Countries/Philippines/Hiring guide
Southeast Asia · Hiring guide · 2026
This page is the labour-law and payroll stack for multinational employers hiring in the Philippines. It is not a salary survey.
In-country employment is how you run this stack without a Philippine company.
To hire without incorporating first, use in-country employment in the Philippines.
Contracts
The default is regular employment. Probationary employment is allowed for up to six months if standards are communicated at hiring. Project and seasonal contracts are for genuine project or seasonal work — not a label you put on an ongoing shared-service seat.
A regular employee may be dismissed only for just or authorized cause, with due process (twin-notice for just cause; notice to employee and DOLE for many authorized causes).
Labour-only contracting is prohibited. If you are the one directing the work, issuing tools, and taking the profit, you are likely the employer — whether or not another company issues the payslip.
Hours
Ordinary hours are eight a day. Overtime is generally an additional 25% on a rest day or special day the multiples rise; a regular holiday is typically 200% for the first eight hours if worked.
Work between 10 p.m. and 6 a.m. attracts an extra 10% on the hourly rate. BPO rosters hit this every week.
At least five days of service incentive leave a year after one year of service, unless a more generous leave plan already covers it.
Wage floor
Minimum wage is set by regional wage boards as a daily rate. Metro Manila is not the rate for a Cebu or Laguna plant. 13th-month pay sits on top of whatever wage you pay.
| Rule | Figure |
|---|---|
| NCR non-agriculture (Wage Order NCR-26) | ₱695 / day from 18 July 2025 |
| NCR agriculture / small retail & manufacturing | ₱658 / day |
| NCR-27 | Enjoined by Pasig RTC as of August 2026 — do not treat as the enforceable floor |
| 13th-month pay | 1/12 of basic salary earned in the year, due by 24 December |
Wage Order NCR-27 would have raised the NCR non-agriculture rate in tranches starting 25 July 2026. A writ of preliminary injunction paused that order. Until DOLE announces otherwise, budget NCR-26. Other regions have their own orders — look up the Regional Tripartite Wages and Productivity Board for the place of work.
Exit
Just causes (serious misconduct, wilful disobedience, gross neglect, fraud, crime, analogous causes) need twin-notice due process. Authorized causes (redundancy, retrenchment, closure, disease, installation of labour-saving devices) need notice and, in most cases, statutory separation pay.
For many authorized causes the statute is one month per year of service, or one-half month, depending on the ground. 'Package' negotiations start from that floor, not from zero.
DOLE expects prompt release of final pay, including pro-rated 13th month and unused leave where convertible. Holding it for a clearance ritual is a common complaint.
Questions
Other markets
Reviewed 11 September 2026
This is a hiring briefing for multinational employers, not legal advice. Statutory rates move by city, province, and sector. Confirm the place of work before you issue an offer.
Sources
Tell us the city, the role, and whether this is a local contract or a search.
