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 the 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 19 October 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, funeral, retirement, disability, and unemployment.	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 MySSS Pension Booster (Mandatory Provident Fund), formerly Workers’ Investment and Savings Program (WISP)	Private-sector employees with an MSC above PHP 20,000 (monthly salary of PHP 20,250 or more)	PHP 50 – PHP 1,500	PHP 25 – PHP 750
Healthcare Insurance (PhilHealth) calculated at a total rate of 5% of the employee’s monthly basic salary. (Subject to the applicable salary floor and ceiling.)	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

13th-Month Pay

Under Presidential Decree No. 851, employers must pay all rank-and-file employees who have worked at least one month in the calendar year a 13th-month pay of at least one-twelfth (1/12) of the total basic salary earned during the year. It must be paid no later than 24 December. Employees who resign or are separated before the payment date are entitled to a pro-rated amount.

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 (as of 19 October 2026) 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 7,800 / month	7 February 2026
CAR	Workers in private sector	PHP 505 / day	30 December 2025
CAR	Domestic workers	PHP 6,600 / month	30 December 2025
Region I	Workers in private sector	PHP 480–505 / day	19 November 2025
Region I	Domestic workers	PHP 6,700 / month	19 November 2025
Region II	Workers in private sector	PHP 500 / day	5 November 2025
Region II	Domestic workers	PHP 6,500 / month	5 November 2025
Region III	Workers in private sector	PHP 515–600 / day	16 April 2026
Region III	Domestic workers	PHP 6,500 / month	30 October 2025
Region IV-A	Workers in private sector	PHP 550–645 / day	26 October 2026
Region IV-A	Domestic workers	PHP 7,500 / month	26 October 2026
Region IV-B	Workers in private sector	PHP 455 / day	1 January 2026
Region IV-B	Domestic workers	PHP 7,000 / month	1 January 2026
Region V	Workers in private sector	PHP 455 / day PHP 480 / day from 1 December 2026	8 April 2026
Region V	Domestic workers	PHP 6,000 / month	5 April 2025
Region VI	Workers in private sector	PHP 520–550 / day	19 November 2025
Region VI	Domestic workers	PHP 6,500 / month	19 November 2025
Region VII	Workers in private sector	PHP 542–582 / day	14 October 2026
Region VII	Domestic workers	PHP 7,500 / month	14 October 2026
Region VIII	Workers in private sector	PHP 440–470 / day	1 June 2026
Region VIII	Domestic workers	PHP 5,800–6,400 / month	8 December 2025
Region IX	Workers in private sector	PHP 451–464 / day	1 June 2026
Region IX	Domestic workers	PHP 5,500–6,000 / month	20 May 2026
Region X	Workers in private sector	PHP 485–500 / day	1 May 2026
Region X	Domestic workers	PHP 6,500 / month	16 January 2026
Region XI	Workers in private sector	PHP 525–540 / day	1 September 2026
Region XI	Domestic workers	PHP 6,500 / month	13 March 2026
Region XII	Workers in private sector	PHP 443–460 / day	15 December 2025
Region XII	Domestic workers	PHP 6,000 / month	2 November 2025
Region XIII	Workers in private sector	PHP 475 / day	1 May 2026
Region XIII	Domestic workers	PHP 6,500 / month	3 January 2026
BARMM	Workers in private sector	PHP 401–436 / day PHP 426–461 / day from 1 December 2026	6 August 2026
BARMM	Domestic workers	PHP 5,500 / month	8 January 2026

*Minimum wage rates in the Philippines are determined by the Regional Tripartite Wages and Productivity Boards (RTWPBs) and are subject to periodic revision. Employers should verify the latest applicable wage order for the employee’s work location before processing payroll.

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 (2026)	Date
New Year’s Day	1 January
Eid’l Fitr	20 March
Maundy Thursday	2 April
Good Friday	3 April
Day of Valour (Araw ng Kagitingan)	9 April
Labour Day	1 May
Eid’l Adha	27 May
Independence Day	12 June
National Heroes Day	31 August
Bonifacio Day	30 November
Christmas Day	25 December
Rizal Day	30 December
Special Non-Working Days (2026)	Date
Ninoy Aquino Day	21 August
All Saints’ Day	1 November
Feast of the Immaculate Conception of Mary	8 December
Last Day of the Year	31 December
Additional Special Non-Working Days (2026)	Date
Chinese New Year	17 February
Black Saturday	4 April
All Souls’ Day	2 November
Christmas Eve	24 December

Eid’l Fitr and Eid’l Adha dates are set by separate proclamation each year based on the Islamic calendar.

Regular holidays: employees are entitled to 100% of their daily wage even if they do not work, provided they were present or on paid leave on the workday immediately before the holiday. Retail and service establishments regularly employing fewer than ten workers are exempt.

Special non-working days: the “no work, no pay” principle applies unless a company policy, practice or collective agreement provides otherwise.

Premium pay rates for work performed on holidays are set out under Working Hours.

Working Hours

Normal Working Hours

Normal working hours must not exceed 8 hours per day. A typical work week is 40 to 48 hours, spread over five or six working days.

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.	Hourly rate * 1.25
Work on rest days or special non-working days	First 8 hours	Hourly rate * 1.3
Work on rest days or special non-working days	Beyond 8 hours	Hourly rate * 1.69
Work on a rest day that falls on a special non-working day	First 8 hours	Hourly rate * 1.5
Work on a rest day that falls on a special non-working day	Beyond 8 hours	Hourly rate * 1.95
Work on regular holidays	First 8 hours	Hourly rate * 2
Work on regular holidays	Beyond 8 hours	Hourly rate * 2.6
Work on regular holidays that fall on rest days	First 8 hours	Hourly rate * 2.6
Work on regular holidays that fall on rest days	Beyond 8 hours	Hourly rate * 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 (SIL)	Employees who have served for at least 1 year.	SIL may be used for vacation or sick leave purposes. Unused SIL may be converted to cash in accordance with Philippine labour regulations.
Sick Leave	Employees who have served for at least 1 year	The Philippines has no statutory paid sick leave requirement. Employees with at least one year of service are entitled to 5 days of Service Incentive Leave (SIL), which may be used for sick leave or vacation purposes. Additional sick leave may be provided under company policy.
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 (Applies only to the first four deliveries)	Married Male Employees	Married male employees are entitled to 7 calendar days of paid paternity leave for the first four deliveries, miscarriages, or emergency terminations of pregnancy of their legitimate spouse. Under the Expanded Maternity Leave Law, the mother may also allocate up to 7 additional days of her maternity leave entitlement to the child’s father, subject to applicable requirements.
Solo parents (RA 11861)	Single parents who have served at least 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

Notice requirements depend on the reason for termination:

Just cause: The employer must establish a legally recognised ground and observe the applicable due-process requirements, including written notice of the charges and a reasonable opportunity for the employee to respond, followed by the required written decision.
Authorised cause: The employer must establish the applicable statutory ground, provide the required written notice to the employee and the Department of Labor and Employment, generally at least 30 days before the termination takes effect, and pay statutory separation benefits where required.
Resignation: The general notice requirement is 30 days unless a legally recognised exception or applicable waiver applies.

Compensation

Employees dismissed for the following reasons are entitled to severance pay of one month’s salary or half (1/2) a month’s salary for every 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 6 consecutive months, for security guards (DO 150-16)

Employees dismissed for the following reasons are entitled to severance pay of one month’s salary or one month’s salary for every year of service, whichever is higher:

Installation of labour-saving devices
Redundancy (positions exceed what the business reasonably requires)
The employee is unable to perform security work due to age, for security guards (DO 150-16)

Workers deployed under contracting or subcontracting arrangements who are not given a new assignment within 3 months after their service agreement ends (DO 174-17) are entitled to separation benefits under the law or the service agreement, whichever is higher.

For the purpose of computing severance pay, a fraction of at least six (6) months of service is counted as one (1) whole year.

Retirement Pay

Under Republic Act No. 7641, unless a retirement plan or agreement provides better benefits, employees who have served at least five (5) years are entitled to retirement pay upon reaching:

Optional retirement: age 60
Compulsory retirement: age 65
Underground and surface mine workers: optional retirement at age 50, compulsory retirement at age 60

Retirement pay is at least one-half (1/2) month’s salary for every year of service, with a fraction of at least six (6) months counted as one whole year. One-half month’s salary means 22.5 days’ pay: 15 days’ salary, plus one-twelfth (1/12) of the 13th-month pay and the cash equivalent of 5 days of service incentive leave. Retail, service and agricultural establishments regularly employing not more than ten (10) employees are exempt.

Final Pay and Certificate of Employment

Under DOLE Labor Advisory No. 06, Series of 2020, final pay must be released within thirty (30) days from the date of separation, unless a more favourable company policy, contract or collective agreement applies. Final pay generally includes unpaid salary, the pro-rated 13th-month pay, the cash conversion of unused service incentive leave, and any applicable separation or retirement pay. Employers must issue a Certificate of Employment within three (3) days of the employee’s request.

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 the 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 markets, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on 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

13th-Month Pay

Minimum Wage

Public Holidays

Working Hours

Normal Working Hours

Rest Time

Rest Day

Night Work

Overtime

Other Regulations

Main employment types:

Probationary Period

Leave

Termination and Compensation

Termination Notice

Compensation

Retirement Pay

Final Pay and Certificate of Employment

BIPO as your Employer of Record

Benefits of BIPO Employer of Record Service in the 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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