Philippines

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Country Snapshot

The GPS Country Snapshot includes 25 sections of information about labor law compliance in Philippines. See a sample of popular sections below.

Termination of Employment

According to the Philippines' Labor Code, notice periods vary according to the substantive reason for the dismissal. An employee can only be lawfully dismissed if both the substantive and the procedural requirements for dismissal are met. The dismissal must not only be for a just or authorized cause (or be related to the employee's ill health or failure to pass the probationary period as provided for by law), but the rudimentary requirements of due process must also be observed.

In case of dismissal due to redundancy, retrenchment to prevent losses, or the closing/cessation of operation of the establishment, a written notice must be given to employees at least one month in advance.

An employee can terminate the employee-employer relationship without just cause by serving a written notice on the employer at least one month in advance. 

If an employment relationship is terminated by the completion of a project (or a phase of that project), no prior notice is required.

Work Permits

Foreign nationals who plan to work in the Philippines are required to obtain a work permit. There are 3 work permit options issued by the government. The alien employment permit (AEP) is issued by the Department of Labor and Employment (DOLE) while the special work permit (SWP) and provisional work permit (PWP) is issued by the Bureau of Immigration.

An AEP is the most common work permit required for foreign nationals who intend to engage in gainful employment in the Philippines. The AEP is issued for 1 year and is renewable after that. Foreign nationals with resident status in the Philippines do not need to apply for an AEP. A SWP is a permit option for foreign nationals who are planning short-term assignments or employment for up to 6 months with sponsorship. A provisional work permit (PWP) is issued to a foreign national while the application for a pre-arranged employment visa (9G or 9D) is pending. The PWP is valid for 3 months or until an AEP (Alien Employment Permit) or pre-arranged employment visa (9-G) is issued to the applicant, whichever comes first. The 9-G visa is valid for 1 to 3 years. Foreign nationals and their families have to apply for this visa to enter the Philippines. 

Paid Annual Leave

Maternity leave is addressed through the Social Security System (SSS). Paid leave lasts 105 days. If the mother is a single parent, she is eligible for 120 days of paid maternity leave. Women can avail themselves of an additional leave of 30 days without pay if they provide at least 45 days’ notice to the employer. Maternity leave must begin at least two weeks before childbirth. Paid leave of 60 days is provided in case of miscarriage and emergency termination of pregnancy. 100% of the salary is paid during maternity leave. 

Maternity leave with pay is also provided if the childbirth or miscarriage occurs not more than 15 days after employment termination.

Working Hours

The labor law of the Philippines states that regular hours of work must not exceed 8 per day.

A Compressed Work Week Scheme (CWW) is an arrangement that permits regular work hours to exceed 8 hours but allows a decrease in the number of workdays to less than 6.

Employees under 15 years of age must not be allowed to work for more than 20 hours a week or 4 hours a day. Employees between 15 and 18 years of age are permitted to work for 8 hours a day or 40 hours a week. 

Maternity Leave

Maternity leave is addressed through the Social Security System (SSS). Paid leave lasts 105 days. If the mother is a single parent, she is eligible for 120 days of paid maternity leave. Women can avail themselves of an additional leave of 30 days without pay if they provide at least 45 days’ notice to the employer. Maternity leave must begin at least two weeks before childbirth. Paid leave of 60 days is provided in case of miscarriage and emergency termination of pregnancy. 100% of the salary is paid during maternity leave. 

Maternity leave with pay is also provided if the childbirth or miscarriage occurs not more than 15 days after employment termination.

Minimum Wage

Minimum wage rates for non-agricultural and agricultural employees (as well as those of workers in each region of the country) are prescribed by the Regional Tripartite Wages and Productivity Boards. Under the most recent wage order for the National Capital Region (i.e., metro Manila), the minimum gross basic wage is PHP 573-610 (Philippine pesos). 

The Philippines has a two-tiered wage system that maintains the mandatory minimum wage as the first tier and a voluntary productivity-based pay scheme as the second tier.

Country Profile

The GPS Country Profile contains detailed information on over 60 topics related to labor law compliance within Philippines.
  • Type of Employment Relationship
  • Permanent Employment
  • Fixed-Term or Specific-Purpose Contracts
  • Temporary Employment Contracts
  • Part-time Employment
  • Young Worker Employment
  • Vendors and Independent Contractors
  • Types of Contracts
  • Probationary Period
  • Termination of the Contract of Employment
  • Grounds for Termination
  • Notice of Dismissal
  • Fair Dismissal
  • Redundancy
  • Unfair Dismissal
  • Suspension of Contract of Employment
  • Severance Benefits
  • Hours of Work
  • Work Week and Timekeeping
  • Night Work and Shift Work
  • Overtime
  • Remote Work
  • Required Time Off
  • Public Holidays
  • Annual Leave
  • Sick Leave
  • Maternity
  • Other Forms of Leave
  • Social Insurance and Retirement
  • Social Security Contribution
  • National Retirement Scheme
  • Dependents’/Survivors Benefit
  • Life and Disability Insurance/Benefit
  • Statutory Allowances
  • Compensation and Benefits
  • Minimum Wage (Basic Wage)
  • Bonuses, Profit Sharing and Other Compensation
  • Medical Insurance
  • Work Environment
  • Workplace Safety and Health
  • Prohibition of Discrimination
  • Prohibition of Harassment
  • Data Protection and Privacy
  • Whistleblowers and Retaliation
  • Workers’ representation in the organization
  • Freedom of Association
  • Registration and Recognition of Unions
  • Trade Union Personality
  • Collective Bargaining and Agreements
  • Disputes and Settlements
  • Strikes and Lockouts
  • Unfair Labor Practices
  • Taxation of Compensation and Benefits
  • Income Tax
  • Taxation of Employee Benefits
  • Tax Filing and Payment Procedures
  • Double Tax Relief and Tax Treaties
  • Visas and Work Permits
  • Visas
  • Work Permits and Residence Permits

 Country Snapshot

Get the full Country Snapshot with 25 sections of information about labor law in Philippines.