Easily Hire, Manage, and Pay Your Employees in the Philippines
RecruitGo’s Employer of Record (EOR) service in the Philippines enables employers to hire top filipino talent quickly and compliantly – without the cost and delay of setting up a local company. You focus on growth; we handle the legal, HR, and payroll heavy lifting.
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Key Considerations for Hiring Employees in the Philippines
Navigate the tabs below for insights to hiring remote talent in the Philippines. From minimum wage to tax implications, leave policies, and termination laws, we’ve got you covered.
Minimum Wage Requirements
The Philippines does not have a standardized national minimum wage; instead, minimum wages vary by region and industry. As of 2025, the highest minimum wage is in Metro Manila at ₱645 per day for non-agricultural workers, while the lowest is in the Bangsamoro Autonomous Region at ₱336 per day.
Refer to minimum wage in the Philippines for region specific details.
Personal Income Tax Structure
The Philippines employs a progressive tax system for individual taxpayers, with rates ranging from 0% to 35%. The tax brackets are as follows:
The Philippines employs a progressive tax system for individual taxpayers, with rates ranging from 0% to 35%. Following are the latest applicable income tax rates in the Philippines based on income bracket:
- 0%: Up to ₱250,000
- 20%: Over ₱250,000 up to ₱400,000
- 25%: Over ₱400,000 up to ₱800,000
- 30%: Over ₱800,000 up to ₱2,000,000
- 32%: Over ₱2,000,000 up to ₱8,000,000
- 35%: Over ₱8,000,000
Non-residents are taxed at a flat rate of 25% on their gross income derived from sources within the Philippines.
Employer Expenses in Addition to Salary
Employers in the Philippines are required to make several mandatory contributions:
- Pag-IBIG Fund: A national savings program for housing and other purposes.
- Social Security System (SSS): Provides retirement and health benefits.
- PhilHealth: Offers health insurance coverage.
Use our Philippines salary calculator to understand the total cost of hiring an employee in the Philippines based on your planned salary range.
Overtime Compensation & Maximum Hours
The standard workweek in the Philippines consists of 6 days, with a maximum of 8 hours per day. Employees are entitled to a 24-hour rest period after six consecutive working days. Overtime work (beyond 8 hours) must be compensated with an additional 25% of the regular hourly wage, and 30% if the overtime occurs on a rest day or holiday.
Night Shift Differential
Employees who work between 10:00 PM and 6:00 AM are entitled to a night shift differential of not less than 10% of their regular wage for each hour worked during this period.
Maternity Leave
Female employees are entitled to 105 days of paid maternity leave for live childbirth, with an additional 15 days for solo parents. The benefit is paid by the SSS, provided the employee has made at least three monthly contributions in the 12 months preceding the semester of childbirth.
Paternity Leave
Married male employees are entitled to seven days of paid paternity leave for the first four deliveries of their legitimate spouse.
Service Incentive Leave
Employees who have rendered at least one year of service are entitled to five days of paid service incentive leave annually.
Parental Leave for Solo Parents
Solo parents are granted seven days of paid leave per year, provided they have rendered at least one year of service.
These leave benefits are mandated by law and aim to support employees’ work-life balance.
Sick Leave
In the Philippines, sick leave is not provided separately from vacation allowance (PTO). Employees are required to submit sick leave requests through the RecruitGo.
If an employee exhausts their vacation days and requires additional time off due to illness, it will be considered unpaid leave. Eligible employees may be entitled to reimbursement through the Social Security System (SSS)’s sickness benefit, which provides a portion of their regular pay, similar to maternity benefits.
This arrangement remains in effect until the employer decides to terminate the employment contract.
Rest Days
Employers must provide employees with a rest period of not less than 24 consecutive hours after every six consecutive workdays. The specific rest day is determined by the employer but should consider the employee’s religious beliefs and practices.
Employee Termination Procedures
Terminating an employee in the Philippines requires adherence to specific regulations and employment terms. The employer takes charge of the off-boarding process in collaboration with key stakeholders, which may involve additional fees and specific procedures based on the termination circumstances.
In accordance with the Labor Code, termination of employment in the Philippines can occur due to just causes (e.g., misconduct, neglect of duties) or authorized causes (e.g., redundancy, installation of labor-saving devices). The due process involves:
- Notice: For just causes, the employer must provide two written notices: one detailing the grounds for termination and another serving as the notice of termination after the employee’s response. For authorized causes, a 30-day advance written notice to both the employee and the DOLE is required.
- Severance Pay: For authorized causes, employees are entitled to separation pay, typically one month’s pay or half a month’s pay per year of service, depending on the reason for termination
To protect you from unforeseen financial risks related to terminations, RecruitGo implements a Severance Accrual in all employment agreements. Our expert team ensures compliance with legal entitlements and best practices. If an employee resigns or is not eligible for severance, any unused amounts will be refunded to you.
Paid Time Off
Full-time employees enjoy 5 days of annual paid time off (PTO). PTO accrues at a rate of 0.42 days per month after completing 12 months of work. Unused holidays can be compensated at the end of the year.
Part-time employees do not have leave entitlements.
Public Holidays in the Philippines
The Philippines celebrates both 18 national and 3 regional holidays based on the location of the employee. There are an additional 8 special holidays that are non-working days.
National public holidays include:
- New Year’s Day
- Araw ng Kagitingan (Day of Valor)
- Maundy Thursday- Good Friday
- Independence Day
- National Heroes Day
- Christmas Day
- Bonifacio Day
- Rizal Day
Special Non Working Days:
- EDSA People Power Revolution Anniversary
- Black Saturday
- Ninoy Aquino Day
- All Saints’ Day
- All Souls’ Day
- Feast of the Immaculate Conception of Mary
- Last Day of the Year
Onboarding
Our streamlined onboarding process is completed within 3 business days.
To ensure a smooth start, employees are required to submit all necessary documents before their designated start date. Mandatory document submission is not allowed after the start date, while optional documents can be submitted later. Our team will handle the enrollment of employees with SSS (Social Security System) and PHIL Health before their start date.
Employment Contract Details
Our employment contracts are available in English and can be bilingual upon request. They are written documents that require signatures from both parties.
Key elements included in our contracts are:
- Full Name of the employee
- Start date of employment
- Duration of the employment
- Detailed job description
- Termination conditions and provisions
Probation Period
Probation periods are not mandatory in the Philippines. For indefinite contracts, the common market practice is to have a 3 months probation period. Please note that fixed-term contracts do not include probation periods.
Why Use an Employer of Record in the Philippines?
Growing your team in the Philippines without an EOR means tackling bureaucracy head-on. Here are the primary challenges businesses face – and how RecruitGo’s EOR service solves them:
Stay Compliant with Local Laws
The Philippines labor laws are complex and ever-changing, covering everything from employee contracts to social insurance. It’s easy to slip up if you’re unfamiliar.
An EOR acts as your safety net – ensuring every hire and payroll meets Philippines legal requirements. This spares you from costly fines and legal issues while keeping your business fully compliant from day one.
Avoid Payroll & Tax Complexity
When hiring in the Philippines, companies must handle multiple tax withholdings, social security contributions (SSS, Philhealth, HDMF) and monthly filings – a time-consuming, intricate process.
RecruitGo’s EOR service streamlines all payroll and tax duties for you. Our local payroll experts ensure accurate calculations and on-time payments, freeing you from administrative burden.
Reduce Costs and Setup Delays
Establishing a foreign legal entity in the Philippines involves significant capital, administrative hassle, and ensuring ongoing legal compliance. By contrast, using an Employer of Record lets you start operations immediately at a fraction of the cost.
Our EOR model saves you the expense of incorporation, ongoing accounting, and HR overhead. You get full-time employees in the Philippines without the full-time infrastructure costs – a lean approach to expansion that protects your bottom line
International Hiring Made Easy
Recruitgo is Your All-in-One EOR Partner in the Philippines
Not all EOR providers are created equal. What makes RecruitGo stand out is our unique, full-service approach that goes beyond standard Employer of Record offerings in the Philippines. We combine local human expertise with a powerful tech platform to give you an unparalleled expansion experience. Here’s how we delivers value that others can’t:
In-House Local Experts
We don’t outsource services to third parties – RecruitGo’s own team in the Philippines handles it all.
Our HR and legal specialists on the ground have deep knowledge of Philippines labor laws, tax codes, and business culture, ensuring your operations remain fully compliant and culturally fluent.
Full-Service from Talent Sourcing to Payroll
Every HR function – recruitment, onboarding, payroll, benefits, compliance, even office space – is handled under one roof.
You won’t need multiple vendors or headaches managing different services; Recruitgo takes care of it all seamlessly.
Fast, Cost-Effective Setup
With RecruitGo, you can start operations in the Philippines in a matter of days, not months. Our efficient processes and ready infrastructure mean we onboard your employees in as fast as 3 days on average.
Speed doesn’t come at a premium either: our pricing is transparent and competitive
Testimonials
Trusted by Startups and Global Leaders Alike.
Hamzah Jasim Alomairi
Bridges LLC. (United Arab Emirates)
I would recommend RecruitGo on my behalf due to the excellent job you have done in managing Bridges llc account for RecruitGo. You are certainly welcome Emma! Great service overall!
Mia Vujosevic
Native Teams
Our collaboration with RecruitGo has been truly remarkable. Over the course of our engagement, RecruitGo has consistently demonstrated a high level of professionalism, efficiency, and commitment to our shared goals. One notable strength of RecruitGo lies in their responsive and dedicated team. Throughout our partnership, we have received prompt and clear communication, allowing for effective collaboration.
Vipinkumar Ramakrishnan
Skuad
Really a great partner to work with. Sharp on timelines quick responses, I’m very much happy with the Philippines team – America, Jilian, Gabe – for the continuous support.
Francois Myburgh
Centaur
As always, we love working with RecruitGo!
David Catindoy
SLEEQ
RecruitGo team is such a pleasure to work with. They understand what we need as a business and provided us recommendations that are tailored to our needs. I really appreciate the effort that the team has put in to go above and beyond to nurture the relationship and meet certain demands of our business. I highly recommend RecruitGo and it’s really nice to have a partner that you can rely on.
Process of Hiring in the Philippines with RecruitGo
As your EOR partner in the Philippines, RecruitGo simplifies hiring and managing your team. Our process is simple:
01
Consultation
First, we discuss your needs. Do you already have a candidate to hire, or do you want us to find one? What roles and skills are you looking for? We’ll advise on salaries, job market insights, and outline a hiring plan tailored to you.
02
Onboarding
Once you’ve chosen a candidate, we move fast to hire them under RecruitGo’s local entity. Every legal detail – registration, tax enrollment, social insurance – is taken care of. You can rest easy knowing all paperwork is 100% compliant with local labor regulations.
03
HR and Payroll
As your EOR partner, RecruitGo becomes the legal employer for your employees. As such, we will handle HR matters, employee benefits, and payroll administration. We also remain the point of contact for any HR issues for you and your employee so you can be the leader without the back-office hassle.
04
Ongoing Compliance & Support
Our experts continuously monitors labor law updates, tax changes, or new regulations that could affect your staff and ensure immediate compliance adjustments. Additionally, if you plan to grow further, we can scale our services with you.
Throughout this process, you maintain full control over the employee’s work and schedule – they report to you just like any team member. We simply takes care of all the administrative and legal employment responsibilities in the Philippines, acting as the local employer.
Ready to Build Your Team in the Philippines?
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Employer of Record Philippines FAQs
An Employer of Record (EOR) in the Philippines helps international companies legally hire Filipino employees without establishing a local business entity. We act as the legal employer, handling payroll, compliance, taxes, and HR administration, so you can easily and compliantly build your workforce in the Philippines.
When you partner with RecruitGo, we become the official employer of your Filipino staff through our established local entity. You maintain control over your employees’ day-to-day tasks and responsibilities, while we manage payroll, employee benefits, taxes, and compliance with Philippine employment regulations.
Our Employer of Record services in the Philippines cover employee onboarding, payroll processing, tax compliance, management of mandatory contributions (SSS, PhilHealth, Pag-IBIG Fund), HR administration, and compliance with local labor laws. We also provide optional services like talent recruitment and remote workspace setup.
Typically, we onboard new hires within three business days. This efficient process includes employment contract preparation, payroll and benefits setup, employee registration with SSS, PhilHealth, and Pag-IBIG, and compliance checks, ensuring your employees can start working promptly and legally.
No, that’s precisely the advantage of our Employer of Record solution. RecruitGo eliminates the need for your own local entity in the Philippines, managing all employment-related responsibilities and allowing you to quickly and efficiently expand your business presence without additional complexity.
Yes, RecruitGo offers comprehensive recruitment support in the Philippines. Our local recruitment specialists understand the market deeply and can efficiently help you find, screen, and hire qualified Filipino talent suited to your business needs.
Our Employer of Record services are particularly beneficial for startups and small to medium-sized enterprises hiring their first international employees, as well as multinational corporations seeking to quickly scale their workforce in the Philippines without the overhead of establishing a separate legal entity.
Starting is simple—reach out to our team to discuss your hiring needs. We’ll manage all employment-related processes from onboarding to payroll and compliance, allowing you to confidently grow your team in the Philippines right away.
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