COUNTRY GUIDE
A short guide to building a dedicated offshore team in Philippines
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Manila
Filipino, English
117.33 million
GMT+8
190,000
Philippine peso (PHP)
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$32.5B
$4.35B+
Manila
Filipino, English
117.33 million
GMT+8
190,000
Philippine peso (PHP)
$32.5B
$4.35B+
Southeast Asia's archipelago, the Philippines, is making waves in the global IT sector thanks to its unwavering commitment to technological education. Every year, the nation produces an impressive 50,000 engineering graduates, setting the stage for its thriving tech momentum.
The bustling capital of Manila is at the forefront of the Philippines' technological endeavors. It boasts numerous innovation hubs, tech conferences, and promising startups, making it an attractive destination for professionals excelling in diverse tech domains, from software development to digital transformation.
The Philippine IT industry is projected to have a CAGR of 10.9% from 2023 to 2028, riding a wave of growth and potential. This is underpinned by a growing number of tech ventures and global collaborations, with over 190,000 developers in the country staking its claim as a reliable IT service provider in the international arena.
The Philippines' culture of adaptability and a fluent English-speaking workforce make it one of the most sought-after tech destinations in Asia. With its strategic location, competitive cost framework, and unwavering drive for tech innovation, the country presents a compelling proposition for businesses looking for top-tier software development talent.
ALLSTARSIT takes care of everything for you – we have a 360° approach with a full recruitment cycle
Payroll Cycle
Employees in the Philippines must receive their wages either every two weeks or twice a month. There should never be a gap of more than 16 days between two payment dates. Multiple rules govern how wages and salaries are paid.
Employer Taxes
13.50% + 425 PHP
Overtime Pay
Hours worked beyond the standard workweek qualify as overtime and are governed by employment contracts or collective agreements. Typically, overtime garners 125% of the standard wage. On regular holidays, employees receive twice their usual pay. For special holidays, at least a 30% pay increase is mandated. There's no cap on overtime hours. However, senior managers are not eligible for overtime compensation.
Paid Leave
After completing one year of service, employees are entitled to 5 days of paid annual leave in addition to 10 regular public holidays. If there is no policy to carry over unused leave, it should be compensated monetarily.
Sick Leave
Legally, employers aren't mandated to offer paid or unpaid sick leave. However, employees can use their annual leave for sickness. Many employers establish their own sick leave policies beyond the basic guidelines.
Employees contributing to the Social Security System (SSS) for at least 3 months in the past year can receive 90% of their average daily wage if hospitalized for over 3 days. Once an employee's paid sick leave is exhausted, the employer covers the initial payment, which is later reimbursed by the Social Security System.
Public and Provincial Holidays
Notice Period
The law mandates a notice period of at least 30 days.
13th Month Bonus
Employers are required to pay a 13th-month salary, equivalent to one month's wage (aguinaldo), by 24th December. They have the option to distribute this payment, disbursing half in June and the other half in December.
Establishing an independent business presence in the Philippines to cultivate a team can be an arduous and expensive task, often entailing significant legal expenses.
Navigating the intricacies of Philippine labor laws and meeting the expectations of employees pose complex and demanding challenges. This complexity is heightened by the need to acquire accurate and contemporary employment information for the Philippines. Furthermore, the tasks of managing contracts and monitoring invoices through emails and spreadsheets are susceptible to becoming chaotic and error-prone.
In this context, compliance is of utmost importance, requiring strict adherence to Philippine regulations, particularly regarding taxes and legal matters.
ALLSTARSIT simplifies this process by offering a comprehensive solution for the identification and recruitment of employees in the Philippines, managing HR and payroll, and automating compliance. Our service streamlines the entire process, making it simple and free from complications.
Choose the right expert professionals required for your specific project, saving time and wasted effort.
This service enables software development companies worldwide to meet any technical needs outside their core skill set by adding specialized staff on demand while retaining control of the project's specifications and scope.
Establish R&D / Tech Support / QA & Testing / DevOps / Data Entry Centers in your chosen location.
Forget about investing in facilities, equipment, technology, or human resources. We manage all necessary operations as your specialist. This can help you save money and resources, all while reducing frustration and simplifying internal processes.
Use ALLSTARSIT as your EOR / CM to easily hire employees in new countries without setting up a legal entity.
We act as the employer for your new hire, handling all HR, payroll, tax, and compliance requirements on your behalf, while you maintain control of their workload.
Tap into a wide talent pool of top-tier engineers from our database. We will find the right fit for your business and help you reduce your hiring timeline.
Headhunting
Signing bonuses
Vacancy promotion
Free replacement
Preliminary interviews
HR interviews
Attract, hire, and retain top talent, building a motivated workforce that drives your business forward.
Non-employee-employer liability
Managing tech equipment
Retention and risk analysis
Performance reviews
Compensation revision & expense returns
1:1 meetings (180-degree)
Monthly reports
Performance reviews & periodic surveys
Ongoing client and expert support
Expand your business globally and hire employees or contractors quickly and efficiently by partnering with ALLSTARSIT, who can act as your EOR/CM and handle the administrative and legal aspects of their employment while you control their workload.
Improve your employees' well-being and job satisfaction by offering them a range of corporate benefits through ALLSTARSIT, including wellness consultant sessions, music lessons, workations, gym compensation, and employee recognition programs.
Keep track of your team's progress and satisfaction with ALLSTARSIT's monthly reports and periodic surveys, allowing you to identify any issues and make necessary adjustments to retain top talent.
Enhance your employees' working experience by offering them the possibility of working from an office or securing a seat in a premium co-working space shared area through ALLSTARSIT.
Simplify your HR operations and ensure your employees receive timely and accurate paychecks with ALLSTARSIT's comprehensive payroll solution.
Increase your employees' satisfaction and productivity by providing them with the peace of mind that comes with having access to a reliable and comprehensive health insurance package made possible by ALLSTARSIT.
Invest in your employees' professional development by implementing a comprehensive L&D program that includes access to online education platforms, language classes, and technical meetups, courtesy of ALLSTARSIT.
Build a Customer Care or a Customer Support team to ensure that your business excels in providing exceptional assistance to your customers.
Whether you need a team of professionals that can handle relationship building and product knowledge or a group of Tier 1/2/3 engineers that can help with troubleshooting and other technical issues, ALLSTARSIT can help you find, hire and manage them.
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