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Philippine Peso is the official currency of the Philippines. Its currency symbol is ₱, PHP.
14% + 950 PHP on top of employee salary.
Both Filipino and English are official languages, with Filipino (Tagalog) being the national language used in formal education.
The population of the Philippines is 111 million (based on World Bank numbers as of 2021).
Salaries are paid monthly.
To start growing your team in the Philippines, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary.
This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Hiring in the Philippines provides access to a strong and diverse workforce with 700,000 graduates entering the labour market from Filipino universities each year. Furthermore,
the Philippines has a hardworking attitude firmly integrated into the country’s working culture. Expanding your business to the Philippines is supported by the government
through the provision of several different incentives that encourage investment. For example, the government provides tax deductions for foreign investors and special
economic zones throughout the country. However, the Philippines holds corporate income tax at a flat rate of 30%, which is amongst the highest in Southeast Asia. The
Philippines also has strict labour regulations, which include a requirement for companies to pay employees an additional 13th month pay at the end of the year.
“Remote working in the Philippines is on the rise with visas being easier to obtain than in other Southeast Asian countries. A 6-month extension on a visa is available for
approximately USD $200 and is seen as the unofficial ‘digital nomad visa’. In addition to this, the Philippines has less regulations and rules for digital nomads compared to
neighbouring countries, making it favourable for remote working. Although the Philippines is yet to become a hotspot for digital nomads in Southeast Asia, accessible visas, low
cost of living, and welcoming society are all contributing to a rise in remote working.”
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| Social Security System (Contribution Maximum 1900 PHP): | 9.5% |
| Philippines Health Insurance Corporation (Salary Ceiling of 100000 PHP): | 2.5% |
| Home Development Mutual Fund (Pag-ibig) (Salary Ceiling of 10000 PHP): | 2% |
| Provident Fund (WISP) (Contribution Maximum of 950 PHP): | 950 PHP per month |
Death and disability.
Unemployment.
Sickness.
Maternity.
Old age.
Contracts in Philippines must include:
Unless specifically exempted or excluded, all foreign nationals desiring to work in the Philippines must obtain an Alien Employment Permit (AEP). AEPs are normally valid for one
year, but may be extended annually, up to a maximum of five years.
Written employment contracts are optional but advisable. Employers and employees are free to agree to terms which are not contrary to law, morals, good customs, public order
or public policy.
Probation periods should not exceed six (6) months from the date the employee started working, unless covered by an apprenticeship agreement stipulating a longer period.
Emerald Technology can onboard employees in Philippines within 48 hours.
Employers are not obligated to provide any specific insurance benefits, since PhilHealth (the national health insurance programme) offers inpatient benefits, outpatient benefits, Z
benefits, and SDG benefits. Many global companies may opt out of offering private health insurance to Filipino employees as a result, but it’s still common for many employers to
offer secondary health insurance to their employees to help them access more specialised care (and to reduce wait times for more common treatments).
All working mothers are entitled to up to 105 days of paid maternity leave for each pregnancy, provided that they have made at least three monthly contributions to the Social
Security System (SSS) in the 12 months preceding the semester of the birth and have notified their employer. All married male employees are entitled to a paternity leave of
seven days with full pay for the first four deliveries of the legitimate spouse.
Philippine employees are legally entitled to 5 days of paid ‘service incentive leave’, which can be used for vacation or sick leave. However, for most professional-level positions, it
is customary for employers to offer 15 days of paid vacation and 15 days of paid sick leave.
The employer’s Social Security contribution is approximately 8% of employees’ salaries, up to a maximum monthly contribution of PhP 1,630 per employee.
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
| Notice Periods: | Employees must give companies 30 days’ notice of resignation. |
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
| Separation Pay: | In case of termination due to redundancy, employees are entitled to a separation pay equivalent to at least one month’s pay, or one month’s pay for each year of service, whichever is higher. |
Philippine employees are legally entitled to 5 days of paid ‘service incentive leave’, which can be used for vacation or sick leave. However, for most professional-level positions, it is customary for employers to offer 15 days of paid vacation and 15 days of paid sick leave.
The Philippines’ minimum wage ranges from PhP 466 per day for agricultural workers in the Mimaropa Region to PhP 491 per day for non-agricultural workers in the National Capital Region. Minimum wages in the Philippines are set by tripartite regional wage boards.
Normal working hours in the Philippines must not exceed eight per day. Hours worked beyond this, or overtime hours, are paid at 1.25x the employee’s normal hourly salary.
Payroll in the Philippines follows a monthly cycle, depending on the employer and the sector. Employers must pay salaries once every two weeks at intervals of not more than 16 days. There is a statutory requirement to pay a 13th month salary bonus, no later than 24th December each year.
Entitled to 13-month payment which is one twelfth of their annual salary either paid in full in December or split in half for one payment in June as well.
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