Global Employment Solutions & PEO in Philippines

Omnipresent makes it fast and easy to employ remote talent in Philippines. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.


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Employment Costs

What You Need to Know About Employing in Philippines

Don’t risk non-compliance with local employment, social insurance, and tax regulations.

Select any of the categories below to learn more, and even review our employee cost salary calculator in Philippines.

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How it works
Employer Costs
Employee Income Taxes
Employee Social Contributions
Working Hours
Holidays & Vacation
Sick Leave Entitlement
Parental Leave
Annual Leave Entitlement
Severance Pay Entitlement
Employment Cost Calculator

How does Omnipresent Global Employment Solutions work in Philippines?

Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Philippines. Traditional methods of establishing global employment and subsidiaries in Philippines typically take months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services is helping hundreds of organisations onboard new employees in Philippines in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process. 

  • Your company conducts the hiring and candidate selection process in Philippines.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Philippines.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Philippines.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.
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Employer Costs in Philippines

Employer costs include Standard Social Security Contribution and the Employees' Compensation (EC) Program. Use the OmniCalculator to estimate costs or contact us for further information.


Employee Income Taxes in Philippines

Income taxes Employers making payments to Philippine employees must withhold income tax on the payments.

Income tax rates in the Philippines vary progressively from zero to 35% depending on an individual's income.


Employee Social Contributions in Philippines

Employee contributions

Social Security

Employees with a monthly salary of at least ₱20,250 are subject to additional employer and employee contributions to the Workers' Investment and Savings Program (WISP) only on the portion of the employee's salary credit over ₱20,000, at the same contribution rates as standard Social Security contributions.

The employee contribution rate is 4.5%, and salary credits range from ₱4,000 to ₱30,000. Effective starting Jan. 1, 2025, the employee contribution rate is 5%, and salary credits range from ₱5,000 to ₱35,000.

National Health Insurance Program

Starting with 2024, the NHIP contribution rate is 5%.

The monthly income floor for NHIP contributions is ₱10,000.Effective starting with 2020, the monthly income ceiling for NHIP contributions increases by ₱10,000 each Jan. 1 until it reaches ₱100,000.

Home Development Mutual Fund

1-2% The total contribution assessed on wages of more than ₱5,000 in a month is ₱200, with ₱100 paid by the employer and ₱100 paid by the employee. An exception to the aforementioned contribution rates is that nonresident employees are not assessed contributions for the Home Development Mutual Fund.


Working Hours in Philippines

Working hours are 8 hours per day. Normal work weeks are 6 days. A Compressed Work Week scheme is recognized by law where the normal work week is reduced to 5 days, but total work hours remain at 48 hours. Hours worked above these are considered overtime and compensated.

Working Hours:  

8 hours per day. Normal work weeks are 5 to 6 days. What is required is a 24-hour rest day after 6 consecutive days of work.   

A Compressed Work Week scheme is recognised by law where the normal work week is reduced to 5 days, but total work hours remain at 48 hours. Under a CWW, hours for a normal work day will not be more than 12 hours, without the corresponding overtime pay. Must be voluntarily agreed to by the employer and the employees.  Employees are entitled to a 1-hour meal break (not compensated). If an employee is required to work on their rest day, the employee entitled to additional pay of 30% regular hourly pay.  


Length: Any work in excess of 8 hours in a day is considered overtime work.   


Entitlement to overtime pay depends on the nature of employees’ duties and responsibilities  

  • If the employees’ duties and responsibilities do not qualify them as exempt employees, they are entitled to overtime pay: regular days = 25% additional pay, special holidays = 30%.   

  • If these employees’ duties and responsibilities qualify them as exempt employees (i.e., persons in managerial or supervisory positions), they are not entitled to overtime pay.   

In practice, employers ask employees to sign employment contracts where the employees agree to perform overtime work.

Night Work

A night worker is defined as any employed person whose work covers the period from 10:00 P.M. to 6:00 A.M. the following morning, provided that the worker performs no less than seven consecutive hours of work. The foregoing definition means that if an employee’s work shift encompasses any period from 10:00 P.M. to 6:00 A.M., the employee shall be considered as a night worker and thus entitled to the benefits provided for by law.

Employees must be paid a night shift differential of not less than 10% of their regular wage for each hour of work performed between 10:00 P.M. and 6:00 A.M.

The following benefits and protections are also provided to a night worker:

  • Free Medical Health Check-ups and/or Assessments.

  • Mandatory Facilities (not applicable to remote workers):

    • suitable first-aid and emergency facilities as provided under Rule 1960 (Occupational Health Services) of the Occupational Safety and Health Standards (OSHS);

    • a lactation station in required companies pursuant to Republic Act No. 10028 (The Expanded Breastfeeding Promotion Act of 2009);

    • separate toilet facilities for men and women; and

    • facilities for transportation and/or properly ventilated sleeping or resting quarters, separate for male and female workers.

  • Additional Protection to Women Night Workers: Women employees who cannot render night work due to pregnancy, childbirth, or childcare responsibilities cannot be dismissed from employment based on the foregoing grounds.


Holidays & Vacation in Philippines

Please note that the below information covers national holidays and should be used for informative purposes only and not as a guarantee for payroll purposes. While we strive to offer you accurate information, public holidays are subject to frequent changes and can be dependent on regional differences. Should you need more detailed information on public holidays, please consult the government pages of the state and/or the local municipality of your employee.

  • Monday, Jan 01, 2024 - New Year's Day (Araw ng Bagong Taon)
  • Thursday, Mar 28, 2024 - Maundy Thursday (Huwebes Santo)
  • Friday, Mar 29, 2024 - Good Friday (Biyernes Santo)
  • Sunday, Mar 31, 2024 - Easter Sunday (Pasko ng Pagkabuhay)
  • Tuesday, Apr 09, 2024 - Day of Valor (Araw ng Kagitingan)
  • Wednesday, Apr 10, 2024 - End of Ramadan (Eid al-Fitr) (Pagwawakas ng Ramadan)
  • Wednesday, May 01, 2024 - Labour Day (Araw ng mga Manggagawa)
  • Wednesday, Jun 12, 2024 - Independence Day (Araw ng Kalayaan)
  • Sunday, Jun 16, 2024 - Feast of the Sacrifice (Eid al-Adha) (Eidul Adha)
  • Monday, Aug 26, 2024 - National Heroes' Day (Araw ng mga Bayani)
  • Saturday, Nov 30, 2024 - Bonifacio Day (Araw ng Kapanganakan ni Bonifacio)
  • Wednesday, Dec 25, 2024 - Christmas Day (Araw ng Pasko)
  • Monday, Dec 30, 2024 - Rizal Day (Paggunita sa Kamatayan ni Dr. Jose Rizal)

Sick Leave Entitlement in Philippines

There is no minimum sick leave required by law.

Parental Leave in Philippines

Maternity leave: A female employee who has paid at least 3 monthly contributions to the Social Security System (SSS) in the 12 months preceding the semester of her childbirth (or miscarriage) is entitled to a daily maternity benefit equivalent to 100% of her average daily salary for 60 days - or 78 days in case of caesarean delivery. This is paid by the employer, who can then request reimbursement from Social Security.

Parental leave: Married male employees are entitled to 7 days' paternity leave. They can only continue to earn their gross monthly compensation if their spouse has delivered a child or suffered a miscarriage, and leave is taken to support their wife during her period of recovery or in nursing of the newly born child.

Annual Leave Entitlement in Philippines

Service Incentive Leave (SIL) is 5 days' leave with pay for every employee who has at least 1 year of service (with current or past employers).

Severance Pay Entitlement in Philippines

Separation pay is equivalent to at least 1 month's pay or at least 1 month's pay for every year of service, whichever is higher. Severance may vary according to the type of dismissal.

Termination in Philippines

Termination of employment needs to be based on a legal cause and a 'due process'. Legal cause includes:

  • Serious violations of company rules and regulations.

  • Infractions or violations of the applicable code of conduct.

  • Gross misconduct or redundancy.

Depending on the cause for dismissal different legal procedures may apply.

Global Employment Cost Calculator in Philippines

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Employer's Costs (Estimate)
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GBP 695.47
Health Insurance
GBP 695.47
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Grow your global team. 
Employ the best talent, anywhere in the world

The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Philippines are strict with penalties for non-compliance. Let our team take care of the global employment solutions such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We are here to help you every step of the way.

Want to onboard an international employee today? Get started.

Omnipresent makes it easy to hire, pay, and support your international team with our top-notch services including our global EOR & PEO services. Book a call with us to start building your global team today. Book a call with us to start building your global team today.

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