Hire in Philippines
Access the Philippines' English-speaking tech talent pool without navigating the Labor Code, SSS, PhilHealth, Pag-IBIG, and mandatory 13th Month Pay alone. Vectis handles everything — onboard in 48 hours.
Quick Facts
Philippine Employment Law Guide
A practical overview of the Philippine Labor Code — from SSS, PhilHealth, Pag-IBIG, and mandatory 13th Month Pay to probationary rules and DOLE compliance.
Employment Contracts
- ✓Labor Code of the Philippines governs all employment relationships
- ✓Regular employment (permanent) established after 6-month probationary period
- ✓Project-based and fixed-term contracts valid only for specific projects or seasons
- ✓Written contract strongly recommended; must specify position, salary, and duration
- ✓DOLE (Dept. of Labor and Employment) oversees compliance and dispute resolution
Working Hours & Overtime
- ✓Standard: 8h/day, 48h/week (6-day work week permitted)
- ✓Overtime: +25% premium on regular days; +30% on rest days and special holidays
- ✓Night shift differential: +10% of regular wage for work between 10pm and 6am
- ✓Rest day work (unscheduled): +30% above regular day rate
- ✓Compressed work week arrangements allowed with DOLE approval and employee consent
Leave Entitlements
- ✓5 days Service Incentive Leave (SIL) per year after 1 year of service
- ✓12 weeks paid maternity leave (extended to 105 days by RA 11210, 2019)
- ✓7 days paid paternity leave for married male employees (first 4 deliveries)
- ✓3 days special leave per year for Solo Parents (RA 8972)
- ✓18 national regular + special non-working public holidays per year
Wages & 13th Month Pay
- ✓Regional minimum wage set by RTWPB; NCR rate: PHP 610/day (2024)
- ✓13th Month Pay mandatory for all rank-and-file employees; paid by December 24
- ✓Night shift differential (+10%) and overtime premiums are separate from base pay
- ✓De minimis benefits (rice allowance, medical cash allowance) are tax-exempt up to limits
- ✓DOLE wage orders are region-specific; Metro Manila rate differs from provincial rates
Social Contributions (SSS/PhilHealth/Pag-IBIG)
- ✓SSS (Social Security System): employer ~9.5%, employee ~4.5% of monthly salary credit
- ✓PhilHealth (health insurance): employer 5%, employee 5% of monthly basic salary
- ✓Pag-IBIG (HDMF housing fund): employer 2%, employee 2% (capped at PHP 100/month each)
- ✓BIR withholding tax: semi-monthly withholding of income tax on employee compensation
- ✓All contributions required before first day of work; penalties for late registration
Termination
- ✓Just causes (employee fault): serious misconduct, willful disobedience, gross neglect, fraud, etc.
- ✓Authorized causes (employer need): redundancy, retrenchment, closure — require 30-day DOLE notice
- ✓Separation pay: 1 month salary per year for authorized causes (redundancy: 1 month or 1/month/year, whichever is higher)
- ✓Probationary employees may be terminated for failure to meet reasonable standards
- ✓NLRC (National Labor Relations Commission) handles illegal dismissal claims
How to Hire in Philippines with Vectis
From offer to payroll — fully compliant with the Philippine Labor Code.
Share the details
Role, salary in PHP, work location (region determines minimum wage), and start date. We confirm DOLE classification.
We draft the contract
Philippine Labor Code-compliant employment contract with probationary standards, position, and salary. English language.
SSS, PhilHealth & Pag-IBIG
Employee registration with all three government agencies, BIR TIN number, and semi-monthly payroll configuration.
Semi-monthly payroll & 13th month
Bi-monthly payroll with SSS, PhilHealth, Pag-IBIG, and BIR withholding. 13th Month Pay automatically disbursed by December 24.
“The Philippines was our first APAC hire and navigating SSS, PhilHealth, Pag-IBIG, and the 6-month regularization rule was daunting. Vectis had our Manila engineer onboarded in 2 days — all government registrations complete.”
Public Holidays in Philippines
The Philippines has 18 regular and special non-working holidays per year. Holiday pay rules differ between regular and special holidays. Vectis tracks all obligations automatically.
Philippines Hiring FAQs
Common questions about employing staff in the Philippines.
Ready to hire in the Philippines?
Vectis is your Employer of Record in the Philippines — managing the Labor Code, SSS/PhilHealth/Pag-IBIG, 13th Month Pay, DOLE compliance, and regional minimum wage rules.
Hire in the Philippines compliantly — in 48 hours
No entity required. Onboard in 48 hours.