EOR Philippines
Expand into the Philippines with a custom EOR solution
An Employer of Record (EOR) is your one-stop solution to employ and manage workers efficiently in Philippines! Your Employer Of Record (EOR) takes care of:
- HR Administration
- Payroll
- Compliance
Leading enterprises across all industries rely on us
Facts & stats about working in Philippines
PHP ₱
Salary payment currency
English / Filipino
Contract language
40
Working hours per week
Varies across states
Min. hourly salary
13.50% + 425 PHP
Employer cost
12
Bank holidays per year
Employ staff in Philippines hassle-free with EOR
The all-in-one guide to hiring in
Philippines
Hire and manage your workforce anywhere in APAC
Contracts & Agreements
In the Philippines, various types of employment contracts are used to govern the employer-employee relationship. Some of the common types of contracts are:
Indefinite Agreement
An indefinite agreement has no set end date, and continues until either the employer or employee terminates the relationship. It is a general thumb rule to hire employees on an indefinite agreement.
Fixed-term Agreement
A fixed-term employment contract is an employment arrangement between an employer and a fixed-term employee wherein the latter will perform work for a term or a certain period of time.
Project Agreement
A project employment contract is an employment arrangement between an employer and a project employee wherein the latter’s employment has been fixed for a specific project or undertaking.
With An EOR solution, your employees sign a legal contract with the Employer Of Record while they share a normal working relationship with you.
Compensation & Benefits
Minimum Pay
There is no legally fixed minimum wage in the Philippines. It varies from PHP 282 to PHP 547 per day depending on the region.
Payout Cycle
The payroll cycle in the Philippines is monthly. It must be paid every 2 weeks by an employer.
Working Hours
The number of working hours per week in Philippines is 40 hours and 8 hours per day. A typical work week runs from Monday to Friday, 9 a.m. - 5 p.m.
Guaranteed Benefits
- If an employee works more than eight hours a day, they are typically entitled to overtime that is 1.25x their hourly wage. This rate becomes 1.3x if they are required to work on a Sunday or public holiday.
- A 13th month salary bonus must be provided by employers to their employees. Employees must receive this bonus equal to a month's salary prior to 24th December.
- Employees in the Philippines must receive five days’ paid leave that can be used for either vacation or sick leave.
Ask us for a Salary Benchmark for your EOR worker.
Your one-stop solution to all your HR tasks: Employer of Record (EOR)
Taxes & Costs
Tax for Employees
For resident aliens and non-resident aliens receiving compensation income, the tax rates are as follows:
| Taxable income band (PHP) | National income tax rate | |
|---|---|---|
|
Up to PHP 250,000 |
0% |
|
|
PHP 250,000 to PHP 400,000 |
20% |
|
|
PHP 400,000 to PHP 800,000 |
25% |
|
|
PHP 800,000 to PHP 2,000,000 |
30% |
|
|
PHP 2,000,000 to PHP 8,000,000 |
32% |
|
|
Over PHP 8,000,000 |
35% |
|
Employer Cost
Employees must pay 9.50% of an employee’s salary into the Philippines' Social Security System (SSS). Furthermore, they must contribute 2% of the salary each to the Philippine Health Insurance Corporation and Home Development Mutual Fund. Finally, a fixed contribution of 425 PHP per month must also be made towards Provident Fund (WISP).
Ask us for a Gross to Net simulation or a Total Employment Cost calculation for your EOR worker.
Leaves
Every employee working in Philippines is provided different types of leaves throughout the year. These include:
Service Incentive Leaves
In the Philippines, employers are not required to provide standard vacation or sick leave. Instead, they are required to provide service incentive leave, which comprises of 5 days of paid leave after 1 year of service.
Maternity & Paternity Leave
Female employees are eligible for up to 105 days of paid maternity leave. Male employees are entitled to 7 days of paid paternity leave paid by the employer. In both cases, the employee draws the pay from the social security fund.
In addition to these leaves, employees are provided 12 days of public holidays. For a full list of leaves and public holidays that your new hire in the Philippines is entitled to, talk to one of our experts.
Termination & Severance
Termination
Employee resignation, retirement age, expiry of employment contract, and misconduct are all valid reasons to terminate the employer-employee agreement. The worker must be given 1 month's notice before being dismissed.
Severance Pay
Severance pay in the Philippines is calculated based on the cause of termination. The quantum of this amount is usually a month or half a month's salary.
Ready to expand your business across multiple countries in the APAC region?
Why choose an Employer Of Record (EOR)
in the Philippines?
An Employer Of Record (EOR) solution is relevant for multiple use cases:
- Enter new markets quickly & expand internationally with ease.
- Hire skilled talent in a foreign location.
- Avoid contractor misclassification & convert contractors to employees.
- Mobilize existing talent for secondment or remote opportunity.
- Focus on core business activities while you outsource HR administration.
Why trust BGC as your Employer Of Record (EOR)?
Industry Expertise
Since 2005, BGC has an extensive experience and proven track record of earning the trust of numerous clients.
Technology Leverage
Streamline operations with advanced technology which result in quicker time to onboard and pay.
Cost-effective pricing
Transparent and affordable monthly pricing that allows you to scale your workforce without any hassles.
Talk to us and make hiring in APAC a breeze!
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