Currency
Philippine Peso (PHP)
EOR IN Philippines
The easiest way to Hire and Manage in Philippines
Swivelt will take care of payroll, benefits, taxes, compliance, making it easier than ever to expand and manage your team in Philippines
GET STARTED
EXPAND YOUR BUSINESS IN Asia - Pacific
A guide to employing and growing your team in Philippines
Fast and compliant market entry. Hire top local talent without the need for a legal entity
The Philippines is a southeast Asian nation composed of over 7,000 islands. It is located between the South China Sea and the Pacific Ocean. With 108 million residents, it’s the thirteenth most populous country on Earth. The Philippines is a premier global destination for business process outsourcing (BPO), services, and manufacturing, fueled by a young, highly literate, and English-proficient workforce. The labor market is governed by the Labor Code of the Philippines, which emphasizes significant worker protections and mandatory benefits. As of 2026, the daily minimum wage in Metro Manila (NCR) is ?695.00, while rates in other regions vary by local wage boards. A cornerstone of Philippine payroll is the 13th-month pay, a mandatory bonus equivalent to one month’s basic salary, which must be paid to all rank-and-file employees on or before December 24th.
Employer Contributions
Social Security System (SSS): ~8.5%
PhilHealth: ~2.5% (shared, half by employer)
Pag-IBIG Fund: 2%
Total Employer Contribution: ~12% to 13%
Employee Payroll Taxes
SSS: ~4.5%
PhilHealth: ~2.5% (shared contribution)
Pag-IBIG Fund: 2%
Total Employee Contribution: ~8% to 9%
Employee Income Tax Rates
0 to 250,000: Taxed at 0% (No tax)
Over 250,000 to 400,000: Taxed at 15%
Over 400,000 to 800,000: Taxed at 20%
Over 800,000 to 2,000,000: Taxed at 25%
Over 2,000,000 to 8,000,000: Taxed at 30%
Over 8,000,000: Taxed at 35%
Statutory Leave
Employees in the Philippines are entitled to:
A minimum of 5 days of paid Service Incentive Leave (SIL) per year after completing 1 year of service
Many companies provide additional annual leave beyond the statutory minimum
In addition to SIL, employees are entitled to around 18-20 public holidays annually, which include both regular and special non-working days. Unused SIL can typically be converted to cash if not used.
Pregnancy and Maternity Leave
Female employees in the Philippines are entitled to 105 days of paid maternity leave, with an additional 15 days for solo mothers, and the leave can be extended by 30 days of unpaid leave, with the paid portion being provided through the Social Security System (SSS).
Paternity Leave
Male employees in the Philippines are entitled to 7 days of paid paternity leave, which is applicable for the first four deliveries of their legitimate spouse.
Work-Related Injury Leave
Solo parents in the Philippines are entitled to 7 days of parental leave annually. Additionally, sick leave is not mandated by law but is typically provided by employers, while bereavement leave is usually 3-5 days depending on company policy. Work injury leave is covered under the Employees’ Compensation Program, and special leave for women due to gynecological conditions grants 2 months of paid leave for surgery-related cases. Leave for victims of violence against women and children is granted for up to 10 days.
Termination Process
Termination must follow due process under the Labor Code. Employers must have just or authorized cause and provide proper notice. Employees are entitled to due process, including written notice and opportunity to respond. Severance pay applies in cases of authorized causes such as redundancy or retrenchment.
Notice Period
In the Philippines, at least 30 days’ notice is required for termination due to authorized causes, while immediate termination is possible for just causes, provided due process is followed.
Probation Period
Probation is not mandatory but is common practice. It cannot exceed a maximum of 6 months. If an employee continues to work after the 6-month period, they automatically become a regular employee by operation of law. Terms of the probation must be clearly defined in the employment contract at the time of engagement.