Hire in Philippines without an entity and fully compliant with local labor laws

• Probationary Employee = no more than 180 days
• Project Employment = the duration of the project or undertaking, as stipulated in the project employment contract
• Casual Employee = no more than one year; and
• A Fixed-Term Employee = for the specific term set in the employment contract.

• Although a formal agreement is preferred, Philippine law does not require an employment contract to be in writing. Additionally, there are no standard conditions for the enforcement or validity of employment contracts.
• According to Section 295 of the Labor Code, work performed by an employee that is typically required or desirable in the usual course of the employer's business or trade qualifies as regular employment.

• Minimum = 6 months
• If an employee works beyond their probationary employment period, the law grants them regular employee status

• 8 hours per day, maximum of 48 hours per week
• Employers must provide employees at least a 24-hour break.
• Employees are entitled to an additional payment equal to at least 25% of their standard compensation for overtime worked on regular business days.
• For the first eight hours of a holiday, special day, or ordinary holiday, an employee who works overtime, employers pay at least 30% above regular hourly rates.

Twice a month

• Minimum monthly wage = $11970 USD
• Minimum daily wage = $9.69 USD
• 13th Month Pay

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USD equivalent median salaries based on Role:

• Data Scientist: $47,414
• Electrical Engineer: $5,760
• Hardware Engineer: $14,008
• IT Manager: $21,488
• Mobile Developer: $21,532
• Product Manager: $16,921
• Project Manager: $19,055
• QA Engineer: $10,371
• Software Engineer: $16,190
• System Administrator: $31,344
• UX Designer: $23,994
• Web Developer: $11,053

• SSS (Social Security System): (1) 7.07% Employer Contribution, (2) 3.33% Employee Contribution
• 30% Corporate Income Tax Rate
• 1.16%-1.19% Payroll Tax

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• Service Incentive Leave
• Home Development Mutual Fund (HDMF)
• Weekly Rest Day
• 13-month pay entitlement
• Bereavement Leave
• Retirement Benefit

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Health Insurance 

• 3.5% of the employee's basic salary, equally divided between employee and employer

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Paid leave

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Maternity 

• 2 - 4 weeks
• 100% salary
• Only up to four deliveries

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Paternity 

• Up to 7 days
• 100% salary
• Only up to four deliveries

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Vacation/PTO days

• 13 - 18 days
• Convertible to money at the end of each year

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Sick Days

• 12 - 15 days
• Convertible to money at the end of each year

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Additional Leave

• Bereavement: Immediate family = 3 days
• Jury Duty
• Voting

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Holidays

The Philippines has numerous observances and 19 national (public) holidays throughout the year. Others are based on the lunar calendar and are therefore observed on different days every year, while some have fixed dates based on the Gregorian calendar.

The most important fixed-date holidays are

• New Year’s Day (January 1)
• Labor Day (May 1)
• Independence Day (June 12)
• Christmas Day (December 25)

Philippine labor law reinforces an employee’s right to security of tenure, as guaranteed by the Philippine Constitution.

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Just Causes for Termination

• Severe misbehavior or willful disobedience by an employee of the legitimate instructions of their employer or agent while performing their job
• Employee’s flagrant and persistent failure to perform job requirements
• Fraud or a willful betrayal by an employee of the faith placed in them by their employer or properly appointed agent
• If an employee commits a criminal offense against their employer, a member of their immediate family, or a properly appointed representative
• Similar causes 
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Authorized Causes for Termination

• Installing labor-saving equipment
• Redundancy
• Reduction of staff to avoid losses
• Closing down or ceasing to operate the business or endeavor
• Illness
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Separation Pay

• Separation pay must be at least one month salary or one month's salary for each year of service
• Should be paid within 30 days of the separation date
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Termination Agreements

• It is legal for an employer and employee to agree on the terms of resignation, but the employer must ensure the agreement is entered into voluntarily by both parties
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Releases and Quit claims

According to legal precedent, a legitimate (release waiver and) quitclaim must meet the following requirements:

• None of the parties engaged in fraud or deception
• The basis for the quitclaim is convincing and reasonable
• The contract does not violate the law, public order, public policy, morals, good customs, or harm a third party with a legal right