Hire compliantly in the Philippines. Navigate SSS, PhilHealth, Pag-IBIG and a labor code that mandates 13th month pay, service incentive leave and some of the strongest employee protections in Southeast Asia.
Capital
Manila
Language
EN, Filipino
Average Salary
PHP 25,000
Payroll Cycle
Semi-monthly
Employer Cost
10-14%
Paid Leave
5 days
Public Holidays
18-21 days
Tax Rates
0-35%
Detailed guides on the employment topics that matter most when hiring in the Philippines. Independently researched, updated for 2026.
Martin English of Smart Outsourcing Solution breaks down the Philippines EOR market, pricing transparency, AI offshore staffing, and why specialist providers keep winning against global platforms.
Read ArticleThis guide breaks down the Philippines’ minimum wage system for 2026, covering the regionalized daily wage structure across all 17 regions, the current rates in Metro Manila (NCR) and key provinces, mandatory employer contributions to SSS, PhilHealth, and Pag-IBIG, compliance requirements under Philippine labour law, penalties for underpayment including double indemnity, 13th month pay and other mandatory benefits, and how minimum wage compares to living costs across major Philippine cities.
Read ArticleHiring foreign nationals in the Philippines requires a two-step process: an Alien Employment Permit from DOLE and a 9(g) Pre-Arranged Employment Visa from the Bureau of Immigration. New 2026 rules under DOLE Department Order 248 introduce mandatory Economic Needs Tests, strengthened Understudy Training Programs, and pre-arrival AEP processing. This guide covers the full process, visa types, costs, timelines, exemptions, and what it means for EOR arrangements.
Read ArticleThe average salary in the Philippines in 2026 is approximately ₱21,544 (USD 380) per month for full-time formal-sector workers per the Philippine Statistics Authority, with skilled professionals earning ₱25,000-45,000. This guide covers wages by industry, city (Metro Manila, Cebu, Davao), the regional minimum wage system, TRAIN Law income tax, SSS / PhilHealth / Pag-IBIG contributions, the mandatory 13th month pay, BPO salaries, and USD-denominated remote work pay.
Read Article
SSS contributions are bracket-based, not flat percentages. A provider applying a simple 15% to gross salary instead of using the Monthly Salary Credit table will remit incorrect amounts and fail SSS reconciliation.
Our assessment of providers in the Philippines covers entity structure, payroll accuracy, benefits administration and compliance with DOLE regulations.
The Philippines mandates only 5 days of service incentive leave, but most employers offer 15-20 days to remain competitive in the BPO and tech talent market.
| Key Employment Facts | |
| Minimum Wage | PHP 610-645/day (NCR), varies by region |
| Probation Period | 6 months maximum |
| Standard Working Hours | 48 hours/week (8 hours/day, 6 days) |
| Paid Annual Leave | 5 days SIL (Service Incentive Leave) |
| Notice Period | 30 days (employer or employee) |
| 13th Month Pay | Mandatory, 1/12 of annual basic salary |
| Sick Leave | No statutory paid sick leave (SIL can be used) |
| Maternity Leave | 105 days at full pay (SSS-funded) |
Good to Know: The Philippines has no statutory paid sick leave. The 5-day SIL can be used for any purpose including illness. Most competitive employers provide 10-15 days of separate sick leave on top of SIL. If you offer only the statutory minimum, expect high attrition, especially in BPO and tech where 15+ days sick leave is standard.
Philippine employer contributions add 10-14% on top of gross salary through SSS, PhilHealth and Pag-IBIG. The 13th month pay adds another 8.33% when amortized across the year.
| Employer Contributions | |
| Contribution | Employer Rate |
| SSS (Social Security System) | ~9.5% of MSC (capped at PHP 30,000 MSC) |
| SSS EC (Employees’ Compensation) | PHP 10-30/month (by MSC bracket) |
| PhilHealth (Health Insurance) | 2.5% of basic salary (capped at PHP 100,000) |
| Pag-IBIG (Housing Fund) | 2% of compensation (capped at PHP 10,000) |
| 13th Month Pay (amortized) | ~8.33% of annual basic salary |
| Total Employer Cost | ~10-14% + 13th month |
| Employee Taxes | |
| Tax / Contribution | Employee Rate |
| Income Tax (TRAIN Law, progressive) | 0-35% (0% on first PHP 250,000/year) |
| SSS (employee share) | ~4.5% of MSC |
| PhilHealth (employee share) | 2.5% of basic salary |
| Pag-IBIG (employee share) | 2% of compensation (capped at PHP 10,000) |
Good to Know: Total employer cost in the Philippines runs at approximately 1.18x to 1.22x of gross salary when SSS, PhilHealth, Pag-IBIG and amortized 13th month pay are included. For an employee earning PHP 40,000/month in Manila, budget approximately PHP 47,200 to PHP 48,800 in total monthly cost. The contribution caps keep costs flat for higher earners: an employee on PHP 80,000/month costs only marginally more in contributions than one on PHP 40,000, because SSS, PhilHealth and Pag-IBIG all cap out well below PHP 80,000.
The Philippines has 12 regular holidays and 9 special non-working days. Regular holidays carry 200% pay for work performed. Special non-working days carry 130%.
| Date | Holiday | Type |
| January 1 | New Year’s Day | Regular |
| January 29 | Chinese New Year | Special |
| February 25 | EDSA Revolution Anniversary | Special |
| March 20 | Eid al-Fitr (approximate) | Regular |
| April 2 | Maundy Thursday | Regular |
| April 3 | Good Friday | Regular |
| April 5 | Black Saturday | Special |
| April 9 | Araw ng Kagitingan (Day of Valor) | Regular |
| May 1 | Labour Day | Regular |
| May 27 | Eid al-Adha (approximate) | Regular |
| June 12 | Independence Day | Regular |
| August 21 | Ninoy Aquino Day | Special |
| August 25 | National Heroes Day | Regular |
| November 1 | All Saints’ Day | Special |
| November 2 | All Souls’ Day | Special |
| November 30 | Bonifacio Day | Regular |
| December 8 | Immaculate Conception | Special |
| December 24 | Christmas Eve | Special |
| December 25 | Christmas Day | Regular |
| December 30 | Rizal Day | Regular |
| December 31 | New Year’s Eve | Special |
Good to Know: The Philippines has one of the highest numbers of public holidays globally. The distinction between regular and special non-working days matters for payroll: regular holidays require 200% pay if worked (260% if also a rest day), while special days require 130% (150% if also a rest day). The president may declare additional special holidays throughout the year, sometimes with short notice.
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