<img alt="" src="https://secure.intelligentcloudforesight.com/779425.png" style="display:none;">
Skip to content

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.

Hire Talent From the Philippines with Global Expansion

Setting up a company in the Philippines can be expensive and complex. Global Expansion simplifies your entry into this market.

We handle hiring, HR, and payroll while ensuring compliance with local regulations, all without establishing a local entity.

Our Filipino Employer of Record (EOR) solution lets you focus on your business growth.

Ready to hire anywhere in the world?

Grow your team the right way with
Global Expansion.

Request a Proposal
Associate Segment