Philippines

• New Year's Day
• Chinese New Year
• People Power Revolution
• Maundy Thursday
• Good Friday
• Black Saturday
• Day of Valour
• Eid ul-Fitr
• Labour Day
• Independence Day
• Eid-Ul-Adha
• Ninoy Aquino Day
• National Heroes Day
• All Saints' Day
• Bonifacio Day
• Immaculate Conception Day
• Christmas Holiday
• Christmas Day
• Rizal Day
• New Year's Eve

Working Hours

Employees can work up to eight hours a day.

Minimum Wage

The Philippines’ minimum wage rate varies from one region of the country to another and is set by the relevant Regional Tripartite Wages and Productivity Board. The current daily minimum wage rates by region are as follows:

• National Capital Region (NCR): 645 PHP
• Cordillera Administrative Region (CAR): 430 PHP
• Ilocos Region (Region I): 402.00–435.00 PHP
• Cagayan Region (Region II): 480 PHP
• Central Luzon (Region III): 475-525 PHP
• Calabarzon (Region IVA): 450-460 PHP
• Mimaropa (Region IVB): 369-395 PHP
• Bicol Region (Region V):  395 PHP
• Western Visayas (Region VI): 450-480 PHP
• Central Visayas (Region VII): 501 PHP
• Eastern Visayas (Region VIII): 435 PHP
• Zamboanga Peninsula (Region IX): 401-414 PHP
• Northern Mindanao (Region X): 423-438 PHP
• Davao Region (Region XI): 462-481 PHP
• Soccsksargen (Region XII): 430 PHP
• Caraga (Region XIII): 385 PHP
• Autonomous Region in Muslim Mindanao (ARMM): 316-361 PHP

Employee Tax

Annual income	Tax rate
Up to PHP 250,000	0%
PHP 250,000 - 400,000	15%
PHP 400,000 - 800,000	20% + PHP 22,500
PHP 800,000 - 2,000,000	25% + PHP 102,500
PHP 2,000,000 - 8,000,000	30% + PHP 402,500
More than PHP 8,000,000	35% + PHP 2,202,500
Social security system	4.5%
Home Development Mutual Fund (HDMF)*	1-2%
Philippine Health Insurance Corporation (PHIC)	1.75%

*1% below PHP 1,500 or 2% above PHP 1,500.

Bonuses

Employees in the Philippines are entitled to a 13th-month salary. This can be split in two, with half paid in June and the other half paid in December.

There are no restrictions or requirements for employment contracts in the Philippines.

The following types of contract are permissible in the Philippines:

• Permanent employment
• Project employment
• Seasonal employment
• Casual employment
• Fixed-term employment

Annual Leave

Minimum of five days' paid holiday per year, after one year of service.

Sick Leave

There is no statutory sick pay in the Philippines.

Parental Leave

• Maternity leave: at least 105 days' fully paid leave.
• Paternity leave: seven days' paid leave.

Termination Process

Employment in the Philippines is not at will. Dismissals are only permitted in limited circumstances. Termination notice must be given in writing, and proper dismissal processes must be followed.

Grounds for termination include:

• Serious misconduct
• Neglect of duties
• Fraud or breach of contract
• Criminal acts against the employer
• Redundancy
• Business closure

Employees can also end a contract, by giving at least 30 days’ notice.

Severance Pay

Employees are entitled to one month’s severance pay, or one month’s severance pay per year of service, whichever is higher.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions.  The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.