hire employees in

Philippines,
made easy

SALARY PAYMENT IN Philippine Peso (₱)

CONTRACT LANGUAGES Tagalog / English

PAYROLL TAX 11.75% + Provident Fund

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours
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Philippines

Simple, compliant hiring with Horizons PEO

Hire Employees in Philippines - Overview

The Philippines is a diverse, populous country with a rapidly growing economy. Made up of thousands of islands, the nation is geographically, culturally, and linguistically unique, making it an exciting place to live, work, and do business.

The Philippines is also an excellent place to hire employees, with relatively low wages, a young population, and a growing economy, but getting started can be time-consuming for foreign businesses that don’t have a foothold in the country.

Facts & Stats

Population

109M (Labor Force 44 million)

Capital City

Manila

Languages Spoken

Filipino & English (Filipino is not commonly spoken globally, in the Philippines English is the language most commonly used in business

Currency

Philippine peso (₱ or PHP)

GDP per capita

Ease of Doing Business

124th in the world

Minimum Wage

On average 570 PHP/day

Average Wage

On average 1,500 PHP/day

Paid Leave

5 days minimum annual leave

The Philippines: Business Environment

Business outlook

In 2020, the Philippines economy declined by 4%. In 2021, the Philippines economy recovered and grew by 8.94%. In 2022, the Philippines economy grew by 7.6%.

The Philippines economy is moving into the modern economy with force, in fact, the European Union has recently pledged 60 million Euros to help the Philippines transition to a green economy. Many are investing in the future of the Philippines.

Business regulation

The Labor Code of the Philippines is a legal code that determines all employment practices and labor relations in the Philippines. In addition, the Philippines Constitution recognizes and guarantees the following rights of workers: Self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with the security of tenure, humane conditions of work, and a living wage.

Business regulation is the Philippines has a mix of Western and Eastern influence that is successful in protecting both employers and employees.

Business culture

Business culture in the Philippines is a blend of Western influence and Eastern influence. Business matters in the Philippines are typically best dealt with in a friendly and pleasant manner. Although much of the workplace can be hierarchically structured, there is still a value placed on inputs from employees at all levels. Where the hierarchal structure can come into play is when it is time to make a decision. Final decisions are usually made by those at the top of the hierarchal ladder in the Philippines.

In addition, it is important to be punctual, friendly, and polite in order to avoid conflict and work efficiently in the Philippines office environment.

Recruiting employees in the Philippines

Recruiting employees in the Philippines – Overview

Over the last decade internet connectivity and social media has carved out a large amount of space in Filipino daily life. Filipinos have a strong online network, especially on platforms such as Facebook and LinkedIn. Much of the recruiting process in the Philippines will take place online, therefore as a business it is important to have a good online presence to attract the best candidates.

Most important recruitment tools in the Philippines

Jobstreet
https://www.jobstreet.com
Jobstreet is the most popular job seeker website in the Philippines and much of South East Asia.

Bossjob
https://bossjob.ph
Bossjob is a Philippines only job website. It is a good place to post a job to find both low and highly skilled workers in the Philippines. Bossjob has over 2 million users in the Philippines.

Kalibrr
https://www.kalibrr.com
Kalibrr launched its job portal in 2015 in the Philippines and has been growing in popularity for both job seekers and employers.

Interviewing employees in the Philippines

Interviewing employees in the Philippines – Overview

While interviewing candidates in the Philippines it is important to keep in mind that Filipinos are polite and respectful and may not be as direct in answering questions as Westerners. It is important to start with small talk because Filipinos value personal relationships and will want to get comfortable with the other person first. In addition, it is important to be respectful, ask open ended questions, and take into consideration cultural differences that may arise.

Can I ask the candidate’s previous salary in the Philippines?

Asking about a candidate’s current salary in not illegal in the Philippines. In the Philippines this is common practice when recruiting candidates, however, the candidate does not have to answer the question.

What is the typical salary increase at a new job in the Philippines?

When a candidate is entering a new job in the Philippines they will typically expect a salary increase of 5% to 6%.

Onboarding employees in the Philippines

Onboarding employees in the Philippines – Overview

Onboarding employees in the Philippines should mainly focus on three things:

First, making the employee feel comfortable by inviting them to meet their co-workers and giving them the proper tools to execute their work.

Second, communicating important information about the role and what is expected of them.

Third, providing proper training to the new employee so they can successfully complete their work.

Best remote working tools to use in the Philippines

There are many remote working tools available that can be used in the Philippines. Below is a list of the most popular ones:

Zoom
Microsoft Teams
Google Meet
Slack
Trello

Internet connectivity and internet literacy in the Philippines is high and these tools can help you stay connected with your team and work collaboratively from anywhere.

Holiday season in the Philippines — 2024

Holiday Schedule in the Philippines [2024]

The Philippines has a range of national public holidays that are celebrated annually. In 2024 these holidays are below. There are 18 national holidays in the Philippines:

Date	Holiday name
01 Jan., 2024	New Year’s Day
9 Feb., 2024	Chinese New Year
10 Feb., 2024	Chinese New Year Holiday
28 Mar., 2024	Maundy Thursday
29 Mar., 2024	Good Friday
30 Mar., 2024	Black Saturday
9 Apr., 2024	The Day of Valor
10 Apr., 2024	Eidul-Fitar
01 May, 2023	Labor Day
12 June, 2024	Independence Day
16 Jun., 2024	Eid al-Adha (Feast of the Sacrifice) *tentative date
21 Aug., 2024	Ninoy Aquino Day
25 Aug., 2024	National Heroes Day
01 Nov., 2024	All Saints’ Day
02 Nov., 2024	All Souls’ Day
30 Nov., 2024	Bonifacio Day
25 Dec., 2024	Christmas Day
30 Dec., 2024	Rizal Day
31 Dec., 2024	New Year’s Eve

What is the typical salary increase employees in the Philippines expect?

Philippine employees typically expect a salary increase of 5.5%. In addition, employees in the Philippines are likely to observe a salary increase of 8% every 18 months.

FAQs

Should I hire freelancers or employees in the Philippines?

The decision to hire freelancers or employees in the Philippines depends on your business needs and goals. Freelancers can be a great option if you need someone for a specific project or task and don’t want to commit to a long-term employee. They can also be more affordable than hiring full time employees.

On the other hand, if you need someone for a long-term position or want more control over their work, hiring an employee may be a better option. Employees can provide more stability and commitment than freelancers. If you don’t have a subsidiary in the Philippines, you might consider the benefits of using a Philippines Professional Employer Organization (PEO) to be the formal employer of your staff in the Philippines.

Can I hire foreigners in the Philippines?

Yes, you can hire foreigners to work in the Philippines.

How do I open a Filipino subsidiary?

If you want to open a subsidiary or branch office you need to secure a Corporate Taxation Registration number by filing a registration document with the Bureau of Internal Revenue. Then next file for a registration with Local Government Unit.

How do I hire employees in the Philippines?

To hire employees in the Philippines you first must:

File your official company name with the Securities and Exchange Commission (SEC).
Get your treasurer’s affidavit and articles of incorporation notarized.
Obtain a taxpayer identification number (TIN).
Create a business bank account.
Determine salary and understand compliance issues.
Post the job ad on job boards Filipino workers will see.
Review applications and conduct interviews.
Consider using a recruitment agency for specialist support.

Many companies find it more cost-efficient to outsource these tasks to a Philippines PEO who can ensure full compliance with local labor and tax laws.

Hiring in Philippines, Made Easy

Your business can easily hire employees in Philippines without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO at MindLabs (UK)

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. They were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVP Software Development, PICS ITech (USA)

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director, Schaeffler Group (Germany)

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources, Devian Chemicals (Belgium)

hire employees in

Philippines,
made easy

Simple, compliant hiring with Horizons PEO