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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!

employment guide_currency

Currency

Philippine Peso (PHP)
employment guide_language

Language

Filipino
English

employment guide_capital

Capital

Manila

Employer of Record Philippines

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Philippines

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  • Employer of Record
  • 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 Philippines market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

Employment Contract

The employment contract in the Philippines should include below contents:

  • Employment type
  • Minimum wage
  • Social insurance, mandatory insurance
  • Probationary period
  • Notice period of termination of employment
  • Other company benefit policies – sometimes this term will be stipulated in the employee handbook.

Statutory Contributions

Item  Detail  Employer Contribution  Employee Contribution 
Social Security System (SSS) Illness, maternity, death, funeral benefits 10% Minimum contribution: P5,000 Maximum contribution: P35,000 5% Minimum contribution: P5,000 Maximum contribution: P35,000
Workers’ Investment & Savings Program (PF / WISP) Employees of private sector with an MSC of more than P20,250 P50-P1,500 P25-750
Healthcare Insurance (Philhealth) Health benefits 2.5% 2.5%
Pag-IBIG Saving Housing fund 2% Maximum contribution: P200 Monthly salary ≤ 1,500: 1% Monthly salary ＞1,500: 2% Maximum contribution: P200

Minimum Wage

The statutory minimum wage of the Philippines has been adjusted and taken effect by every region from time to time as follows:

Minimum Wage of the Philippines 
Region  Wage Order for Workers in the Private Sector and Domestic Workers  Minimum Wage  Effective Date 
NCR workers in private sector 608-645 PHP / day 17 July 2024
domestic workers 7,000 PHP / month 4 January 2025
CAR workers in private sector 470 PHP / day 24 December 2024
domestic workers 6,000 PHP / month
Region I workers in private sector 435-468 PHP / day 7 November 2024
domestic workers 6,000 PHP / month
Region II private sector 460-480 PHP / day 17 October 2024
domestic workers 6,000 PHP / month
Region III private sector 410-525 PHP / day 435-550 PHP / day 17 October 2024
domestic workers 6,000 PHP / month 1 April 2024
Region IV-A private sector 420-560 PHP / day 425-560 PHP / day 30 September 2024
domestic workers 6,750 PHP / month 7 March 2025
Region IV-B private sector 404-430 PHP / day 23 December 2024
domestic workers 6,500 PHP / month
Region V private sector 395 PHP / day 1 December 2023
domestic workers 5,000 PHP / month
Region VI private sector 480-513 PHP / day 17 November 2024
domestic workers 6,000 PHP / month
Region VII private sector 453-501 PHP/day 2 October 2024
domestic workers 5,000-6,000 PHP / month 11 May 2024
Region VIII private sector 390-420 PHP / day 405-435 PHP / day 2 December 2024
domestic workers 5,500-6,000 PHP / month 2 December 2024
Region IX private sector 401-414 PHP / day 12 December 2024
domestic workers 4,100-4,600 PHP / month 12 November 2023
Region X private sector 434-461 PHP / day 12 January 2025
domestic workers 6,000 PHP / month
Region XI private sector 505-510 PHP / day 7 March 2025
domestic workers 5,000-6,000 PHP / month 6 March 2024
Region XII private sector 410-430 PHP / day 1 January 2025
domestic workers 4,500-5,000 PHP / month 16 October 2023
Region XIII private sector 415 PHP / day 435 PHP / day 2 January 2025
domestic workers 6,000 PHP / month 2 January 2025
Region BARMM private sector 316-361 PHP / day 28 February 2024
domestic workers 5,000 PHP / month 19 September 2024

Public Holidays

The National Public Holidays in the Philippines in 2025 are shown as follows. Please refer to the announcement of the government.

There are two types of holidays defined by the Labour Law of the Philippines: “regular holiday” and “special holiday”. The premium pay of these two types of holidays are different.

Holiday Name Date 
New Year’s Day 1 January 2025
Chinese New Year 29 January 2025
Ramzan/Id-ul-Fitr 31 March 2025
Day of Valor 9 April 2025
Maundy Thursday 17 April 2025
Good Friday 18 April 2025
Black Saturday 19 April 2025
National Labour Day 1 May 2025
Eid Al-Adha 6 June 2025
Independence Day 12 June 2025
Ninoy Aquino Day 21 August 2025
National Heroes Day 25 August 2025
All Saint’s Day 31 October 2025
All Saint’s Day 1 November 2025
Bonifacio Day 30 November 2025
Feast of the Immaculate Conception 8 December 2025
Christmas Eve 24 December 2025
Christmas Day 25 December 2025
Rizal Day 30 December 2025
Last Day of the Year 31 December 2025

Working Hours

Normal Working Hours

  • No more than 8 hours per day, 48 hours per week.

Rest Time

  • Lunch Time: at least one hour per day, unpaid.
  • Rest pauses or tea breaks: if the employer provides 5 to 20 minutes of rest pause or tea break to the employee, it shall be considered as paid rest time.
  • Rest day:
    1. Employers should provide employees with one rest day per week. Employers should provide employees with a continuous rest period of no less than 24 hours after every six consecutive normal working days.
    2. This rule does not apply to government employees, managers, field workers, employees providing private services, and piece-rate employees.

Night Work

  • The night working hours are between 10 pm one day and 6 am the next day.
  • Employees working at night are entitled to 10% extra pay on top of their regular wage rates for every night working hour.

Overtime

  • Any hours worked in excess of standard working hours are considered overtime.
  • The overtime rule is shown below:
Overtime Type Rules Rates 
Overtime on normal working day Employees who have worked beyond 8 hours are entitled to 25% extra pay on top of the regular wage rate, for any work hour beyond his or her normal working hours. 

Early off duty time on any other day cannot be offset against overtime hours. 		Daily wage * 1.25 
Overtime on rest days or special non-working days First 8 hours Daily wage * 1.3 
Beyond 8 hours Daily wage * 1.69 
Overtime on special non-working days coincide with rest days First 8 hours Daily wage * 1.5 
Beyond 8 hours Daily wage * 1.95 
Overtime on public holidays First 8 hours Daily wage * 2 
Beyond 8 hours Daily wage * 2.6 
Overtime on Regular holidays coincide with rest days First 8 hours Daily wage * 2.6 
Beyond 8 hours Daily wage * 3.38 

Other Regulations

Main employment types: Regular Employment, Fixed Employment, Project Employment, Seasonal Employment, Casual Employment.

Probationary Period

  • Maximum probationary period for regular employees cannot exceed 6 months.
  • If the employer does not inform the employee at the beginning of the employment that he or she must meet and pass the probationary period criteria, the employee is considered a regular employee from his or her commencement date.

Leave

Statutory leave in the Philippines includes:

Type Applicable to Details 
Services Inventive Leave Employees who have served for one year 5 days (Untaken leave is usually paid to employees in cash at the end of the year.) 
Sick Leave Employees who have served for one year No legal requirement, employers usually include it in Services Inventive Leave. 
Pregnancy and Maternity Leave Female Employees 105 days (for married employees); 120 days (for single or unmarried employees) + 30 days unpaid extended maternity leave 
Paternity Leave Male Employees 7 days + 7 days extended shared parental leave (leave entitlement transferred from spouses) 
Single Parent Leave Single parent or single employees who have served for one year 7 days 
Special leave for female employees (Magna Carta for Women) Female Employees who have served for 6 months 2 months (60 calendar days) 
Domestic Violence Leave Female Employees 10 days 
Bereavement leave All Employees 3 days (for immediate family members), not mandatory. 

Termination and Compensation

Termination Notice

  • Notice period of the employer:

According to the length of service of the employee, which is shown below:

Length of Employment

Notice Period of Termination

Employed ＜ 2 years

4 weeks

Employed ≥ 2 year, but ≤ 5 years

6 weeks

Employed ＞ 5 years

8 weeks

  • 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.
    1. Layoff (i.e. due to serious financial loss or anticipated serious financial loss).
    2. Closing or ceasing business but not due to serious business losses or financial reversal.
    3. Employee, who is suffering from a medical condition which cannot be cured within 6 months and his or her health or other employee’s health will be damaged if continuing his or her service of employment.
    4. Lack of service assignment for a period of 3 months for dispatching workers in DO-174 contract and subcontract arrangements.
    5. Lack of service assignment for 6 consecutive months for security workers.
  • 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.
    1. Employers purchase new equipment to improve work efficiency.
    2. Too many, or unnecessary positions are found in the operation of business.
    3. The employee is unlikely to be reinstated in the original position or a substantially equivalent position due to reasons not attributable to the employer.
    4. The employee is unable to perform security work due to age; and
    5. Social justice or fairness reasons.

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 Singaporean 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, 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 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.

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Frequently Asked Questions

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

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

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!

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