If you’re looking to hire employees in the Philippines for your business, AYP Group can help make the process easy. Our Philippines EOR service handles HR, benefits, payroll, and tax needs, allowing you to quickly hire employees and test out new markets in the Philippines. Our EOR solutions enable you to build your team without the legal and financial responsibilities of setting up a separate entity or worrying about contractor risks. Let us handle the details while you focus on your business goals. Contact us today to get started!

 

 

 

Country Overview 

The Philippines is a Southeast Asian country located in the western Pacific Ocean. It is made up of over 7,000 islands, which are grouped into three main geographical regions: Luzon, Visayas, and Mindanao. The country has a population of around 109 million people, making it the 12th most populous country in the world. . The country is a major exporter of semiconductors and electronic products, as well as clothing and accessories, coconut oil, and fruit.

 

Capital City

Manila

 

Currency

MYR (Malaysian Ringgit)

 

Principal Language

Tagalog 

 

Government

presidential representative democratic republic 

 

Employment contracts

In the Philippines, employment contracts can be either fixed term or indefinite term.

A fixed-term contract is one where the employee is hired for a specific period of time, after which the contract is terminated. This type of contract is often used for temporary or project-based work. The employer and employee must agree on the duration of the contract, which must not exceed five years.

An indefinite-term contract, also known as a regular or permanent contract, is one where the employee is hired without a fixed expiration date. This type of contract is used for ongoing or long-term work. An indefinite-term contract can be terminated by either the employer or the employee, but only for specific legal reasons, such as serious misconduct or gross negligence on the part of the employee, or the occurrence of business closure or serious financial losses on the part of the employer.

Both fixed-term and indefinite-term contracts must be in writing and must comply with the provisions of the Philippine Labor Code and other relevant laws.

 

Working Hours

The standard working hours are eight hours a day for five days a week, or a total of 40 hours per week. 

 

Public holidays

 

Here is a list of national holidays in the Phillippines:

  1. New Year’s Day (January 1)
  2. Araw ng Kagitingan (Day of Valor, also known as Bataan and Corregidor Day, April 9)
  3. Labor Day (May 1)
  4. Independence Day (June 12)
  5. National Heroes Day (last Monday of August)
  6. Bonifacio Day (November 30)
  7. Christmas Day (December 25)
  8. Rizal Day (December 30)
  9. New Year’s Eve (December 31)

 

Benefits contribution

The Philippine Labor Code and other relevant laws provide for certain mandatory benefits that must be provided by the employer to its employees, such as:

  1. Social security benefits: These benefits are administered by the Social Security System (SSS), a government-owned and controlled corporation that provides social protection to workers and their families in case of sickness, disability, maternity, old age, or death. The employer is required to contribute a certain percentage of the employee’s salary to the SSS, along with a corresponding contribution from the employee.
  2. Health benefits: These benefits are administered by the Philippine Health Insurance Corporation (PHIC), also known as PhilHealth, a government-owned corporation that provides health insurance coverage to eligible employees and their dependents. The employer is required to contribute a certain percentage of the employee’s salary to PhilHealth, along with a corresponding contribution from the employee.
  3. Retirement benefits: These benefits are intended to provide financial security to employees during their retirement years. The employer may provide retirement benefits to its employees through a retirement plan or pension scheme, which may be funded by the employer, the employee, or both.

 

Find out about AYP’s total workforce management solution today! 

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