Deciding to expand to the Philippines requires plenty of prior planning, time, and money. One of the most important tasks of any global growth venture is hiring the right employees to help your new location succeed, which can be challenging if you don’t have a full grasp on the country’s culture and business etiquette. While hiring in the Philippines may seem simple, companies have to learn all of the country’s employment laws, set up a subsidiary, and establish a compliant payroll system.
Recruiting in the Philippines
Learning about the culture in the Philippines is essential when it comes to the interpersonal aspect of the recruitment process. However, it’s just as important to make sure your company complies with the legal requirements for employers in the Philippines.
Another aspect worth putting some thought into is finding the best recruitment channels to source candidates. Social media is on the rise and is a great way for employers to connect with talented professionals in the Philippines. Facebook and LinkedIn are both popular. Companies might also want to look into industry-specific sites to find specialized talent. For example, GitHub is a great social platform for professionals in the IT field.
You should also make sure your company’s website is mobile-friendly, as most jobseekers will use their mobile devices to explore job postings.
Laws against discrimination in the Philippines
Employers must make sure to comply with local laws and regulations from the beginning of the recruitment process. In the Philippines, the law prohibits employers from discrimination against workers and potential hires based on:
- Ethnicity
- Religion or beliefs
- Race
- Gender
- Sex
- Sexual orientation
- Civil status
- Medical condition
- Age
- Pregnancy or parental status
- Union membership
To ensure compliance, avoid asking candidates direct questions related to any of these characteristics during the interview process.
How to hire employees in the Philippines
Potential hires may try to negotiate a net salary instead of a gross salary. If you’re trying to hire employees in the Philippines, make sure you clarify that all the offers are the gross salary and not net.
Philippines employment laws
The normal workday in the Philippines is up to 8 hours. The Labor Code does not set a single 40-hour workweek, and regular schedules may commonly reach 48 hours over 6 working days, with overtime generally due beyond daily normal hours. Overtime is permitted for work beyond the normal 8-hour day and must be paid at least 125% of the employee’s regular hourly rate. Higher overtime premiums generally apply on rest days, special non-working days, and regular holidays. Additional pay rates may also apply to work conducted on rest days, special non-working days, regular holidays, and/or nights.
Philippines employment law allows an optional probationary period, but it generally can’t extend past 6 months from the employee’s start date. A longer period may apply under an apprenticeship agreement or another legally valid arrangement.
While employees are allowed to unionize by law, collective bargaining is not common nationally. About 6%–8% of wage and salary workers are unionized, and about 3%–5% are covered by a collective bargaining agreement, with higher presence in some sectors and larger workplaces.
Onboarding in the Philippines
Creating a welcoming work environment is also important to employees in the Philippines and deeply impacts the onboarding experience. Cultivate an environment of respect and collaboration where everyone has a voice. Offering a competitive benefits package is another great way to keep your retention rate high.
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