Hire, Manage and Pay Employees and Contractors in the Philippines

Hiring internationally? Rippling handles local complexity and liability, so you can focus on growing your business — from hiring and onboarding workers to running payroll, managing local compliance, tax filing, and more.

Avg Time to Hiring

Less than 5 minutes

Payroll Cycle

Biweekly

Time Zone

GMT+8 (Manila)

Ready to hire in the Philippines?

Book a free demo to see how Rippling simplifies international expansion.

Headquarters

By clicking "Get Started," you agree to the use of your data in accordance with Rippling's Privacy Notice, including for marketing purposes.

Avg Time to Hiring

Less than 5 minutes

Payroll Cycle

Biweekly

Time Zone

GMT-8 • 10h ahead

The #1 Rated Workforce Platform

GLOBAL WORKFORCE MANAGEMENT PACKAGES

Grow your team in the Philippines with Rippling

Rippling can help you address every stage of your international growth, while allowing you to transition easily between them.

Global Contractor

Hire and pay contractors globally. No entity required.

Onboard international contractors in
90 seconds

Pay contractors on time in their local currency

Instantly generate contractor agreements and 1099s, templatized per country

Get started

Employer of Record (EOR)

Hire and pay employees globally. No entity required.

Pay salaried and hourly employees and
run off-cycle pay runs

Mitigate risk by letting Rippling handle local taxes and compliance

Access rich benefits tailored to each country

Get started

Global Payroll

Run payroll for employees globally via your own entities.

Run payroll for your global team in one system

Stay compliant with local payroll regulations

Access Rippling’s HR advisors and local subject matter experts

Get started

GLOBAL HRIS

One HR system for your team everywhere

With Rippling, you can finally bring all of your employee data from around the world into a single system. Rippling dynamically localizes everything—from fields and documents to currencies—based on work location.

GLOBAL HRIS

One HR system for your team

in Canada

in the UK

in the USA

in Germany

in India

in Mexico

everywhere

See Rippling in action

Learn how Rippling can help you effortlessly hire, onboard and pay your employees, whether you have a workforce of 2 or 2,000.

Request demo

GLOBAL HIRING & EMPLOYMENT

Hire employees in the Philippines in 90 seconds

Introduction

EOR or Entity

EOR or entity

Employer of Record (EOR) vs. entity

Before you kick off the hiring process for your Filipino employees, you need to figure out whether to hire them through an Employer of Record or set up your own local entity.

Legal entity in the Philippines

Setting up a legal entity from scratch usually requires registration with local authorities, opening a local bank account, and consulting with local experts to ensure compliance with tax and labor laws.

Philippine EOR

An EOR is a third-party service that operates as an employer on a company’s behalf—meaning you don’t need to set up your own entity. As well as allowing you to hire full-time Filipino employees, EORs handle all the legal requirements for complying with Philippine laws for payroll, contracts, and benefits. EOR services also include calculating and withholding taxes, onboarding and managing employees, and running payroll.

Choosing between an EOR and your own entity? Here are the pros and cons:

EOR

Local Entity

Cost & Implementation

EOR

Less time-consuming to set up.

You can start hiring within days instead of months

Becomes costlier as your headcount increases

Local Entity

Takes up to six months to set up—and requires registration fees.

More cost-effective once you’ve hired enough employees in a foreign country.

Hiring

EOR

Quickly set up new hires, often within 1-14 days, depending on the provider.

Local Entity

Supports large-scale expansion in a new market.

Compliance

EOR

Provides localized employment contracts, manages compliance work, and assumes liability.

Can’t tailor certain policies, and other HR/legal processes, to the needs of your business.

Local Entity

Requires expert knowledge of local laws and tax regulations and internal legal resources, as your company is liable for all legal and compliance infractions.

Can tailor certain policies, and other HR/legal processes, to the needs of your business.

Payroll & Benefits

EOR

Quickly pay and insure employees around the world.

Taxes are filed for you.

Local Entity

Must manually keep track of statutory deductions and employee entitlements for every hire.

Worker classification

Classifying Filipino workers: employees vs. contractors

The early stages of hiring come with many questions: How do you classify your new Filipino workers? Are they employees or contractors? As in many countries, getting the right answers to these questions can be the difference between easily managing your international team and being exposed to millions of dollars in legal penalties.

Here are some of the key differences between contractors and employees in the Philippines:

Contractors

Employees

High level of control over work

Contractors are generally given more autonomy to determine how to complete the work and when to do it.

More direction form the employer

Employees are generally subject to more control and direction from their employer, who will provide guidance on how to perform the work and may set specific hours of work.

Equipment and tools owned by the worker

The employer doesn't provide a laptop or any other equipment to the contractor.

Equipment and tools owned by the company

Less Integrated

Contractors tend to be independent, they're more likely to work remotely, and they use their own tools and equipment.

Highly Integrated

Employees are typically more integrated into the employer's organization, for example, they may work at the employer's premises.

No entitlement to benefits

Contractors are not entitled to the same benefits and protections as employees, and they are responsible for paying their own taxes.

Entitled to benefits

Employees are entitled to certain employment benefits and protections, such as minimum wage, overtime pay, and vacation pay. They may also be entitled to benefits like health insurance, retirement plans, and paid sick leave.

Time-bound engagement

Contractors are typically engaged for a specific project or period of time.

Indefinite engagement

Employees are generally hired for an indefinite period of time.

Risk of loss

Contractors may assume more risk and liability for the work they perform.

No risk of loss

Employees are generally protected from liability for work-related issues.

Non-exclusive services

Contractors cannot be contractually bound to a single company; they can provide their services to more than one organization.

Exclusive services

Employees can be contractually bound to provide services to just one company.

Subcontracting

Contractors can delegate work to be performed by another person or business.

No subcontracting

Employees are expected to do their work themselves. They can’t delegate responsibilities to subcontractors without company approval.

Payroll and taxes

Benefits

Mandatory employee benefits in the Philippines

The Labor Code of the Philippines, which sets the minimum labor standards for its workforce, requires mandatory benefits programs—and the penalty for not complying is a sizable fine. While employers must meet these minimums, they are welcome to provide supplemental benefits as well.

Mandatory benefits include:

Social security

The Philippines has a Social Security System (SSS) that funds the majority of its benefits. After employees and employers make their mandatory SSS contributions, the benefits this system covers include retirement, sick leave, disability, maternity leave, death benefit, unemployment insurance, and funeral grants.

undefined

Health insurance

PhilHealth, the Philippine Health Insurance Corporation, is a government-owned healthcare program that covers all full-time Filipino employees. Employees and employers split monthly contributions 50-50, with premiums at 4.5% of an employee’s base salary—though this will increase to 5% for 2024 and 2025.

Home development mutual fund

The Pag-IBIG Fund is a government program that provides housing loans and financial assistance to Filipino citizens in search of affordable housing. Employers are required to contribute 2% of an employee’s monthly salary to the fund, while employees themselves contribute 1% or 2%, depending on their income.

Vacation entitlements

For every year they work, Filipino employees are entitled to five days of paid “service incentive leave,” which can also be converted to cash if not used.

Statutory holidays

There are two types of holidays in the Philippines: “regular holidays” and “special non-working holidays.” During regular holidays, employees are entitled to double pay if they are called in to work. On the other hand, special days are unpaid—except if an employee does have to work, they’re entitled to a 30% pay bump.

13th month pay

Employers must provide all non-management employees in the Philippines with an extra month’s pay by Christmas Eve. To confirm they’ve made the mandatory payment, employers are required to file a compliance report by mid-January.

Labor law and compliance

What RIPPLING CUSTOMERS HAVE TO SAY

IT & Services Company

10-100 Employees

“Before Rippling, I would have had to coordinate with seven different people in different time zones. But I was able to do it for myself in 15 minutes—it was surprising and delightful, and inspirational.

Varun Sharma

CEO at Enterpret

IT & Services Company

10-100 Employees

IT & Services Company

10-100 Employees

IT & Services Company

1-10 Employees

“It took me five minutes to [run payroll]. It was so straightforward, so simple. It was just clicking two buttons, making sure the information was correct, and then that's it.

Laura Ferreira

Co-Founder and COO at Vambora

IT & Services Company

1-10 Employees

IT & Services Company

1-10 Employees

COMPLIANCE

You grow your business.  Rippling safeguards it.

Rippling makes it easier to stay compliant with laws abroad than any other system by proactively flagging compliance risks as they arise.

Use our in-country compliance experts

Need help with sensitive employment issues or country-specific laws? Our HR advisors are experts in local jurisdictions.

Ready to chat?

Rippling is the only software that unifies your HR, IT, and Finance systems—including payroll, benefits, time tracking, app and device management.

Headquarters

By clicking "Schedule Demo," you agree to the use of your data in accordance with Rippling's Privacy Notice, including for marketing purposes.

Hire, Manage and Pay Employees and Contractors in the Philippines

Ready to hire in the Philippines?

The #1 Rated Workforce Platform

Grow your team in the Philippines with Rippling

Global Contractor

Employer of Record (EOR)

Global Payroll

GLOBAL HRIS

One HR system for your team everywhere

GLOBAL HRIS

One HR system for your team

in Canada

in the UK

in the USA

in Germany

in India

in Mexico

everywhere

See Rippling in action

Hire employees in the Philippines in 90 seconds

Introduction

Introduction

EOR or Entity

EOR or entity

Employer of Record (EOR) vs. entity

Worker classification

Worker classification

Classifying Filipino workers: employees vs. contractors

Payroll and taxes

Payroll and taxes

Paying employees in the Philippines

Benefits

Benefits

Mandatory employee benefits in the Philippines

Labor law and compliance

Labor law and compliance

Complying with Filipino labor laws

“Before Rippling, I would have had to coordinate with seven different people in different time zones. But I was able to do it for myself in 15 minutes—it was surprising and delightful, and inspirational.

“It took me five minutes to [run payroll]. It was so straightforward, so simple. It was just clicking two buttons, making sure the information was correct, and then that's it.

You grow your business. Rippling safeguards it.

Use our in-country compliance experts

Ready to chat?

You grow your business.  Rippling safeguards it.