Minimum Wage Requirements
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.
Personal Income Tax Structure
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 (%)
- Up to PHP 250,000 Tax Rate is 0%
- Up to PHP 400,000 Tax Rate is 20%
- Up to PHP 2,000,000 Tax Rate is 30%
- Up to PHP 8,000,000 Tax Rate is 30%
- Up to PHP 800,000 Tax Rate is 25%
- Above PHP 8,000,000 Tax Rate is 35%
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.
- Philippine Health Insurance Corporation (PhilHealth): 2%
- Social Security: 8.57%
- Home Development Fund (HDMF): PHP 100
Overtime Compensation & Maximum Hours
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:
- 125% of the hourly rate on regular working days
- 130% of the hourly rate on holidays