Overview

Capital
Manila
Currency
Philippine Peso (PHP)
Date Format
mm/dd/yyyy

COVID-19

To cushion the impact of the Coronavirus, social security contributions will currently remain at 12% instead of increasing to 13%. The House of Representatives approved the measure granting the President the power to suspend the hike in the SSS contribution rate while its counterpart bill remains pending in the Senate.

Taxes

Employer

Employer Payroll Tax

8.0%
Social Security (SSS)
1.75%
Health Insurance (PHIC)
2.0%
Home Development Mutual Fund (HDMF)
11.75% Total Employment Cost
Employee

Employee Payroll Taxes

4.0%
Social Security (SSS)
1.00% - Below PHP 1,500
Home Development Mutual Fund (HDMF)
2.00% - Above PHP 1,500
Home Development Mutual Fund (HDMF)
1.75%
Health Insurance (PHIC)
Up to 7.75% Total Employee Cost

Employee Income Tax

0.0%
0-250,000
20.0%
250,000-400,000
25.0%
400,000-800,000 (+30,000PHP)
30.0%
800,000-2,000,000 (+130,000PHP)
32.0%
2,000,000-8,000,000 (+490,000PHP)
35.0%
8,000,000 and over (+2,410,000PHP)
Employer Taxes
3 HIGHEST
3 LOWEST
China
Brazil
Belarus
Philippines
South Africa
Georgia
Macedonia
41.12%
36.8%
34%
11.75%
2%
2%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Macedonia
Netherlands
Philippines
Georgia
Belarus
Ukraine
45%
28%
27.65%
7.75%
2%
1%
0%

Minimum Wage

General

The minimum wage is 500.00 PHP a day for the agriculture sector and 537.00 PHP per day for non-agriculture.

Minimum wage (per month)
$4000
$2663
$2491
$214
$36.80
$22
$2.33
Geneva
Luxembourg
Australia
Philippines
Angola
Uzbekistan
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

Salaries are usually paid bi-monthly on the 15th and the 30th of every month.

13th Salary

Employers must provide 1/12 of the annual salary as 13th salary, paid by the 24th of December. It is most commonly paid half at the beginning of the school year in June and the other half around the 24th of December.

Working Hours

General

Working hours are a maximum of 8 hours per day 6 days a week

Overtime

Persons whose work is supervisory or managerial are specifically excluded from the overtime pay.

On regular days, all hours worked above the standard 8 hours a day must be compensated by providing a daily salary plus a minimum of 25% additional pay.

On Special holidays, all hours worked above the standard 8 hours a day must be compensated by providing the daily salary plus a minimum of 30% additional pay.

On legal holidays, all hours worked above the standard 8 hours a day must be compensated by providing double the daily salary.

Leave

Paid Time Off

Every employee who has worked for a minimum of one year is entitled to five days of leave. These days can be taken as a holiday or sick leave. If the leave is not used by the end of the year, employees can receive money to cover the unused days.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Georgia
Philippines
Malaysia
China
Federal
30
13
43
30
12
42
24
17
41
5
21
26
8
6
14
5
7
12
10
10
Public Holidays

There are 21 holidays with 9 non-working holidays.

Sick Days

Every employee who has worked for a minimum of one year is entitled to five days of leave. These days can be taken as a holiday or sick leave.

Maternity Leave

Post childbirth, the following applies:

  • 105 days of leave if the employee has paid at least three monthly contributions within the 12-month period before the birth
  • mothers who gave birth to twins or triplets are not entitled to any additional maternity leave.
  • The mother can file her maternity benefits for up to 10 years.

In the event of a miscarriage, the following applies:

  • 60 days of leave
  • The employee has paid at least three monthly contributions within the 12-month period before the miscarriage

The leave will be paid by the employer who can later request reimbursement from Social Security.

PAID MATERNITY LEAVE (DAYS)
410
365
365
105
45
30
0
Bulgaria
Serbia
Albania
Philippines
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

Seven days of full pay to all married male employees in the private and public sectors for the first four deliveries of the legitimate spouse with whom they are cohabiting.

Parental Leave

Single parents are permitted to take additional leave of 7 working days per year with full pay and benefits.

Termination

Termination Process

An employee may be terminated for just and authorized causes as per Labor Code and for any serious violation of company rules and regulations or the commission of further infractions or violations of the Code of Conduct.

Notice Period

Employees must provide a minimum of 30 days notice.

Severance Pay

Severance pay or separation pay shall only apply if the employee was terminated by the employer (not resigned) for authorized causes. The employee will receive up to 1 month’s salary multiplied by their length of service per year.

Probation Period

The maximum length of a probationary period shall be six months. Once the probation period is completed, the employment contract becomes permanent.

VAT

General

5% on goods, 6% on services.

Version History

January 1, 2021
Monthly health premium has increased to 3.5%.

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