The Philippines is an island country in Southeast Asia in the western Pacific Ocean. It is an archipelago consisting of more than 7,000 islands and islets lying about 800 kilometers off the coast of Vietnam. The country is bounded by the South China Sea to the west, the Philippine Sea to the east, and the Celebes Sea to the southwest. It also covers an area of 300,000 square kilometers.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in the Philippines.
Philippine peso ( ₱; PHP)
Languages spoken :
109.58 million (2020 est.)
Minimum wage 2022 :
PHP 290 to PHP 537 per day (Varies by sector and region)
Cost of Living index :
$$$ (92 of 139 countries)
Payroll Frequency :
Twice per month
VAT - standard rate :
GDP - real growth rate :
5.6% (2021 est.)
When hiring new employees in the Philippines through WorkMotion, the approximate onboarding time is only 6 business days. This time may be affected for events beyond our control at present.
Our team ensures compliance with local employment legislation, as well as a quick and efficient onboarding process. The minimum onboarding time begins from the moment that WorkMotion has received all required information from both the client and the employee.
For more complex onboardings, this time may increase depending on the selected bouquet of contract inclusions and the right-to-work status of the employee.
The normal hours of work of any employee must not exceed eight hours a day. The employer must provide not less than 60 minutes of unpaid meal break to employees. Rest periods or coffee breaks of five to 20 minutes, if provided, must be considered paid time.
Work may be performed beyond eight hours a day provided that the employee is paid for the overtime work, an additional compensation equivalent to their regular wage plus at least 25% thereof.
The probationary period must be no more than six months. Once the probation period is completed, the employment contract becomes permanent.
A 30 day notice period is required. There is no notice period for dismissal for just causes.
Every employee who has rendered at least one year of service is entitled to a yearly service incentive leave of five days with pay. This leave can be used as holidays or sick days. There are no rulings for carryover, and that aspect of the vacation policy is left to the discretion of the employer.
There is no statutory provision for sick leave in the Philippines. However, the five fully paid days for service leave can be used as sick leave. Employee contracts, company policy, and collective bargaining agreements often include sick leave benefits.
Parental leave of not more than seven working days with full pay every year is granted to any solo parent employee who has rendered service for at least one year.
Maternity leave of at least 105 days paid at 100 % of their average daily salary credit is granted to female employees with at least three months’ contributions to the Social Security System in the past 12 months. Single mothers are eligible for an additional 15 days of paid leave. Employed female workers receive full pay which consists of the Social Security System benefit computed based on their average daily salary credit and salary differential to be paid by the employer, if any.
Fathers are entitled to seven working days of paid paternity leave with full pay from the employer for up to four children.
Rehabilitation leave is granted to employees for disability on account of injuries sustained while in the performance of duty. The duration, frequency, and terms of availing of this leave are based on the recommendation of the medical authority.
Female victims of domestic violence receive 10 days of leave with full pay from the employer.
Female employees are entitled to two months’ leave with full pay from the employer following surgery due to gynecological disorders, provided she has rendered continuous aggregate employment service of at least six months in the last 12 months.
Unpaid leave is granted for a duration of 30 days in cases where additional maternity leave is requested.
In 2022, the premium rate for health insurance is 4%, shared equally between the employer and the employee, i.e. 2% contribution by the employer.
The National Health Insurance Program (NHIP) was established with the purpose of providing health insurance coverage and ensuring affordable, acceptable, available, and accessible services for all citizens of the Philippines.
The accident insurance is funded by social security contributions made by the employer. The employer contributes 8.5% to the social security fund.
The Employees Compensation Insurance Fund (ECIF), also known as the “State Insurance Fund”, was created under Presidential Decree No. 626. It was established to carry out the State’s policy to promote and develop a tax-exempt employees compensation program in which employees and their dependents, in the event of work-related disability or death, may promptly secure adequate income, medical, and other related benefits.
As a purely employer-based contribution benefit, the employee does not contribute any amount to the program.
Members covered by the social security system are entitled to the Involuntary Separation Benefit. It is a cash benefit granted to covered employees who are involuntarily separated from employment (e.g. due to retrenchment or downsizing, closure, or cessation of operation, installation of labor-saving devices, and redundancy).
The public pension is financed by social security contributions and the employer’s contribution rate to the fund is pegged at 8.5%.
The retirement benefit is a cash benefit paid either in a monthly pension or a lump sum to a member who can no longer work due to old age. Member must have paid at least 120 monthly contributions prior to retirement to qualify for the old age pension.
The Home Development Mutual Fund (HDMF), popularly known as Pag-IBIG Fund, operates a national savings program and provides affordable shelter financing for Filipino workers.
Employers contribute 2% of the monthly compensation of the covered employee as a counterpart contribution.
The Philippines’ Social Security System (SSS) introduced a new mandatory provident fund known as the Workers’ Investment and Savings Program (WISP) to supplement the country’s social insurance program. WISP is a safe, convenient, and tax-free individual retirement savings plan.
The employer WISP contribution ranges from PHP42.50 to PHP425 a month, depending on an employee’s monthly covered earnings.
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.
31st May – 11AM CEST.
During the webinar, we will discuss the employer risks
related to temporary work from abroad!