Philippines

Philippines

Global Employment Solutions & PEO in the Philippines

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

OmniAtlas Employment Rating

Capital City
Manila
Currency
Philippine Peso (PHP)
Native Language
Filipino, English
Payroll Frequency
Monthly
Employee Protections
Moderate
Employment Costs
Low
Termination
Easy
Immigration
Difficult
Cost of Living
Moderate
Population
108.1 Million

What You Need to Know About Employing in the Philippines

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

How it works
Payroll & Taxes
Employer Costs
Working Hours
Holidays & Vacation
Types of Leave
Health & Benefits
Termination Laws
Philippines

How Do Omnipresent Global Employment Solutions Work?

Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in the Philippines. Traditional methods of establishing global employment and subsidiaries in the Philippines typically take months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services help hundreds of organisations onboard new employees in the 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 the Philippines.
  • Omnipresent hires the selected candidate through our local professional employment organisation in the 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 the 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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Payroll & Taxes in the Philippines

Employee Income Taxes:

Individuals in the Philippines are taxed up to 35% of their income. 

Payroll Cycle:

Workers in the Philippines are paid monthly.

Philippines

Employer Costs in the Philippines

Employer Contributions:

  • 73.70-1,178.70 PHP to Social Security
  • 1.375%: Health Insurance
  • 2.0%: Home Development Mutual Fund

Employee Contributions:

  • 36.30-581.30 PHP to Social Security
  • 1.0% - Below 1,500 PHP: Home Development Mutual Fund
  • 2.0% - Above 1,500 PHP: Home Development Mutual Fund
  • 1.375%: Health Insurance
Philippines

Working Hours in the Philippines

Typical Working Hours per Week:

The typical work week in the Philippines consists of 48 hours per week, which is spread over six days. However, a compressed workweek scheme is recognised by law, in which employees can work five days a week. In this instance, a workday is not to exceed 12 hours. 

Employees are entitled to an unpaid, 1-hour lunch break. 

It’s important to note that typical working hours can vary by industry in some countries. Contact our team for the most up-to-date information!

Overtime Laws:

Overtime laws in the Philippines are complex and can depend on the specific circumstances and the employee. We are happy to discuss this in more detail for a specific context.

Philippines

Public Holidays & Vacation Time in Philippines

Standard Public Holidays in the Philippines

  • New Year’s Day
  • Araw ng Kagitingan
  • Maundy Thursday
  • Good Friday
  • Labour Day
  • Eid al-Fitr
  • Independence Day
  • Eid al-Adha
  • National Heroes' Day
  • Bonifacio Day
  • Christmas Day
  • Rizal Day

Vacation Time in the Philippines

Philippine employees are legally entitled to 5 days of paid 'service incentive leave', which can be used for vacation or sick leave. However, employers typically offer 15 days of paid vacation and 15 days of paid sick leave for most professional level positions in the Philippines.

Philippines

Types of Leave in Philippines

Sick Leave:

The Philippines has no minimum sick leave required by law. Sick leave in the Philippines may be paid at the discretion of the employer.

Maternity Leave:

The Philippines’ maternity leave regulations include  60 days (78 days in case of caesarean delivery) paid at 100% the average daily salary. The employer may request a reimbursement from Social Security. 

Paternity Leave:

Paternity leave in the Philippines includes 7 days for married male employees if their spouse has delivered a child or miscarried. 

Other Types of Leave:

Filipino law entitles women and children who are victims of violence paid leave for up to 10 days. 

Additionally, a special benefit leave for women entitles them to 2 months’ full pay from their employer following surgery caused by gynaecological disorders. This benefit is contingent on having provided continuous service for at least 6 months out of the last 12 months.

Philippines

Health Insurance & Supplementary Benefits in the Philippines

We believe that remote employees should be able to access their local benefits, as well as high-standard international benefits, anywhere they are.

The Philippines has a national healthcare service, PhilHealth, and there is an option for private healthcare through SafetyWing. Should SafetyWing be used, a maximum of 50% of your total group can be locals based in the Philippines.

Details about international or country specific benefit packages can be provided on request. Please contact us for further details.

Philippines

Termination & Severance in the Philippines

Severance:

Severance is typically required in the Philippines, unless in case of redundancy. However, other payments may be required in certain specific circumstances. Please contact us with any questions.

Notice of Termination:

If authorised, the notice of termination must be delivered a month prior to the intended termination. 

If the termination is due to disease, there must be a certificate issued by public health authorities stating the disease can’t be cured within six months. All authorised cause terminations require that the employee is entitled to receive a half-month salary for each year worked.

Unprotected and Protected Termination:

Filipino law protects employees from illegal termination of employment, andas there are a range of reasons an employee can be terminated, it’s important for those looking to employ in the Philippines to reach out to us directly with questions.

Protected Classes of Employees:

Laws around employees who have specific termination protections, or classes of employees who have protected characteristics relevant to discrimination, are highly complex and there can be a number of situation-specific variables. If you have questions in this area, please reach out to us directly to discuss.

Philippines

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 the Philippines are strict with penalties for non-compliance. Let our team take care of the details such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We’re here to help you every step of the way.

Want to onboard an international employee today? Call us.

Join thousands of companies who are leading the way and employing remote teams all over the world.

Omnipresent makes it easy to employ, pay and support your international team.

Book a call with us to start building your global team today.

Employ Anywhere. Be Omnipresent.  

Curious to learn more?
Book a Call