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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

Other Regulations

Probationary Period

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

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 2025. 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

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 20,250PHP 50 – PHP 1,500PHP 25 – PHP 750
Healthcare Insurance (PhilHealth)Health benefits2.5%2.5%
Pag-IBIG SavingHousing 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 wages in the Philippines are set by region and adjusted periodically.

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

  • New Years’ Day
  • Chinese New Year
  • Maundy Thursday
  • Good Friday
  • Black Saturday
  • Day of Valour (Araw ng Kagitingan)
  • Labour Day
  • Independence Day
  • Ninoy Aquino Day
  • National Heroes Day
  • All Saints’ Day
  • All Souls’ Day
  • Bonifacio Day
  • Feast of the Immaculate
  • Conception of Mary
  • Christmas Eve
  • Christmas Day
  • Rizal Day
  • 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

    1. Employers should provide employees with one rest day per week.
    2. Employers should provide employees a continuous rest period of not less than 24 hours after every six consecutive normal working days.
    3. 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 TypeRulesRates
    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 daysFirst 8 hoursDaily wage * 1.3
    Beyond 8 hoursDaily wage * 1.69
    Work on rest days or special non-working daysFirst 8 hoursDaily wage * 1.5
    Beyond 8 hoursDaily wage * 1.95
    Work on public holidaysFirst 8 hoursDaily wage * 2
    Beyond 8 hoursDaily wage * 2.6
    Work on regular holidays that fall on rest daysFirst 8 hoursDaily wage * 2.6
    Beyond 8 hoursDaily 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 105 days (for married 105 days; 120 days for single parent), plus an optional 30 days of unpaid extended leave
Paternity Leave 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 one year 7 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:

  1. Retrenchment to prevent losses (i.e., serious actual or anticipated business losses)
  2. Closing or ceasing business but not due to serious business losses or financial reversal.
  3. 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
  4. Lack of service assignment for 3 months, for workers deployed under contracting or subcontracting arrangements (DO 174-17)
  5. 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;

  1. Installation of labour-saving devices
  2. Redundancy (positions exceed what the business reasonably requires)
  3. Reinstatement to the original or a substantially equivalent position is not possible for reasons not attributable to the employer
  4. The employee is unable to perform security work due to age
  5. 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

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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