In order for a foreign company to hire employees in the Philippines, you need to register and set up a business entity – this requires a local office, an address registered as a subsidiary, and an account with a local bank
Setting this up on your own can take many months to a year and open up a lot of financial liabilities.
What we offer here at Dojo is an end-to-end outsourcing solution, so you can hire employees in the Philippines effortlessly and with full compliance. We’ll do the grunt work of tax filing, managing payroll & benefits, and even placing L&D programs in place so your team can grow.
When you hire a team through Dojo, they already come with all mandatory employee benefits.
Currency: Philippine Peso (PhP)
Official language: Filipino & English
Payroll Cycle: Bi-Monthly or Monthly
Holidays & Leave Benefits
Service Incentive Leave (SIL)
An employee who has rendered at least 1 year of service are entitled to a Service Incentive Leave of 5 days with pay. These days can be taken as a holiday or sick leave. In case holidays are not used by the end of the year, employees can receive money in payment of lieu.
In Philippines 9 of their 21 public holidays are non-working
- New Year’s Day
- Lunar New Year
- Maundy Thursday
- Good Friday
- Bataan Day
- Labour Day
- Eid al-Fitr Thu
- Philippines Independence Day
- Eid al-Adha
- National Heroes’ Day
- Bonifacio Day
- Feast of the Immaculate Conception
- Christmas Day
- Rizal Day
Individual Income Tax
The individual income tax average ranges up to 35% and depends on many variables, such as marital status, level of income. etc.
Additional Contract Details
This is not mandatory however it shall not exceed 3 months.
Maximum working hours and overtime
Maximum working time is 8 hours per day over a 6-day period. Anything over that period most be compensated as overtime pay, that varies according to the number of hours and/or holidays the employee worked.
Bonus and expense payments
A 13th month bonus is mandatory. Employees are entitled to receive the 13th month salary provided if they accrued 1 year of employment.
Sick Leave & Vacation Leave
In practice, private employers grant these as additional benefit.