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The Philippines continues to be a top-tier destination for global business outsourcing because of the its high-volume, cost-effective transactions, and high fluency in the English language. Filipino tech talent are likely to join organizations that show high process efficiencies, continuous talent improvement/development, and an empowered, accountability-driven culture.
In-Demand Roles
Titles are commonly used in the Philippines, both casually and professionally. People often call others "Ate", "Kuya", "Ma'am", or "Sir." It's normal for a subordinate to call a superior "Ma'am" or "Sir," reflecting respect and hierarchy in the workplace.
'Hiya' or 'mahiyain' is a Filipino value emphasizing modesty and reputation. Employees take pride in how they are perceived and avoid public embarrassment. Preserving one's pride is crucial to maintaining a positive workplace dynamic.
Filipinos are adept at navigating both Western and Asian cultures, shaped by a history of East and West influences. This cultural blend, along with frequent interaction with tourists and foreign professionals, allows them to communicate effectively in cross-cultural settings.
Filipinos are known for their strong work ethic, discipline, and productivity. They thrive in structured environments with clear processes. The concept of 'kapwa' or togetherness fosters a collectivistic culture, where teamwork is valued regardless of differences in status or wealth.
The minimum wage varies between regions and industry, particularly agriculture and non-agriculture. For example, the minimum wage for a non-agriculture worker in the National Capital Region is ₱610. It is ₱443 in the Davao Region
Employees who work in excess of 8 hours are entitled to overtime pay of 25% on top of their normal wage, or 30% for if the work is done on a rest day
The 13th-month pay, also known as a 13th salary or bonus, is an additional compensation provided beyond an employee's base annual salary. This supplementary payment is usually equivalent to 1 month's salary and is disbursed within the financial year, typically before 24 December
In Philippines, there are typically two types of employment agreements:
Probationary periods are permitted and the maximum period allowed is 6 months
The Philippines comprises different categories of holidays called regular holidays or special holidays. Employees who are required to work on public holidays are entitled to double pay – a pay rate of 130% applies on special non-working days. Employees are entitled to 10 paid public holidays which are rather unique to the country:
In addition, there are several special non-working days which may vary from year to year. While official public holidays are paid days off, non-special working days are unpaid rest days. They include:
Annual Leave
Special Leave
Medical Leave
Corporate income tax rate for both domestic and resident foreign corporations is 30% based on net taxable income.
Residents' income in the Philippines is taxed progressively up to 32%. Residents are taxed on their total net income from sources both within and outside the country.
| Taxable Income Band (PHP) | Tax Rate |
|---|---|
| 0 – 10,000 | 5% |
| 10,000 – 30,000 | 10% |
| 30,000 – 70,000 | 15% |
| 70,000 – 140,000 | 20% |
| 140,000 – 250,000 | 25% |
| 250,000 – 500,000 | 30% |
| 500,000 and above | 35% |
Labor law in the Philippines provides for a 13th salary which should be paid by the 24th of December of every year, or in two installments – one in June and one in December.
Pro-rating applies if an employee commences work at any time within the calendar year, and has worked for at least a month
Up to 3 months for permanent employees; 1 month for probationary employees.
