Philippines Regional Policy¶
This page contains human resources policies and regulatory requirements applicable to employees in the Philippines.
Social Insurance Policy (SSS)¶
Contribution Rates (Effective January 2025)¶
Total Contribution Rate: 15% (shared between employer and employee)
| Contributor | Contribution Rate |
|---|---|
| Employee | 5% |
| Employer | 10% |
| Total | 15% |
Monthly Salary Credit (MSC) Range¶
- Minimum Base: PHP 5,000 (as of 2025)
- Maximum Base: PHP 35,000 (as of 2025)
Contribution Examples¶
| Monthly Salary | Employee Contribution | Employer Contribution | Total Contribution |
|---|---|---|---|
| PHP 10,000 | PHP 500 | PHP 1,000 | PHP 1,500 |
| PHP 20,000 | PHP 1,000 | PHP 2,000 | PHP 3,000 |
| PHP 35,000+ | PHP 1,750 | PHP 3,500 | PHP 5,250 |
Individual Income Tax Policy (TRAIN Law 2025)¶
Tax Rate Table¶
| Annual Income Range | Tax Rate | Cumulative Tax |
|---|---|---|
| PHP 0 - 250,000 | 0% | Tax Exempt |
| PHP 250,001 - 400,000 | 15% | PHP 0 + 15% of excess over PHP 250,000 |
| PHP 400,001 - 800,000 | 20% | PHP 22,500 + 20% of excess over PHP 400,000 |
| PHP 800,001 - 2,000,000 | 25% | PHP 102,500 + 25% of excess over PHP 800,000 |
| PHP 2,000,001 - 8,000,000 | 30% | PHP 402,500 + 30% of excess over PHP 2,000,000 |
| PHP 8,000,001 and above | 35% | PHP 2,202,500 + 35% of excess over PHP 8,000,000 |
Tax Exemption¶
Annual income below PHP 250,000 is exempt from income tax
Freelancer Tax System¶
Options: - Progressive tax rates (as above) - 8% flat rate (applicable to gross receipts exceeding PHP 250,000 annually)
Labor Regulations¶
Working Hours¶
- Standard Hours: 40 hours/week (8 hours/day, 5 days/week)
- Overtime: Employer may require overtime, but must pay overtime compensation
Overtime Pay¶
- Workday overtime: 125% of wage
- Rest day/holiday overtime: 130%-200% of wage
Minimum Wage¶
Minimum wage varies by region, set by Regional Wage Boards. Metro Manila minimum wage approximately PHP 570-610/day (2024-2025).
Paid Leave¶
- Service Incentive Leave (SIL): 5 days per year after 1 year of service
- Maternity Leave: 105 days (normal delivery) or 120 days (cesarean/multiple birth)
- Paternity Leave: 7 days
- Parental Leave: 7 days (for solo parents)
Last Updated: 2026-02-06