Philippine Peso - PHP
Filipino & English
Hire employees in the Philippines. No entity needed.
Usually, to hire in the Philippines, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
the Philippines also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in the Philippines quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for the Philippines
built right in
Deel allows you to provide localized benefits for employees in the Philippines within minutes. All in one manageable online dashboard.
- Pension Fund
- Public Health Insurance
- Private Healthcare - Unisure (optional)
Our quickstart guide to hiring in the Philippines
Navigate the tabs below to learn everything you need to know about hiring an employee in the Philippines
Minimum Wage Requirements
In the Philippines, the applicable minimum wage is set by region. There is no national minimum wage. Applicable minimum wage is determined by the region the employer's company is incorporated.
For Deel, which is incorporated in the National Capital Region (NCR), the minimum salary is PHP 14,006.57 per month.
Individual Income Tax
The individual income tax ranges from 0% to 35%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.
|Gross Annual Income||Tax Rate (%)|
|Up to PHP 250,000||0%|
|Up to PHP 400,000||20%|
|Up to PHP 800,000||25%|
|Up to PHP 2,000,000||30%|
|Up to PHP 8,000,000||30%|
|Over PHP 8,000,000||35%|
The employer cost is generally estimated at 10% of the employee salary.
- Public Health Insurance - 1.50%
- Pension Fund - 0.71%
- Social Security - 8.57%
Overtime Pay & Maximum Hours
Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.
Overtime payment is mandatory and can’t be included in the salary. Hours outside of standard work hours are considered overtime. For additional hours, employees are paid:
- 125% of the hourly rate on working days
- 130% of the hourly rate on holidays
Pregnant employees, who have worked for 90 consecutive days are entitled to 105 days of paid leave. An additional 15 days of paid leave will be granted if the employee qualifies as a solo parent. 14 days must be taken before the child's birth. The remaining days should be taken after the child is born. The employee will receive 100% of their average salary during this period, and Social Security will be responsible for this pay.
The employee can extend leave an additional 30 days unpaid.
Employees are entitled to seven calendar days of paid paternity leave that must be taken after the child's birth. The employee will receive 100% of their average salary during this period, and the employer will be responsible for this pay.
The employee can extend leave unpaid.
Severance for Employees
Severance Pay will be defined according to the cause of termination and ranges from 0.5 months to 1 month's wages for each year of employment.
- Fair dismissal: 30 days of salary per year of service up to 12 months based compensation.
- Reduction from the employer: 15 days of salary per year of service up to 12 months based compensation.
Paid Time Off
Full-time employees are entitled to 5 days of paid time off (PTO) a year. PTO accrues monthly at 0.42 days per month after 12 months of work. If holidays are not used by the end of the year, employees can receive a payment.
Part-time employees are not entitled to leave.
The Philippines celebrates both 18 national and 3 regional holidays based on the location of the employee. Only nine holidays are non-working days.
National public holidays include:
- New Year's Day
- Chinese New Year
- People Power Revolution
- Maundy Thursday
- Good Friday
- Black Saturday
- The day of Valor
- Labor Day
- Eid’L Fitr
- Independence Day
- Eidul Adha
- Ninoy Aquino Day
- National Hero’s Day
- All Saints’ Day
- Bonifacio Day
- Immaculate Conception Day
- Christmas Day
- Rizal Day
The employee will have to submit and provide the documents required before the start date. It's not optional to submit mandatory documents afterward, only optional documents. Before the start date, the employee will be enrolled by the accountants to SSS (Social Security System) and to PHIL Health.
Employment Contract Details
Contracts must be in English and can be bilingual. They must be in writing and signed by both parties.
A contract must include:
- Start date
- Length of the employment
- Job description
- Termination conditions
Hiring in the Philippines, hassle-free
With Deel, your business can easily hire employees in the Philippines. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.
Estimate Employer Cost
*of employee salary
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Deel is the best!!
“Deel is an amazing platform! It's super intuitive and user friendly, plus it runs suuuuper smoothly!! It has great options for paying and withdrawing money, plus it helps you keep super organized with your spending. They also have great support and are super friendly with all the questions you might have :D I would definitely recommend it!!”
A contracting life-changer!
"This has by far the singular tool that made my contracting work amazing. It used to be that contract management and payouts was a nightmare — Deel makes everything so easy especially with its Transferwise integration. Everyone gets paid on time and kept happy. I also contacted their support a couple of times for some small questions and they’ve been nothing short of amazing. If you’re a contractor or someone who hires contractors then definitely give Deel a go."
Great service offering!!
"The Deel platform has been super effective for my team and I and has enabled us to bring on workers globally. The platform allows us to onboard individuals seamlessly and with no issues at all. Highly recommend."
"Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money"
Deel is a game-changer for distributed teams
"Deel has been instrumental in helping us both open and operate our EU operations. It's super simple to set up and implement and the support team has been world-class. I can't recommend them enough!"
Great app with great customer service
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