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The Philippines is Southeast Asia's premier English-language tech and BPO talent market. Rippling manages SSS, PhilHealth, Pag-IBIG, 13th month pay, and DOLE compliance for Philippine employees.
The Philippines is one of Asia's most established tech and BPO talent markets, with Metro Manila, Cebu, and Davao as primary hubs. Payroll is characterized by semi-monthly payment cycles, mandatory government contributions (SSS, PhilHealth, Pag-IBIG), and the mandatory 13th month pay. The TRAIN Law simplified income tax for most employees. DOLE actively enforces employment standards including 13th month pay and regularization. HMO health insurance is an effective requirement for retaining professional talent.
Philippine corporation requires SEC registration, BIR registration, SSS/PhilHealth/Pag-IBIG enrollment, and LGU business permits (4–8 weeks). PEZA (Philippine Economic Zone Authority) registration may be advantageous for larger Philippine operations with tax incentives. All payroll must be supported by BIR-registered payslips. 13th month pay must be remitted by December 24 — a strictly enforced DOLE requirement.
Rippling runs Philippine payroll through a local corporation. Configuration essentials: SSS/PhilHealth/Pag-IBIG enrollment before first payroll; HMO provider setup (AXA, Maxicare, Intellicare, Medicard); 13th month monthly provisioning; DOLE-compliant probationary contract; and BIR Form 2316 annual issuance. Lead time: 1–2 weeks — one of our fastest-onboarding EOR markets.
SSS: ~9.5% of monthly salary credit. PhilHealth: 2.5% of monthly basic salary. Pag-IBIG: PHP 100/month. EC: PHP 10–30/month. 13th month pay: 1/12 of annual basic salary per month (8.33% annualized). Total statutory employer on-cost: approximately 12–15% of gross + 13th month provision. HMO adds 5–10% where provided.
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SSS: ~4.5% of monthly salary credit (MSC PHP 4,000–30,000). PhilHealth: 2.5% of monthly basic salary (50/50 split). Pag-IBIG: PHP 100/month. Income tax (TRAIN Law): 0% up to PHP 250,000/year; 15% PHP 250,001–400,000; 20% PHP 400,001–800,000; 25% PHP 800,001–2M; 30% PHP 2M–8M; 35% above PHP 8M. Taxable income = gross minus government contributions and personal exemptions.
Philippine income tax (BIR TRAIN Law): 0% up to PHP 250,000/year; 15% PHP 250,001–400,000; 20% PHP 400,001–800,000; 25% PHP 800,001–2M; 30% PHP 2M–8M; 35% above PHP 8M. Monthly withholding via BIR Form 1601-C. Annual ITR filed by employee by April 15. Rippling manages monthly withholding and annual alphalist submission.
Service Incentive Leave: 5 days/year (after 1 year). Industry standard: 15 days VL + 15 days SL. Maternity: 105 days paid (SSS-funded for first 4 months). Paternity: 7 working days (employer-paid). Public holidays: 12 regular + 3 special non-working days. Night shift differential: 10% premium for 10pm–6am work.
Regular employees: just cause (Art. 297 — serious misconduct, willful disobedience, gross neglect, fraud, crime) or authorized cause (Art. 298 — redundancy, retrenchment, closure). Just cause: two-notice rule (written notice of acts; 5 calendar days to explain; written termination decision). Authorized cause: 30 days' notice to employee AND DOLE; separation pay (redundancy: 1 month or 1 month/year whichever higher). Illegal dismissal: NLRC can order reinstatement + backwages.
BIR Form 2316 (Certificate of Compensation Payment/Tax Withheld): issued to each employee by January 31. Annual alphalist of employees: filed with BIR by January 31. Rippling generates all year-end Philippine payroll filings.
Statutory: SSS (employer ~9.5% of monthly salary credit); PhilHealth (employer ~2.5% of monthly basic salary); Pag-IBIG/HDMF (employer PHP 100/month); Employees' Compensation (employer PHP 10–30/month); 13th month pay (mandatory — 1/12 of annual basic salary, payable by December 24). Market standard: HMO health insurance (near-universal; employer pays 100% for employee), group life insurance, equipment allowance. Total employer on-cost: approximately 12–15% statutory + HMO (5–10%) + 13th month provision (8.33%).
13th month pay (Presidential Decree No. 851) is mandatory for all rank-and-file employees. It equals 1/12 of total basic salary earned in the calendar year, payable by December 24. It is in addition to regular monthly salaries. Employers often pay part in June as a mid-year bonus. Rippling provisions 1/12 monthly and pays on the statutory schedule. DOLE inspections specifically verify 13th month pay compliance.
An employee on a 6-month probationary contract who continues working past 6 months is automatically regularized (becomes permanent) by operation of law. Regularization grants full security of tenure and Labor Code protections. The probationary period cannot be extended beyond 6 months. Performance standards must be communicated in writing at the time of hiring. Rippling EOR tracks probationary end dates.
SSS, PhilHealth, and Pag-IBIG are mandatory government contributions for all Philippine employees. SSS provides retirement, disability, death, maternity, and sickness benefits. PhilHealth provides health insurance. Pag-IBIG provides housing loans and savings. All must be enrolled before the employee's first day. Failure to enroll attracts criminal liability. Rippling manages all three from day one.
The Philippine national minimum wage varies by region and is set by Regional Wage Boards. Metro Manila (NCR): PHP 645/day (8 hours) from June 2024. Provincial rates are lower. The 13th month pay is in addition to the minimum wage. All Rippling payroll employees are paid at or above the applicable regional minimum.
