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Philippines

How to Hire Workers in Philippines | Employer of Record (EOR) in Philippines

Looking to establish your business in the Philippines? Our EOR services provide expert guidance on local employment regulations, ensuring a smooth entry into this market. We handle all aspects of local employment, from managing payroll to navigating complex labor laws, allowing you to focus on your core business. With our support, you can confidently expand your business into the Philippines, knowing that you have a trusted partner managing your international employment needs.

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The Philippines, known for its friendly people, stunning beaches, and strong economy, is an attractive destination for businesses looking to expand internationally. TCWGlobal serves as your trusted partner in navigating the complexities of hiring in the Philippines, offering comprehensive solutions for building your contingent workforce.

With a population of over 113 million people, the Philippines boasts a large and diverse workforce. From the beautiful islands of Boracay to the bustling city of Manila, the country offers a unique blend of culture and natural beauty.

When expanding your business into the Philippines, compliance with local regulations is crucial. TCWGlobal, as your employer of record, ensures that your contingent workforce is fully compliant, minimizing risks for your organization.

In addition to compliance, TCWGlobal provides personalized services tailored to your specific needs. Whether you require assistance with payrolling management, benefits administration, or any other aspect of HR, our team is dedicated to supporting you.

Partnering with TCWGlobal guarantees a seamless and successful expansion into the Philippines. Our expertise and local knowledge make us the ideal partner for businesses looking to establish a contingent workforce in this dynamic market.
Worker Classifications

A select set of employees (e.g. government, managerial, personal service providers, etc.) are exempt from working hour regulations.

Fixed-Term Contracts

Fixed-term contracts are permitted but are not common in the Philippines. They should be used only for highly educated Workers or highly technical positions.

Probationary Periods

Probationary periods are not mandatory, but are allowable for up to 6 months. It is typical for a probationary period to last 3 months.

Holidays

Workers in the Philippines recognize 12 paid public holidays. Work performed on a public holiday is payable at 200%. There are three special holidays (Benigno S. Aquino Jr. Day, All Saints Day, and the last day of the year) which are unpaid holidays. If work is performed on a special holiday, it is payable at 130%.

Vacation

Workers are entitled to Service Incentive Leave after one year of service, which can be used for vacation or sick leave. Many employers elect to voluntarily offer additional days of paid vacation annually.

Sick Leave

Workers are entitled to service incentive leave (see "Unique Country Nuances") which can be used for vacation or sick leave. Workers that have paid three months of social security contributions in the preceding year and are ill for more than three days are entitled to 90% of wages, to be paid by the employer subject to reimbursable from the government.

Working Hours

A standard workday is 8 hours per day with a 60-minute lunch break. Nightwork (10:00 p.m. to 6:00 a.m.) must be paid at a premium of 110%. A full 24 hours of rest must be provided after each six consecutive days of work. Work on a rest day must be paid at 130%.

Overtime

Any hours worked over the standard workday are considered overtime, payable at 125%.

Mandatory Bonuses

Most Workers are entitled to a 13th-month bonus equal to one month's salary payable in December each year.

Termination

Except in cases of serious misconduct or fraud, termination requires just cause, adequate notice generally of at least 30 days, and proper procedure including a hearing. Depending on the reason for termination, severance may also be due. Wrongfully dismissed Workers may be entitled to reinstatement, among other remedies. 

Resignation

Workers may resign for any reason by providing one month's written notice.

Other End of Employment Rules

If the termination is for an "authorized cause" such as redundancy or business closure, Workers are entitled to severance.

Unique Country Nuances

Every Worker is entitled to five days of paid Service Incentive Leave after one year of service, which can be used for vacation or injury/illness. If not used by the end of the year, it should be paid to the Worker in cash.

Mandatory Employer Costs

Home Development Mutual Fund (HDMF): a national savings program that also offers shelter financing to its members. Social Security, Social Security Mandatory Provident Fund (SSS MPF): protects its members and beneficiaries too. Members can avail of sickness, maternity, loan, retirement/pension, disability, funeral and death benefits. Philippine Health Insurance Corporation (PHIC): provides Filipinos with financial assistance and access to affordable health services.

Benefits

"SSS (Social Security System) offers social insurance, including sickness, maternity, disability, retirement, and death benefits. Both company and workers contribute to the SSS fund, ensuring financial security throughout an worker’s career PhilHealth: The Philippine Health Insurance Corporation provides health insurance coverage. Company and workers contribute to PhilHealth, which helps cover medical expenses and hospitalization". SSS Contributes to workers, pension.

Leave

Annual leave rolls over year to year if not used.

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.