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.
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.
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 in the Philippines comes out of the paid time off allowance.
There are 18 holidays in the Philippines, and employees are entitled to at least 5 days of paid time off each year.
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.
The standard notice period for terminations is 30 days.
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.
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.
★ 8% - Social Security
★ 1.75% - Health Insurance
★ 2% - Home Development Fund
★ PHP 425 - Provident Fund
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You've sourced a full-time employee or contractor located in a country where your company is not incorporated.
Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.
Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.
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.
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.