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Hire employees and contractors in The Philippines

Outstaffer’s guide to employing in Philippines.
Philippines employee facts

Facts & stats

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.

Capital city
Manila
Currency
Philippine peso (₱, PHP)
Official Languages
Filipino, English
Population size

106,651,394 (est. 2020)

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)

Tech talent

Tech Talent in The Philippines

The Philippines is rapidly emerging as a promising hub for tech talent in Southeast Asia. The country boasts a growing community of skilled software developers, engineers, and IT professionals. Filipino universities are producing graduates with strong technical skills, and cities like Manila and Cebu are experiencing a rise in tech startups and innovation centers. The Philippines' competitive labor costs, proficiency in English, and a young, tech-savvy workforce make it an attractive destination for outsourcing and tech-related services. Filipino tech talent is known for its adaptability, creativity, and strong work ethic, contributing significantly to the country's increasing prominence in the regional and global tech industry.

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Top Skills

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Top Industries

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Average Market Salary

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Diversity

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Years of Experience

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Years in Current Company

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

hire from Philippines

Grow your team in The Philippines with Outstaffer

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.

Outstaffer can employ your team in the 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 India with Outstaffer.

#hire from Philippines

Grow your team in The Philippines with Outstaffer

Looking to employ workers in Australia? Companies hiring in Australia 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.

Outstaffer makes it easy for companies of all sizes to employ workers in Australia using our employer of record solution. We can help employ your Australian team using our local Australian entity, as well as handle your payroll, benefits, taxes, and local legal compliance.

Public holidays

Below are national public holidays applicable for all regions in this country

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Jan 1

New Year's Day

Apr 21

Eid'l Fitr 
(Feast of Ramadhan)

Sep 4

Feast of the Immaculate
Conception of Mary

Feb 24

EDSA People Power 
Revolution Anniversary

May 1

Labor Day

Nov 27

Bonifacio Day

Apr 6

Maundy Thursday

June 12

Independence Day

Dec 25

Christmas Day

Apr 7

Good Friday

Aug 21

Ninoy Aquino Day

Dec 30

Rizal Day

Apr 8

Black Saturday

Apr 28

National Heroes Day

Dec 31

Last Day of the Year

Apr 10

Araw ng Kagitingan

Nov 1-2

All Saints' Day

Minimum Wage

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.


Overtime Pay

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.


Payroll Cycle

All employee payments are made bi-monthly by Outstaffer.com on your behalf with absolutely no margins or markups.

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 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. United States has a payroll cut-off date of the 10th of the month unless otherwise specified.

13th Month Salary

attract & retain talent

Competitive benefits package
in The Philippines

Outstaffer supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe! Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they live in.

Our benefits packages in India are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

Supplemental screening & vaccine insurance
Supplemental maternity insurance
Employee engagement funds
Flexible work schedule
Additional paid holidays
Supplementary vision insurance
Supplemental dental insurance
Private health insurance
Learn More About Benefit Packages
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Taxes in the The Philippines

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in the Philippines
Employer
  • 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
  • 12% - Sales Tax (VAT)

Employee income tax
  • Progressive System
  • Under 250000 - 0%
  • 25000 but not over 400000 - 20% of the excess over 250000
  • 400000 but not over 800000 - 25% of the excess over 400000 + 30000
  • 800000 but not over 2000000 - 30% of the excess over 800000 + 130000
  • 2000000 but not over 8000000 - 32% of the excess over 2000000 + 490000
  • Over 8000000 - 35% of the excess over 8000000 + 2410000
  • Social Security: a 4.5% deduction is taken from the employee’s monthly salary payment as an SSS contribution
  • Mandatory Provident Fund: This payment is applicable to contributions starting at an MSC (monthly salary credit) above PHP 20,000 with a maximum employer share of PHP 425. Employees contribute between PHP 22.50 and PHP 225 per month
  • Home Development Mutual Fund: 1% contribution for employees with a monthly salary below PHP 1500, and 2% above PHP 1500
  • PhilHealth: 3.5% split equally between employee and employer

Leave

Types of leave

Holiday leave

Full time employees are paid for public holidays.


Service Incentive leave

There is no statutory sick leave or vacation leave. However, after one year of service, eligible employees are entitled to five days paid leave for reasons of their choosing.


Maternity leave

Paid leave of up to 105 days is available to women who have made at least 3 contributions to SSS (Social Security System) in the 12 months before the birth. The employer must be notified. Single mothers are eligible for an additional 15 days paid leave. An additional 30 days unpaid leave may be requested.

Eligible women are entitled to 60 days leave following a miscarriage or emergency termination.

Paternity leave

Fathers are entitled to up to seven days paid leave. There is no governmental leave provision for same-sex parents, however leading employers including Nestle and Unilever are starting to develop their own supplemental leave policies to offer this support to their employees.


Solo Parent leave

Certified solo parents are entitled to up to seven days leave for parental activities.


Leave for Victims of VAWC

Victims of Violence Against Women and Children (VAWC) are entitled to 10 days leave for medical treatment and legal obligations. The employee must provide certification.


Special leave for women

Eligible employees can take up to two months leave following surgery for gynecological issues.


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Employment termination

Termination process

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.

Notice period

Employers must give one month notice for most authorized reasons.


Severance pay

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.


Probation periods

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

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