Asia-Pacific · PHP

Hire in Philippines

Republic of the Philippines — 114 million population, $3,950 GDP per capita. Everything you need to know about employment law, tax, compliance and hiring in Philippines.

Capital

Manila

Currency

Philippine Peso (PHP)

Languages

Filipino, English

Time zones

UTC+8 (PHT)

Hiring overview

Typical time to hire
1-2 weeks for contractor, 2-4 weeks for full-time
Entity requirement
Philippine corporation (stock or non-stock). SEC registration, BIR, LGU, SSS, PhilHealth, Pag-IBIG registrations.
EOR available
Yes — from $399/employee/month through a Corpshore entity
Contractor of record
Yes — from $39/worker/month

Employment law

Standard workweek
48 hours (8 hours/day, 6 days)
Maximum weekly hours
48 hours
Minimum annual leave
5 days (Service Incentive Leave, after 1 year)
Public holidays
18 per year
Maternity leave
105 days (expanded under Republic Act 11210, 2019), fully paid via SSS
Paternity leave
7 days, fully paid (for up to 4 children)
Notice period
30 days (employer, for just causes). Termination for authorised causes: 30 days + DOLE filing.
Severance
Separation pay: 1 month or 0.5 month per year of service (whichever is higher), for authorised-cause termination
Probation
6 months maximum. Probationary employee becomes regular after 6 months unless employer proves failure to meet reasonable standards.
Overtime rules
25% premium (regular overtime), 30% premium (holiday/rest day overtime). Night shift differential: 10% (10pm-6am).

Tax overview

Income tax range
0% to 35% (TRAIN Law reformed brackets in 2018)
Corporate tax
25% (20% for domestic corporations with net taxable income under PHP 5M and total assets under PHP 100M)
Social contributions
SSS: ~4.5% employee + ~9.5% employer. PhilHealth: ~2.25% each. Pag-IBIG (HDMF): 2% each (employer max PHP 200/month).
VAT / GST
12% (VAT)
Tax year
Calendar year (Jan-Dec)
Treaty network
Over 40 tax treaties

Compliance landscape

Worker classification
Labour Code distinguishes employees from independent contractors based on control test (Employer's right to control means and methods). Department of Labor and Employment (DOLE) investigates. Strict anti-endo (end of contract) policy limits contractualisation.
Data protection
Data Privacy Act of 2012 (Republic Act 10173). National Privacy Commission (NPC) enforces. Mandatory data breach notification within 72 hours.
Right to work
Alien Employment Permit (AEP) required for foreign workers unless exempt. Special work permits for specific sectors.
Non-compete
Enforceable if reasonable in scope and duration. Philippine courts apply the reasonableness test based on the employee's role and the employer's legitimate interests.
Collective bargaining
Protected under the Labour Code. Sole and exclusive bargaining agent (SEBA) concept. NLRC (National Labor Relations Commission) handles disputes. Strong unions in manufacturing, transport, and public utilities.

Payment rails

Bank transfer (InstaPay/PESONet)
Mobile money (GCash, Maya)
Wise

InstaPay (instant, up to PHP 50,000) and PESONet (batch, unlimited) handle interbank transfers. GCash and Maya (e-wallets) are widely used. The Philippines has one of the highest remittance volumes globally.

Key considerations for hiring

  • 13th month pay is mandatory (paid in December), plus many companies offer 14th-16th month
  • Philippines is the world's largest BPO destination, employing 1.4+ million in outsourcing
  • High English proficiency and cultural affinity with the US make it a top choice for customer support and knowledge process outsourcing
  • Anti-endo law limits contract labour: employees must be regularised after the 6-month probation period

Business and cultural context: Philippines

Business culture

Warm, hospitable, and relationship-driven. Filipino workers are known for strong English skills and adaptability. Respect for authority (po and opo) is cultural. Celebrations and team events (team-building, Christmas parties) are important.

Key industries

Business process outsourcing (BPO)
Electronics manufacturing
Tourism
Remittances
Agriculture
Technology

Talent pool strengths

Customer support and call centre
Virtual assistance
Medical transcription
Graphic design
Software development
Content moderation

Historical context

The Philippines' BPO industry began in 1992 when Accenture opened its first offshore delivery centre in Manila. By 2010, the Philippines had overtaken India as the world's call centre capital. The industry now generates $32B+ in annual revenue and has expanded into higher-value services: data analytics, AI training data, healthcare information management, and software development.

Ready to hire in Philippines?

Use our EOR service from $399/month and we handle employment law, payroll, tax and compliance in Philippines for you.

Hire in Philippines — employment law, tax, compliance | Corpshore Work