Hiring & Employment in Philippines: 2025 Guide
Your guide to the employment landscape, working customs and local labor laws in the Philippines.
Capital / Economic hubs
Manila (NCR/Metro Manila); Cebu, Davao, Clark
Currency
Philippine Peso (PHP)
Official Language
Filipino & English
Key Industries
IT-BPM/outsourcing, fintech, semiconductors, construction, healthcare
Business Climate Overview
The Philippines offers one of Southeast Asia's most dynamic labor markets, underpinned by a strong outsourcing (BPO/IT-BPM) sector and a growing digital economy. English fluency, cost-competitive labor, and improving infrastructure make it an attractive regional hub for global service delivery and shared services centers.
Talent Market & Recruitment
Workforce
- • Software & data professionals
- • Cybersecurity specialists
- • Finance/FP&A experts
- • Shared services professionals
- • Digital marketing specialists
- • Healthcare practitioners
- • Sales professionals
Hiring Channels
Job Boards:
LinkedIn, JobStreet/SEEK, Kalibrr, MyNimo
Recruitment Agencies:
Michael Page, Robert Walters, and others
Employment Regulations
Written Contracts
Standard; issue Key Employment Terms/contracts stating role, pay, hours, benefits, leave, termination (Labor Code).
Probation Periods
Up to 6 months (typical).
Public Holidays
Combination of regular and special non-working holidays, declared annually by presidential proclamation.
Annual Leave
Statutory 5 days of service-incentive leave after 12 months; many employers provide 12–15 days.
Termination & Severance
Follows Labor Code rules for just and authorized causes; separation pay depends on cause and tenure.
Compensation, Tax & Social Security
Average Salary
~PHP 20k–50k/month depending on region/industry (highest in Metro Manila).
Overtime Pay:
• At least +25% of hourly rate beyond 8 hours on a regular day
• Higher for rest days/holidays
• Night shift differential +10% (10pm–6am)
Tax & Contributions
Employer contributions:
• SSS (rate schedule with 2025 step-up)
• PhilHealth (up to 5%)
• Pag-IBIG (~2%)
Employee contributions:
• SSS, PhilHealth, and Pag-IBIG per official tables
Personal Income Tax
Progressive up to 35% under the TRAIN law (BIR brackets)
VAT
12% standard rate
Bonuses
13th-month pay is mandatory for rank-and-file employees; performance bonuses are common but discretionary
Salary Benchmarks by Industry
| Industry / Role | Junior (Entry–Mid) | Senior (Experienced) |
|---|---|---|
| Software Engineer / Developer | ₱40,000 – ₱60,000 | ₱120,000 – ₱200,000 |
| Front-end / Back-end / Full-stack | ₱40,000 – ₱60,000 | ₱150,000 – ₱250,000 |
| Digital Marketing | ₱70,000 – ₱180,000 | ₱490,000 – ₱650,000 |
| Engineering / Manufacturing / Construction | ₱48,000 – ₱58,000 | ₱145,000 – ₱415,000 |
| Human Resources | ₱125,000 – ₱210,000 | ₱335,000 – ₱670,000 |
| Finance / Accounting / Banking | ₱40,000 – ₱80,000 | ₱190,000 – ₱700,000 |
| Graphic Design / Creative | ₱95,000 – ₱115,000 | ₱490,000 – ₱650,000 |
| Healthcare (Doctors, Nurses, Pharma) | ₱43,000 – ₱76,000 | ₱325,000 – ₱975,000 |
| Real Estate / Sales | ₱67,000 – ₱113,000 | ₱325,000 – ₱704,000 |
| Management / Leadership | ₱540,000 – ₱975,000 | N/A |
Payroll & Immigration
Payroll Cycle
Monthly; itemised payslips; remit SSS/PhilHealth/Pag-IBIG and withholding taxes on schedule (sss.gov.ph).
Work Permits
Foreign hires require a 9(g) Work Visa and an Alien Employment Permit (AEP) issued by DOLE; eligibility and quotas apply.
Options for Hiring in the Philippines
Employer of Record (EOR)
Hire through a local partner under Philippine labor compliance.
Local Payroll Providers
Run payroll and handle statutory filings (SSS, PhilHealth, Pag-IBIG, BIR).
Independent Contractors
Possible; manage compliance and avoid labor-only contracting.
Local Entity Setup
Incorporate locally to hire directly and maintain full operational control.
Ready to expand your team in the Philippines?
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