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
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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

1st Jan - 31st Dec

Tax cycle

0%-35%

Employee tax
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Employ staff in Philippines hassle-free with EOR

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The all-in-one guide to hiring in
Philippines

Contracts & Agreements

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Compensation & Benefits

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Taxes & Costs

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Leaves

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Termination & Severance

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Hire and manage your workforce anywhere in APAC

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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.
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Your one-stop solution to all your HR tasks: Employer of Record (EOR)

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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.
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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?​

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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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