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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 14,028.75 per month.

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.

The employer cost is generally estimated at ~12.50% of the employee salary:

•  Philippine Health Insurance Corporation (PhilHealth): 2.5%
• Social Security: ~10%
• Home Development Fund (HDMF): PHP 200 

Philippine Health Insurance Corporation (PhilHealth) contribution is capped at PHP 2,500/month. 

Social Security contributions are calculated on the employee’s monthly salary credits (MSC) and capped at PHP 3,530/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.

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

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.

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.

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.

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.

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.

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

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.

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