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SALARY PAYMENT IN Philippine Peso (₱)
CONTRACT LANGUAGES Tagalog / English
PAYROLL TAX 11.75% + Provident Fund
PAYROLL CYCLE Monthly
TIME TO HIRE 12 hours
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Philippines
The Philippines is a diverse, populous country with a rapidly growing economy. Made up of thousands of islands, the nation is geographically, culturally, and linguistically unique, making it an exciting place to live, work, and do business.
The Philippines is also an excellent place to hire employees, with relatively low wages, a young population, and a growing economy, but getting started can be time-consuming for foreign businesses that don’t have a foothold in the country.
Population 109M (Labor Force 44 million) | Capital City Manila | Languages Spoken Filipino & English (Filipino is not commonly spoken globally, in the Philippines English is the language most commonly used in business |
Currency Philippine peso (₱ or PHP) | GDP per capita $ | Ease of Doing Business 124th in the world |
Minimum Wage On average 570 PHP/day | Average Wage On average 1,500 PHP/day | Paid Leave 5 days minimum annual leave |
In 2020, the Philippines economy declined by 4%. In 2021, the Philippines economy recovered and grew by 8.94%. In 2022, the Philippines economy grew by 7.6%.
The Philippines economy is moving into the modern economy with force, in fact, the European Union has recently pledged 60 million Euros to help the Philippines transition to a green economy. Many are investing in the future of the Philippines.
The Labor Code of the Philippines is a legal code that determines all employment practices and labor relations in the Philippines. In addition, the Philippines Constitution recognizes and guarantees the following rights of workers: Self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with the security of tenure, humane conditions of work, and a living wage.
Business regulation is the Philippines has a mix of Western and Eastern influence that is successful in protecting both employers and employees.
Business culture in the Philippines is a blend of Western influence and Eastern influence. Business matters in the Philippines are typically best dealt with in a friendly and pleasant manner. Although much of the workplace can be hierarchically structured, there is still a value placed on inputs from employees at all levels. Where the hierarchal structure can come into play is when it is time to make a decision. Final decisions are usually made by those at the top of the hierarchal ladder in the Philippines.
In addition, it is important to be punctual, friendly, and polite in order to avoid conflict and work efficiently in the Philippines office environment.
Over the last decade internet connectivity and social media has carved out a large amount of space in Filipino daily life. Filipinos have a strong online network, especially on platforms such as Facebook and LinkedIn. Much of the recruiting process in the Philippines will take place online, therefore as a business it is important to have a good online presence to attract the best candidates.
While interviewing candidates in the Philippines it is important to keep in mind that Filipinos are polite and respectful and may not be as direct in answering questions as Westerners. It is important to start with small talk because Filipinos value personal relationships and will want to get comfortable with the other person first. In addition, it is important to be respectful, ask open ended questions, and take into consideration cultural differences that may arise.
Asking about a candidate’s current salary in not illegal in the Philippines. In the Philippines this is common practice when recruiting candidates, however, the candidate does not have to answer the question.
When a candidate is entering a new job in the Philippines they will typically expect a salary increase of 5% to 6%.
Onboarding employees in the Philippines should mainly focus on three things:
First, making the employee feel comfortable by inviting them to meet their co-workers and giving them the proper tools to execute their work.
Second, communicating important information about the role and what is expected of them.
Third, providing proper training to the new employee so they can successfully complete their work.
There are many remote working tools available that can be used in the Philippines. Below is a list of the most popular ones:
Internet connectivity and internet literacy in the Philippines is high and these tools can help you stay connected with your team and work collaboratively from anywhere.
The Philippines has a range of national public holidays that are celebrated annually. In 2024 these holidays are below. There are 18 national holidays in the Philippines:
| Date | Holiday name |
|---|---|
| 01 Jan., 2024 | New Year’s Day |
| 9 Feb., 2024 | Chinese New Year |
| 10 Feb., 2024 | Chinese New Year Holiday |
| 28 Mar., 2024 | Maundy Thursday |
| 29 Mar., 2024 | Good Friday |
| 30 Mar., 2024 | Black Saturday |
| 9 Apr., 2024 | The Day of Valor |
| 10 Apr., 2024 | Eidul-Fitar |
| 01 May, 2023 | Labor Day |
| 12 June, 2024 | Independence Day |
| 16 Jun., 2024 | Eid al-Adha (Feast of the Sacrifice) *tentative date |
| 21 Aug., 2024 | Ninoy Aquino Day |
| 25 Aug., 2024 | National Heroes Day |
| 01 Nov., 2024 | All Saints’ Day |
| 02 Nov., 2024 | All Souls’ Day |
| 30 Nov., 2024 | Bonifacio Day |
| 25 Dec., 2024 | Christmas Day |
| 30 Dec., 2024 | Rizal Day |
| 31 Dec., 2024 | New Year’s Eve |
Philippine employees typically expect a salary increase of 5.5%. In addition, employees in the Philippines are likely to observe a salary increase of 8% every 18 months.
The decision to hire freelancers or employees in the Philippines depends on your business needs and goals. Freelancers can be a great option if you need someone for a specific project or task and don’t want to commit to a long-term employee. They can also be more affordable than hiring full time employees.
On the other hand, if you need someone for a long-term position or want more control over their work, hiring an employee may be a better option. Employees can provide more stability and commitment than freelancers. If you don’t have a subsidiary in the Philippines, you might consider the benefits of using a Philippines Professional Employer Organization (PEO) to be the formal employer of your staff in the Philippines.
Yes, you can hire foreigners to work in the Philippines.
If you want to open a subsidiary or branch office you need to secure a Corporate Taxation Registration number by filing a registration document with the Bureau of Internal Revenue. Then next file for a registration with Local Government Unit.
To hire employees in the Philippines you first must:
Many companies find it more cost-efficient to outsource these tasks to a Philippines PEO who can ensure full compliance with local labor and tax laws.
Your business can easily hire employees in Philippines without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
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71 Robinson Road #13-153
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Headquarters – Singapore
71 Robinson Road #13-153
Singapore 068895
+65 3105 1170
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
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