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Asia

Philippines

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Employer of Record (EOR) in Philippines

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Philippines Introduction

The Philippines is an archipelagic country in southeast Asia, consisting of around 7,641 islands. It is located between the Pacific Ocean and the South China Sea, and is home to gorgeous beaches and significant biodiversity. The Philippines is considered an emerging market and a newly industrialized country whose economy is transitioning from agriculture-centered to services and manufacturing-centered.

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees who have made at least 3 contributions to social security in the last 12 months are entitled to at least 105 days of paid maternity leave. The leave is paid at 100% of the salary by the employer, then reimbursed by social security. Fathers are entitled to 7 days of paid paternity leave after the birth.

Sick Leave

Sick leave in the Philippines comes out of the paid time off allowance.

Paid Leave

There are 18 holidays in the Philippines, and employees are entitled to at least 5 days of paid time off each year.

Wage Requirements and Working Hours

The minimum wage in the Philippines is PHP 537 per day, and a standard work day is 8 hours. Overtime work is regulated by the employment contract and usually paid at around 125% of the regular rate.

Termination Process

Process

Employers can dismiss employees with notice, or provide sufficient cause for dismissal without notice (such as misconduct). The notice of termination must be in writing and must also be sent to the relevant governmental authorities.

Notice Period

The standard notice period for terminations is 30 days.

Severance Pay

Severance pay is not required is the termination us for a just cause. Otherwise, severance pay is usually calculated as about 1 month of pay for every year of service.

Additional Information

It is mandatory to pay a 13th-month salary bonus to employees every year that is equal to 1 month of pay, usually paid in December.

OVERVIEW
Language(s):
Filipino, English
Currency:
Philippine Peso (PHP)
Capital City:
Manila
Population:
115 Million
Cost of Living Rank:
97th
VAT (Valued Added Tax):
12%
Employer TaxES
11.75% + PHP 425
(estimated)

★  8% - Social Security

★  1.75% - Health Insurance

★  2% - Home Development Fund

★  PHP 425 - Provident Fund

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
Best Pricing
Available in 150+ countries
How Remofirst employs in Philippines

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Philippines get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Philippines are paid on time in Philippine Peso (PHP). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Philippines, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.