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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.
The Philippines has regional minimum wage rates that vary by location and industry. As of 2024, the National Capital Region (NCR/Metro Manila) has a minimum daily wage of PHP 610. Other regions have different rates set by Regional Tripartite Wages and Productivity Boards, ranging from PHP 310 to PHP 610 per day depending on the sector and location.
Standard working hours in the Philippines are 8 hours per day and 48 hours per week (typically 6 days). Overtime work is compensated at 125% of the regular hourly rate for work beyond 8 hours/day. Work on rest days is paid at 130% of regular rate, and work on special holidays at 130%, while regular holidays are paid at 200% of the regular rate.
Personal Income Tax (PIT) in the Philippines follows the TRAIN (Tax Reform for Acceleration and Inclusion) law. Income up to PHP 250,000/year is tax-exempt. Progressive tax rates range from 15% to 35% for income above PHP 250,000. Employers withhold taxes through the withholding tax system, and annual reconciliation is required through filing of BIR Form 1700 or 1701.
Employees who have worked for at least one year are entitled to 5 days of paid Service Incentive Leave (SIL) annually. The Philippines observes regular holidays and special non-working days (totaling around 18-20 days annually). Female employees are entitled to 105 days of paid maternity leave (expanded maternity leave). Male employees receive 7 days of paid paternity leave. Solo parents are entitled to 7 days of parental leave per year.
The Philippines mandates contributions to SSS (Social Security System), PhilHealth (health insurance), and Pag-IBIG (housing fund). SSS contribution rates are shared between employer and employee (total 14% of monthly salary, with employer paying approximately 9.5%). PhilHealth contributions are 4% of monthly salary (2% employer, 2% employee). Pag-IBIG contributions are 2% each from employer and employee. Employees receive separation pay of half month's salary per year of service for authorized causes of termination.
Under the Labor Code of the Philippines, termination must be based on just causes (employee fault) or authorized causes (business reasons). For authorized causes like redundancy or retrenchment, employers must provide at least 30 days' written notice and pay separation pay of at least one month's salary per year of service. Just causes like serious misconduct require due process but no separation pay. Illegal dismissal can result in reinstatement and full back wages.
The 13th Month Pay is mandatory for all rank-and-file employees in the Philippines, regardless of company profitability. It is equivalent to 1/12 of the employee's total basic salary earned during the calendar year and must be paid on or before December 24 each year. This benefit is in addition to any other bonuses the employer may provide.
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.
