Countries/Philippines/In-country employment
Southeast Asia · In-country employment
In-country employment in the Philippines
The Philippines is an English-medium market for shared services, BPO, and manufacturing.
13th-month pay is a statute, not a custom. Minimum wage is set by region, not by a single national monthly floor.
Plan an in-country hire- ✓
Philippine labour contract — The person is employed under the Labor Code in the region of work.
- ✓
You still manage — Your managers set the work. We run the contract, statutory funds, 13th month, and payroll.
- ✓
No company first — Start the hire before you incorporate. Convert later if you open your own Philippine entity.
Statutory stack
What sits on top of wages
Statutory contributions are capped. 13th-month pay is not. These are not market salary ranges.
| Item | 2026 rule |
|---|---|
| SSS (employer) | 10% of monthly salary credit, MSC cap ₱35,000, plus a small EC amount |
| PhilHealth (employer) | 2.5% of basic pay, floor ₱10,000 and ceiling ₱100,000 |
| Pag-IBIG (employer) | 2%, capped at ₱200 / month on the standard ceiling |
| 13th-month pay | 1/12 of basic salary earned in the calendar year, due by 24 December (PD 851) |
| NCR daily minimum wage | ₱695 non-agriculture under Wage Order NCR-26 (see note on NCR-27) |
Role salary ranges are not on this page. Open the 2026 salary guide when those figures are published.
Choose a path
In-country employment vs incorporating
In-country employment is the usual path for a first Philippine hire or a shared-service seat. A domestic corporation is the path when you want your own legal person.
| In-country employment | Your own entity | |
|---|---|---|
| When to use it | A first country hire, a BPO / shared-service seat, or a plant office that must start before the company exists. | When you want your own Philippine company as the employer. |
| Who employs | A licensed local employer holds the contract. Your managers direct the work. | Your Philippine company employs and remits SSS in its own name. |
| Security of tenure | Regularisation rules still apply. A 'probationary' label does not avoid them. | The same Labor Code applies to your own entity. |
Onboarding
From briefing to first payday
SSS / PhilHealth / Pag-IBIG registration and, for foreigners, a work visa, set the calendar.
01
Briefing
Region of work, role, nationality, and start date.
02
Contract
Labor Code contract, probationary period where used, and regularisation date.
03
Statutory funds
SSS, PhilHealth, Pag-IBIG, and work-visa steps if the hire is a foreign national.
04
First payday
Monthly pay, contributions, withholding tax, and a 13th-month accrual.
05
Convert or close
Move onto your Philippine entity, or terminate only on authorized or just causes.
Compliance
Five points that change the hire
01
13th month is mandatory
Presidential Decree 851: one-twelfth of basic salary earned in the year, paid on or before 24 December. Accrue it monthly.
02
NCR wage order is in litigation
Wage Order NCR-26 (₱695 non-agriculture from 18 July 2025) is the clear baseline. Wage Order NCR-27 was enjoined by the Pasig RTC in August 2026. Do not treat ₱755 as the enforceable floor until DOLE says it is.
03
Other regions set their own floors
A Manila rate does not apply to a Cebu or CALABARZON plant. Use the Regional Tripartite Wages and Productivity Board for the place of work.
04
Security of tenure
After a valid probationary period, termination needs just or authorized cause and due process. 'End of contract' is not a free pass for a regular role.
05
Contribution caps
SSS, PhilHealth, and Pag-IBIG stop growing once the ceiling is hit. 13th-month pay does not. Senior salaries are cheap on contributions and still expensive on the 13th month.
Questions
FAQ
- Can we hire in the Philippines without a local company?
- Yes. In-country employment puts the person on a Labor Code contract with SSS, PhilHealth, Pag-IBIG, and 13th-month pay, while your managers direct the work.
- What is the Metro Manila minimum wage in 2026?
- ₱695 a day for non-agriculture under Wage Order NCR-26. A later order (NCR-27) was suspended by court injunction in August 2026. Confirm the current DOLE position before you hire at the floor.
- Is 13th-month pay required?
- Yes. PD 851 requires one-twelfth of basic salary earned in the calendar year, paid by 24 December, for employees who have worked at least one month.
- How much are employer SSS, PhilHealth, and Pag-IBIG?
- SSS employer share is 10% of monthly salary credit (cap ₱35,000), PhilHealth 2.5% of basic (ceiling ₱100,000), and Pag-IBIG 2% up to ₱200 a month on the standard ceiling. Add a 13th-month accrual of basic ÷ 12.
Labour-law detail for the Philippines sits on the hiring guide.
Other markets
Other in-country employment pages
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
- Labor Code of the Philippines
- Presidential Decree 851 — 13th-month pay
- NWPC / DOLE — Wage Order NCR-26; NCR-27 subject to injunction as of August 2026
- SSS, PhilHealth, and Pag-IBIG contribution schedules 2026
Plan an in-country hire in the Philippines
Tell us the city, the role, and when they need to start.