Why Hire in Philippines?​

Looking to hire remote workers for your team? With Interloop, you can easily hire, pay, and support employees from anywhere in the world, making the entire process smooth and worry-free.

Capital City

Manila

Currencies

Philippine peso (PHP)

Population size

116,084,035

(est. 2024)

Languages spoken

Filipino, English

Why hire staff in Singapore?

Our Services

Recruit Talent

Our recruitment service manages the entire process: planning, searching, screening, and evaluation, ensuring a seamless hiring experience.

Onboard Contractors

We handle hiring, onboarding, compliance, and payroll for contractors, letting your business tap into global talent for growth.

Run Global Payroll

Managing payroll across jurisdictions is complex and costly. We ensure timely, reliable payments for your employees and contractors worldwide.

Labor laws in Philippines

Working Hours

Night Shift

Overtime Work

Work performed beyond 8 hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate of the first eight hours plus at least 30% thereof.

Probation Period

Moreover, if employee’s contract continues after the end of the probationary period, they automatically become a regular employee.

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Leave in Philippines

Sick Leave

An employee who has paid at least 3 monthly Social Security contributions in the 12 month period prior to the illness or injury, is confined for more than three days in a hospital or elsewhere and has the approval of the SSS, is entitled to be paid by his employer at 90% of his average daily salary per day of confinement, but only after all sick leave with pay due from the employer has been exhausted. The employer is entitled to 100% reimbursement from SSS. The employee must submit directly to SS to receive reimbursement.

Service Incentive Leave

The Labor Code and IRR made no provision on Annual Leave nor on sick leave (SL) and vacation leave (VL) but provided that SIL shall not apply to those already enjoying leave with pay for at least five days. This would mean that the rules equate SIL to paid VLs and the rest are matters of company policy or contract or agreement.

In practice, employers offer 1 day leave per month so thats 12 days of leave per year and the SIL is normally integrated in it, for instance, in 12 leaves per year, 5 is for SIL and is monetized, if unused, at the end of the year or allowed to accumulate and monetized later. Once SIL or VL is availed or paid, the same is no longer included in the accumulation.

Maternity Leave​

Under the law, all female employees, regardless of civil status or the legitimacy of the child, shall be granted 105 days of maternity leave with pay, which can be extended for an additional period of 30 days without pay. A female employee shall be entitled to this benefit whether she gave birth via caesarean section or natural delivery. If the female worker qualifies as a solo parent under the Solo Parents’ Welfare Act, she shall be granted an additional 15 days of maternity leave with pay. Moreover, the female employee may allocate up to 7 days of her maternity benefit to the child’s father, whether they are married or not

Paternity leave

Parental Leave

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Benefits in Philippines

13th Month Pay

Employees who resign or are terminated also receive the additional pay, but it may be pro-rated depending on the date of termination. They would receive it as part of their final payroll.

13th month pay is calculated by dividing the annual basic salary by 12, and that amount would be the
13th month. A new employee who works more than one month but less than a year would receive an amount equal to the year’s accrued salary to date, divided by 12, can either be paid by the December 24th deadline, or in two installments of 50%, with the other payment in May.
Employers must file a compliance report by January 15 of the new year to confirm payments.

Statutory Benefits

  • Social Security System (SSS): The SSS was created to provide private employees and their families with protection against disability, sickness, old age, and death. All persons under the age of 60 who earn income from employment of more than P1,000 per month are required to contribute to the SSS. Employee contributions for social security are deducted from employee’s salary payments. These are withheld by the employer on a monthly basis.
  • Home Development Mutual Fund (HDMF): The HMDF is a provident savings system providing housing loans to private and Philippine government employees, and to self-employed persons who elect to join the Fund.
  • Philippine Health Insurance Corporation (PhilHealth): PhilHealth is administered by the Philippine National Health Corporation, which is designed to provide employees with a practical means of paying for adequate medical care in the Philippines.

Note: Employers in the Philippines are required to make contributions to the above funds.

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Termination in Philippines

Employer can only terminate an employee in the Philippines if you have a just cause or an authorized reason. A just cause can be an employee’s unethical behavior or negligence. Legal grounds, on the other hand, are the basis for authorized termination.​

To end an employment contract, you need to document the employee’s behavior and bring out the specific instances that led to termination.

The following just causes by the employee can be the basis for firing an employee in the Philippines:

  • Serious misconduct or wilful disobedience
  • Gross and habitual neglect of duty
  • Fraud or deliberate breach of trust
  • Commission of a crime or offense
  • Other similar reasons

However, Article 283 states that you can also terminate an employee for authorized causes, including business reasons such as:

  • Installation of labor-saving devices
  • Redundancy
  • Reduction of costs to prevent losses
  • The closing or cessation of operation

Also, if employee suffers from a health condition that lasts more than 6 months or the law prohibits them from working with such disease or working is harmful to themselves or their co-workers, you are entitled to terminate their contract.

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Brand Experience​​

NO JOB IS TOO SMALL OR TOO BIG FOR US​​
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Thailand Office
Singapore Office

Get in touch

ThailanD

Level 3, Prasert Sutt Building 360 Sanambinnam Nonthaburi Road,
Bang Krasor, Mueang Nonthaburi,
Nonthaburi 11000 Thailand

Singapore

#23-05. International Plaza, 10 Anson Rd, Singapore 079903

Contact Us

TH Phone : +66 (0) 97 106 9113
SG Phone : +65 9102 0303
Office Phone : +66 (0) 2 007 0971
Email : enquiry@inlps.com
Line@ ID : @inlps

Our Hours

MON-FRI : 09:00 – 18:00

Our Affiliations

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