The Hardest Market ยท Philippines
Philippines's HR data
The rules and costs of employing people in Philippines (Manila), from official sources, in English and Japanese.
43.5%women in management (2024, ILO)
1.09รemployer's total cost on โฑ60,000 a month, as a multiple of salary
20public holidays (2026)
Employment rules
| Statutory annual leave | 5 days' service incentive leave (10โ15 common) |
|---|---|
| Public holidays (2026) | 20 days |
| Notice of dismissal | 1 month to employee and DOLE (authorised causes) |
| Severance required by law | 0.5โ1 month per year (authorised causes) |
| Typical negotiated exit | No official benchmark |
| Probation | Max 6 months |
| Working hours | 8/day; OT +25% |
| How hard is dismissal? | Hard: just or authorised cause and due process |
Employer contributions
| Social Security System (SSS, incl. MPF) | 10% |
|---|---|
| Employees' compensation (EC) | โฑ360 a year |
| PhilHealth | 2.5% |
| Pag-IBIG Fund (HDMF) | 2% |
Employee contributions
| Social Security System (SSS, incl. MPF) | 5% |
|---|---|
| PhilHealth | 2.5% |
| Pag-IBIG Fund (HDMF) | 2% |
Take-home pay and employer cost by monthly salary
| Monthly salary | Employee contributions | Income tax | Take-home | Employer cost |
|---|---|---|---|---|
| โฑ35,000 | โฑ2,825 | โฑ1,701 | โฑ30,474 | โฑ39,605 |
| โฑ60,000 | โฑ3,450 | โฑ6,518 | โฑ50,032 | โฑ65,230 |
| โฑ100,000 | โฑ4,450 | โฑ15,763 | โฑ79,788 | โฑ106,230 |
| โฑ200,000 | โฑ4,450 | โฑ42,207 | โฑ153,343 | โฑ206,230 |
A single employee in Metro Manila, no dependants, Filipino citizen and tax resident, purely compensation income, salary paid evenly as 12 monthly payments, no bonus and no allowances, mandatory SSS, PhilHealth and Pag-IBIG contributions only. The statutory 13th-month pay (PD 851, one-twelfth of annual basic pay, tax-exempt with other benefits up to โฑ90,000) is NOT included: real annual cash pay for most Manila employees is 13 months, so take-home here understates it by about 8%. Rates for calendar 2026 (Philippine tax year = calendar year); income tax uses the TRAIN schedule for 2023 onwards.