PEO Services in Philippines

Even under a PEO model, your company must comply with all employment-related laws. This includes adherence to the Philippines Labor Code, registration of employees with social insurance authorities, and proper taxation. Aniday ensures all filings, contracts, and records are accurate and submitted on time.

Employers are required to provide:

• SSS contributions (15% of the Monthly Salary Credit: 10% employer, 5% employee), PhilHealth (5% of basic salary, shared equally by employer and employee), and Pag-IBIG (2% employer, 1-2% employee)
• Service Incentive Leave (5 days per year after 1 year of service)
• 12 regular holidays plus special non-working days
• Maternity leave (105 days paid for eligible employees)
• Separation pay for authorized causes (1 month's salary per year of service for redundancy, 1/2 month per year for retrenchment or closure)

Aniday manages contributions and reporting monthly on your behalf.

No. For full compliance, salaries must be paid through a local entity or a PEO provider registered in Philippines. Aniday administers all salary disbursements through compliant Philippine banking channels.

Aniday calculates and withholds all necessary payroll taxes, including:

• Personal Income Tax (progressive rates on income above PHP 250,000/year)
• SSS, PhilHealth, Pag-IBIG contributions (employer and employee portions)
• 13th Month Pay - 1/12 of basic salary earned in the year, mandatory under PD 851 regardless of company profitability

We also manage monthly tax declarations and filings with the tax authorities.

Philippines has strict rules around termination. All dismissals must be legally justified and follow correct procedures. Minimum notice period is 30 days for employees with over 1 year of service. Termination without proper cause or documentation can lead to compensation penalties. Aniday assists with compliant exits and severance calculations.

All employers must pay rank-and-file employees a 13th Month Pay equal to 1/12 of the basic salary earned within the calendar year. This is mandatory under Presidential Decree 851 regardless of company profitability, and must be paid on or before December 24. Aniday ensures proper calculation and timely payment.