PHILIPPINES PEO & EOR
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DID YOU KNOW
- The Philippines is made up of over 7,600 islands, making it one of the world’s largest archipelagos.
- The country is the world’s leading exporter of nurses, with millions working abroad.
- The Philippines has one of the world’s longest Christmas seasons, beginning in September and lasting until January.
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Philippines EOR Services
Gateway to Southeast Asia
The Philippines—a rapidly developing economy at the crossroads of Southeast Asia—is increasingly attractive to international businesses. With a young, highly skilled, and English-speaking workforce, strong service and outsourcing industries, and a strategic location linking Asia and the Pacific, it has become a compelling destination for trade and investment.
Government initiatives such as tax incentives through the Philippine Economic Zone Authority (PEZA), simplified business registration, and programs supporting digital transformation encourage entrepreneurship and foreign investment. Combined with the Philippines’ strengths in IT-BPO, finance, manufacturing, and renewable energy, the country provides a solid platform for companies seeking growth in Asia and beyond.
Working in Philippines
Financial Year Dates
The Philippines’ financial year aligns with the calendar year, running from January 1 to December 31.
Minimum Wage
Minimum wage levels vary by region. As of 2025, in Metro Manila the daily minimum wage is ₱610 (about USD 10.70). Other regions set lower rates depending on the cost of living and industry.
Standard working hours
The standard workweek is 48 hours (8 hours per day, 6 days per week). Flexible work and remote arrangements are increasingly recognized under the Telecommuting Act.
Overtime
Overtime is paid at 125% of the hourly rate, increasing to 130% on rest days and special non-working holidays and 200% on regular holidays, in line with Philippine labor law.
Holiday Allowance
Employees are entitled to 5 days of paid service incentive leave per year (after 1 year of service), though many employers offer more. Public holidays are in addition to this leave.
Sick Leave
No statutory paid sick leave exists under Philippine labor law, but employees may use service incentive leave. Many employers provide additional paid sick leave as a company benefit.
Maternity & Paternity Leave
- Maternity Leave: 105 days with full pay (extended to 120 days for solo mothers).
- Paternity Leave: 7 days of paid leave for married male employees.
- Parental Leave: Solo parents are entitled to 7 additional working days of leave annually.
Public Holidays
The Philippines observes regular holidays and special (non-working) days, which vary each year. Regular holidays include:
- New Year’s Day (January 1)
- Maundy Thursday & Good Friday (Holy Week)
- Araw ng Kagitingan (Day of Valor)
- Labor Day (May 1)
- Independence Day (June 12)
- National Heroes Day (August)
- Bonifacio Day (November 30)
- Christmas Day (December 25
Social Contributions
Employers and employees share contributions to:
Social Security System (SSS) – pensions and benefits
PhilHealth – healthcare
Pag-IBIG Fund – housing savings and loans
Total contributions vary by salary, but typically amount to ~10–12% split between employer and employee.
Income Tax
As of 2025 (TRAIN Law), personal income tax rates are:
- Up to ₱250,000: 0%
- ₱250,001 – ₱400,000: 15%
- ₱400,001 – ₱800,000: 20%
- ₱800,001 – ₱2,000,000: 25%
- ₱2,000,001 -₱8,000,000: 30%
- Over ₱8,000,000: 35%
Health Care
The Philippines has universal health coverage through PhilHealth, with many employers offering supplementary private health insurance.
Visas
Work Visa (9G): Required for foreign nationals employed in the Philippines, typically valid for 1–3 years.
Special Resident Retiree’s Visa (SRRV): For foreign retirees.
Business Visa: For investors and entrepreneurs establishing or managing companies.
Dependent Visa: Allows eligible family members to join foreign workers.
13th salary?
Yes — The Philippines has a statutory 13th month pay, equal to one month’s salary, mandated by law and payable by December 24 each year.
Cultural Information
The Philippines is known for its vibrant culture, hospitality, and resilience. Manila and Cebu are bustling centers of commerce and innovation, while traditional festivals such as Sinulog, Ati-Atihan, and Pahiyas highlight the country’s rich heritage. Filipino cuisine blends Asian, Spanish, and American influences, with favorites like adobo, lechon, and halo-halo. English proficiency is among the highest in Asia, making the Philippines a hub for global outsourcing. Family, community, and celebration play central roles in Filipino life, reflected in its famously long Christmas season and numerous town fiestas.