hire employees in

The Philippines is a diverse, populous country with a rapidly growing economy. Made up of thousands of islands, the nation is geographically, culturally, and linguistically unique, making it an exciting place to live, work, and do business.
The Philippines is also an excellent place to hire employees, with relatively low wages, a young population, and a growing economy, but getting started can be time-consuming for foreign businesses that don’t have a foothold in the country.

Facts & Stats

Population 109.6M	Capital City Manila	Languages Spoken Tagalog, English and more than 100 regional languages
Currency Philippines Peso (PHP)	GDP per capita $3,300	Ease of Doing Business 95th in the world
Minimum Wage Varies by region	Average Wage $779.62 per month.	Paid Leave 5 days

The Philippines: Business Environment

Business outlook in the Philippines

Following a slump in global economic growth in 2020, the economy of the Philippines has rebounded. While growth is predicted to vary significantly by industry, with particular strengths across healthcare, tourism/hospitality, and IT outsourcing.

The Philippines’ large skilled workforce, tech infrastructure and relatively low cost-of-living mean that it is likely to remain a prime destination for global expansion for the foreseeable future.

Business regulation in the Philippines

The Philippines has a range of employment laws governing the recruitment and employment of workers. These include laws covering benefits and entitlements (such as parental leave, sick pay, and annual leave), minimum wage laws, regulation of working hours, and so on.

Business culture in the Philippines

Filipino business culture is hierarchical, with the most senior members of staff playing a major and deciding role in most decision-making. ‘Saving face’, or avoiding embarrassment, is a constant theme throughout Filipino culture, as it is in many Asian cultures. This can lead to people being reluctant to speak directly, so it can take time to understand some of the subtleties involved in business communications. Importantly, most people avoid saying no or being openly negative in communications, so you may have to look for other signs of disagreement.

Recruiting employees in the Philippines

Recruiting employees in the Philippines —Overview

Over the last decade or so, the internet has become the key tool for prospective employees and employers in the Philippines. The most popular online job sites are Jobstreet, Indeed and Kalibrr. Social media platforms such as LinkedIn and Facebook are also popular.

Most important recruitment tools in the Philippines

There are several local job boards you can use in the Philippines. The most popular recruitment tools include:

If you need specialist support for your candidate search in Philippines, consider a Philippines recruitment agency, like Horizons.

Interviewing candidates in the Philippines

Interviewing candidates in the Philippines — Overview

Overall, the standard rules of interviewing apply in the Philippines as they would in most countries. Face-to-face interviews are standard, and candidates will generally expect to be greeted with a handshake and a little small talk. However, video and phone interviews have become more common in the last few years.

The language of business is English, so foreign businesses can usually avoid any language barriers, which is an advantage to hiring in the Philippines. Personal connections are seen as important in the Philippines, so it’s common for interviewees to mention any contacts they may have in the company they’re interviewing with.

Can I ask the candidate’s previous salary in the Philippines?

It is permitted to ask the candidate’s salary history in the Philippines. This is common practice when recruiting candidates, though the candidate does not have to answer the question.

What is the typical salary increase at a new job in the Philippines?

Salary increases in new positions have been continually climbing over the years, and the typical expected increase is now expected to hit 5.7 percent in 2023.

Onboarding employees in the Philippines

Onboarding employees in the Philippines — Overview

Onboarding in the Philippines should be approached in largely the same way as it would anywhere else. The exact process will always vary from company to company, but the main focus should be on making new employees comfortable, providing the appropriate orientation and training, and communicating important information about the role. As personal relationships are very important in the Philippines, you should also try to introduce new hires to their colleagues and give them adequate time to settle in and build friendships.

Best remote working tools to use in the Philippines

The most popular remote working tools in the Philippines include the standard tools that are popular all over the world, such as Google Suite, Zoom and Slack. Note also that the messaging app Viber is the most popular messaging app in the Philippines, and its business version is commonly used in the workplace.

Holiday schedule in Philippines- 2023

Holiday Schedule in Philippines [2023]

Philippines has a range of national public holidays that are celebrated annually. In 2023 these holidays are:

Date	Holiday name
1 Jan, 2023	New Year’s Day
2 Jan, 2023	Special non-working day after New Year
23 Jan, 2023	First Philippine Republic Day
25 Feb, 2023	People Power Anniversary
6 Apr, 2023	Maundy Thursday
7 Apr, 2023	Good Friday
8 Apr, 2023	Black Saturday
10 Apr, 2023	The Day of Valor
22 Apr, 2023	Eidul-Fitar (Tentative Date)
1 May, 2023	Labor Day
12 Jun, 2023	Independence Day
29 Jun, 2023	Eid al-Adha (Feast of the Sacrifice) (Tentative Date)
21 Aug, 2023	Ninoy Aquino Day
28 Aug, 2023	National Heroes Day
3 Sep, 2023	Yamashita Surrender Day
8 Sep, 2023	Feast of the Nativity of Mary
1 Nov, 2023	All Saints’ Day
2 Nov, 2023	All Souls’ Day
27 Nov, 2023	Bonifacio Day
25 Dec, 2023	Christmas Day
30 Dec, 2023	Rizal Day
31 Dec, 2023	New Year’s Eve

What is the typical salary increase employees in the Philippines expect?

5-6 percent per year.

FAQs

Should I hire freelancers or employees in the Philippines?

Both are viable options, depending on the needs of your business. Where you need temporary work of a clearly-defined scope, a freelancer or contractor may be a good option.

Where you need someone to work fulltime, it is usually better to hire an employee, as this ensures the right classification of tax and benefits for the worker and avoids the possibility of ‘disguised employment‘ and associated backtaxes and penalties.

Can I hire foreigners in the Philippines

Yes, it is possible to hire foreigners in the Philippines. One way of doing so is using a Global Employment Organization to engage staff in the Philippines.

How do I open a subsidiary in the Philippines?

The steps for setting up a subsidiary in the Philippines are:

Register the chosen subsidiary name with the Securities and Exchange Commission (SEC)
Provide the minimum paid-up capital
Provide notarized articles of association for the subsidiary
Obtain a Taxpayer Identification Number (TIN) from the SEC
Receive a barangay clearance
Pay for the community tax certificate
Obtain any necessary permits and licenses for operating a business of that specific type in the Philippines.

How do I hire employees in the Philippines?

There are two key options for hiring employees in the Philippines:

Option 1: Open a subsidiary

By following the process outlined above a company can set up a subsidiary in the Philippines. This company can then be the employer of Philippines employees. This can be an expensive option and requires having a substantial business presence on the ground in the Philippines

Option 2: Hire through a partner such as an Employer of Record like Horizons

A Philippines Employer of Record hires employees on behalf of your company in the Philippines. Your company remains the ‘day-to-day’ manager and supervisor of the employees, while an EOR like Horizons becomes the legal employer, responsible for payroll processing, tax compliance and employee benefits.

Usually, engaging an EOR is a much more cost-effective, fast and compliant way of hiring Philippines workers than setting up your own subsidiary.

Hiring in the Philippines, Made Easy

Your business can easily hire employees in the Philippines without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons completely took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. When they advised our international expansion, they spoke confidently and were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVice President of Software Development

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources

Horizons has been very effective in providing our company support in all the administrative procedures, sometimes complex, required by the Singaporean administration.

Gerald iannoneSales Director

Horizons’ team provided a superb service from start to finish, making a complex process a simple one. Everything was taken care of in an efficient and accurate manner, with quick communication whenever required. Highly recommended and would use again in the future if the need arises.

Philipp RinbergerManaging Director