How do you hire a Philippines employee in 2026?
Every new hire in the Philippines triggers three mandatory government registrations on day one: SSS, PhilHealth, and Pag-IBIG. Miss any one of them and the employee has no social cover. Security of tenure under the Philippine Constitution applies from the very first day of work, with no qualifying period.
· Philippines guide
Illustration · Metro Manila, Philippines
The Philippines hire process has five steps. Offer letter, work-authorisation check, written employment contract, three government registrations, first payday.
Security of tenure applies from day one. There is no qualifying period before the Labor Code protections attach.
Probation can last up to 6 months. After probation, regular employment status applies automatically. The three mandatory contributions are SSS, PhilHealth, and Pag-IBIG. All must be registered before the first payroll.
What does the end-to-end Philippines hire process look like?
Five steps from accepted offer to first payslip: offer letter, work-authorisation check, written employment contract, three government registrations, first payday.
The critical path is the triple registration. SSS, PhilHealth, and Pag-IBIG must all be active before the first semi-monthly payroll run.
| Step | What happens | Owner | Timing |
|---|---|---|---|
| 1. Offer letter | Written offer with role, salary, start date, and key terms including probation period | Client / Teamed drafts | Same day after verbal accept |
| 2. Work-authorisation check | Filipino citizens: verify government-issued ID. Foreign nationals: confirm Alien Employment Permit (AEP) from DOLE before start | Teamed | Before the employee starts |
| 3. Written employment contract | Signed employment contract setting out role, salary, probation period, and regularisation criteria | Teamed (legal employer) | On or before day one |
| 4. Three government registrations | Register the employee with SSS (social security), PhilHealth (health insurance), and Pag-IBIG / HDMF (housing fund); collect TIN and banking details | Teamed | Days 1 to 7 |
| 5. First payday | First semi-monthly payslip issued; withholding tax remitted to BIR; contributions remitted to SSS, PhilHealth, and Pag-IBIG | Teamed | End of first pay period |
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Issue the offer letter
Send a written offer the same day as verbal acceptance. Include role, salary, start date, probation period of up to 6 months, regularisation criteria, and any conditions such as work authorisation or pre-employment medical clearance.
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Complete the work-authorisation check
Verify a government-issued ID for Filipino nationals before the start date. For foreign nationals, confirm the Alien Employment Permit (AEP) from DOLE is in hand before work begins.
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Issue the written employment contract
The signed contract must be in place on or before day one. It must include the written performance standards for probationary employees. Without these, dismissal during probation is not legally available.
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Complete the three government registrations
Register the employee with SSS, PhilHealth, and Pag-IBIG. Collect the BIR TIN and bank details. All three registrations must be active before the first semi-monthly payroll run.
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Issue the first semi-monthly payslip
Run the first payroll at the end of the first pay period. Remit withholding tax to BIR and contributions to SSS, PhilHealth, and Pag-IBIG. The employee receives their payslip and is on the payroll record.
What must a Philippines offer letter include?
The offer letter is not the employment contract. It is the document the candidate decides against.
Include role title, reporting line, start date, gross monthly salary, work location, probation period of up to 6 months, regularisation criteria, and any conditions such as work authorisation or pre-employment medical clearance.
Three traps to avoid in Philippines offer letters:
- Omitting regularisation criteria. Probationary employees can only be dismissed for failure to meet the performance standards written into the contract or communicated at the start. If the criteria are not in the offer letter or contract, dismissal during probation becomes legally unsafe.
- Quoting net salary. The three mandatory government contributions (SSS, PhilHealth, Pag-IBIG) and withholding tax change the net figure. Quote gross only to avoid disputes when contribution rates are updated.
- Promising a fixed probation end date without a performance clause. The maximum probation period is 6 months under the Labor Code. But the employee can be regularised earlier or dismissed for failure to qualify only if the written performance standards allow it. Align the offer letter and contract before day one.
Teamed's standard Philippines offer letter and employment contract templates cover all required ground. Clients choose commercial terms. Teamed holds the legal-employer position.
Philippines work-authorisation checks
Filipino citizens do not require a separate work permit. The employer verifies identity using a government-issued ID before employment begins.
Foreign nationals must hold a valid Alien Employment Permit (AEP) issued by the Department of Labor and Employment (DOLE) before they can legally start work.
Filipino citizens
There is no formal right-to-work check system in the Philippines equivalent to the UK Home Office online portal. For Filipino nationals, the employer verifies identity with a government-issued ID (passport, national ID, SSS card, PhilHealth card, or driver's licence) before the start date and retains a copy on file.
Foreign nationals: Alien Employment Permit (AEP)
Any foreign national intending to engage in gainful employment in the Philippines must obtain an AEP from the DOLE Regional Office. The AEP must be in place before the employment begins. Applications are made by the employer on behalf of the foreign national. The permit is tied to the employer, so a change of employer requires a new AEP. Certain categories are exempt from the AEP requirement, including members of the diplomatic corps, foreign government officials, and some treaty-based positions, but these exemptions are narrow and must be confirmed with DOLE.
Any alien seeking employment in the Philippines must first secure an Alien Employment Permit from the Department of Labor and Employment. The employer must apply on behalf of the foreign national before work begins. Employment of a foreign national without a valid AEP is an offense under the Labor Code and subjects the employer to penalties.
Follow-up for time-limited permits
AEPs are issued for a fixed term and must be renewed before expiry. Teamed tracks each permit expiry date and notifies both the employer and the employee ahead of the renewal deadline. An expired AEP is a compliance breach that must be resolved before continued employment.
The Philippines written contract: what must it contain?
The Labor Code does not prescribe a single standard form. But a written contract must set out the terms of employment clearly.
For probationary employees, the written contract must state the standards by which regularisation will be evaluated. Without those written standards, the employer cannot legally dismiss for failure to qualify.
What a Philippines employment contract should include:
- Names of employer and employee
- Start date and work location
- Job title and brief description of duties
- Gross monthly salary and payment schedule (at least semi-monthly under the Labor Code)
- Working hours per day and per week, consistent with the 8 hours/48 hours normal hours under the Labor Code
- Probation period and the written performance or conduct standards the employee must meet to be regularised
- Leave entitlements, including the 5 days Service Incentive Leave (SIL) days available after 12 months of service, and any company leave above the minimum
- Notice requirements: 30 days advance written notice for employer-initiated authorized-cause termination
- 13th month pay entitlement under Presidential Decree No. 851
- Details of SSS, PhilHealth, and Pag-IBIG coverage
- Disciplinary procedure and grounds for just-cause dismissal
- Confidentiality, intellectual property, and any post-employment restriction terms
The Labor Code's security-of-tenure principle means that once an employee completes the probationary period and becomes a regular employee, the employer can only dismiss for just cause or authorized cause, both of which require due process. The written contract is the foundation for any termination decision. Teamed's standard Philippines contract is reviewed against current DOLE advisories.
Key source: Labor Code of the Philippines (Presidential Decree No. 442).
Onboarding admin in the first week
Days 1 to 7: written contract signed, three government registrations completed, TIN and bank account details collected, pre-employment medical on file.
Teamed handles all three government registrations and the payroll setup. The client handles system access and the day-to-day welcome.
| Onboarding task | Who does it | Day |
|---|---|---|
| Employment contract signed | Employee and Teamed | Day 0 or 1 |
| Work-authorisation check completed | Teamed | Day 0 (before start) |
| Pre-employment medical clearance (if required) | Employee (clinic), Teamed (file) | Before or on Day 1 |
| SSS registration or membership update | Teamed | Days 1 to 3 |
| PhilHealth membership registration | Teamed | Days 1 to 3 |
| Pag-IBIG (HDMF) membership registration | Teamed | Days 1 to 3 |
| BIR TIN (Tax Identification Number) collected | Employee submits to Teamed | Day 1 |
| Bank account details collected for payroll transfer | Teamed | Days 1 to 7 |
| Benefits enrolment (HMO, allowances) | Teamed (admin) and Client (decision) | Days 1 to 7 |
| Equipment and system access | Client | Days 0 to 1 |
| Manager introduction and first-week plan | Client | Days 0 to 7 |
| 30-60-90 day plan and regularisation criteria reviewed | Client (manager) and Teamed | Days 1 to 14 |
How does Teamed handle Philippines employment for you?
Teamed becomes your legal employer of record in the Philippines for from $599 per employee per month, with zero FX mark-up in any currency.
The three government registrations, 13th month pay, semi-monthly payroll, and the full Philippines employment law stack run on one platform.
Real HR and legal experts handle your Philippines hires, from the first offer letter through every BIR withholding remittance, SSS contribution filing, and year-end 13th month pay run. An actual person, not a chatbot or a pooled queue. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice.
EOR payroll, contractor onboarding, and entity setup all live on one platform. A Philippines contractor who converts to regular employment keeps their record. Run the Crossover Calculator to see the month your Philippines hire is ready to graduate to your own entity. Start from the Philippines hiring overview. Each guide here takes one layer of Philippines employment law.
Key sources: Labor Code of the Philippines, DOLE Alien Employment Permit system, and DOLE National Wages and Productivity Commission.
Frequently asked questions
How long does it take to hire someone in the Philippines through Teamed?
Teamed can onboard a Filipino employee within a few business days. The critical path is the three government registrations (SSS, PhilHealth, Pag-IBIG), which must all be active before the first payroll run. For foreign nationals, the Alien Employment Permit from DOLE must be in hand before work begins and can take several weeks to obtain. Factor in AEP lead time before setting a start date for a foreign hire.
What is the probationary period in the Philippines and what happens at the end?
The maximum probationary period is 6 months under Article 296 of the Labor Code (equivalent to 180 calendar days per Supreme Court ruling). At the end of probation, an employee who has met the written performance standards automatically becomes a regular employee. Regular employment carries full security of tenure. The employer cannot extend probation beyond 6 months except in cases covered by apprenticeship agreements or other specific DOLE-approved arrangements.
What are the three mandatory government contributions for Philippines employees?
Every employee in the Philippines must be registered with three government agencies from day one. SSS (Social Security System) covers sickness, maternity, disability, retirement, and death benefits. PhilHealth covers hospitalisation and medical insurance. Pag-IBIG (HDMF) is the housing fund. Both employer and employee contribute to each fund. Failure to register or remit contributions on time results in penalties and potential personal liability for the employer.
What is the minimum annual leave entitlement for a Philippines employee?
The Labor Code provides 5 days of Service Incentive Leave (SIL) per year with full pay. SIL is available only after 12 months of continuous or aggregate service. Many employers offer leave policies well above the 5 days minimum as a standard benefit. The Philippines also has 12 regular public holidays per year, plus additional special non-working days, all paid at a premium rate.
What is 13th month pay and is it mandatory in the Philippines?
13th month pay is mandatory for all rank-and-file employees under Presidential Decree No. 851. It is equal to at least one month of basic salary per year, calculated as total basic salary paid in the calendar year divided by twelve. It must be paid on or before 24 December each year. Employees who have worked for at least one month during the calendar year are entitled to a proportionate amount. 13th month pay must be included in your cost modelling from day one.
The three-registration requirement is where Philippines onboarding gets companies into trouble. SSS, PhilHealth, and Pag-IBIG each have their own filing system and their own deadline. Miss one and the employee has a gap in their social cover that cannot be backdated cleanly. We run all three in parallel from day one so no filing gets lost in the queue.
In the Philippines, three government registrations and a written contract must all be in place before the first payroll runs.
Security of tenure applies from the first day of work. There is no waiting period.
Get the contract, the registrations, and the regularisation criteria right from the start and you stay clean.
