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The Philippines is emerging as a leading destination for global hiring thanks to its thriving economy and skilled and educated workforce, many of who are proficient in English. It’s also cost-effective to hire in the Philippines, and the Filipino talent pool is well-equipped to meet the needs of various industries, particularly in business process outsourcing (BPO), healthcare, and technology.
However, hiring remote talent from the Philippines requires navigating the country’s complex labor laws, compliance requirements, and administrative processes. Employers need to understand the Labor Code of the Philippines, which governs working days, minimum wage requirements, overtime pay, and mandatory employee benefits such as annual leave, public holidays, maternity leave, and paternity leave.
This comprehensive guide will cover important Filipino employment laws as well as best practices for finding and hiring remote talent in the Philippines.
Companies must follow several employment laws to legally hire employees in the Philippines. For example, employees and employers must contribute to PhilHealth, the national health insurance program. Additionally, employers need to register employees with the Social Security System (SSS) and make regular contributions. Contributing to the housing loan Home Development Mutual Fund, also known as the Pag-IBIG Fund, is mandatory.
Filipino workers are entitled to 13th-month pay, which is equivalent to one month’s salary. This benefit is mandatory and can be paid in full around December 24 or split into two payments, with the other half paid in June.
Not complying with these laws can result in severe consequences, such as hefty fines and even imprisonment. Learn more about employment laws in the Philippines.
One of the most effective ways to connect with talent in the Philippines is through online job boards. Platforms like LinkedIn offer employers a streamlined process for creating and posting job listings, simplifying connecting with candidates who possess the desired skills and experience. JobStreet, a leading job portal in the region, offers access to a vast pool of job seekers, featuring a user-friendly interface and an extensive range of job listings tailored to various industries.
Indeed and Bossjob also offers businesses valuable access to local experts and professionals, providing additional channels for recruitment and ensuring a diverse talent pool. Leveraging these platforms makes it easier and more efficient for companies to connect with promising candidates.
Many job seekers rely on recommendations from their networks, and referrals from trusted sources often yield high-quality candidates. Organizations like the Philippines Business Referral Network (PBRN) and Business Network International (BNI) help professionals build relationships through strategic networking. These groups can play a valuable role in forming connections by offering structured referral-sharing environments.
Employers of Record (EOR) help companies hire full-time and contractor talent in the Philippines. In addition to facilitating the recruitment process, EORs can also perform background checks and assist with applying for visas and work permits.
Once you’ve identified several promising candidates, the next step is to schedule and conduct interviews. For remote positions in the Philippines, the interview process typically begins with a screening via video call on platforms such as Zoom, Google Meet, or Skype. These initial calls help employers assess candidates’ communication skills, cultural fit, and suitability for the role.
Share a clear interview agenda with candidates in advance, including the interviewers’ names, titles, and LinkedIn profiles, and an overview of some potential questions and topics.
Choose a quiet, well-lit environment for the interview, minimizing distractions to create a professional atmosphere that encourages effective communication.
Encourage candidates to elaborate on their experience by asking open-ended and situational questions that invite more than just yes or no responses.
Document key points during the interview and share feedback with candidates promptly after the session. Clear communication is essential to keep candidates engaged and to ensure a positive experience.
After the initial screening, consider asking candidates to complete a series of assessments to gauge their technical skills and job-related competencies. These could include coding tests, case studies, or project simulations, depending on the specific requirements of the role.
After selecting a candidate, employers are legally required to send a formal offer letter that includes details such as job title, start date, salary, working hours, and benefits. This employment contract should also outline any requirements around background checks, probationary periods, confidentiality clauses, termination provisions, and severance pay.
A comprehensive onboarding is essential for setting new employees up for success and ensuring new hires understand their responsibilities and company policies.
Aligning your onboarding with Filipino cultural values will enhance the integration process. For example, incorporating group activities and team-building exercises can foster camaraderie, as Filipinos often value strong interpersonal relationships.
A structured orientation will help employees understand their roles, general expectations, the company culture, and communication norms, especially if working asynchronously. For example, you should clarify expectations around response times, communication channels, and working hours.
Schedule introductions with relevant team members to build a sense of belonging from day one. Virtual coffee chats, team lunches, or icebreaker activities will help new hires connect with their colleagues.
Equip new employees with the core skills and knowledge needed to excel in their roles with job-specific training. This might include shadowing experienced team members or participating in workshops that simulate real work scenarios.
Additionally, teaching new hires about the software and tools they’ll be using — such as project management platforms, communication tools, or specialized industry software — ensures they’ll be ready to hit the ground running.
Providing your new hire with training and development opportunities, such as online courses and the option to attend industry conferences, is essential for keeping your employees informed about the latest industry trends and best practices.
Implementing a mentorship program, where experienced employees guide newer team members, can foster a learning and collaboration culture, help build employee loyalty, and improve retention.
Regular 1:1 meetings allow managers to offer ongoing feedback and guidance and gives employees a chance to ask questions or make suggestions. Providing ongoing coaching will help employees enhance their existing skills and learn new ones.
When hiring employees in the Philippines, you have two options: establish a legal entity, which can be time-consuming and costly, or partner with an Employer of Record (EOR). Working with an EOR allows businesses to hire in another country without setting up a business entity and helps mitigate the risk of inadvertent labor law violations.
An EOR like Remofirst can simplify this process by taking on all human resources functions on your behalf. This includes hiring, onboarding, payroll, and compliance with local labor laws.
EORs can also assist in hiring contractors across 150+ countries, making it easier to manage a global workforce. To learn more about how an EOR can streamline your hiring process and ensure compliance, book a demo.
