Foreign nationals working in the Philippines generally require the appropriate immigration status and work authorisation. The most common route for foreign employees is the 9(g) Pre-arranged Employee Visa, which allows foreign nationals to work for a Philippine-based employer. A foreign worker generally requires a Philippine-based company to act as the petitioner. An Alien Employment Permit (AEP) may also be required from the Department of Labor and Employment, subject to applicable exemptions.

• Employers must register with the Bureau of Internal Revenue (BIR) and applicable social insurance agencies. 
• Payroll is generally processed monthly, with employers responsible for withholding and remitting income tax and mandatory employee contributions.
• Mandatory social insurance includes Social Security System (SSS), PhilHealth and Pag-IBIG contributions. 
• SSS contributions are 15% of the applicable Monthly Salary Credit, 
  
  • Employer: 10% 
  • Employee: 5%
• Employers also pay Employees’ Compensation Program contributions. 
• Employers must withhold compensation income tax using the applicable BIR withholding tax tables and comply with periodic filing and reporting requirements.

• Contract Types: Regular, probationary, project-based, seasonal, casual or fixed-term employment may be used, depending on the nature of the work.
• Probation: Generally limited to six months. Employees who continue working after the probationary period are generally considered regular employees. 
• Working Hours: Normal working hours should not exceed eight hours per day. Employees are generally entitled to at least a 60-minute meal period. 
• Overtime: Paid at an additional 25% of the regular wage, with higher rates applying in certain circumstances such as holidays and rest days. Night-shift work between 10 p.m. and 6 a.m. attracts a minimum 10% night-shift differential. 
• Minimum Wage: Minimum wage rates vary by region and are established by the relevant Regional Tripartite Wages and Productivity Boards rather than through a single national minimum wage. 
• Termination: Regular employees may generally only be terminated for just cause or an authorized cause under the Labor Code. Procedural requirements apply, and employees terminated for authorised causes may be entitled to separation pay. 

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• Social Security: Employees are generally covered by SSS, PhilHealth and Pag-IBIG, with employer and employee contributions subject to statutory rates and contribution ceilings.
• Annual Leave: Employees who have completed at least one year of service are generally entitled to five days of paid service incentive leave annually, subject to statutory exemptions. 
• Sick Leave: There is no general statutory entitlement to a specific number of paid sick-leave days under the Labour Code, although employment contracts, company policies and collective agreements may provide additional leave.
• Maternity Leave: Eligible employees are entitled to 105 days of paid maternity leave for live childbirth, with an additional 15 days for qualified solo parents. A 60-day benefit applies in cases of miscarriage or emergency termination of pregnancy.
• Paternity Leave: Married male employees are generally entitled to seven days of paid paternity leave for the first four deliveries or miscarriages of their legitimate spouse.
• Public Holidays: Employees are entitled to statutory holiday pay for regular holidays, subject to applicable exemptions. Work performed on a regular holiday generally attracts premium pay.

• Tax Residency: Philippine resident citizens are generally taxable on income from sources within and outside the Philippines. Resident aliens and non-resident aliens are generally subject to Philippine income tax on Philippine-source income, with the applicable treatment depending on their status.
• Tax Year: January 1 – December 31.
• Tax System: Progressive individual income tax rates apply to taxable income. From 2023 onwards, taxable income up to ₱250,000 is subject to 0%, while the top marginal rate is 35% on taxable income exceeding ₱8,000,000.
• Non-Residents: A non-resident individual not engaged in trade or business in the Philippines is generally subject to a final tax of 25% on Philippine-source income, subject to applicable rules and treaty provisions.