Hire employees in Philippines No entity needed.
Usually, to hire in 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.
Philippines also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Philippines quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for Philippines built right in
Deel allows you to provide localized benefits for employees in Philippines within minutes. All in one manageable online dashboard.
- Health Insurance
- Worker Compensation Insurance
Currency: Philippine Peso (PHP)
Official language: Filipino & English
Payroll Cycle: Monthly
Paid Time Off
In Philippines, employees are entitled to 5 days of paid holiday a year. These days can be taken as a holiday or sick leave. In case holidays are not used by the end of the year, employees can receive money in payment of lieu.
In Philippines 9 of their 21 public holidays are non-working holidays.
- New Year's Day
- Lunar New Year
- Maundy Thursday
- Good Friday
- Bataan Day
- Labour Day
- Eid al-Fitr Thu
- Philippines Independence Day
- Eid al-Adha Likely
- National Heroes' Day
- Bonifacio Day
- Feast of the Immaculate Conception
- Christmas Day
- Rizal Day
Individual Income Tax
The individual income tax average ranges up to 35% and depends on many variables, such as marital status, level of income, etc.
Approximately, 13.2% of employee salary
Employment Contract Details
Contracts can be oral or written, and they must comply with all local laws and regulations detailed in the Labor Code.
Not mandatory. However, it cannot exceed 3 months.
Minimum Wage Requirements
The Minimum wage is PHP 537 per day.
Maximum working hours and overtime
Maximum working time is 8 hours per day over a 6-day period. Anything over that period must be compensated as overtime pay, that varies according to the number of hours and/or holidays the employee worked.
Bonus and expense payments
A 13th month bonus is required and a Christmas 14th month bonus is common practice. Employees are entitled to receive the 13th month salary provided if they accrued 1 year of employment.
- Maternity Leave: the Labor Code grants up to 105 days of paid maternity leave, plus an additional 2 weeks if the employee is a single parent.
- Paternity Leave: employees are entitled to 7 days of paid paternity leave.
Employees are not entitled to sick leave. But in practice, employers grant it through voluntary company policies or collective bargaining agreements.
Termination requirements for employees in
An employee may be terminated just for authorized causes as per Labor Code, for any serious violation of company rules and regulations, further infractions, or violations of the Code of Conduct. 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.
In the Philippines, the minimum required notice period for both the employer and the employee is 1 month's notice.
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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."
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"Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money"
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