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SALARY PAYMENT IN Philippine Peso (₱)
CONTRACT LANGUAGES Tagalog / English
PAYROLL TAX ≈17%
PAYROLL CYCLE Monthly
TIME TO HIRE 12 hours
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Philippines
Payroll taxes in the Philippines cover compulsory employer contributions to various programs on behalf of employees. Read on to find out the different elements of payroll tax (otherwise known as employment taxes) in the Philippines and how it is calculated.
The average employer tax rate in the Philippines is 17%. This rate includes contributions for social security, health insurance, and other government mandated benefits, but does not include employee income tax withholding (which varies significantly by employee).
The average employee income tax rate in the Philippines is progressive, meaning it depends on the individual’s income level. Here are the tax rates for individuals in the Philippines for 2024:
| Taxable Income (PHP) | Tax rate 2024 |
|---|---|
| Income up to PHP 250,000 | 0% |
| Income over PHP 250,000 – PHP 400,000 | 20% |
| Income over PHP 400,000 – PHP 800,000 | 25% |
| Income over PHP 800,000 – PHP 2,000,000 | 30% |
| Income over PHP 2,000,000 – PHP 8,000,000 | 32% |
| Income over PHP 8,000,000 | 35% |
Employer contributions in the Philippines typically include the following:
Employees contribute into the same government programs as does the employer.
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.
The tax bureau of the Philippines is called the “Bureau of Internal Revenue” (BIR). The BIR is under the Department of Finance and plays a crucial role in collecting revenue for the government through various taxes, such as income tax, value-added tax (VAT), excise taxes, and other taxes mandated by law.
Yes, there is an employer payroll tax contribution in the Philippines. In the Philippines, businesses pay taxes at a rate of around 17%. This rate includes contributions for social security, health insurance, and other government-mandated benefits.
The payroll tax payment system of the Philippines is calculated by each employees’ salary each month. For example, the employer must commit to paying 17% of each employees’ salary every month to the Philippine Bureau of Internal Revenue (BIR).
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71 Robinson Road #13-153
068895, Singapore
+65 3105 1170
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
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