Philippines

The Philippines, an archipelago of over 7,000 islands, is one of Southeast Asia's fastest-growing economies. With a young, English-speaking workforce and a strong service sector, it presents a compelling destination for businesses seeking to expand in Asia. Understanding local employment laws, tax obligations, and payroll practices is crucial for compliance and successful operations.
Contractor Management
EOR
Payroll
Contractor of Record
Currency
Philippine Peso (PHP)
Payroll Frequency
Bi-monthly
Employer Taxes
11.75% + provident fund

Overview

Population
~113 million
Language
Filipino, English
Capital
Manila
Currency
Philippine Peso (PHP)
Country code
+63
Min wage
610 PHP per day
Working hours
8 hours per day
Weekdays
Monday to Saturday
Work hours per week
48 hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary
  • Mandatory; equivalent to 1/12 of an employee's total basic salary earned within a calendar year, payable no later than December 24 

Avg employer tax

11.75% + provident fund

Tax Breakdown

Personal Income Tax (PIT):

₱0 – ₱250,000
0%
₱250,001 – ₱400,000
20% of the excess over ₱250,000
₱400,001 – ₱800,000
₱30,000 + 25% of the excess over ₱400,000
₱800,001 – ₱2,000,000
₱130,000 + 30% of the excess over ₱800,000
₱2,000,001 – ₱8,000,000
₱490,000 + 32% of the excess over ₱2,000,000
Over ₱8,000,000
₱2,410,000 + 35% of the excess over ₱8,000,000

Corporate Income Tax (CIT):

Standard Rate
25%
Preferential Rate
20% for domestic micro, small, and medium-sized enterprises (MSMEs) with net taxable income not exceeding PHP 5 million and total assets not exceeding PHP 100 million.
Minimum CIT
2% of gross income, applicable if higher than the regular CIT

Social Security Contributions:

Employee Contribution
Varies based on monthly salary; ranges from 3.63% to 11.6%.
Employer Contribution
Ranges from 7.37% to 13.3%

VAT

VAT

12%

Tax Calculation for Philippines
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PH
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Top Countries
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Philippines typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

  • Must be in writing
  • Include job title, duties, salary, working hours, leave entitlements, and termination conditions.

Registration with Authorities

Register the employee with the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and Home Development Mutual Fund (Pag-IBIG) .

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions .

Employee Documentation

Collect personal identification, bank account details, and tax information .

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements.

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Philippines
When drafting an employment contract for employees in Philippines, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Not mandated by law; provided based on company policy.
Maternity leave
  • 105 days of paid leave; additional 15 days for solo mothers.
Paternity leave
  •  7 days of paid leave for married male employees.
Annual Leave
  • 5 days of paid leave per year after 1 year of service.
11 Public holidays in Philippines

Note: Some holidays may be observed regionally or on different dates.

1st
New Year's Day
9th
Day of Valor
17th
Maundy Thursday
18th
Good Friday
1st
Labor Day
12th
Independence Day
21st
Ninoy Aquino Day
25th
National Heroes Day
1st
All Saints' Day
25th
Christmas Day
30th
Rizal Day
  • 1 Jan: New Year's Day
  • 1 Feb: Chinese New Year
  • 25 Feb: EDSA Revolution Anniversary
  • 9 Apr: Day of Valor
  • 14 Apr: Maundy Thursday
  • 15 Apr: Good Friday
  • 16 Apr: Black Saturday
  • 1 May: Labor Day
  • 3 May: Eidul Fitr
  • 12 Jun: Independence Day
  • 9 Jul: Eidul Adha
  • 21 Aug: Ninoy Aquino Day
  • 29 Aug: National Heroes Day
  • 1 Nov: All Saints' Day
  • 30 Nov: Bonifacio Day
  • 8 Dec: Immaculate Conception
  • 25 Dec: Christmas Day
  • 30 Dec: Rizal Day
  • 31 Dec: New Year's Eve

NB - the dates of Eidul Fitr and Eidul Adha are estimates and yet to be confirmed.

Termination Process

Permissible Grounds

  • Serious misconduct
  • Willful disobedience
  • Gross and habitual neglect of duties
  • Fraud or willful breach of trust
  • Other analogous cases

Notice Period

  • Employee-Initiated: At least 30 days
  • Employer-Initiated: At least 30 days

Severance Pay

Not mandatory; subject to employment agreements.

Probation Period

  • Duration: Up to 6 months
  • Extension: Permissible if agreed upon by both parties.

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in Philippines
with RemotePass

The Philippines offers a dynamic and youthful workforce, making it an attractive destination for businesses seeking to expand in Southeast Asia. RemotePass simplifies the process of hiring and managing employees in the Philippines, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Philippines.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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Philippines

The Philippines, an archipelago of over 7,000 islands, is one of Southeast Asia's fastest-growing economies. With a young, English-speaking workforce and a strong service sector, it presents a compelling destination for businesses seeking to expand in Asia. Understanding local employment laws, tax obligations, and payroll practices is crucial for compliance and successful operations.
Contractor Management
EOR
Payroll
Contractor of Record
العملة
Philippine Peso (PHP)
تردد الرواتب
Bi-monthly
ضرائب أصحاب العمل
11.75% + provident fund

نظرة عامة

التركيبة السكانية
~113 million
اللغة
Filipino, English
العاصمة
Manila
العملة
Philippine Peso (PHP)
رمز الاتصال الدولي
+63
الحد الأدنى للأجور
610 PHP per day
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Saturday
ساعات العمل اسبوعيا
48 hours per week

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary
  • Mandatory; equivalent to 1/12 of an employee's total basic salary earned within a calendar year, payable no later than December 24 

متوسط ​​ضريبة صاحب العمل

11.75% + provident fund

تحصيل الضرائب

Personal Income Tax (PIT):

₱0 – ₱250,000
0%
₱250,001 – ₱400,000
20% of the excess over ₱250,000
₱400,001 – ₱800,000
₱30,000 + 25% of the excess over ₱400,000
₱800,001 – ₱2,000,000
₱130,000 + 30% of the excess over ₱800,000
₱2,000,001 – ₱8,000,000
₱490,000 + 32% of the excess over ₱2,000,000
Over ₱8,000,000
₱2,410,000 + 35% of the excess over ₱8,000,000

Corporate Income Tax (CIT):

Standard Rate
25%
Preferential Rate
20% for domestic micro, small, and medium-sized enterprises (MSMEs) with net taxable income not exceeding PHP 5 million and total assets not exceeding PHP 100 million.
Minimum CIT
2% of gross income, applicable if higher than the regular CIT

Social Security Contributions:

Employee Contribution
Varies based on monthly salary; ranges from 3.63% to 11.6%.
Employer Contribution
Ranges from 7.37% to 13.3%

ضريبة القيمة المضافة

ضريبة القيمة المضافة

12%

حساب الضريبة في Philippines
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PH
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Top Countries
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في Philippines عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

  • Must be in writing
  • Include job title, duties, salary, working hours, leave entitlements, and termination conditions.

Registration with Authorities

Register the employee with the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and Home Development Mutual Fund (Pag-IBIG) .

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions .

Employee Documentation

Collect personal identification, bank account details, and tax information .

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements.

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في Philippines
عند إعداد عقد عمل للموظفين في Philippines يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • Not mandated by law; provided based on company policy.
إجازة الأمومة
  • 105 days of paid leave; additional 15 days for solo mothers.
إجازة الأبوة
  •  7 days of paid leave for married male employees.
Annual Leave
  • 5 days of paid leave per year after 1 year of service.
11 عطلات رسمية في Philippines

Note: Some holidays may be observed regionally or on different dates.

1st
New Year's Day
9th
Day of Valor
17th
Maundy Thursday
18th
Good Friday
1st
Labor Day
12th
Independence Day
21st
Ninoy Aquino Day
25th
National Heroes Day
1st
All Saints' Day
25th
Christmas Day
30th
Rizal Day
  • 1 Jan: New Year's Day
  • 1 Feb: Chinese New Year
  • 25 Feb: EDSA Revolution Anniversary
  • 9 Apr: Day of Valor
  • 14 Apr: Maundy Thursday
  • 15 Apr: Good Friday
  • 16 Apr: Black Saturday
  • 1 May: Labor Day
  • 3 May: Eidul Fitr
  • 12 Jun: Independence Day
  • 9 Jul: Eidul Adha
  • 21 Aug: Ninoy Aquino Day
  • 29 Aug: National Heroes Day
  • 1 Nov: All Saints' Day
  • 30 Nov: Bonifacio Day
  • 8 Dec: Immaculate Conception
  • 25 Dec: Christmas Day
  • 30 Dec: Rizal Day
  • 31 Dec: New Year's Eve

NB - the dates of Eidul Fitr and Eidul Adha are estimates and yet to be confirmed.

عملية إنهاء العقود

Permissible Grounds

  • Serious misconduct
  • Willful disobedience
  • Gross and habitual neglect of duties
  • Fraud or willful breach of trust
  • Other analogous cases

Notice Period

  • Employee-Initiated: At least 30 days
  • Employer-Initiated: At least 30 days

Severance Pay

Not mandatory; subject to employment agreements.

Probation Period

  • Duration: Up to 6 months
  • Extension: Permissible if agreed upon by both parties.

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

نمِّ فريقك في Philippines
مع ريموت باس

The Philippines offers a dynamic and youthful workforce, making it an attractive destination for businesses seeking to expand in Southeast Asia. RemotePass simplifies the process of hiring and managing employees in the Philippines, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك Philippines.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

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