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Hiring Employees in the Philippines: A Comprehensive Guide

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Written by Asma Makni
Updated this week

Table of Contents

  1. Introduction

  2. Key Considerations for Employing in the Philippines

  3. Benefits

  4. Employment Contracts

  5. Onboarding

  6. Leaves

  7. Payroll & Taxes

  8. Termination Process

  9. Invoice Schedule

  10. Get Started with Omnipresent


1. Introduction

Hiring in the Philippines requires compliance with labor laws, statutory leave entitlements, and contribution-based benefits. Omnipresent’s Employer of Record (EOR) service helps companies hire quickly and compliantly.


2. Key Considerations for Employing in the Philippines

  • Currency: Philippine Peso (₱, PHP)

  • Language: English and Filipino

  • Employer Costs: Variable (use OmniCalculator for estimates)

  • Termination Complexity: Very Hard

  • Onboarding Timeline: ~7 calendar days

  • Payroll Frequency: Semi-monthly (15th and 30th)


3. Benefits

What We Offer

  • Mandatory Benefits:

    • National Health Insurance Program (NHIP via PhilHealth)

    • State Social Security (SSS)

    • Employees' Compensation Program (ECP)

    • Mandatory Provident Fund (WISP)

  • Supplementary Benefits:

    • Private healthcare (through SafetyWing)

    • Dental & vision coverage

    • Life and disability insurance

    • Travel insurance

    • Employee assistance programs

Retirement

  • Contributions to WISP are processed via payroll.

  • Retirement pay entitlement: Half-month salary per year of service (after 5 years, age 60–65).

  • Long-term disability and death benefits via SSS and WISP.


4. Employment Contracts

Requirements

  • Written contracts are mandatory

  • Language: English

  • Signature: Simple electronic

  • Backdating: Not allowed under Omnipresent policy

Contract Types

  • Only indefinite-term contracts are offered via Omnipresent

Probation Period

  • Maximum 6 months

  • No notice required during probation termination

Contract Customisation

  • Optional: Unlimited time off, extra-legal sick leave

  • Not customisable: Overtime, restrictive covenants, stylistic edits


5. Onboarding

Timeline

  • ~7 calendar days (excluding visa/medical/background delays)

  • Includes:

    • Platform setup

    • Right-to-work check

    • Employment contract

    • Benefits & payroll enrollment

Registration & Approvals

  • No third-party approval required except for foreign nationals

Immigration & Visas

  • Visa support is not currently offered in the Philippines

Employee Transfers

  • Seniority recognition available if transferring from another EOR or internal move


6. Leaves

Annual Leave

  • 5 days mandatory (Service Incentive Leave - SIL)

  • Common practice: 15 vacation + 15 sick days for professionals

Sick Leave

  • SIL can be used for sick leave

  • Employers may grant additional sick leave beyond mandatory minimum

Maternity Leave

  • 60 days (normal delivery) or 78 days (caesarean)

  • Paid at 100% of daily salary (employer reimbursed by SSS)

Paternity Leave

  • 7 days paid for first 4 children, for married male employees

Public Holidays

  • Includes Regular Holidays and Special Non-Working Days

  • Examples:

    • New Year’s Day, Araw ng Kagitingan, Maundy Thursday, Good Friday, Eid holidays, Independence Day, National Heroes Day, Bonifacio Day, Christmas Day, Rizal Day

    • Chinese New Year, EDSA Revolution, Black Saturday, Ninoy Aquino Day, All Saints Day


7. Payroll & Taxes

Payroll Cycle

  • Semi-monthly (15th and 30th)

    • Payroll run: 1st to end of month

    • Cut-off: 6th

    • Payment: Last working day of the month

Extra Payments

  • 13th-month salary is mandatory (1/12 of basic salary)

  • Paid no later than December 24

  • Bonuses and commissions are allowed

Minimum Wage

  • PHP 610/day (2023)

  • Hourly wage not supported by Omnipresent

Standard Work Schedule

  • 8 hours/day, 40 hours/week, Monday–Friday

Employer Costs


8. Termination Process

Legal Grounds for Termination

  • Serious violations, gross misconduct, redundancy

  • Must follow proper legal process depending on cause

Notice Period

  • For just cause: Notice only after due process

  • For authorized cause: 1-month notice

  • Probationary employees: Reasonable written notice required

Severance Pay

  • Typically 1 month salary per year of service, based on cause

Omnipresent Policy

  • Contact Omnipresent before any termination discussions

  • Submit termination request via OmniPlatform for assessment


9. Invoice Schedule

Initial Fees

  • Setup Fees: Triggered on contract signing

  • Deposit: Due when contract is ready for signing

  • Initial Salary Prepayment: Invoiced on employment start date

Monthly Invoicing

  • Billed in arrears after payroll is finalized

  • Includes:

    • Service fee

    • Deposit insurance (if applicable)

    • FX fee (if applicable)


10. Get Started with Omnipresent

We simplify global employment with fully compliant HR, payroll, and benefits support. Scale your team in the Philippines with confidence.

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