Global Expansion Guide

Philippines

Manage and pay your employees easily with BIPO in the Philippines and 170+ other markets. Build your international teams today with our global Employer of Record service!

Currency

Philippine Peso (PHP)

Language

Filipino
English

Capital

Manila

Employer of Record Philippines

Employment Contract

Statutory Contributions

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Philippines

Global Hiring Guide
Philippines

Employer of Record Philippines

Embark on your business expansion in the Philippines with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Philippine market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

This guide was last updated on 24 August 2026. The content in this guide is current as of this date and based on common business practices.

Employment Contract

An employment contract in the Philippines should include the following:

Employment type
Minimum wage
Social insurance and other mandatory insurance
Probationary period
Notice period for termination of employment
Other company benefit policies (these may be set out in the employee handbook instead)

Statutory Contributions

Item	Detail	Employer Contribution	Employee Contribution
Social Security System (SSS)	Illness, maternity, death, and funeral benefits	10% Minimum monthly salary credit (MSC): PHP 5,000 Maximum MSC: PHP 35,000 PHP 10 employer EC contribution for employees with MSC of PHP 14,500 and below. PHP 30 employer EC contribution for employees with MSC of PHP 15,000 and above	5% Minimum MSC: PHP 5,000 Maximum MSC: PHP 35,000
Mandatory Provident Fund (MPF), formerly Workers’ Investment and Savings Program (WISP)	Private-sector employees with an MSC above PHP 20,250	PHP 50 – PHP 1,500	PHP 25 – PHP 750
Healthcare Insurance (PhilHealth)	Health benefits	2.5% Monthly Basic Salary floor: PHP 10,000 Monthly Basic Salary ceiling: PHP 100,000 Maximum total monthly premium: PHP 5,000	2.5%
Pag-IBIG Saving	Housing fund	2% Maximum contribution: PHP 200	Monthly salary ≤ PHP 1,500: 1% Monthly salary ＞PHP 1,500: 2% Maximum contribution: PHP 200

Minimum Wage

Minimum wage rates in the Philippines are prescribed by the applicable Regional Tripartite Wages and Productivity Board and may differ by region, sector, establishment size and/or locality. Employers must apply the latest applicable Wage Order effective at the employee’s work location.

Current rates are as follows:

Region	Wage Order for Workers in the Private Sector and Domestic Workers	Minimum Wage	Effective Date
NCR	Workers in private sector	PHP 718–755 / day	26 September 2026
NCR	Domestic workers	PHP 7,000 / month	4 January 2025
CAR	Workers in private sector	PHP 470 / day	24 December 2024
CAR	Domestic workers	PHP 6,000 / month	24 December 2024
Region I	Workers in the private sector	PHP 435-468 / day	7 November 2024
Region I	Domestic workers	PHP 6,000 / month	7 November 2024
Region II	Private sector	PHP 460-480 / day	17 October 2024
Region II	Domestic workers	PHP 6,000 / month	17 October 2024
Region III	Private sector	PHP 600 / day PHP 435-550 / day	16 April 2026
Region III	Domestic workers	PHP 6,000 / month	1 April 2024
Region IV-A	Private sector	PHP 420-560 / day PHP 425-560 / day	30 September 2024
Region IV-A	Domestic workers	PHP 6,750 / month	7 March 2025
Region IV-B	Private sector	PHP 455 / day	1 January 2026
Region IV-B	Domestic workers	PHP 6,500 / month	1 January 2026
Region V	Private sector	PHP 395 / day	1 December 2023
Region V	Domestic workers	PHP 5,000 / month	1 December 2023
Region VI	Private sector	PHP 480-513 / day	17 November 2024
Region VI	Domestic workers	PHP 6,000 / month	17 November 2024
Region VII	Private sector	PHP 453-501 / day	2 October 2024
Region VII	Domestic workers	PHP 5,000-6,000 / month	11 May 2024
Region VIII	Private sector	PHP 470 / day PHP 405-435 / day	1 June 2026
Region VIII	Domestic workers	PHP 5,500-6,000 / month	2 December 2024
Region IX	Private sector	PHP 464 / day	1 June 2026
Region IX	Domestic workers	PHP 4,100-4,600 / month	12 November 2023
Region X	Private sector	PHP 500 / day	1 May 2025
Region X	Domestic workers	PHP 6,000 / month	1 May 2025
Region XI	Private sector	PHP 540 / day	1 September 2026
Region XI	Domestic workers	PHP 5,000-6,000 / month	6 March 2024
Region XII	Private sector	PHP 410-430 / day	1 January 2025
Region XII	Domestic workers	PHP 4,500-5,000 / month	16 October 2023
Region XIII	Private sector	PHP 475 / day PHP 435 / day	1 May 2025
Region XIII	Domestic workers	PHP 6,000 / month	2 January 2025
Region BARMM	Private sector	PHP 316-361 / day	28 February 2024
Region BARMM	Domestic workers	PHP 5,000 / month	19 September 2024

Public Holidays

The public holidays below are national holidays observed across the Philippines. Provinces, cities, and municipalities may observe additional local holidays. Please refer to official government announcements for the latest updates.

Philippine labour law defines two types of holidays: regular holidays and special non-working days. Premium pay rates differ between the two.

Regular Holidays

New Year’s Day
Maundy Thursday
Good Friday
Day of Valour (Araw ng Kagitingan)
Labour Day
Independence Day
National Heroes Day
Bonifacio Day
Christmas Day
Rizal Day

Special Non-Working Days & Additional Days

Chinese New Year
Black Saturday
Ninoy Aquino Day
All Saint’s Day 1
All Saint’s Day 2
Feast of the Immaculate Conception of Mary
Christmas Eve
Last Day of the Year

Working Hours

Normal Working Hours

No more than 8 hours per day and 48 hours per week.

Rest Time

Lunch Time: at least one hour per day. (Unpaid)
Short breaks: Rest breaks or tea breaks of 5 to 20 minutes provided by the employer are counted as paid working time.

Rest Day

Employers should provide employees with one rest day per week.
Employers should provide employees a continuous rest period of not less than 24 hours after every six consecutive normal working days.
This rule does not apply to government employees, managerial employees, field personnel, domestic workers and persons in the personal service of another, or employees paid by results (piece-rate workers).

Night Work

Night work is work performed between 10:00 pm and 6:00 am.
Employees are entitled to a night shift differential of at least 10% of their regular wage rate for each hour worked during this period.

Overtime

Any hours worked beyond normal working hours are considered overtime.

Overtime rates are as follows:

Overtime Type	Rules	Rates
Overtime on a normal working day	Employees who work beyond 8 hours are entitled to an additional 25% of their hourly rate for each overtime hour. Undertime on one day cannot be offset against overtime on another day.	Daily wage * 1.25
Work on rest days or special non-working days	First 8 hours	Daily wage * 1.3
Work on rest days or special non-working days	Beyond 8 hours	Daily wage * 1.69
Work on rest days or special non-working days	First 8 hours	Daily wage * 1.5
Work on rest days or special non-working days	Beyond 8 hours	Daily wage * 1.95
Work on public holidays	First 8 hours	Daily wage * 2
Work on public holidays	Beyond 8 hours	Daily wage * 2.6
Work on regular holidays that fall on rest days	First 8 hours	Daily wage * 2.6
Work on regular holidays that fall on rest days	Beyond 8 hours	Daily wage * 3.38

Other Regulations

Main employment types:

Regular Employment
Fixed-term Employment
Project Employment
Seasonal Employment
Casual Employment

Probationary Period

The probationary period cannot exceed 6 months.
If the employer does not tell the employee the standards for regularisation at the start of employment, the employee is considered a regular employee from their start date.

Leave

Statutory leave in the Philippines includes:

Type	Applicable to	Details
Service Incentive Leave	Employees who have served for at least one year	5 days (unused leave can be converted to cash, usually at year-end)
Sick Leave	Employees who have served for at least one year	No legal requirement; employers usually include it in Service Incentive Leave
Pregnancy and Maternity Leave	Female Employees	Under RA 11210, the baseline entitlement is: 105 days paid maternity leave for covered female workers, regardless of civil status Additional 15 days paid leave if the female worker qualifies as a solo parent 30 days additional leave without pay as an option 60 days paid leave for miscarriage or emergency termination of pregnancy
Paternity Leave	Married Male Employees	7 days, plus up to 7 days of maternity leave that the mother may transfer to the father
Single Parent Leave	Single parent or single employees who have served at least six (6) months	7 working days
Special leave for female employees (Magna Carta for Women)	Female Employees who have served at least 6 months	2 months (60 calendar days) following gynaecological surgery
Domestic Violence Leave	Female Employees	10 days
Bereavement leave	All Employees	Not mandatory; commonly 3 days for immediate family members

Termination and Compensation

Termination Notice

The notice period depends on the employee’s length of service:

Length of Employment	Notice Period of Termination
Less than 2 years	4 weeks
2 to 5 years	6 weeks
More than 5 years	8 weeks

For termination due to authorised causes, the employer must give written notice to both the employee and the Department of Labor and Employment (DOLE) at least 30 days before the intended termination date.
Notice period of the employee Employees must give their employer a 30-day notice of resignation in advance.

Compensation

Employees who meet the following dismissal situations are entitled to a severance payment equivalent to one month’s salary or 1/2 month’s salary for every completed year of service, whichever is higher:

Retrenchment to prevent losses (i.e., serious actual or anticipated business losses)
Closing or ceasing business but not due to serious business losses or financial reversal.
Disease: the employee has an illness that cannot be cured within 6 months, and continued employment would harm their health or that of their co-workers
Lack of service assignment for 3 months, for workers deployed under contracting or subcontracting arrangements (DO 174-17)
Lack of service assignment for 6 consecutive months, for security guards

Employees who meet the following dismissal situations are entitled to a severance payment equivalent to one month’s salary or one month’s salary for every completed year of service, whichever is higher;

Installation of labour-saving devices
Redundancy (positions exceed what the business reasonably requires)
Reinstatement to the original or a substantially equivalent position is not possible for reasons not attributable to the employer
The employee is unable to perform security work due to age
On grounds of social justice or equity

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

Initial Consultation:
The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
Payroll Management:
We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with the Philippine regulations.
Contributions and Taxes:
Our expertise in managing local social security requirements ensures your business complies with in-country financial obligations.
Compliance with Minimum Wage and Working Hours:
We guarantee that your employment practices adhere to the Philippines’ minimum wage and working hours standards, safeguarding your business against potential legal issues.
Leave and Paid Time Off Management:
Implement and manage leave policies that comply with the Philippines’ law, ensuring a fair and transparent leave management system for your employees.
Regulatory Compliance:
Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
Other services:
Work visa and permit applications, termination procedures.

*Services may vary across countries.

Benefits of BIPO Employer of Record Service in Philippines

Unlock your growth potential with BIPO’s Employer of Record service in the Philippines. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

What is an EOR company?

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

Compliance in the global markets where you operate
Reduced costs and risk mitigation
Overall workforce productivity, effectiveness, and efficiencies

Who should engage our EOR service?

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

Scale their global business and be fully operational in foreign markets quickly
Reduce financial and HR complexities while expanding internationally
Minimise time spent trying to understand local labour laws and foreign tax systems
Stay compliant across global markets while reducing HR and administrative workflows
Benefit from a centralised and intuitive cloud HR platform to manage international teams

Why should you engage an Employer of Record?

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

Global Expansion Guide

Philippines

Currency

Language

Capital

Employer of Record Philippines

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Normal Working Hours

Rest Time

Rest Day

Night Work

Overtime

Any hours worked beyond normal working hours are considered overtime.

Overtime rates are as follows:

Other Regulations

Main employment types:

Probationary Period

Leave

Termination and Compensation

Termination Notice

Compensation

BIPO as your Employer of Record

Benefits of BIPO Employer of Record Service in Philippines

Stay up to date with the latest employment regulations.

Frequently Asked Questions

HRMS

Global Payroll Outsourcing

Employer of Record

Grants

Resources

Company

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