The Philippines offers a large, English-speaking workforce with deep experience in shared services, technology and customer operations. The core rules are stable, but pay floors keep moving. SSS contributions reached their final 15% rate on 1 January 2025. Metro Manila’s minimum wage rose to ₱695 a day in July 2025, a planned ₱85 increase was blocked by a court in July 2026, and Wage Order NCR-28 lifted the rate to ₱755 from 26 September 2026. A Supreme Court ruling in April 2025 means an accepted job offer already creates employment. Employers also pay a statutory 13th-month salary and must follow strict due process on dismissal.
Currency: Philippine Peso (₱ PHP)
Language: English (business), Filipino and English (official)
Regulatory Authority: Department of Labor and Employment (DOLE), NWPC and regional wage boards, BIR, SSS, PhilHealth and Pag-IBIG Fund
Last updated: October 2026
Set by regional wage boards by sector and business size. In Metro Manila it is ₱755 a day for non-agriculture work from 26 September 2026 (₱718 for the lower tier).
A written contract is not strictly required but is standard and needed to prove terms. English is acceptable. Fixed-term contracts are allowed if agreed freely and on equal terms.
Up to 6 months. The standards for becoming regular must be explained at hire, or the employee is regular from day one.
About 20–23% on top of gross salary for low to mid salaries, including 13th-month pay. About 11–14% for high salaries, because contributions are capped.
5 days of Service Incentive Leave a year after 1 year of service, convertible to cash. Maternity leave is 105 days and paternity leave 7 days.
8 hours a day, with a 24-hour rest day after every 6 working days. The meal break of at least 60 minutes is unpaid.
SSS 10% of the Monthly Salary Credit (up to ₱35,000), PhilHealth 2.5% (salary ₱10,000–₱100,000), Pag-IBIG 2% (up to ₱200 a month), plus a small EC charge.
Progressive from 0% on the first ₱250,000 a year to 35% above ₱8 million. Minimum-wage earners are exempt on their statutory minimum wage.
Plus 25% of the hourly rate on ordinary days and plus 30% on rest days and holidays. Night work from 10 pm to 6 am earns an extra 10%.
Dismissal needs a just or authorised cause. Authorised causes need 30 days' notice to the employee and DOLE, plus separation pay of ½ to 1 month's pay per year of service.
Final pay is due within 30 days of separation. A Certificate of Employment must be issued within 3 days of the employee's request.
1/12 of basic salary earned in the year, paid by 24 December to rank-and-file staff with at least 1 month of service. Tax-free with other bonuses up to ₱90,000.
2025–2026 updates
Issue a written contract or offer letter in English setting out role, pay, hours, benefits and the standards for becoming regular. An accepted offer already creates employment, so only withdraw it for valid reasons. Probation can last up to 6 months, and the employee becomes regular if the standards were not explained at hire. Use fixed-term or project contracts only where they genuinely fit, as repeated renewals for core work risk regular status.
Register with the BIR as a withholding agent and obtain SSS, PhilHealth and Pag-IBIG employer numbers, plus local business permits and the DOLE establishment report. Pay staff at least twice a month, no more than 16 days apart. File BIR Form 1601-C monthly, remit SSS, PhilHealth and Pag-IBIG contributions each month, and by 31 January file the annual BIR 1604-C and issue BIR 2316 certificates to employees.
Employees earn 5 days of Service Incentive Leave a year after 1 year of service, and unused days can be paid out. Maternity leave is 105 days, with 15 more for solo mothers, and married fathers get 7 days of paternity leave. Solo parent and VAWC leave also apply. The 13th-month payment is due by 24 December. Retirement pay of at least 22.5 days’ pay per year of service applies at age 60–65 if no better plan exists.
Employment cannot be ended at will. For just causes, follow the twin-notice rule: a written notice of charges with at least 5 calendar days to respond, a hearing or conference, then a written decision. For authorised causes, give 30 days’ written notice to the employee and DOLE, and pay separation pay of 1 month per year for redundancy or ½ month per year for retrenchment or closure. Final pay is due within 30 days.
Under the Data Privacy Act, appoint a Data Protection Officer, process employee data on a lawful basis and report breaches to the National Privacy Commission and affected people within 72 hours. Larger employers must register with the NPC. Set up the required workplace policies, including occupational safety, anti-sexual harassment, drug-free workplace, mental health and HIV/TB policies. Remote work arrangements should follow the Telecommuting Act.
Download the full Philippines Payroll & Employment Guide 2026 (PDF)
For detailed hiring information, customised employment guidance or support with your Philippines hiring, please reach out to our team. We provide compliant employment contracts, payroll processing and tax remittance, social security registration and reporting, benefits administration, and onboarding and offboarding support. See our EOR pricing: flat from $349 per employee, per month.
FAQ
Yes. An Employer of Record such as StratEdge Global becomes the legal employer and handles contracts, payroll, SSS, PhilHealth and Pag-IBIG contributions, tax withholding and compliance, while you direct the day-to-day work.
For low to mid salaries, about 20–23% of gross: SSS, EC, PhilHealth, Pag-IBIG and 13th-month pay. The percentage falls to about 11–14% for high earners because contributions are capped.
Yes. It is a separate statutory payment of 1/12 of basic salary earned in the year, due by 24 December. Together with other bonuses, it is tax-free up to ₱90,000.
No. Dismissal needs a just cause, using the twin-notice process, or an authorised cause with 30 days’ notice to the employee and DOLE plus separation pay. Probationary staff can be released only for just cause or for failing standards explained at hire.
