RecruitGo enables you to hire employees in the Philippines without the complexities of setting up a local entity. Focus on your business expansion while we handle legalities and ensure smooth HR processes.
Navigate the tabs below for in-depth insights to hiring in the Philippines. From minimum wage to tax implications, leave policies, and termination laws, we've got you covered. Simplify the complexities and make informed decisions with RecruitGo.
Minimum compensation standards vary by region in the Philippines. There is no standardized national minimum wage. The specific minimum wage is determined based on the region where the employer's company is registered.
For RecruitGo, which operates in the National Capital Region (NCR), the minimum monthly compensation is set at PHP 14,006.57.
Individual income tax in the Philippines follows a progressive rate system, ranging from 0% to 35%. The applicable tax rates are based on the gross annual income and may vary depending on factors such as household status and the number of dependents.
Gross Annual Income and the Tax Rate (%)
The estimated employer cost in the Philippines is typically around 10.57% of the employee's salary. Contributions to the Philippine Health Insurance Corporation (PhilHealth) are capped at PHP 1,600 per month, while Social Security contributions are capped at PHP 2,880 per month.
In the Philippines, regular working hours are set at 8 hours per day, totaling 40 hours per week, typically from Monday to Friday.
Overtime pay is required by law and cannot be included in the regular salary. Employees are entitled to the following rates for hours worked outside the standard schedule:
Expectant employees who have completed 90 consecutive days of work are eligible for 105 days of fully paid maternity leave. An extra 15 days of paid leave are granted for qualified solo parents. Of the total leave, 14 days must be taken before childbirth, while the remaining days can be taken after. During this period, the employee will receive 100% of their average salary, with Social Security handling the payments.
Additionally, the employee has the option to extend their leave for an additional 30 days without pay.
Employees are granted seven calendar days of fully paid paternity leave, to be taken after the birth of the child. During this period, the employee will receive 100% of their average salary, and the employer will cover the expenses.
Additionally, the employee has the option to extend their leave without pay.
The Philippines does not have specific legislation for parental leave. However, employees may be eligible for maternity leave and paternity leave. Single parents can also avail benefits under the Solo Parent Policy.
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.
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.
Termination can be carried out for authorized causes in accordance with the Labor Code, and written notice must be provided by the employer.
Employers in the Philippines are required to provide a minimum notice period of 30 days to employees. The notice period can be extended based on the employer's discretion and specific circumstances.
Severance pay is determined based on the cause of termination and ranges from 0.5 to 1 month's wages per year of employment.
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.
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:
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.
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:
While probation periods are not compulsory, we offer a standard probation period of 90 days with a maximum duration of 180 days (six months). Please note that fixed-term contracts do not include probation periods
Ready to tap into the exceptional talent pool in the Philippines?
Contact our experts!
Simplify your operations, expand into new markets, and achieve your growth goals with ease. Embrace the future of work and unlock success with RecruitGo as your trusted partner.
RecruitGo acts as your Employer of Record in the Philippines, eliminating the need for you to set up and manage an overseas legal entity. We take care of all legal employment responsibilities, ensuring compliance with local regulations and seamless HR processes, allowing you to concentrate on business growth.
At RecruitGo, we take the stress out of payroll management, ensuring your employees receive their salaries on time and in compliance with local regulations. Our expert team delivers fast and accurate processing, calculating salaries, overtime, benefits, and employment taxes with precision.
Experience dedicated support of our compliance experts who can assist you with everything around smooth employment. From employment contracts to taxes and benefits, everything’s covered under RecruitGo
In a nutshell, we hire, pay, and manage employees on your behalf. The process is as simple:
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Comprehensive Solutions:
Leverage our expertise to design a tailored benefits program that meets the needs of your international workforce and complies with local laws and regulations.
People-Driven Approach:
With a focus on employee well-being, our solutions foster a culture of appreciation and support, boosting morale, and enhancing retention rates.
Simplified Administration:
Our expert service streamlines the benefits administration process, making it easy for you to manage your global benefits strategy efficiently.
We help you find a diverse range of talent from the Philippines to cater to your specific hiring needs. Whether you require software developers, hospitality staff, app developers, CSRs, digital marketers, or civil engineers, let us assist you in building a strong and capable team.
We specialize in providing top-notch software developers for various industries in the Philippines. We have a proven track record of success in finding the right candidate for our clients and have been providing software development services for over a decade.
We understand the importance of providing quality hospitality staff for the success of any hospitality business. We have a wide network of experienced and qualified hospitality professionals who are ready to join your organization.
Need an app that stands out? Our experienced app developers have the expertise to bring your ideas to life. From concept to deployment, we create innovative and user-friendly applications that drive engagement and success.
Deliver exceptional customer experiences with our dedicated customer service representatives. Our team is trained to provide top-notch support and ensure customer satisfaction, helping you build strong relationships with your clients.
Maximize your online presence and drive results with our expert digital marketers. From strategy development to campaign execution, we have the knowledge and skills to help you reach your target audience effectively.
Our team of experts is dedicated to finding the right candidate for your organization and ensuring that your infrastructure needs are met. We have a proven track record of success in finding the right civil engineer for our clients and have a wide network of experienced and qualified civil engineers.
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!
The company is very professional. RecruitGo always gives good advice and solutions to our problems.
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.
As always, we love working with RecruitGo!
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.
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