PEO/Employer Of record in the Philippines

Hire staff in the Philippines while we manage all employment and HR operations. No local company is needed! 

PEO/Employer of Record in the Philippines - Hire Employees Compliantly

We are a Professional Employer Organization (PEO) that provides Employer of Record services in the Philippines, also known as “employment solutions” or “PEO solutions”.

Many companies opt to outsource their employment to minimize costs and legal risk when expanding their business operations in the Philippines.

We can help foreign companies navigate through the Philippine employment laws and requirements, saving you time so you can focus on core business activities.

While all employment, HR, administrative and legal matters are outsourced to us, you are able to have a physical presence in the Philippines without the need to set-up a legal entity.

Entity Not Required

Foreign clients do not need to register a legal entity in the Philippines when using PEO services.

100% compliant

We strictly follow official compliance guidelines to ensure a safe legal environment for all clients.

Fast Market Entry

We will help you to hire and onboard employees within one week.

Complete PEO package for efficient and compliant employment

On-board staff in the Philippines without any risks

Employment and payroll regulations in the Philippines

Table of Contents

Employment contracts

The Labor Code of the Philippines dictates the guidelines for all employee/employer relations, specifically on issues such as wages, post-employment benefits, labor standards, safety and health, and conciliation and arbitration procedures.

Working hours

Full-time employment is considered to be 8 hours a day of 48 total hours a week. Employees are guaranteed at least one day of rest in one workweek. 

Annual Leaves

When hiring employees in the Philippines, the length of annual leave is 15 days. Every employee is also entitled to 11 paid public holidays. Workers are entitled to one month of paid annual leave, for each year of continuous work. After 10 years of service, annual leave shall be increased one day per year worked.

Public Holidays

New Year’s Day – January 1
Maundy Thursday – (movable date)
Good Friday (movable date)
Eidul Fitr(movable date)
Eidul Adha(movable date)
Araw ng Kagitingan – April 9
Labor Day (Monday nearest 1 May)
Independence Day (Monday nearest 12 June)
National Heroes Day (Last Monday of August)
Bonifacio Day (Monday nearest 30 November)
Christmas Day – Dec 25
Rizal Day (Monday nearest 30 December)

Probation Period 

Under the Labor Code, probationary employment shall not exceed six (6) months from the date the employee started working unless it is covered by an apprenticeship agreement stipulating a longer period.

Termination and severance pay

An employer may dismiss an employee on the following just causes: serious misconduct; willful disobedience; gross and habitual neglect of duty; fraud or breach of trust; commission of a crime or offense against the employer, his family or representative; installation of labor-saving devices; redundancy; retrenchment to prevent losses; closure and cessation of business; and disease/illness.

In a termination for authorized causes, separation pay is the amount given to an employee terminated due to installation of labor-saving devices, redundancy, retrenchment, closure or cessation of business or incurable disease.

Separation pay follows the below policies of payment:

• Installation of labor-saving devices or redundancy- the equivalent of at least one (1) month pay or one (1) month for every year of service, whichever is higher

• Retrenchment, closure or cessation of business- the equivalent of at least one (1) month pay or one-half (1/2) month pay for every year of service, whichever is higher

• Incurable disease- the equivalent of at least one (1) month pay or one-half (1/2) month pay for every year of service, whichever is greater.

Social security

Under the Social Legislations, a Philippine employer and its employees are required to be members of and make monthly contributions to, the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and Home Development Mutual Fund (Pag-IBIG Fund). The contributions of the employer and its employees are based on the employees’ monthly compensation.

Employee

Social Security: 4.13% of employee’s monthly gross salary.*

Home Development Mutual Fund (Pag-IBIG Fund):  UDS 28.44 and below (1%), Over UDS 28.44 (2%) of employee’s monthly gross salary.

Philippine Health Insurance Corporation (PhilHealth):  UDS 189573.50 and below (USD 2.60)/ USD 189573.50- USD 756.28 (USD 2.60- USD 10.40)

Employer

Social Security: 8.37% of employee’s monthly gross salary.*

Home Development Mutual Fund (Pag-IBIG Fund):  UDS 28.44 and below (2%), Over UDS 28.44 (2%) of employee’s monthly gross salary.

Philippine Health Insurance Corporation (PhilHealth):  UDS 189573.50 and below (USD 2.60)/ USD 189573.50- USD 756.28 (USD 2.60- USD 10.40)

Individual Income Tax

Every individual citizen, alien residing in the Philippines, and every non-resident alien engaged in a trade or business in the Philippines, who is receiving is required to file an income tax return. Taxes are paid annually based on the calendar year.

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