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Labor Laws in Philippines

  • Annual Leave: 5 days
  • Maternity Leave: 105 days
  • Public Holidays: 11
  • Workweek: 8 hours per day.
  • Overtime: 40 hours per week.

Income Tax in Philippines

The Philippines has a progressive income tax with rates between 0% to 35%.

Value Added Tax (VAT) in Philippines

The standard VAT rate is 12%.

Social Security in Philippines

Here’s a breakdown of the contributions to the Social Security System (SSS), PhilHealth, and the Home Development Mutual Fund (Pag-IBIG):

Social Security System (SSS)

  • Total Contribution Rate: 14% of the employee's monthly salary credit (MSC).
  • Employer Contribution: 9.5% of the MSC.
  • Employee Contribution: 4.5% of the MSC.
  • Maximum Contribution:
    • Employers: ₱1,900
    • Employees: ₱900

Philippine Health Insurance Corporation (PhilHealth)

  • Total Contribution Rate: 4% of the employee's monthly salary, with a ceiling of ₱80,000.
  • Employer Contribution: 2% of the employee's monthly salary.
  • Employee Contribution: 4.5% of the MSC.
  • Employee Contribution: 2% of the employee's monthly salary.

Home Development Mutual Fund (Pag-IBIG)

  • Total Contribution Rate:
    • 2% of the employee's monthly salary for employers.
    • 1% for employees earning ₱1,500 or less, and 2% for salaries over ₱1,500.
  • Maximum Contribution:
  • Employers: ₱100 (based on a monthly salary of ₱5,000).
  • Employees: ₱100 (based on a monthly salary of ₱5,000).

Work Visas in the Philippines

Here are the main work visas available in the Philippines:

Alien Employment Permit (AEP):

  • Required for foreign nationals to work in the Philippines.
  • Issued by the Department of Labor and Employment (DOLE).
  • Valid for the specific employer and position, typically for one year but can be extended.

Pre-Arranged Employment Visa (9(g)):

  • The most common work visa for foreign nationals.
  • Requires sponsorship from a Philippine-based employer.
  • Valid for one to three years and can be extended.

Temporary Visitor’s Visa for Business Purposes (9(a)):

  • For short stays related to business activities.
  • Initially valid for 30 days, extendable for up to 16 months.

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