Guide to hiring employees in the Philippines

Guide to hiring employees in the Philippines

Complete guide to hiring employees in the Philippines. From taxation to salary standards, here's everything you need to know about having employees in the Philippines.

Overtime pay

An employee’s working hours are determined by the employment contract but cannot exceed 40 hours per week.

If an employee is required to work for over 8 hours in a day, it’s considered overtime work and is subject to 125% pay. If an employee has to work during rest days or special non-working holidays, they are entitled to 130% pay.

Computing pay for work done

  • A Regular Day (basic daily rate = monthly rate x number of months in a year (12) / total working days in a year)
  • A Special Day (130% x basic daily rate)
  • A Special Day, which is also a scheduled Rest Day (150% x basic daily rate)
  • A Regular Holiday (200% x basic daily rate)
  • A Regular Holiday, which is also a scheduled Rest Day (260% x basic daily rate)

Computing Night Differential 

  • Ordinary Day (110% x basic hourly rate)
  • Rest Day and Special Day (143% x hourly rate)
  • Regular Holiday (220% x hourly rate)