Philippines

Last Update by Cecilia, 15 Jan 2025

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Exchange Rate

15 Jan 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 250
Monthly Train and Bus Tickets 500
3 Bedrooms Rental (City Center) 102,916
3 Bedrooms Rental (Outskirt) 43,833

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

40 hours
8 hours a day, 5 days a week

Overtime

  • Workdays: 125% of regular hourly pay
  • Rest day and public holidays :130% of regular hourly pay

Employment Contract

Permanent

Contract Format

Contracts can be bilingual (English and Filipino) for Filipino nationals.
Online signing permissible provided comply with the Electronic Commerce Act.

Payroll Currency

PHP

Probation

Up to 6 months

Contract Period

No fixed duration and can be renewed indefinitely.

Termination

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
31 Mar 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 up to 15 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
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, 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
Sick Leave 120 days per calendar year All staff with 3 months of social security contributions within the 12 months before sickness
Bereavement Leave 10 working days per year All staff in the event of the death of a spouse, parent, child, brother, or sister

Reference

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