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Public Holidays Calendar

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Philippines 2022
Day Date Holiday Notes
Saturday Jan-1 New Year's Day
Tuesday Feb-1 Lunar New Year
Friday Feb-25 ESA Revolution Anniversary
Saturday Apr-9 Day of Valour
Thursday Apr-14 Maundy Thursday
Friday Apr-15 Good Friday
Saturday Apr-16 Black Saturday
Sunday May-1 Labour Day
Tuesday May-3 Festival of Breaking the Fast Tentative
Sunday Jun-12 Independence Day
Friday Jun-10 Feast of the Sacrifice Tentative
Sunday Aug-21 Ninoy Aquino Day
Monday Aug-29 National Hero's Day
Tuesday Nov-1 All Saint's Day
Wednesday Nov-30 Bonifacio Day
Thursday Dec-8 Feast of Immaculate Conception of Mary
Sunday Dec-25 Christmas
Friday Dec-30 Rizal Day
Thursday Jan-1 Confirmation of public holidays for Eid Al Fitr and Eid al-Adha are still to be announced.
Countrypedia

Philippines
Payroll and Benefits Guide

Last updated: Oct 06, 2021
Currency
Philippine Peso (PHP)
Payroll Frequency
Bi-Monthly
Employer Taxes
11.75% + provident fund

Papaya Offers Complete Payroll, PEO and Contractor Management Services For Philippines

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Overview

Capital
Manila
Currency
Philippine Peso (PHP)
Date Format
mm/dd/yyyy
Fiscal Year
1 January- 31 December
Public holidays calendar

COVID-19

To cushion the impact of the Coronavirus, social security contributions will currently remain at 12% instead of increasing to 13%. The House of Representatives approved the measure granting the President the power to suspend the hike in the SSS contribution rate while its counterpart bill remains pending in the Senate.

Contributions

Employer

Employer Payroll Contributions

8.00%
Social Security System (SSS) (maximum contribution 2,155 PHP)
1.75%
Philippine Health Insurance Corporation (PHIC) (salary ceiling 80,000 PHP PHP)
2.00%
Home Development Mutual Fund (HDMF) (Pag-ibig)
425 PHP per month
Provident Fund (WISP)
11.75% + provident fund Total Employment Cost

Employee

Employee Payroll Contributions

4.00%
Social Security System (SSS) (maximum contribution 1,125 PHP)
1.00% - Below PHP 1,500
Home Development Mutual Fund (HDMF) (Pag-ibig)
2.00% - Above PHP 1,500
Home Development Mutual Fund (HDMF) (Pag-ibig)
1.75%
Philippine Health Insurance Corporation (PHIC)
225 PHP per month
Provident Fund (WISP)
Up to 7.75% + provident fund Total Employee Cost

Employee Income Tax

0.0%
up to 250,000 PHP
20.0%
250,000 PHP - 400,000 PHP
25.0%
400,000 PHP - 800,000 PHP
30.0%
800,000 PHP - 2,000,000 PHP
490,000 PHP plus 32% of the excess over 2 million PHP
2,000,000 PHP – 8,000,000 PHP
2.41 million PHP plus 5% of the excess over 8 million PHP
8,000,000 PHP and over

Minimum Wage

General

The National Minimum Wage in the Philippines is 537 PHP per day. 

Payroll

Payroll Cycle

The payroll cycle in the Philippines is generally monthly, and payment is made at least once every two weeks or twice a month at intervals not exceeding 16 days.

13th Salary

A 13th salary must be paid on or before 24th December and is equivalent to one month’s pay (Aguinaldo).

Working Hours

General

A standard work day is 8 hours. 

Overtime

Hours in excess of the regular workweek are considered overtime and is regulated by the employment contract or collective agreements.  In general, overtime is paid at the rate of 125% of the regular pay. 

Senior managers are excluded from overtime pay. 

Working Week

Monday–Saturday

Leave

Paid Time Off

Paid leave in the Philippines is outlined in the employment contract as a minimum of 5 days paid leave a year after the completion of 1 year of employment. This leave can be used as holidays or sick days.

If leave is not taken within the year, the employer can pay out unused leave. 

Public Holidays

There are 18 holidays.

The Department of Labor and Employment released labor advisories to guide employers on rules for payment for employee’s premiums for employees who will report for work on the 1st January 2022. 

Sick Days

Sick leave allowance falls under paid annual leave.

Maternity Leave

Female employees who have completed at least one years of employment are entitled to a yearly service incentive of 5 days paid leave which they can use towards maternity leave.  In addition, the employee is entitled to 105 days paid maternity leave after the due date. For single mothers, the entitlement increased to 120 days.

The maternity benefit is paid to the employee at the rate of 100% of the regular pay by the employer and is reimbursed to them through social security. 

Paternity Leave

The father is entitled to mandatory paid paternity leave of 7 days from the child’s date of birth. 

Parental Leave

Additional Parental leave in the Philippines consists of 7 days for single parent leave and 10 days for women and their children who are victims of violence. 

Termination

Termination Process

The termination process is standard in the Philippines based on the prescribed list of termination reasons contained within article 16 of the General Labour Law unless an employer can provide sufficient cause for dismissal without notice (i.e. misconduct).

Notice of termination must be in writing and sent to the relevant governmental authorities. 

Notice Period

Employees must provide a minimum of 30 days’ notice.

Severance Pay

Severance pay is applicable if the employer initiated the termination for authorized causes and is equal to one months’ pay for every year of employment.   

Probation Period

The probation period in the Philippines for definite employees is 6 months. 

VISA

VISA

Any foreigners coming to work in the Philippines are required by the Bureau of Immigration (BI) to secure a work visa. 

Different work visas/permits are available depending on the individual circumstances, skills, and work type. The following documentation must be referenced/completed/returned to the government agencies to fulfill this application. 

For a Work Visa, the below documents need to be completed:  

  • 9(g) Pre-Arranged Employee Commercial Visa 
  • 9(g) Pre-Arranged Employee Non-Commercial Visa 
  • Special Non-Immigrant Visa or 47(A)(2) 
  • Special Non-Immigrant Visa under EO 226, as amended by RA 8756 (ROHQ) 

For a Work Permits: 

  • Special Work Permit (SWP) 
  • Provisional Work Permit (PWP) 
  • Alien Employment Permit (AEP) 

VAT

General

The standard rate of VAT in the Philippines is 12%.

Version History

February 27, 2022
Payroll contributions and personal income tax rates have been updated.
January 1, 2021
Monthly health premium has increased to 3.5%.
Stay up to date on payroll & employment law changes

Questions & Answers

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M. Cortez
M. Cortez
1 year ago

What does the law say about employment contracts? Are they required?

Emily Kuhnert
Admin
1 year ago
Reply to  M. Cortez

Hi, good question. In the Philippines, there are no provisions in the law regarding the necessity to provide a written contract to prove that a person is employed at a specific company. That being said, we highly recommend written employment contracts as to avoid any conflict.

Ongyy
Ongyy
5 months ago

How long does a employee has to be in a company to have the February pay out?

Phil
Phil
4 months ago

Is salary sacrifice possible in the Philippines? (for additional benefits for example)

lier join
4 months ago

ok thank you

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