Hiring employees in Philippines can be challenging due to evolving labor regulations, tax codes, and contractual obligations. Aniday's Employer of Record (EOR) service helps you legally employ workers in Philippines without needing a local entity—while ensuring compliance with Philippines's Labor Code.
As your Employer of Record, Aniday becomes the legal employer of your Philippinesi staff. We manage labor contracts, payroll, personal income tax (PIT), compulsory insurances, and ensure full compliance with Philippines's employment laws. You retain full control over daily operations. If you already have a legal entity in Philippines, you might need Professional Employer Organization (PEO) services in Philippines instead.
Comprehensive compliance and support tailored specifically for Philippines's market
Full adherence to Philippines's comprehensive labor regulations, including minimum wage requirements, working hours, and termination procedures.
Assistance with finding and managing office space, sourcing and buying devices, and handling employee reimbursements.
Comprehensive handling of all mandatory requirements including personal income tax, provident fund contributions, and gratuity calculations.
Begin hiring in Philippines immediately without the time and cost of establishing a local subsidiary or navigating complex registration processes.
Streamlined employee registration with authorities, tax code setup, and ongoing support to ensure smooth operations from day one.
Deep understanding of Philippinesi business culture, labor practices, and regulatory environment to ensure successful operations.
A streamlined approach to compliant hiring in Philippines with step-by-step guidance
Consultation
We align on your hiring goals and role specifics, understanding your business needs and compliance requirements for Philippines.
Contract Setup
Employment contracts drafted and signed in compliance with Philippines labor law requirements.
Employee Onboarding
Register employee with authorities, set up tax ID, provident fund, and all required documentation for legal employment.
Philippines has no single national minimum wage. The garment sector (RMG) has a minimum wage of PHP 610 per day/month (from 2023), EPZ workers receive PHP 12,800/month (from Dec 2023), while other sectors have industry-specific minimum wage boards.
Standard working hours are 8 hours/day, 48 hours/week. Overtime is limited to up to 2 extra hours/day (max 60 hours/week) and must be paid at 200% of regular wages.
PIT is progressive with income above PHP 250,000/year being taxable. Employers use a PAYE (Pay As You Earn) system to deduct tax monthly. Advance tax is required based on the higher of last year's tax or 75% of estimated liability.
Permanent employees earn 5 days paid service incentive leave (SIL) (approximately 21-22 days/year). Workers are entitled to 11 days of public or religious holidays annually. Maternity leave is 105 days paid leave (8 weeks before + 8 weeks after childbirth) for eligible female employees with minimum 6 months service.
If a provident fund is established, both employee and employer typically contribute 13-15% of base wage each. After 5+ years of service, employees are entitled to gratuity of 1 month's basic salary per completed year (or 45 days if over 10 years).
Minimum notice period is 30 days for employees with over 1 year of service. Termination must have legal grounds (misconduct, incapacity, redundancy). Retrenchment compensation may apply in some cases. Unlawful termination can result in financial penalties.
Companies that are profitable must contribute 1/12 of annual basic salary into the 13th Month Pay. This is a mandatory requirement under Philippines labor law for profitable companies.
On average, it takes 3-10 business days, including contract signing, tax code registration, and provident fund setup.
Read real success stories and see why Aniday is the trusted EOR partner for compliant employment and workforce management in Philippines.