Hiring guide · APAC
How to hire in Philippines
To hire in the Philippines you need a registered entity enrolled with SSS, PhilHealth, Pag-IBIG and the BIR, or an Employer of Record that holds those registrations. Employer contributions add roughly 10–12% of salary, and a 13th month payment is mandatory every December.
- Currency
- PHP
- Payroll cycle
- Semi-monthly
- Employer cost
- ~10–12% + 13th month
- Notice
- 30 days
The talent market in Philippines
The Philippines is the strongest English-language market in Asia for customer support, back-office operations, finance and shared services, with a mature outsourcing sector and high cultural alignment with US and Australian customers.
Engineering supply is smaller than India's but growing, and night-shift roles serving US hours are well established. Statutory night differential and holiday premium rules make shift design a cost decision, not just an operational one.
Salary benchmarks in Philippines
Indicative annual gross base salary in PHP for common roles. Treat these as planning ranges — actual offers move with city, seniority, sector and equity mix, and we model a live benchmark before you go to offer.
| Role | Annual gross base |
|---|---|
| Software engineer (mid) | PHP 900,000 – 1,500,000 |
| Senior software engineer | PHP 1,500,000 – 2,400,000 |
| Account executive (SaaS) | PHP 900,000 – 1,600,000 incl. variable |
| Customer support specialist | PHP 300,000 – 550,000 |
Employment rules and payroll in Philippines
The statutory framework any offer has to sit inside — hours, leave, notice and the contributions that turn salary into fully loaded cost.
Working week
48 hours over six days, or 40 over five by contract
Probation
Up to 6 months, with regularisation after
Notice period
30 days for resignation and for authorised-cause termination
Paid leave
5 days service incentive leave statutory; 15 vacation and 15 sick is market
Public holidays
Around 18, split between regular and special non-working days
Payroll cycle
Semi-monthly, on the 15th and month-end
Employer contributions
SSS, PhilHealth, Pag-IBIG and mandatory 13th month pay
Contractor, EOR employee or your own entity?
Three ways to engage someone in Philippines. The right one depends on how permanent the role is, how much direction you give, and how much local risk you want to carry.
Contractor
Fastest to start and simplest to end. Suitable for genuinely independent, project-scoped work where the person controls how and when they deliver, invoices you, and works for other clients. No statutory benefits, no notice period, no severance.
Employee via EOR
The right structure for a full-time role with fixed hours, managerial direction and exclusivity. A licensed in-country partner is the legal employer, so the person gets a compliant contract, statutory benefits and local payroll — without you opening an entity.
Your own entity
Worth it once headcount, permanence and local revenue justify the incorporation, tax registration, statutory filings and local directorship. Most companies reach that point somewhere between 15 and 30 employees in a single country.
Misclassification risk in Philippines
The four-fold test — selection, payment of wages, power of dismissal and control — governs status, and DOLE treats security of tenure seriously. A worker performing activities necessary to your usual business becomes a regular employee by operation of law, with reinstatement and back-wage exposure if dismissed.
Work permits and right to work
Filipino nationals need no permit. Foreign nationals require an Alien Employment Permit from DOLE plus a 9(g) pre-arranged employment visa, both sponsored by the employing entity, with processing generally taking one to three months.
Hire in Philippines without an entity
Our Employer of Record page for Philippines covers statutory cost, compliance obligations and onboarding timelines in detail, through licensed in-country partners.
EOR in Philippines- Fully loaded cost modelled before offer
- Licensed partner matched, not assumed
- One contract, one consolidated bill
Hiring in Philippines: frequently asked questions
Is 13th month pay mandatory in the Philippines?
Yes. Every rank-and-file employee who has worked at least one month in a calendar year is entitled to one twelfth of their basic annual salary, payable on or before 24 December. Accrue it monthly rather than treating it as a year-end surprise.
What does a Philippine employee cost above salary?
Around 10–12% in employer SSS, PhilHealth and Pag-IBIG contributions, plus the 13th month payment, which adds roughly 8.3%. Night differential and holiday premiums add more for shift-based roles serving US hours.
Can we hire Philippine support staff without a local entity?
Yes. An Employer of Record registered with SSS, PhilHealth, Pag-IBIG and the BIR employs the team on your behalf, applies the correct shift premiums, and handles regularisation after probation — typically starting within a week of an accepted offer.
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Get the Philippines Hiring Cost Guide
A country brief covering fully loaded employment cost in PHP, salary benchmarks by role, statutory contributions, leave and notice rules, and a sample offer breakdown for Philippines.