Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
The national minimum wage is 21,600 pesos per month and 108 pesos per hour.
Employees who work on a monthly basis are paid monthly and must be made within 4 days of the following month. For hourly employees, wages are paid either weekly or every 2 weeks.
The 13th salary is payable in two installments, one before June 30th and the other before December 18th.
Full-time employment is 8 daily hours and 48 weekly hours. Work cannot exceed 9 hours a day or 48 hours a week
Night workers (9 PM-6 AM) daily workers should not exceed 7 hours. Employees working in unhealthy or dangerous conditions cannot work longer than 6 hours a day or 36 hours a week.
Overtime hours should not exceed 3 hours per day, 30 hours per month, or 200 hours per year. Employees receive an additional 50% for overtime work and an additional 100% for holidays or work performed after 1pm on Saturdays.
Annual leave depends on the seniority of the employee.
- 14 days leave – under 5 years of employment
- 21 days leave – over 5 years and less than 10
- 28 days leave – over 10 years and less than 20
- 35 days leave – over 20 years of continuous employment
There are 18 national holidays. Holidays that fall at the end of the week are moved to the following Monday.
Employees with less than 5 years of continuous service are entitled to 3 months of paid sick leave. Those with over 5 years of service receive 6 months of paid sick leave. Leave is doubled for those with dependents.
Maternity leave is a total of 90 days and is typically split between 45 days before birth and 45 days post-birth, but not required. At least 30 days must be taken before birth.
Fathers receive 2 days of paid paternity leave.
There are no provisions in the law regarding parental leave.
Marriage Leave: 10 days
Bereavement Leave: 3 days leave are given for the death of a wife, child, or parent, and 1 day for the death of a sibling.
Examination for university or secondary school: 2 days at a time (with a cap of 10 total).
Termination must be justified and with notice, unless it is through mutual agreement, due to economic factors, or the employee has not been fulfilling work or has performed serious misconduct.
- 15 days during the probation period
- 1 month – 3 months but less than 5 years
- 2 months – more than 5 years of continuous service
Employees receive one month’s pay for each year of employment. If the employee is terminated for economic reasons is entitled to half a month’s salary for each year of service.