Philippines

Employment taxes

• Income tax: Progressive system ranging from 0% to 35%, depending on your earnings.
• Social security contributions: Besides the employer, you will also contribute to SSS (Social Security System) - 5%, PhilHealth - 2,5%, Pag-IBIG Fund (housing and savings) - 1%.
• Taxes and contributions are normally deducted directly from payroll, so you don’t handle much paperwork yourself.

Leave policy

• Annual leave: After one year of service, employees are entitled to 5 days of paid time off per year.
• Public holidays: The Philippines celebrates 18 national public holidays.
• Sick leave: In the Philippines, there is no separate sick leave entitlement beyond the 5 days of paid time off. Beyond these 5 days, the sick leave is unpaid. However, many companies provide dedicated sick leave benefits as part of their employee benefits package.
• Maternity leave: 105 days of fully paid leave (with an optional +30 days unpaid). The social security is responsible for this payment.
• Paternity leave: 7 days of fully paid leave covered by the employer.
• Parental leave: In the Philippines, no law covers parental leave.

Employment termination

• Termination in the Philippines must be based on either just causes (misconduct, neglect, fraud) or authorized causes (redundancy, closures, economic reasons).
• Termination must always be in writing, with proper documentation.
• Notice period: Typically 30 days advance notice.
• Severance pay:
• - Just cause: no severance
• - Authorized cause: usually 15 days to 1 month salary per year of service.

Hiring and contracts

• Types of contracts: The most common types of contracts are regular (or indefinite) employment and various forms of non-regular employment, such as project, seasonal, and fixed-term.
• Contracts must be in English or can be bilingual.
• A valid employment contract should include: job description, salary and pay frequency, working hours, leave entitlements, benefits and bonuses, and termination rules.
• Probation period: Up to 6 months.

Payroll and salary payments

• Frequency: Most companies pay twice per month (semi-monthly).
• Currency: Philippine Peso (PHP).
• National minimum wage: In the Philippines, the minimum wage is set by region, and it is determined by the region the employer's company is incorporated. It ranges from PHP 430-610 per day (EUR 6-9/ USD 7-11).
• Payslips are mandatory and need to show gross pay, deductions, net pay, and pay period.

Benefits

Mandatory

• SSS
• PhilHealth
• Pag-IBIG
• Overtime, night shift premium and holiday pay
• 13th-month pay

Optional

• Private health insurance (very common for professionals)
• Meal or transport allowances
• Sick leave benefits
• Additional days off
• Training budgets
• Hybrid or remote work

Monthly living cost (Manila Edition)

• Rent (1BR city center): €350–€550 / $380–$600
• Utilities: €60–€100 / $65–$110
• Food & groceries: €180–€250 / $190–$270
• Lunch out: €3–€6 / $3–$7
• Public transport: €10–€20 / $11–$22
• Mobile & internet: €18–€30 / $20–$32
• Gym membership: €25–€40 / $27–$43

Living outside Manila is significantly cheaper.

How to get a local ID number (PSN)

The PhilSys Number (PSN) is the Philippines’ national ID number, a permanent 12-digit identifier used for banking, employment, rentals, and official services.

How to get it:

• Register at a PhilSys center or PSA location (bring your passport).
• Your biometrics (photo, fingerprints, signature) will be captured.
• You receive your PSN in the system + a PhilID card delivered to your address.
• A digital PhilID is available while waiting for the physical card.

Social security registration

Your employer handles your enrollment into:

• SSS (pension, disability, sickness)
• PhilHealth (public healthcare)
• Pag-IBIG (housing and savings)

Employers file the forms and submit your details, you only sign the required documents.

Banking

Opening a bank account is straightforward with your visa, ID numbers, and proof of address.

Popular banks include:

• BDO (Banco de Oro)
• BPI (Bank of the Philippine Islands)
• Metrobank
• Security Bank

Digital banking is also strong, GCash and Maya are widely used.

Housing and rental

• Most rentals require 1–2 months’ deposit + 1 month advance rent
• Contracts are usually one year and renewable.
• Tenant rights: Protection against rent increases without proper notice, requirement for landlords to provide habitable living conditions, deposit return unless there is damage

Healthcare system

• PhilHealth provides basic coverage for residents and employees.
• Most professionals also get private health insurance (faster access + better facilities).
• Big hospitals in Manila, Cebu, and Davao are modern and internationally accredited.

Driving and public transport

• Public transport options: jeepneys, buses, MRT/LRT trains, taxis, and ride-hailing apps like Grab.
• Driving: Your foreign driver’s license is valid for 90 days. After that, you can convert it to a local one.
• Traffic in Manila can be heavy, and many expats prefer using Grab or living close to work.

Emergency and important contacts

• Emergency hotline: 911

Work permit and visa requirements

• Foreign nationals that want to work and live in Philippines need a visa and a work permit.
• The work permit is known as Alien Employment Permit (AEP), and your employer applies on your behalf. After obtaining it, you need to apply for the work visa.
• The most common is the 9(g) Pre-Arranged Employment Visa, it has employer-sponsored and is valid from 1 to 3 years.
• You will need a valid employment contract, proof of the employer's legal existence and capacity to hire foreign nationals, and evidence that you have specialized skills or knowledge not available in the Philippine labor market.

Business culture and work norms

• People value kindness and good communication.
• English is widely spoken.
• Teams are collaborative and supportive.
• Workplace hierarchy exists, but it's approachable.