The global capital of English-language support and BPO talent — the mandatory 13th month and regularization rules are the essentials.
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.
Figures reflect current Philippines statutory baselines, reviewed for 2026 and benchmarked against leading global employment providers. Statutory rules change through the year, so we confirm the exact, current numbers for your specific hire.
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 handles employment, payroll, benefits and compliance in Philippines, and 180+ other countries, through one accountable partner. Vendor-agnostic guidance, backed by our own delivery engine.
"They gave us the exact Philippines numbers in a day and had our first hire compliant within the week, no portals, no runaround."
— A Gracemark client, global expansion lead
FAQs
To hire in Philippines, most U.S. companies either open a local entity or use an Employer of Record (EOR). EOR Gracemark handles Philippines employment, payroll, benefits and compliance through one accountable partner.
Employer cost in Philippines is ~12–14% (SSS, PhilHealth, Pag-IBIG). That is on top of gross salary, plus statutory items such as 13th-month / mandatory bonus (13th month (mandatory, Dec)), vacation and social contributions. Gracemark provides an exact quote for your role and salary band.
The current minimum wage in Philippines is Region-set (~₱695/day NCR). Statutory floors change through the year, so Gracemark confirms the exact figure for your hire.
Notice period in Philippines is 30 days. 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 SIL (often more offered). 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 2026 · Gracemark Global
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