Employee Leasing in Philippines

• Employee leasing in the Philippines provides quick and easy access to one of the fastest-growing markets in Southeast Asia.
• Employee leasing allows you to have a local team in the Philippines that is already knowledgeable about the market, helping you craft a tailored growth strategy.
• Employee leasing grants you full access to the Philippines’ vast talent pool, saving you both time and money in the recruitment process.
• By outsourcing employee administration to FMC Group, you can focus entirely on making strategic business decisions, driving quick and efficient results.
• Employee leasing offers flexibility, allowing you to scale your workforce in the Philippines up or down as your business needs evolve.

• We look for and choose the best candidates that fit your requirements;
• We negotiate and conclude employment contracts;
• We pay social security contributions and taxes according to the Philippines law;
• We manage the payroll of your employees according to international standards;
• We pay all expenses and allowances after your approval;
• We monitor paid vacation days for your employees;
• We negotiate and implement private health insurance if requested;
• We maintain regular communication with you regarding the management of your employees.

• The Philippines has a population of over 110 million people, with a median age of 24 years, creating a young and dynamic consumer base. This demographic trend is driving growth in sectors such as technology, retail, and entertainment, resulting in increasing demand for products and services.
• Strategically located in the heart of Southeast Asia, the Philippines serves as a gateway to key regional markets, including China, Japan, and ASEAN countries. Its prime location provides easy access to international trade routes, making it an attractive hub for global business operations.
• English proficiency is widespread in the Philippines, making it one of the largest English-speaking nations in the world. This linguistic advantage facilitates smooth communication and efficient business operations, particularly in sectors like Business Process Outsourcing (BPO), technology, and customer service.
• The Philippine workforce is highly educated, English-speaking, and skilled in fields such as IT, engineering, and customer service. Labor costs are lower than those of many neighboring countries, offering businesses a cost-effective solution while maintaining high standards of talent.
• Despite global challenges, the Philippine economy has consistently shown growth, fueled by strong domestic consumption, remittances, and a rapidly expanding middle class. This economic resilience makes it an attractive market for long-term investment and business growth.
• Infrastructure development in the Philippines, driven by the “Build, Build, Build” program, is transforming transportation, communication, and energy systems. These improvements are enhancing logistics and business efficiency, making the country a competitive destination for investment.

Minimum Wage and Payroll

• In the Philippines, the minimum wage varies by region, reflecting the differing cost of living across the country. In Metro Manila, the daily minimum wage ranges from PHP 570 to PHP 610 (EUR 9.50 to EUR 10.20), depending on the industry.
• Salaries are generally paid on a monthly basis, with the majority of employers following the practice of disbursing wages on the last working day of each month
• Employees are entitled to a mandatory 13th-month bonus, which is calculated as one-twelfth of their total earnings for the year and must be paid no later than December 24.

Social Contributions and Taxes

Government Program	Employer Contribution	Employee Contribution
Social Security System	9.5%	4.5%
Health Insurance	2.0%	2.0%
Home Development Mutual Fund	2.0%	1.0% ( salary below PHP 1,500) & 2.0% ( salary over PHP 1,500)

Employee Income Tax	Percentage
Up to PHP 250,000	0%
From PHP 250,000 to PHP 400,000	15%
From PHP 400,000 to PHP 800,000	20%
From PHP 800,000 to PHP 2,000,000	25%
From PHP 2,000,000 to PHP 8,000,000	30%
Above PHP 8,000,000	35%

Working Hours and Overtime

• In the Philippines, the standard workday is typically eight hours, and employees are not allowed to work more than 10 hours per day or exceed 48 hours per week during a regular workweek.
• Overtime pay is typically 1.25 times the employee’s regular hourly rate for work performed beyond standard working hours on a regular day. For work done on regular rest days, the overtime pay increases to 1.30 times the regular rate.

Vacation Days

• Employees are entitled to 20 paid public holidays and five days of paid Service Incentive Leave (SIL). Additionally, many employers, especially for professional roles, offer a minimum of 15 days of paid leave per year.
• Nationwide public holidays are:

1. Regular Holidays
   • New Year’s Day
   • Maundy Thursday
   • Good Friday
   • Araw ng Kagitingan
   • Eid’l Fitr (Feast of Ramadhan)
   • Labor Day
   • Independence Day
   • Eid’l Adha (Feast of Sacrifice)
   • National Heroes Day
   • Bonifacio Day
   • Christmas Day
   • Rizal Day
2. Special (Non-Working) Holidays
   • Ninoy Aquino Day
   • All Saints’ Day
   • Feast of the Immaculate Conception of Mary
   • Last Day of the Year
   • Additional Special (Non-Working) Day
   • Chinese New Year – Additional Special (Non-Working) Day
   • Black Saturday – Additional Special (Non-Working) Day
   • All Souls’ Day – Additional Special (Non-Working) Day
   • Christmas Eve – Additional Special (Non-Working) Day

Parental Leave and Sick Leave

• Expectant mothers are entitled to 105 days of maternity, with an additional 15 days off if they’re single, and an option for 30 unpaid days off to supplement the maternity leave. Female employees are equally entitled to 60 days’ leave in the event of a miscarriage.
• Fathers are entitled to 7 days’ paternity leave with full wages.
• Employers are required to provide a minimum of 5 days of sick leave per year. However, it is common practice to offer 15 sick days annually

Notice Period

• In the Philippines, both employers and employees are required to give a 30-day notice before terminating employment or resigning, unless there’s a just cause for dismissal.