- Country Guide
- Philippines
Philippines
Last Update by Cecilia, 16 Jan 2025
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Exchange Rate
17 Apr 2025
Cost of Living
Indicative value for a working adult in a city: Manila
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (PHP) |
|---|---|
| McDonalds Set Meal | 260 |
| Monthly Train and Bus Tickets | 500 |
| 3 Bedrooms Rental (City Center) | 92,999 |
| 3 Bedrooms Rental (Outskirt) | 43,599 |
Current Inflation Rate
2.3%
Wage
Minimum Wages
- The minimum wage is PHP645/day, approximate PHP12,900/month.
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (PHP) |
|---|---|
|
Entry-Level
Fresh Graduate
|
15,135 |
|
Mid-Level
5 Years
|
31,553 |
|
Experienced & Managerial Level
10 Years
|
59,433 |
|
Specialized & Senior-Level
15 Years
|
104,744 |
Annual Salary Growth
4.3%
Statutory Contribution
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| Social Security System (SSS) | 10% | 5% | All staff, minimum salary for contribution is PHP5,000, and contribution is capped salary of PHP35,000 |
| PhilHealth | 2.5% | 2.5% | All staff, contribution is capped salary of PHP100,000 per month |
| HDMF | 2% | 2% | All staff, contribution is capped at salary of PHP10,000 per month |
| 13 month salary | 1 month salary | - | All staff in the private sector |
Other Benefit
Other common employment benefits in Philippines include:
- Additional Health Insurance: About PHP 3,000 - PHP 5,500/month
- De minimis:
Rice Subsidy: PHP2,000/month for tax free
Laundry Allowance: PHP300/month
The total annual limit for all de minimis benefits is set at PHP90,000. Any amount exceeding this limit may be subject to taxation. - Home working allowance: About PHP 1,000 - 3,000/month
Income Tax
Residents
-
Tax period: 1 Jan till 31 Dec of the previous year.
Tax filing start date: Feb of the following year.
Tax filing due date: 15 Apr of the following year.
Country Level
| Taxable Income | Rate |
|---|---|
| ≤ 250,000 | - |
| 250,000 – 400,000 | 15% |
| 400,000 – 800,000 | 20% |
| 800,000 – 2,000,000 | 25% |
| 2,000,000 – 8,000,000 | 30% |
| > 8,000,000 | 35% |
Non-residents
- Those who spend a total of 180 days or less in the Philippines are classified as non-tax residents and are only obligated to pay a 25% income tax on income earned within the country.
Working Hours
Statutory
≤ 8 hours per day
Typical practice
≤ 8 hours per day, 40 hours per week
Overtime
- Workdays: 125% of regular hourly pay
- Rest day and public holidays :130% of regular hourly pay
Employment Contract
Permanent
Contract Format
Ususally should be in English. Electronic signature is accpetable
Payroll Currency
PHP
Probation
Up to 6 months
Termination
During the contract period, resignation or termination can be accepted. For the fair termination, employer should notify employee 1 month in advance about the termination reason, also let employee make declaration. If the termination reason is fair, employer should provide fomal termination letter to employee.
Economic Layoff: Provide at least 30 days' written notice to Department of Labor and Employment (DOLE) before the termination date.
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | 30 days | 30 days | 30 days |
| Notice Period - Regular | 30 days | 30 days | 30 days |
| Severance Pay | - | 1 month’s salary or 1 month’s salary for every year of service, whichever is higher. For more than 6 months' serivce should be seen as 1 year | 1 month’s salary or 1/2 month’s salary for every year of service, whichever is higher. For more than 6 months' serivce should be seen as 1 year |
Public Holiday
Country Level
| Date | Name |
|---|---|
| 01 Jan | New Year's Day |
| 27 Jan | Lailatul Isra Wal Mi Raj |
| 29 Jan | Chinese New Year |
| 25 Feb | People Power Anniversary |
| 01 Apr | Eid-ul-Fitr |
| 09 Apr | The Day of Valor |
| 17 Apr - 19 Apr | Maundy Thursday |
| 01 May | Labor Day |
| 06 Jun - 08 Jun | Eid al-Adha |
| 12 Jun | Independence Day |
| 02 Jul | Araw Ng Pasig |
| 21 Aug | Ninoy Aquino Day |
| 25 Aug | National Heroes Day |
| 05 Sep | Maulid un-Nabi |
| 31 Oct - 01 Nov | All Saint's Day |
| 30 Nov | Bonifacio Day |
| 08 Dec | Feast of the Immaculate Conception of Mary |
| 24 Dec | Christmas Eve |
| 25 Dec | Christmas Day |
| 30 Dec | Rizal Day |
| 31 Dec | New Year's Eve |
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave | 5 working days, common practice can be 8-14 working days | All staff with 1 year of service |
| Maternity |
- 105 calendar days for general deliveries - 105 calendar days + 15 days for solo parents - 60 calendar days for miscarriage |
All female staff with 3 months social security contributions within the12 months before birth |
| Sick Leave | No mandatory sick leave. But employee can get 120 days sick leave benefit from SSS if has 3 months social security contributions within past 12 months | All staff |
| Solo Parent Leave | 7 working days | All staff with 6 months service providing sole care and support to a child |
| Special Leave for Women | 2 months | All female staff who undergo surgery due to gynecological disorders |
| Paternity Leave | 7 calendar days per birth, 100% payment up to 4 births | All expectant married fathers |
| Leave for Victims of Violence Against Women and their Children | 10 calendar days | All female staff who have suffered violence, to attend to medical and legal concerns |
Reference
- https://www.numbeo.com/cost-of-living/in/Manila
- https://blr.dole.gov.ph/2014/12/11/labor-code-of-the-philippines/
- https://www.philhealth.gov.ph/partners/employers/ContributionTable_v2.pdf
- https://pagibiginquiries.online/pag-ibig-contribution-table/
- https://www.sss.gov.ph/sss/appmanager/pages.jsp?page=ssbenefits
- https://www.bsp.gov.ph/PaymentAndSettlement/RA8792.pdf
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Contact UsCountry Guide - Philippines
Last updated: 16 Jan 2025
Exchange Rate
Currency (PHP)
- 1 CNY = 0.185 PHP
- 1 USD = 1.32 PHP
Other currencies can be retrieved via the country guide link above.
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Labor Cost Calculator
To know the total employer cost for hiring a staff with certain salary, please go to our main site: https://marcopayroll.com
Cost of Living
Indicative value for a working adult in a city: Manila
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (PHP) |
|---|---|
| McDonalds Set Meal | 260 |
| Monthly Train and Bus Tickets | 500 |
| 3 Bedrooms Rental (City Center) | 92,999 |
| 3 Bedrooms Rental (Outskirt) | 43,599 |
Current Inflation Rate
2.3%
Wage
Minimum Wages
- The minimum wage is PHP645/day, approximate PHP12,900/month.
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (PHP) |
|---|---|
|
Entry-Level
Fresh Graduate
|
15,135 |
|
Mid-Level
5 Years
|
31,553 |
|
Experienced & Managerial Level
10 Years
|
59,433 |
|
Specialized & Senior-Level
15 Years
|
104,744 |
Annual Salary Growth
4.3%
Statutory Contribution
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| Social Security System (SSS) | 10% | 5% | All staff, minimum salary for contribution is PHP5,000, and contribution is capped salary of PHP35,000 |
| PhilHealth | 2.5% | 2.5% | All staff, contribution is capped salary of PHP100,000 per month |
| HDMF | 2% | 2% | All staff, contribution is capped at salary of PHP10,000 per month |
| 13 month salary | 1 month salary | - | All staff in the private sector |
Other Benefit
Other common employment benefits in Philippines include:
- Additional Health Insurance: About PHP 3,000 - PHP 5,500/month
- De minimis:
Rice Subsidy: PHP2,000/month for tax free
Laundry Allowance: PHP300/month
The total annual limit for all de minimis benefits is set at PHP90,000. Any amount exceeding this limit may be subject to taxation. - Home working allowance: About PHP 1,000 - 3,000/month
Income Tax
Residents
-
Tax period: 1 Jan till 31 Dec of the previous year.
Tax filing start date: Feb of the following year.
Tax filing due date: 15 Apr of the following year.
Country Level
| Taxable Income | Rate |
|---|---|
| ≤ 250,000 | - |
| 250,000 – 400,000 | 15% |
| 400,000 – 800,000 | 20% |
| 800,000 – 2,000,000 | 25% |
| 2,000,000 – 8,000,000 | 30% |
| > 8,000,000 | 35% |
Non-residents
- Those who spend a total of 180 days or less in the Philippines are classified as non-tax residents and are only obligated to pay a 25% income tax on income earned within the country.
Working Hours
Statutory
≤ 8 hours per day
Typical practice
≤ 8 hours per day, 40 hours per week
Overtime
- Workdays: 125% of regular hourly pay
- Rest day and public holidays :130% of regular hourly pay
Employment Contract
Fixed-Term
Project-based work, seasonal employment, or temporary staff hiring
Probation
Less than 6 months
Termination
During the contract period, resignation or termination can be accepted. For the fair termination, employer should notify employee 1 month in advance about the termination reason, also let employee make declaration. If the termination reason is fair, employer should provide fomal termination letter to employee.
Economic Layoff: Provide at least 30 days' written notice to Department of Labor and Employment (DOLE) before the termination date.
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | 30 days | 30 days | 30 days |
| Notice Period - Regular | 30 days | 30 days | 30 days |
| Severance Pay | - | 1 month’s salary or 1 month’s salary for every year of service, whichever is higher. For more than 6 months service, should be seens as 1 year service | 1 month’s salary or half month’s salary for every year of service, whichever is higher. For more than 6 months service, should be seens as 1 year service |
Permanent
Probation
Up to 6 months
Termination
During the contract period, resignation or termination can be accepted. For the fair termination, employer should notify employee 1 month in advance about the termination reason, also let employee make declaration. If the termination reason is fair, employer should provide fomal termination letter to employee.
Economic Layoff: Provide at least 30 days' written notice to Department of Labor and Employment (DOLE) before the termination date.
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | 30 days | 30 days | 30 days |
| Notice Period - Regular | 30 days | 30 days | 30 days |
| Severance Pay | - | 1 month’s salary or 1 month’s salary for every year of service, whichever is higher. For more than 6 months' serivce should be seen as 1 year | 1 month’s salary or 1/2 month’s salary for every year of service, whichever is higher. For more than 6 months' serivce should be seen as 1 year |
Public Holiday
2025
| Date | Name |
|---|---|
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave | 5 working days, common practice can be 8-14 working days | All staff with 1 year of service |
| Maternity |
- 105 calendar days for general deliveries - 105 calendar days + 15 days for solo parents - 60 calendar days for miscarriage |
All female staff with 3 months social security contributions within the12 months before birth |
| Sick Leave | No mandatory sick leave. But employee can get 120 days sick leave benefit from SSS if has 3 months social security contributions within past 12 months | All staff |
| Solo Parent Leave | 7 working days | All staff with 6 months service providing sole care and support to a child |
| Special Leave for Women | 2 months | All female staff who undergo surgery due to gynecological disorders |
| Paternity Leave | 7 calendar days per birth, 100% payment up to 4 births | All expectant married fathers |
| Leave for Victims of Violence Against Women and their Children | 10 calendar days | All female staff who have suffered violence, to attend to medical and legal concerns |
Reference
- https://www.numbeo.com/cost-of-living/in/Manila
- https://blr.dole.gov.ph/2014/12/11/labor-code-of-the-philippines/
- https://www.philhealth.gov.ph/partners/employers/ContributionTable_v2.pdf
- https://pagibiginquiries.online/pag-ibig-contribution-table/
- https://www.sss.gov.ph/sss/appmanager/pages.jsp?page=ssbenefits
- https://www.bsp.gov.ph/PaymentAndSettlement/RA8792.pdf
Contact Info
-
Singapore (Headquarters)
8 Marina Boulevard, MBFC Tower 1, #11-01, Singapore, 018981
+65 6653 4334 -
China (Headquarters)
79 Jianguo Road, China Central Place Tower 2, #09-52, Beijing, 100025
+86 10 6580 0555 -
China (Service Center)
23 Dagong Street, Eton Place Tower 2, Unit 1808, Dalian, 116001
-
United States
445 S Figueroa St, 31st Floor, Los Angeles, California, 90071
-
United Kingdom
71 - 75 Shelton Street, London, England GB
-
Netherlands
Vijzelstraat 68, 1017 HL, Amsterdam
-
Australia
Level 22, Salesforce Tower, 180 George Street, Sydney, NSW 2000