Build your workforce in Philippines through the model that fits your goals, not the model a single provider wants to sell. Gracemark helps you compare recruitment, EOR, AOR, contractor, payroll and market-entry options through one accountable workforce partner.
A real workforce specialist replies within one business day. Initial model and cost path within 48 hours. No obligation.
Before you hire in Philippines
Philippines carries its own employment rules, statutory costs and termination exposure. Get the wrong setup and it means back-pay, penalties and misclassification claims. Here is the complete snapshot, free, so you can plan before you ever talk to us.
A large, English-proficient labour pool with exceptional depth in BPO, IT-BPM and shared-services roles.
Gracemark recommendation: EOR for first hires; entity or managed-services assessment for scaled operations
The figures above are statutory baselines drawn from the sources listed below. Typical market practice in Philippines often sits above the statutory floor, and the right model depends on the role, salary band and engagement type.
Educational workforce-planning information, not legal or tax advice. Requirements and service availability depend on the worker, role, location, compensation and engagement model; Gracemark confirms the current position before engagement.
What to look for
Each of these shifts your cost, timeline and legal exposure. We walk you through all of them, and handle them for you, so nothing turns into a surprise later.
Gracemark supports employment, payroll, benefits and compliance in Philippines, and 100+ countries, through one accountable partner, delivered directly or through vetted in-country partners depending on the market. Model-agnostic guidance, one point of accountability.
A real workforce specialist replies within one business day. Initial model and cost path within 48 hours. No obligation.
FAQs
To hire in Philippines, most U.S. companies either open a local entity or use an Employer of Record (EOR). EOR for first hires; entity or managed-services assessment for scaled operations Gracemark handles Philippines employment, payroll, benefits and compliance through one accountable partner.
Employer cost in Philippines is Employer social contributions across SSS, PhilHealth and Pag-IBIG typically run roughly 8% to 10% of monthly salary, subject to salary caps and brackets. That is on top of gross salary, plus statutory items such as 13th-month / mandatory bonus (13th-month pay is mandatory for rank-and-file employees, at least one twelfth of annual basic salary, payable by 24 December), vacation and social contributions. Gracemark provides an exact quote for your role and salary band.
The current minimum wage in Philippines is There is no single national rate; minimum wages are set regionally by Wage Orders and differ by region and sector, with NCR the highest. Statutory floors change through the year, so Gracemark confirms the exact figure for your hire.
Notice period in Philippines is Just or authorized cause is required; authorized-cause terminations need 30 days' written notice to the employee and DOLE plus separation pay, typically half to one month's pay per year of service depending on cause. Termination complexity is rated high. Getting termination and severance wrong is one of the most expensive mistakes in Philippines, plan it before the first hire.
Statutory annual leave in Philippines is 5 days of paid Service Incentive Leave per year after one year of service; most employers grant more contractually. Parental leave is 105 days maternity, 7 days paternity. Sick leave is Part of SIL / company. Public holidays: ~18 (regular + special).
Time to hire in Philippines is typically 1–2 weeks (EOR) through an EOR, versus 3–6+ months to open an entity. That is why most first hires in Philippines go through an EOR.
Misclassification risk in Philippines is rated high. Full-time, exclusive, day-to-day contractor arrangements are the most exposed, penalties include back-pay, statutory benefits and fines. Gracemark advises on when a contractor, EOR employee or entity hire is defensible.
Last reviewed: August 13, 2026 · Gracemark Global
Nearby markets
The easy way to reach us
No long form and no questions to answer. Type a line, leave an email or phone, and a real person replies within one business day.
Bring us the workforce problem.
A real person replies within 1 business day.