to PHP 425 per month
Home Development Mutual Fund: 2% MSC employer contribution
PhilHealth: 3.5% split equally between employee and employer
Sales Tax (VAT)
Types of Leave
Full time employees are paid for public holidays.
Employees may be terminated for justified causes or for authorized causes. According to the law, just causes include serious misconduct, willful disobedience, gross and habitual neglect of duties, fraud, willful breach of trust, commission of a crime, and other analogous causes. Employers must give employees written notice of termination. Employees must then have the opportunity to appeal the decision at a hearing. The employer will then render a final decision on termination. Authorized causes include illness, installation of labor-saving devices, redundancy, and other economic reasons.
Workers who are pregnant or on maternity leave cannot be terminated.
Employers must give one month notice for most authorized reasons.
Severance pay is not required for termination for a just cause. For authorized causes, severance pay of one months pay or one half month’s pay for every year of service, whichever is greater.
Probationary periods of up to six months are allowed in the Philippines.