Hiring in the Philippines: Complete Guide 2026
Everything you need to know about hiring and managing employees in the Philippines
Overview
The Philippines offers an exceptional English-speaking workforce with strong alignment to US business culture, making it one of the top destinations for remote and outsourced hiring across BPO, technology, creative services, and customer support. Manila, Cebu, and Davao are major hiring hubs. Employment is governed by the Labor Code of the Philippines, which mandates a maximum six-month probation period, a mandatory 13th month salary, and strong dismissal protections. An EOR manages SSS, PhilHealth, and Pag-IBIG contributions, making compliant hiring straightforward.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in the Philippines
Philippine payroll typically runs semi-monthly (1st and 15th of each month). Employers contribute approximately 8% to SSS (Social Security System), 2% to PhilHealth, and 2% to Pag-IBIG (HDMF housing fund). The mandatory 13th month pay — equal to one twelfth of the employee's total basic salary for the year — must be paid on or before December 24th. An EOR handles BIR (Bureau of Internal Revenue) employer registration, monthly SSS/PhilHealth/Pag-IBIG remittances, payslip issuance, and the annual BIR Form 2316 (Certificate of Compensation). Salaries are paid in PHP, and any USD-indexed packages must be structured carefully under BSP FOREX regulations.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract required
- Governed by the Labor Code of the Philippines
- Probation maximum 6 months
Leave & Time Off
- 5 days service incentive leave minimum
- Sick leave per company policy (no statutory minimum)
- Maternity leave 105 days paid
Termination Rules
- 30 days written notice required
- Separation pay 1 month per year if retrenched
- Just cause termination requires due process
COMPLIANCE
Labor Compliance in the Philippines
The Philippine Labor Code provides strong employee protections, particularly around dismissal. Termination for just cause (e.g. serious misconduct, gross negligence) requires a formal twin-notice procedure: a first notice specifying the grounds, a hearing or opportunity to be heard, and a second notice of the decision. Termination for authorised causes (e.g. redundancy, retrenchment) requires 30 days written notice to both the employee and DOLE, plus separation pay of at least one month or one month per year of service. An EOR manages all dismissal procedures, ensures the twin-notice requirement is met, and handles DOLE notifications and separation pay calculations in full compliance with the Labor Code.
Key Challenges
- Mandatory 13th month salary (December)
- Semi-monthly payroll cycle required
- Complex SSS, PhilHealth and Pag-IBIG filings
- High attrition in BPO and tech sectors
- Typhoon season impacts business continuity
Country Highlights
Advantages
- Exceptional English-speaking workforce
- Large BPO, tech, and creative talent base
- US cultural alignment and work practices
- Competitive salary levels vs. US/EU
- Strong government support for remote work
Popular Industries & Roles
Technology
Avg. Salary: ₱480k-₱1.2M
The Philippines has a large English-speaking tech and software development workforce
BPO & Customer Support
Avg. Salary: ₱360k-₱900k
The Philippines is the world's BPO capital — customer support, back-office, and shared services are the defining industries
Healthcare & Medical
Avg. Salary: ₱420k-₱1M
Healthcare staffing and medical administration are major export sectors with strong global demand
Top 3 Providers in the Philippines
Based on our analysis of pricing, compliance record, service quality, and customer reviews
KMC Solutions
- Philippines + Colombia EOR
- Founded 2009; eBay first client
- B Corp and ISO certified
- Zoom, Airbnb, Okta and Asana clients
Deel
- 150+ countries with owned entities
- Contractor and EOR in one platform
- Rich HRIS integrations including Slack
- AI-powered compliance automation
Globalization Partners
- Enterprise EOR across 180+ countries
- Compliance-first with owned entities
- 400+ reviews across major platforms
- G2 4.4, Trustpilot 3.8, Capterra 4.3
Find a better EOR — without risk
Compare EOR providers to gain insights on cost, coverage, and contract flexibility, ensuring compliance and payroll continuity.
.png)
.png)
