Hire in Philippines

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

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).

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

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.

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.

• 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