Grow your team in
The Philippines effortlessly
Enjoy swift onboarding in the Philippines – 5 days on average.
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Simple Hire in the Philippines
Setting up your business in the Philippines usually requires establishing a local entity,which can be complex. Brix handles compliance with labor laws and taxes, from collecting tax documents to managing payroll. Trust Brix for global employment solutions, even without a local entity.
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Facts & Stats
Country Map
Talent Distribution
CURRENCY
PHP
OFFICIAL LANGUAGE
Filipino English
CAPITAL
Manila
PAYROLL FREQUENCY
Bi-Monthly
Developer Avg Salary
PHP 300,000 -
PHP 500,000/yr
Essential benefits tailored for the Philippines
You can easily offer all the necessary benefits, tailored to meet the specific needs of your team,
ensuring a competitive and rewarding employee experience with Brix.
Pension Fund
Private Healthcare - Unisure (optional)
Public Health Insurance
Private Healthcare - Lacson & Lacson
Social Security
Private Healthcare - Allianz (optional)
Employment
Pay & Taxes
Leave Policy
Termination
Time Off
Employment
Pay & Taxes
Leave Policy
Termination
Time Off
Employment
Employment Contract Details
  • Contracts must be in English and can be bilingual, written, and signed by both parties.
  • Mandatory contract details include name, start date, length of employment, job description, and termination conditions.
Working Hours and Overtime
Employees in the Philippines work 8 hours per day and 6 days a week (totaling 48 hours per week). Overtime work beyond 8 hours a day is compensated at 25% of the regular basic rate (30% on special holidays). Supervisory or managerial positions are excluded from overtime pay.
Probationary Period
The probationary period in the Philippines is 6 months. Fixed-term contracts cannot have probation periods.
Non-compete Agreements
  • The legal validity of non-compete agreements in the Philippines is determined case by case. To be enforceable, non-compete agreements must be limited and reasonable in time, place, and scope.
  • Employers are not obligated to pay employees during the non-competition period.
Pay & Taxes
Minimum Wage Requirements
In the Philippines, minimum wage varies by region and is determined based on the location of the employer's company.
Individual Income Tax
Individual income tax rates range from 0% to 35% in the Philippines, calculated progressively. Tax rates are determined based on gross annual income, with additional factors like household status and number of children influencing rates.
Payroll Cost
Employer costs are typically estimated at 11.07% of the employee's salary in the Philippines. Components of payroll cost include contributions to the Philippine Health Insurance Corporation (PhilHealth), Social Security, and Home Development Fund (HDMF). Contributions to PhilHealth and Social Security are capped at specific amounts per month.
Leave Policy
Parental Leave
Maternity Leave
Pregnant employees in the Philippines are entitled to 105 days of paid leave, with an additional 15 days if qualifying as a solo parent. Maternity leave includes 14 days before childbirth, and employees receive 100% of their average salary during this period.
Paternity Leave
Employees are entitled to seven days of paid paternity leave after the child's birth, with the employer responsible for payment. Extension of leave is possible but unpaid.
Shared Parental Leave
No specific law covers shared parental leave in the Philippines. However, single parents may apply for benefits under the Solo Parent Policy.
Sick Leave
In the Philippines, employers are not required to offer separate paid sick leave, with employees typically using service incentive leaves instead. Those who have made at least three monthly Social Security System contributions in the last year may access a sickness benefit, covering 90% of their salary once other sick leave options are depleted. Additionally, employees may qualify for reimbursement through the Social Security System (SSS) Sickness Benefit in case of illness, providing a portion of their regular pay.
Termination
Termination Requirements
Termination must adhere to the country's labor laws and regulations, with off-boarding handled by the employer. Termination can occur for authorized causes outlined in the Labor Code, requiring written notice.
Notice Period
Resignations require a minimum of 30 days' notice. Dismissals due to just cause (employee misconduct or neglect) do not require a notice period.
Severance for Employees
Severance pay is determined by the cause of termination, ranging from 0.5 to 1 month's wages for each year of employment. Redundancy mandates at least 1 month's pay or 1 month's pay for every year of service, whichever is higher. Retrenchment requires at least 1 month's pay or 0.5 month's pay for every year of service. Closure or cessation of operations have no legal severance requirements. Brix implements a Severance Accrual to manage financial risks, calculated based on legal entitlements and best practices, with unused amounts refunded if an employee resigns or is ineligible for severance.
Time Off
Paid Time Off
Full-time employees receive 5 days of paid time off (PTO) annually, accruing at 0.42 days per month from their start date. Unused PTO can be compensated at year-end. Part-time employees do not receive leave entitlements.
Public Holidays
The Philippines observes 18 national and 3 regional holidays, along with 8 special non-working days, determined by the employee's location, including:
National public holidays include:
  • New Year's Day
  • Araw ng Kagitingan (Day of Valor)
  • Maundy Thursday
  • Good Friday
  • Labor Day
  • Independence Day
  • National Heroes Day
  • Bonifacio Day
  • Christmas Day
  • Rizal Day
Special non-working days:
  • Non-working Day (Day After New Year’s Day)
  • EDSA People Power Revolution Anniversary
  • Black Saturday
  • Ninoy Aquino Day
  • All Saints' Day
  • All Souls' Day
  • Feast of the Immaculate Conception of Mary
  • Last Day of the Year
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HOW IT WORKS
Grow your team with Brix, as simple as 1, 2, 3, 4.
1
Free Consultation
Chat with our team to explore our resources and get answers to your questions.
2
Evaluation
Experience a customized demo showing how Brix can boost your business.
3
Proposal
Discuss the business and legal details of teaming up with us.
4
Finalize & Onboarding
Complete your employment contract with your chosen candidate.
“We'll help you with everything you need for
smooth hiring and management.”
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