The Philippines’ English-speaking talent and cost-effective workforce are a draw, but its labor laws need expertise. Omnipresent, as your Employer of Record (EOR), ensures compliance with SSS rules, no entity needed.

Our EOR services cover payroll, benefits like the 13th-month pay, and tax filings, freeing you to oversee teams in Manila or Cebu. We provide a tech-driven approach for this vibrant market.

• Swift, compliant onboarding.
• Payroll in PHP, fully handled.
• Local wage and benefit expertise.
• Hassle-free scaling support.

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.

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 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 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.  

Overtime:  

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

Payment:  

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.

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.