Country file

What it costs an employer to hire in Philippines

This figure is the statutory employer cost for the Philippines only; it does not include an employer of record's own service fee, which providers price separately. Which countries a given provider actually covers is confirmed provider by provider, not implied by its appearing on this page.

Every contribution line shows the source used and the date checked. We prefer primary statutory sources. When a statutory page could not be reliably retrieved, we label the line as secondary and name the national payroll reference used. The figures are for 2026.

Model assumptions: This example uses the same basic salary every month, at least PHP 100,000, for a full year with one employer. It assumes no other pay and eligibility for thirteenth-month pay. SSS uses monthly salary credits, PhilHealth uses monthly basic salary excluding thirteenth-month pay, and Pag-IBIG uses monthly Fund Salary. At this pay level, the included contributions reach their monthly limits: PHP 74,760 over twelve months, including EC of PHP 30 a month. Lower or changing pay, a partial year or different coverage needs a monthly payroll calculation.

A mid salary of ₱1,200,000

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PhilHealth excludes thirteenth-month pay from monthly basic salary. SSS and Pag-IBIG use their own monthly bases. At the pay level used here, regular pay already reaches every included monthly limit, so the thirteenth-month payment adds salary without increasing those contributions. EC is fixed at PHP 30 a month.

Published EOR fee on top of this employer cost

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The whole budget for one hire in the Philippines, the fee and this employer cost side by side: EOR fee plus employer cost in the Philippines.

A senior salary of ₱2,400,000

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PhilHealth excludes thirteenth-month pay from monthly basic salary. SSS and Pag-IBIG use their own monthly bases. At the pay level used here, regular pay already reaches every included monthly limit, so the thirteenth-month payment adds salary without increasing those contributions. EC is fixed at PHP 30 a month.

Where the percentage changes

The formula

Each contribution uses its own documented earnings base and limits. The generic annual percentage formula is not a universal payroll rule. Brazil's worked assumptions include a thirteenth salary and a separate one-third vacation premium, with ordinary contributions and FGTS on covered remuneration. The total-gross option includes both salary additions. The Philippines model calculates twelve monthly capped contributions and fixed EC only for its supported constant high-pay scenario. Lower or irregular pay requires monthly payroll; no unsupported estimate is shown.

Each ceiling above applies only to its own line, which is why the employer percentage for Philippines is not the same at both salaries. Employer contribution ceilings, country by country lists where every ceiling on this site sits.

Time off, extra pay and leaving

Service Incentive Leave is five paid days a year after one year of service, under Article 95 of the Labor Code. There are 12 regular holidays, paid even when not worked, plus special non-working days proclaimed each year.

Thirteenth-month pay is at least one twelfth of basic salary earned during the calendar year for covered private-sector rank-and-file employees with at least one month of service, due by December 24. The model assumes covered basic salary: managerial staff and purely commission, boundary or task-based arrangements need separate coverage checks; the DOLE handbook treats piece-rate work separately. Source: https://nwpc.dole.gov.ph/wp-content/uploads/2024/11/Workers-Statutory-Monetary-Benefits-Handbook-2024-Edition.pdf (checked October 12, 2026).

Termination for an authorized cause such as redundancy is one month's pay or one month per year of service, whichever is higher. Retrenchment or closure due to losses is half a month per year of service (Article 298).

A statutory extra month is pay, not a bonus, and a quoted annual salary can already contain it. Which reading the law uses, country by country, is set out here; the calculator asks which one you have before it adds anything.

What the percentage hides

The model is restricted to constant monthly basic pay of at least PHP 100,000 and twelve covered months with eligibility for thirteenth-month pay. Lower, irregular or partial-year scenarios are not estimated.

SSS employer share at maximum monthly salary credit PHP 35,000 is PHP 3,500 including MPF; EC is a separate fixed PHP 30 monthly at this bracket, not a percentage.

PhilHealth employer share at monthly basic salary PHP 100,000 is PHP 2,500; thirteenth-month pay, bonuses and allowances do not belong to this basic salary base.

Pag-IBIG employer contribution is PHP 200 monthly at Fund Salary PHP 10,000 or more. Circular 460 was read from the disclosed mirror because the official PDF host was blocked by browser verification.

Fixed included contributions do not mean all marginal employer cost is zero: the covered thirteenth-month salary continues to increase with basic pay.

Items requiring payroll or quote confirmation, not established by any figure above: Detailed lower-pay monthly salary-credit and payment-component treatment is outside the supported calculator scenario; obtain a monthly payroll calculation.; The official Pag-IBIG PDF host was blocked; the issuing-agency Circular 460 was read from the disclosed mirror.; The count of special non-working days varies by proclamation..

Two recorded changes to the data on this page are listed with the old value, the date and the reason in what changed.

Using an employer of record in the Philippines

The modeled total includes salary payments and employer contributions. An employer of record adds its own fee on top, and that fee is a flat monthly amount rather than a percentage, so it weighs far more on a junior salary than a senior one. The published prices are here, and the calculator will add one to the figures on this page.