Remote’s guide to employing in

the Philippines
philippines flag

Make employment in the Philippines easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in the Philippines, all in one easy-to-use platform.

  • Capital City

    Manila

  • Currency

    Philippine peso (₱, PHP)

  • Languages

    Filipino and English

  • Population size

    106,651,394

Services available in this country:
Employer of Record ProductContractor ManagementGlobal Payroll

Facts & Stats

Philippines Map Illustration
  • Capital City

    Manila

  • Currency

    Philippine peso (₱, PHP)

  • Languages

    Filipino and English

  • Population size

    106,651,394

  • Ease of doing business

    Easy

  • Cost of living index

    40.65 (89 of 139 nations)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    5% on goods, 6% on services

  • GDP - real growth rate

    6.0% (2019)

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

Minimum wage in the Phillipines varies by region and ranges from PHP 306 to 610.

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.

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.

In the Philippines, the 13th-month salary is a mandatory statutory benefit equivalent to an extra month's salary, paid out at the end of November each year for Remote Philippines. If the employee leaves the employment before the end of November, eligible employees are entitled to receive the pro-rated 13th-month salary with the final pay.

All rank-and-file employees who have worked for at least one month within the current calendar year are eligible, and it is calculated as one-twelfth of their total annual basic salary. Employees who quit, were fired, or were separated from their individual firms are still entitled to their 13th-month salary, as long as they worked for at least a month.

The 13th-month pay is generally not taxable, except for amounts exceeding PHP 90,000, which are subject to tax.

Onboarding Time

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.

18 Public holidays

Jan
Monday, 1 January 20241New Year's Day
Feb
Saturday, 10 February 20242Chinese New Year's Day (Special Non-Working Day)
Mar
Thursday, 28 March 20243Maundy Thursday
Friday, 29 March 20244Good Friday
Saturday, 30 March 20245Black Saturday (Special Non-Working Day)
Apr
Tuesday, 9 April 20246Araw ng Kagitingan
May
Wednesday, 1 May 20247Labour Day
Jun
Wednesday, 12 June 20248Independence Day
Aug
Wednesday, 21 August 20249Ninoy Aquino Day (Special Non-Working Day)
Monday, 26 August 202410National Heroes' Day
Nov
Friday, 1 November 202411All Saints' Day (Special Non-Working Day)
Saturday, 2 November 202412All Souls' Day (Special Non-Working Day)
Saturday, 30 November 202413Bonifacio Day
Dec
Sunday, 8 December 202414Feast of the Immaculate Conception of Mary (Special Non-Working Day)
Tuesday, 24 December 202415Christmas Eve (Special Non-Working Day)
Wednesday, 25 December 202416Christmas Day
Monday, 30 December 202417Rizal Day
Tuesday, 31 December 202418New Year's Eve (Special Non-Working Day)

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 practising “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 fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • 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: 5% split equally between employee and employer

  • 12%

    Sales Tax (VAT)

Types of leave

Full time employees are paid for public holidays.

Employment termination

Termination process

Employees may be terminated for justified causes or for authorised 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. Authorised causes include illness, installation of labour-saving devices, redundancy, and other economic reasons.

Workers who are pregnant or on maternity leave cannot be terminated.

Notice period

Employers must give one month notice for most authorised reasons.

Severance pay

Severance pay is not required for termination for a just cause. For authorised causes, severance pay of one months pay or one half month’s pay for every year of service, whichever is greater.

Probation periods

Probationary periods of up to six months are allowed in the Philippines.

Fair Pricing in the Philippines

Employer of Record

Hire and pay your global team

Starting at US$599/month

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localised benefits

Contractor Management

Compliantly onboard and pay contractors

US$29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

US$50

per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you

HRIS

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app