- Gross salary, usually paid monthly.
- Employer costs of about 17.1% at a ₱720,000 salary: ₱122,760 a year, of which the largest is 13th-month pay.
- An EOR fee, if you hire without your own entity. The providers in our Philippines guide publish starting prices of US$459–699 per employee per month.
Mandatory employer costs at a ₱720,000 salary (mid-level professional). Employee contributions and income tax come out of gross pay and aren't included.
| Employer cost | Rate or amount | At ₱720,000 |
|---|---|---|
| 13th-month pay | 8.333% of gross | ₱60,000 |
| SSS (employer share) | 10% of gross, up to ₱420,000 | ₱42,000 |
| Employees' Compensation (EC) | ₱360 / year | ₱360 |
| PhilHealth (employer share) | 2.5% of gross, up to ₱1,200,000 | ₱18,000 |
| Pag-IBIG (employer share) | 2% of gross, up to ₱120,000 | ₱2,400 |
| Total employer costs | 17.1% of salary | ₱122,760 |
Contribution ceilings mean employer costs can be a smaller share of higher salaries. Figures exclude the EOR fee.
| Annual salary | Employer costs | Total before EOR fee |
|---|---|---|
| ₱420,000 (support / operations) | ₱90,260 (21.5%) | ₱510,260 |
| ₱720,000 (mid-level professional) | ₱122,760 (17.1%) | ₱842,760 |
| ₱1,200,000 (senior professional) | ₱174,760 (14.6%) | ₱1,374,760 |
| ₱2,400,000 (lead / manager) | ₱274,760 (11.4%) | ₱2,674,760 |
- 13th-month pay: Mandatory (1/12 of basic pay)
- SSS salary credit ceiling: PHP 35,000 / month
- Minimum wage (Metro Manila): PHP 755 / day (PHP 780 from 20 Jan 2027)
- Service incentive leave: 5 days (after 1 year)
- Normal working hours: 8 hours / day
- HMO health cover (optional) (₱25,000 / year): Private health maintenance cover is expected by most professional candidates.
- Statutory contributions are capped: SSS at a PHP 35,000 monthly salary credit, PhilHealth at PHP 100,000, and Pag-IBIG at PHP 10,000.
- Employee contributions and withholding tax are deducted from pay and are not employer costs. 13th-month pay and other bonuses are tax-free up to PHP 90,000 a year.
- Night-shift work (common in support roles serving the Americas) requires a night differential of at least 10% for hours between 10pm and 6am.
- Regular holidays worked are paid at 200%, and special non-working days at 130%. Holiday and overtime premiums are not included above.
Without your own entity in the Philippines, an Employer of Record can employ your hire for a monthly fee. The alternative is setting up your own Philippine entity. See the comparison in our Philippines guide and EOR vs local entity.
How much does it cost to employ someone in the Philippines?
How much is an EOR in the Philippines?
Can I hire in the Philippines without a local entity?
- 1Premium contribution schedule (Circular 2019-0009)
PhilHealth
Final step of the schedule (2024 to 2025): 5% premium shared equally, on monthly basic salary from PHP 10,000 to PHP 100,000. No later schedule has been published.
- 2Labor Advisory No. 13, s. 2024: Guidelines on the payment of thirteenth-month pay
Department of Labor and Employment (DOLE), Bureau of Working Conditions
At least one twelfth of total basic salary earned in the calendar year, paid on or before 24 December.
- 3Circular No. 2024-006: Schedule of SSS contributions for business employers and employees (effective January 2025)
Social Security System (SSS)
15% total rate (10% employer, 5% employee), monthly salary credit from PHP 5,000 to PHP 35,000, EC of PHP 10 or PHP 30 a month.
- 4Circular Letter No. 2024-2: adjustment in the employer share of Pag-IBIG contributions (implementing HDMF Circular No. 460)
Department of Budget and Management (DBM)
Under HDMF Circular No. 460 the maximum fund salary rose from PHP 5,000 to PHP 10,000 a month from February 2024, so the 2% employer share is up to PHP 200 a month.
- 5NCR current daily minimum wage rates (Wage Order NCR-28)
National Wages and Productivity Commission (NWPC)
Metro Manila: PHP 755 a day non-agriculture and PHP 718 agriculture and small establishments from 26 September 2026; PHP 780 and PHP 743 from 20 January 2027.