Overview

Capital
Manila
Currency
Philippine Peso
Date Format
mm-dd-yyyy; dd-mm-yyyy (ad)

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Taxes

Employer
PHP 1,600 - Maximum monthly contribution - Social Security (SSS)
PHP 550 - Health Insurance (PHIC)
PHP 2,950 - Maximum monthly contribution - Home Development Mutual Fund (HDMF)
Employee
PHP 800 - 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)
PHP 550 - Health Insurance (PHIC)
0.00% - Up to 5,000
1.00% - 5,000 - 20,000
3.00% - 20,000 - 35,000
8.00% - 35,000 - 50,000
14.00% - 50,000 - 70,000
21.00% - 70,000 - 100,000
24.00% - 100,000 - 250,000
24.50% - 250,000 - 400,000
25.00% - 400,000 - 600,000
26.00% - 600,000 - 1,000,000
28.00% - Over 1,000,000

Minimum Wage

General

Minimum rate is 537.00 PHP gross per day.

VAT

General

5% on goods, 6% on services.

Mandatory Benefits

Pension Fund

Employers contribute 11% of workers wages. Employees contribute 12-13% of their salary. Employee pension trusts established under conditions laid down by law are exempt from income tax.

Social Security

Employers contribute 1.77% of workers wages, employees contribute 0.5% providing protection against disability, sickness, old age and death.

13th Salary

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

Payroll

Payroll Cycle

Skilled and semi-skilled workers may be paid on an hourly, daily, weekly or monthly basis.

Termination

Termination Process

Employees are entitled to termination notice of 4 weeks for the first two years of employment, 6 weeks notice from two-five years, and 8 weeks for over five years.

Advance Notice

Employees must provide atelast 30 days notice.

Severance Pay

The employee will be entitled to separation pay equal to one month’s pay or one-half month’s pay for every year of service, whichever is higher. In case of authorized dismissal, an employee shall be given an advance notice of at least 30 days.