From the bustling streets of modern Manila to the ancient Banaue Rice Terraces, the Philippines is a thriving, populous country amid technological advancement and an economic transformation.
Thanks to the Filipino government’s recent investment in digital infrastructure, the island nation is becoming known as a hub for companies seeking to hire remote workers, particularly in the technology sector.
With a population of 116.5 million (about 28% of whom have attended college), the Philippines has an established workforce ready for remote work opportunities.
Key takeaways:
- A large pool of English-speaking workers makes the Philippines desirable for remote hiring.
- Employers hiring remote Filipino employees need to follow wage standards, contracts, and other local labor laws in the country.
- One of the easiest ways to ensure compliance with Filipino laws and pay employees is to work with an Employer of Record (EOR).
Advantages of Hiring in the Philippines
The Philippines is the third-largest English-speaking country in the world. In addition, its time zone (UTC/GMT +8 hours) can benefit companies hiring for 24/7 call center roles.
Here’s a quick overview of the Philippines:
- Languages: Filipino (the standardized form of Tagalog), English
- Currency: Philippine Peso (PHP)
- Capital City: Manila
- Population: 115.6 million
- Cost of Living Rank: 97th
An Educated English-Speaking Population
The Filipino work ethic is well-known globally — and it shows in the data as over 95% of residents are employed.
English is one of the primary languages used in Filipino life, and there is a high level of English proficiency. A 2023 survey found that 69% of Filipinos can write in English, while 55% can speak it fluently.
A growing number of residents pursue higher education and employment in the tech sector.
Filipinos often work on remote teams in these industries, among others:
- IT Services and Tech Support
- Software Development
- Customer Support
- Virtual Assistance
- Digital Marketing
- Medical Transcription
Employment Laws: Hiring Compliantly in the Philippines
Employment Contracts
There are several types of employment contracts in the Philippines, each with its own regulations. Some of these include:
- Regular: The most common type of employment contract is an open-ended arrangement with no specified end date.
- Probationary: This temporary contract converts to a regular one unless either party terminates the agreement during the probationary period.
- Fixed-Term/Project-Based: These temporary contracts cover either a specific period or project, and once that ends, the contract terminates.
Working Hours & Pay
The standard work hours for full-time employees in the Philippines are eight hours daily, five days a week, although this extends to six days in specific industries. At least one day per week must be a rest day.
As of 2024, the minimum wage in the Philippines is PHP 608 for agricultural, service, and retail roles and PHP 645 per day for non-agricultural roles.
Employees are also entitled to 13th-month pay, the equivalent of 1/12th of their annual salary. This benefit is mandatory and can be paid in full around December 24 or split into two payments, with the second paid in June.
Probation Periods
Probationary periods, while not mandatory, generally range from three to six months and cannot exceed 180 days.
Employer Taxes
Employers in the Philippines need to pay various taxes and contributions, including:
- Social Security
- Philippine Health Insurance Corporation
- Home Development Mutual Fund
- Severance Pay Fund
Termination Process & Severance Pay
Employers can terminate employees in the Philippines for just cause, including misconduct, theft, forgery, and substance use. For probationary employees, a minimum of seven days’ notice is mandatory, while a minimum of 30 days is required for employees on a regular contract.
It’s also possible to provide payment instead of notice. Depending on the gravity of the employee offense, termination can occur immediately with payment.
Employees terminated for authorized reasons, like redundancy, illness, or closure, are entitled to severance pay. The amount is determined by the length of service and why the employment contract ended. It ranges from half a month to one month of pay for every year of service.
Paid Leave Laws in the Philippines
Vacation and Holiday
Filipino employees are entitled to five days of annual paid leave, known as Service Incentive Leave (SIL), after completing one year of service with their employer.
SIL can be used for sick or vacation leave. However, most employers offer more paid annual leave, with 15 being the average.
There are 18 official paid public holidays, and employees who work on holidays receive double their standard wages.
Sick Leave
Sick leave in the Philippines is not officially mandated, although employees can use SIL as sick days. Still, most employers choose to provide additional sick leave.
Maternity Leave
Filipino employees receive 105 days of paid maternity leave, with another 30 days of optional leave available in certain circumstances. Single mothers receive 15 additional days of leave.
Women can also qualify for up to 60 days of leave for a miscarriage or termination of pregnancy.
Paternity Leave
Married men in the Philippines can take up to seven days of paid leave after the birth of a child.
Why Digital Nomads Love The Philippines
The Philippines offers a digital nomad visa, allowing visitors who work for a foreign employer to reside there for up to one year. At that point, they can apply for an additional one-year renewal.
Remote workers love living in the Philippines due to its low cost of living, warm climate, and growing community of expats. Workers who plan to travel in Asia can also enjoy the Philippines as a home base with affordable flights to other Southeast Asian countries.
Many expats enjoy the thriving community in the beachside city of Cebu or the surf town of Siargao. Others stick to the well-trod capital city of Manila, especially the trendy Makati neighborhood. The Philippines has much to offer any digital nomad looking for global employment.
How to Pay Remote Workers in the Philippines
There are several ways to pay remote employees in the Philippines, including bank wires, digital payment platforms like Wise and PayPal, cryptocurrency, and more.
While common, these may not be the most reliable or economical options for employees or employers due to fees, etc. In addition, some payment methods may not comply with Filipino regulations, which leaves employers at risk for legal and financial complications.
An easy and secure way to pay Filipino employees and contractors is to partner with an Employer of Record (EOR).
Hire in the Philippines with RemoFirst
RemoFirst helps companies employ talent in more than 180 countries. By serving as the legal employer, RemoFirst simplifies the international hiring process and handles all HR-related tasks, such as onboarding, payroll, and legal compliance.
Planning to hire Filipino talent? Book a demo with RemoFirst and learn how we can simplify HR processes, legal compliance, and more for all of the remote staff on your team.
