Hire and pay employees in
the Philippines, hassle-free

With Deel, your business can easily hire employees in the Philippines. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in the Philippines is 2 days with Deel.


Philippine Peso - PHP



Official Language

Filipino & English

Payroll Cycle


Onboard, pay and manage employees in the Philippines with Deel.

Usually, to hire in the Philippines, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Deel lets you hire employees in the Philippines quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

Download the Guide

All the necessary benefits for the Philippines
built right in

Deel allows you to provide localized benefits for employees in the Philippines within minutes. All in one manageable online dashboard.

  • Pension Fund
  • Public Health Insurance
  • Private Healthcare - Unisure (optional)
  • Private Healthcare - Lacson & Lacson
  • Private Healthcare - Allianz (optional)

Our quickstart guide to hiring in the Philippines

Navigate the tabs below to learn everything you need to know about hiring an employee in the Philippines

Minimum Wage Requirements

In the Philippines, the applicable minimum wage is set by region. There is no national minimum wage. Applicable minimum wage is determined by the region the employer's company is incorporated.

For Deel, which is incorporated in the National Capital Region (NCR), the minimum salary is PHP 13,267.50 per month.

Individual Income Tax

The individual income tax ranges from 0% to 35%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

Gross Annual Income Tax Rate (%)
Up to PHP 250,000 0%
Up to PHP 400,000 20%
Up to PHP 800,000 25%
Up to PHP 2,000,000 30%
Up to PHP 8,000,000 30%
Over PHP 8,000,000 35%

Payroll Cost

The employer cost is generally estimated at 11.07% of the employee salary.

  • Philippine Health Insurance Corporation (PhilHealth): 2.5%

  • Social Security: 8.57%

  • Home Development Fund (HDMF): PHP 200

Philippine Health Insurance Corporation (PhilHealth) contribution is capped at PHP 1,600/month.
Social Security contributions are capped at PHP 2,880/month.

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

Overtime payment is mandatory and can’t be included in the salary. Hours outside of standard work hours are considered overtime. For additional hours, employees are paid:

  • 125% of the hourly rate on working days
  • 130% of the hourly rate on holidays

Maternity Leave

Pregnant employees, who have worked for 90 consecutive days are entitled to 105 days of paid leave. An additional 15 days of paid leave will be granted if the employee qualifies as a solo parent. 14 days must be taken before the child's birth. The remaining days should be taken after the child is born. The employee will receive 100% of their average salary during this period, and Social Security will be responsible for this pay.

The employee can extend leave an additional 30 days unpaid.

Paternity Leave

Employees are entitled to seven calendar days of paid paternity leave that must be taken after the child's birth. The employee will receive 100% of their average salary during this period, and the employer will be responsible for this pay.

The employee can extend leave unpaid.

Parental Leave

In the Philippines, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave. Additionally, single parents can apply to the Solo Parent Policy.

Sick Leave

Employees in the Philippines are not entitled to sick leave in addition to their Vacation allowance (PTO).
Employees should submit their sick leave in the Deel platform through the Time Off feature.
If an employee has used all of their vacation and needs to take more time off to recover from sickness, the additional days will be unpaid leave.
Employees may qualify for reimbursement through the Social Security System (SSS)'s sickness Benefit. Treated similarly to a Maternity Benefit, this Sickness Benefit ensures that eligible employees receive a portion of their regular pay.

Termination Requirements

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

An employee may be terminated for authorized causes as per the Labor Code. The employer must give written notice of the termination.

Notice Period

 The minimum notice period is usually 30 days.

Severance for Employees

Severance Pay is defined according to the cause of termination and ranges from 0.5 months to 1 month's wages for each year of employment.
If due to redundancy, at least 1 month's pay or at least 1 month's pay for every year* of service of the employee, whichever is higher. 
If retrenchment to prevent losses, closure, or disease, at least 1 month's pay or at least 0.5 month's pay for every year* of service of the employee, whichever is higher.
If due to closure or cessation of operations, no legal requirements.

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Paid Time Off

Full-time employees are entitled to 5 days of paid time off (PTO) a year. PTO accrues monthly at 0.42 days per month and begins accruing from their start-date. If holidays are not used by the end of the year, employees can receive a payment.
Part-time employees are not entitled to leave.

Public Holidays

The Philippines celebrates both 18 national and 3 regional holidays based on the location of the employee. There are an additional 8 special holidays that are non-working days.

National public holidays include:
- New Year's Day
- Araw ng Kagitingan (Day of Valor)
- Maundy Thursday
- Good Friday
- Labor Day
- Independence Day
- National Heroes Day
- Bonifacio Day 
- Christmas Day
- Rizal Day

Special non-working days:
- Non-working Day (Day After New Year’s Day)
- EDSA People Power Revolution Anniversary
- Black Saturday
- Ninoy Aquino Day
- All Saints' Day
- All Souls' Day
- Feast of the Immaculate Conception of Mary
- Last Day of the Year


Onboarding takes 2 business days

The employee will have to submit and provide the documents required before the start date. It's not optional to submit mandatory documents afterward, only optional documents. Before the start date, the employee will be enrolled by the accountants to SSS (Social Security System) and to PHIL Health.

Employment Contract Details

Contracts must be in English and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

  • Name
  • Start date
  • Length of the employment
  • Job description
  • Termination conditions

Probation Period

Probation periods are not mandatory. The standard probation period is 90 days and the maximum probation period is 180 days (six months). Fixed term contracts cannot have probation periods. 

Download the complete guide to hiring in the Philippines

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Hiring in the Philippines, hassle-free

With Deel, your business can easily hire employees in the Philippines with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in the Philippines and 150+ countries.

Group (8)

Starting at 599 USD

Management fee

Group (9)


Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in the Philippines?

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