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Hiring employees in the Philippines: 2026 employer guide

To employ someone in the Philippines you pay salary at least twice a month, add SSS, PhilHealth and Pag-IBIG contributions and a 13th month pay, and follow the Labor Code on hours, leave and termination. Without a local entity, an Employer of Record such as Flamingo employs them for you.

Rules as of

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At a glance

Minimum wage, Metro Manila
₱755 a day2from 26 September 2026
Payroll
At least twice a month1no more than 16 days apart
Working day
8 hours1with 24 hours' rest after 6 days
Employer contributions
SSS 10%, PhilHealth 2.5%, Pag-IBIG 2%4each on its own salary base
Income tax
0% to 35%7graduated, on annual income
13th month pay
1/12 of basic salary9paid by 24 December
Paid leave
5 days a year1after one year of service
Probation
Up to 6 months1

Good to know

  • Minimum wages are set region by region. In Metro Manila it is ₱755 a day for most workers from 26 September 2026.2
  • Pay at least twice a month. Monthly payroll alone isn't allowed.1
  • Every employee gets a 13th month pay: one twelfth of the year's basic salary, paid by 24 December.9
  • Employer and employee both contribute to SSS, PhilHealth and Pag-IBIG, and the employer withholds income tax every payroll.4
  • There's no weekly hours cap, but the working day is 8 hours and employees get 24 hours' rest after six days.1
  • You can only end employment for a just or authorized cause, with written notices. Authorized causes need 30 days' notice to the employee and to DOLE, plus separation pay.1

What changed in 2026

  1. 6 January 2026

    Revenue Regulations 29-2025 raised the tax-free de minimis ceilings, including a rice subsidy of up to ₱2,500 a month and a uniform allowance of up to ₱8,000 a year (as summarised by local law firms).8

  2. 20 March 2026

    Eid'l Fitr declared a regular holiday by Proclamation 1189.16

  3. 27 May 2026

    Eid'l Adha declared a regular holiday by Proclamation 1264.17

  4. 26 September 2026

    Wage Order NCR-28 raised the Metro Manila minimum wage to ₱755 a day (₱718 in agriculture, retail and service businesses with 15 or fewer workers, and manufacturers with fewer than 10). The previous rate was ₱695. An earlier order, NCR-27, was stopped by a court injunction.3

What an employee costs

On top of gross salary, the employer pays its share of three social contributions and the 13th month pay. The employee's share comes out of their pay.

Employer and employee contributions in the Philippines, 2026
ContributionEmployerEmployeeCounted on
SSS10%5%Monthly salary credit of ₱5,000 to ₱35,000. The part above ₱20,000 goes to the WISP provident fund4
Employees' Compensation (EC)₱10, or ₱30 from a ₱15,000 salary creditNonePaid with SSS4
PhilHealth2.5%2.5%Salary from ₱10,000 to ₱100,0005
Pag-IBIG2%2% (1% on ₱1,500 or less)Salary up to ₱10,000, so at most ₱200 each6
13th month pay1/12 of basic salaryNonePaid by 24 December9
Our estimate applies the SSS rate to salary rather than to SSS's salary-credit brackets, and leaves out EC, so those lines can differ by a few pesos.

Monthly estimate at a ₱60,000 salary

With Flamingo as the Employer of Record, from our cost calculator.

Gross salary
₱60,000
Employer contributions
₱5,200
Mandatory benefits
₱5,000
Flamingo fee (flat $599)
₱34,742
Total monthly cost
₱104,942about $1,809

Estimate, not a quote. USD at a fixed reference rate of 1 USD = 58 PHP, set October 2026.

Try your own salary in the calculator →

Payroll and income tax

Pay wages at least twice a month, no more than 16 days apart. The employer withholds income tax every payroll, using the graduated annual rates below on income after the employee's contributions.1

Annual income tax rates in the Philippines (TRAIN law)
Annual taxable incomeIncome tax
Up to ₱250,0000%7
₱250,000 to ₱400,00015% of the amount over ₱250,0007
₱400,000 to ₱800,000₱22,500 + 20% of the amount over ₱400,0007
₱800,000 to ₱2,000,000₱102,500 + 25% of the amount over ₱800,0007
₱2,000,000 to ₱8,000,000₱402,500 + 30% of the amount over ₱2,000,0007
Over ₱8,000,000₱2,202,500 + 35% of the amount over ₱8,000,0007
  • The 13th month pay and other benefits are tax-free up to ₱90,000 a year in total.7
  • Small de minimis benefits, such as a rice subsidy of up to ₱2,500 a month, are tax-free within the ceilings set by Revenue Regulations 29-2025.8

Hours, overtime and premiums

Working hours and pay premiums in the Philippines
SituationRule or pay
Normal hours8 hours a day. No weekly cap1
Weekly rest24 consecutive hours after every 6 working days1
Overtime on an ordinary dayHourly rate + 25%1
Work on a rest day or special day130% of the daily rate1
Overtime on a rest day or holidayThat day's hourly rate + 30%1
Work on a regular holiday200% of the daily rate1
Work on a regular holiday that falls on a rest day260% of the daily rate1
Night shift (10 pm to 6 am)At least 10% more than the regular rate1

Leave

Statutory leave in the Philippines
LeaveEntitlement
Service Incentive Leave5 days a year after one year of service. Unused days are paid out in cash1
Maternity leave105 days, plus 15 days for solo parents and an optional 30 days unpaid. 60 days for a miscarriage10
Paternity leave7 days for married fathers, for the first 4 deliveries11
Transferred maternity leaveUp to 7 more days for the father, transferred from the mother's leave10
Solo parent leave7 working days a year after 6 months of service12
Leave for victims of violence (VAWC)10 days13
Special leave for womenUp to 2 months on full pay after gynecological surgery14

Public holidays 2026

12 regular holidays and 8 special non-working days, plus one special working day. Pay for work on these days follows the premiums above.

Philippine public holidays in 2026
DateDayHolidayType
1 JanThursdayNew Year's DayRegular holiday15
17 FebTuesdayChinese New YearSpecial non-working day15
25 FebWednesdayEDSA People Power Revolution anniversarySpecial working day15
20 MarFridayEid'l FitrRegular holiday16
2 AprThursdayMaundy ThursdayRegular holiday15
3 AprFridayGood FridayRegular holiday15
4 AprSaturdayBlack SaturdaySpecial non-working day15
9 AprThursdayAraw ng Kagitingan (Day of Valor)Regular holiday15
1 MayFridayLabor DayRegular holiday15
27 MayWednesdayEid'l AdhaRegular holiday17
12 JunFridayIndependence DayRegular holiday15
21 AugFridayNinoy Aquino DaySpecial non-working day15
31 AugMondayNational Heroes DayRegular holiday15
1 NovSundayAll Saints' DaySpecial non-working day15
2 NovMondayAll Souls' DaySpecial non-working day15
30 NovMondayBonifacio DayRegular holiday15
8 DecTuesdayFeast of the Immaculate ConceptionSpecial non-working day15
24 DecThursdayChristmas EveSpecial non-working day15
25 DecFridayChristmas DayRegular holiday15
30 DecWednesdayRizal DayRegular holiday15
31 DecThursdayLast day of the yearSpecial non-working day15

Probation, contracts and termination

Probation

Probation can last up to 6 months. The standards the employee must meet to be made regular have to be made known when they're hired.1

Ending employment

  • Just cause (the employee's misconduct): a written notice to explain with at least 5 calendar days to reply, a hearing or conference, then a written notice of the decision. No separation pay is due.1
  • Authorized cause (business reasons or disease): 30 days' written notice to the employee and to DOLE, plus separation pay.1
  • Resignation: the employee gives 30 days' written notice.1
  • Final pay is released within 30 days of separation, and a certificate of employment within 3 days of the request, under DOLE Labor Advisory 06-20.18
Separation pay for authorized causes in the Philippines
CauseSeparation pay
Labor-saving devices or redundancy1 month's pay per year of service, at least 1 month1
Retrenchment or closureHalf a month's pay per year of service, at least 1 month1
Disease1 month's pay or half a month's pay per year of service, whichever is more1
6 months or more of service counts as a whole year.

Worked example: redundancy

Monthly salary
₱60,000
Service
3 years and 7 months
Years counted
4 (7 months rounds up)
Rate
1 month's pay per year
Separation pay
₱240,000

For retrenchment it would be half a month per year: ₱120,000.

IP and non-compete

Agree IP assignment and confidentiality in the employment agreement; enforceability of non-competes varies — take local legal advice.

Employer of Record

Employ in the Philippines with Flamingo

Flamingo is the legal employer through its local entity in the Philippines. We run payroll, file SSS, PhilHealth, Pag-IBIG and BIR remittances, and pay your team, for $599 per employee.

  • Payroll twice a month, paid on the 10th and 25th
  • 13th month pay in your monthly cost and in final pay
  • An e-signed employment agreement, with Flamingo signing as the employer

How Employer of Record works →See pricing →

Flamingo fee, per employee per month

$599

Flat, whatever the salary

Estimate the cost

Also hiring elsewhere? Hiring employees in Colombia: 2026 employer guide

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Hiring in the Philippines: questions

What is the minimum wage in the Philippines in 2026?

It's set by region. In Metro Manila it is ₱755 a day for non-agricultural workers from 26 September 2026 under Wage Order NCR-28, and ₱718 for agriculture, retail and service businesses with 15 or fewer workers, and manufacturers with fewer than 10.

How much does it cost to employ someone in the Philippines?

Gross salary, plus the employer's SSS (10%), PhilHealth (2.5%) and Pag-IBIG (2%, on up to ₱10,000) contributions, a small EC contribution and the 13th month pay. Through Flamingo, add $599. For a ₱60,000 monthly salary that's about ₱104,942 a month ($1,809 at our reference rate).

Is 13th month pay mandatory?

Yes. Employees get one twelfth of their basic salary for the year, paid by 24 December. It is tax-free up to ₱90,000 a year together with other benefits.

How often do employees have to be paid?

At least twice a month, no more than 16 days apart. Flamingo pays employees on the 10th and 25th.

How long can probation last?

Up to 6 months, with the standards for becoming a regular employee made known at hiring.

Can I end someone's employment at will?

No. You need a just cause, with a notice to explain, a hearing and a notice of decision, or an authorized cause, with 30 days' notice to the employee and DOLE and separation pay.

How many public holidays are there in 2026?

12 regular holidays, including Eid'l Fitr on 20 March and Eid'l Adha on 27 May, and 8 special non-working days. 25 February is a special working day.

Sources

Rules as of . Numbers in the text link here.

  1. 1.Labor Code of the Philippines (Presidential Decree 442), as amendedlawphil.net
  2. 2.National Wages and Productivity Commission: National Capital Region (Wage Order NCR-28)nwpc.dole.gov.ph
  3. 3.SunStar: NCR wage order granting ₱60 hike to take effect 26 Septembersunstar.com.ph
  4. 4.Social Security System: contribution table (Circular 2024-006)sss.gov.ph
  5. 5.PhilHealth Advisory 2025-0002: premium contributionphilhealth.gov.ph
  6. 6.DBM Circular Letter 2024-2 on Pag-IBIG Fund Circular 460dbm.gov.ph
  7. 7.Republic Act 10963 (TRAIN law)lawphil.net
  8. 8.Aureada Law: summary of BIR Revenue Regulations 29-2025 (de minimis ceilings)aureadalaw.com
  9. 9.Presidential Decree 851 (13th month pay)lawphil.net
  10. 10.Republic Act 11210 (105-Day Expanded Maternity Leave Law)lawphil.net
  11. 11.Republic Act 8187 (Paternity Leave Act)lawphil.net
  12. 12.Republic Act 11861 (Expanded Solo Parents Welfare Act)lawphil.net
  13. 13.Republic Act 9262 (Anti-Violence Against Women and Their Children Act)lawphil.net
  14. 14.Republic Act 9710 (Magna Carta of Women)lawphil.net
  15. 15.Proclamation 1006: regular holidays and special days for 2026lawphil.net
  16. 16.Proclamation 1189: Eid'l Fitr 2026lawphil.net
  17. 17.Proclamation 1264: Eid'l Adha 2026lawphil.net
  18. 18.DOLE Labor Advisory 06-20: final pay and certificate of employmentdole.gov.ph

General information, not legal advice. Laws change; check the sources or ask us before acting.

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