Payroll in Philippines runs in PHP on a twice a month (semi-monthly), at intervals not exceeding 16 days cycle, with statutory employer contributions and 13th-month pay is mandatory for rank-and-file employees, at least one twelfth of annual basic salary, payable by 24 december. Gracemark operates it end-to-end, humans, not tickets.
Currency
PHP, Philippine peso
Payroll cycle
Twice a month (semi-monthly), at intervals not exceeding 16 days
Working week
Normal hours are 8 per day with a 48-hour weekly reference; overtime is at least 25% above the hourly rate on ordinary days and 30% on rest days and holidays
Minimum wage
There is no single national rate; minimum wages are set regionally by Wage Orders and differ by region and sector, with NCR the highest
13th-month
13th-month pay is mandatory for rank-and-file employees, at least one twelfth of annual basic salary, payable by 24 December
Employer cost
Employer social contributions across SSS, PhilHealth and Pag-IBIG typically run roughly 8% to 10% of monthly salary, subject to salary caps and brackets
Probation
Probationary employment is generally limited to 6 months from the start date
Notice period
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
Two ways to run payroll in Philippines
Own-entity payroll
For long-term presence in Philippines. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on South-Eastern Asia time.
EOR-run payroll
No entity in Philippines? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in 1–2 weeks (eor), no local incorporation.
Compliance essentials in Philippines
13th-month pay is mandatory and paid by December
Regularization after 6 months brings strong tenure protection
Statutory minimum is just 5 days SIL, competitive offers exceed it
Three contribution systems: SSS, PhilHealth, Pag-IBIG
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