Your essential guide to the workforce, working customs, and labor rules in Philippines
Manila
Philippine Standard Time UTC +8
Philippine Peso (PHP)
FIlipino, English
Bi-Monthly
13.5%
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
Full Stack Developer
Sales Development Representative
Account Manager
Business Development Executive
Product Marketing Executive
Titles and nicknames
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.
Importance of pride
‘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.
Effective in bridging cultures
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.
Strong service orientation and hardworking
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.
0 – 10,000
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.
Glints specializes in Southeast Asia, making us the ideal partner for your expansion. Let’s work together to simplify hiring and ensure compliance in Philippines.