Don’t risk non-compliance with local employment, social insurance, and tax regulations.
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.
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.
Individuals in the Philippines are taxed up to 35% of their income.
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.
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.
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.
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.
There is no minimum sick leave required by law.
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.
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).
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 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.
Gain unlimited access
Submit this form to gain full access to our OmniCalculator, so you can easily estimate employment costs across the globe.
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.
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.
Employ Anywhere. Be Omnipresent.
Don’t miss out
Subscribe for all the facts, tips and tricks on all things global employment, event invites, and free tools sent straight to your inbox.