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Public Holidays Calendar
|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|
|Tuesday||May-3||Festival of Breaking the Fast||Tentative|
|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|
|Thursday||Dec-8||Feast of Immaculate Conception of Mary|
|Thursday||Jan-1||Confirmation of public holidays for Eid Al Fitr and Eid al-Adha are still to be announced.|
Last updated: Oct 06, 2021
Payroll and Benefits Guide
Papaya Offers Complete Payroll, PEO and Contractor Management Services For Philippines
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.
Employer Payroll Contributions
Employee Payroll Contributions
Employee Income Tax
The National Minimum Wage in the Philippines is 537 PHP per day.
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.
A 13th salary must be paid on or before 24th December and is equivalent to one month’s pay (Aguinaldo).
A standard work day is 8 hours.
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.
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.
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 leave allowance falls under paid annual 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.
The father is entitled to mandatory paid paternity leave of 7 days from the child’s date of birth.
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.
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.
Employees must provide a minimum of 30 days’ notice.
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.
The probation period in the Philippines for definite employees is 6 months.
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)
The standard rate of VAT in the Philippines is 12%.