Outsource to the philippines
Outsource Top Talents in the Philippines
Currency
Philippine Peso (₱)
Language
Filipino / English
Payroll cycle
Bi-weekly
Population
118.6 million
GDP
$436.6 billion
95th Ranked / Easy
Build an Outsourced Team in the Philippines
Outsourcing to the Philippines
Outsource staff in the Philippines
In the recent decade, the Philippines has made impressive strides in IT and outsourcing. This growth is powered by a tech-savvy, English-speaking workforce that’s both talented and adaptable. The country has cultivated a business-friendly environment that’s as inviting as its tropical beaches, making it an ideal hub for global companies seeking quality, efficiency, and a positive attitude.
Choosing the Philippines for outsourcing isn’t just a strategic decision; it’s a step towards building lasting partnerships and tapping into a pool of enthusiastic and skilled professionals eager to contribute to your success. Here, opportunities abound, and the future looks bright.
Benefits of Outsourcing to the Philippines
Cultural Blend
The Philippines is like a bridge between East and West, making teamwork smooth and natural.
English Skills
Clear and effective communication is easy, thanks to their strong command of English.
Diverse Talents
Whether it’s tech or creativity, you’ll find skilled professionals ready to tackle any challenge.
Work Ethic
Expect a combination of warmth and dedication, driving projects forward with a positive spirit.
Global Compatibility
Located in a convenient time zone for international business, the Philippines makes real-time collaboration easy.
Stable and Growing
The Philippines is known for its growing and resilient economy, offering a reliable environment for collaboration.
Hiring Process in the Philippines
Key Aspects of Philippine Employment Laws
The Philippine labor market is governed by a comprehensive legal framework designed to balance the rights and responsibilities of employers and employees, ensuring fair treatment, job security, and a productive working environment. With our deep expertise in providing staff augmentation and IT services, we are well-versed in these regulations, offering valuable insights and outsourcing solutions to businesses navigating this landscape.
Employment Types and Contracts
The Philippines recognizes different employment types, including regular, probationary, project-based, and seasonal employment, each with specific rights and obligations. Contracts must clearly define the nature of employment, duration, compensation, and terms, ensuring transparency and mutual understanding.
Employment Types
Regular Employment
This is intended for roles that are considered essential to the business’s operations. Employees under this category enjoy full benefits and job security, barring lawful termination.
Probationary Employment
Similar to project-based, but aligned with seasonal or peak periods. Employees might be rehired in subsequent seasons, but their employment is tied to the demand of the season.
Key Contractual Elements for Clarity and Compliance
Clearly state the conditions under which the contract may be terminated, including notice requirements and any applicable severance pay.
Working hours in the Philippines
In the Philippines, the standard framework for working hours is designed to optimize productivity while ensuring the well-being of employees. For businesses operating in this vibrant economy, including those in the tech and IT sectors, understanding and adhering to these regulations is crucial.
Standard Working Hours
The typical workweek in the Philippines is set at 48 hours, spread over six days, with eight hours per day being the standard. This structure is part of the country’s commitment to maintaining a balance between work and life, promoting both efficiency in the workplace and adequate rest for employees.
Overtime and Compensation
Overtime work is fairly common, especially in industries driven by project deadlines and peak seasons. The Philippine labor law mandates that any work done beyond the standard eight hours per day must be compensated with additional pay, usually at a higher rate. Specifically, overtime pay is set at an additional 25% of the hourly rate on regular days, and this rate increases for work done during rest days, holidays, and special non-working days.
Health and Wellness Breaks
To further promote employee well-being, Philippine labor laws also advocate for regular breaks during the workday. Employees are entitled to short breaks and a standard lunch break, contributing to better mental and physical health, and in turn, higher productivity.
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Taxes and Social Contributions
Overview of Taxes in the Philippines
The Philippine tax structure includes various forms of taxes, such as income tax, value-added tax (VAT), and corporate tax, among others. Companies are required to comply with tax regulations set by the Bureau of Internal Revenue (BIR), including timely filing and payment of taxes to avoid penalties.
- Corporate Tax: Businesses operating in the Philippines are subject to corporate income tax on their net income. Understanding the applicable rates and possible incentives, such as those for certain industries or regions, is important for tax planning.
- Value-Added Tax (VAT): Most goods and services in the Philippines are subject to VAT. Businesses need to properly account for VAT in their pricing and financial reporting.
- Withholding Taxes: Certain payments made by businesses, such as salaries, professional fees, and rents, are subject to withholding taxes. Businesses must withhold the correct amounts and remit them to the BIR.
Individual Income Tax Thresholds [2023]
The Tax Reform for Acceleration and Inclusion (TRAIN) Law, implemented in 2018, introduced significant changes to the personal income tax rates, making them more progressive to provide relief to low- and middle-income earners.
- Income up to PHP 250,000 annually is exempt from income tax. This exemption is designed to benefit lower-income earners, ensuring that they are not burdened by income tax.
- Income over PHP 250,000 up to PHP 400,000 is taxed at 20%. This bracket covers lower-middle-income earners, offering a relatively low tax rate to support their financial well-being.
- Income over PHP 400,000 up to PHP 800,000 is subject to a 25% tax rate. Individuals falling within this bracket are considered middle-income earners, with a moderate tax rate applied to their income.
- Income over PHP 800,000 up to PHP 2,000,000 is taxed at 30%. This rate applies to upper-middle-income earners, who contribute a higher proportion of their income in taxes due to their increased earning capacity.
- Income over PHP 2,000,000 up to PHP 8,000,000 faces a 32% tax rate under the TRAIN Law, targeting high-income earners who have the capacity to contribute more to public finances.
- Income over PHP 8,000,000 is taxed at the highest rate of 35%. This bracket includes the top earners in the country, who are expected to pay the highest percentage of their income in taxes.
Corporate Tax Rates
For businesses, the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, which took effect in 2021, reduced the corporate income tax rate to make the Philippines more competitive in the ASEAN region. The standard corporate income tax rate is 25% for domestic corporations and resident foreign corporations. However, smaller businesses with taxable income not exceeding PHP 5 million and total assets not over PHP 100 million (excluding land) qualify for a lower rate of 20%.
Value-Added Tax (VAT) Threshold
The VAT threshold in the Philippines is also crucial for businesses. Enterprises with gross sales or receipts exceeding PHP 3,000,000 are required to register for VAT and charge this tax on their sales of goods or services. VAT-registered businesses can claim input VAT credits, making this an important consideration for business operations and pricing strategies.
Social Contributions for Employee Welfare
In addition to taxes, businesses are also required to make social contributions on behalf of their employees. These contributions fund government programs that provide benefits for healthcare, pensions, and housing, ensuring a safety net for the workforce.
- Social Security System (SSS): Employers and employees contribute to the SSS, which offers a range of benefits, including pensions, disability benefits, and maternity leave support.
- Philippine Health Insurance Corporation (PhilHealth): Contributions to PhilHealth provide employees with access to healthcare services, reducing the financial burden of medical expenses.
- Home Development Mutual Fund (Pag-IBIG): Contributions to Pag-IBIG fund housing and loan programs for employees, facilitating home ownership and financial security.
Leave Entitlements in the Philippines
Mandatory Leave Entitlements
The Philippine labor laws stipulate several mandatory leave benefits, ensuring employees have access to rest and recuperation, as well as time off for significant life events and health-related needs.
- Annual Leave (Service Incentive Leave): Employees are entitled to five days of annual leave with pay after one year of service. This leave can be used for personal time off, vacations, or family matters.
- Sick Leave: While not mandated by law, many employers provide sick leave benefits to employees. The specifics, such as the number of days and accrual rates, are typically outlined in the employment contract or company policy.
- Maternity Leave: Female employees are entitled to 105 days of maternity leave with full pay, extended to 120 days for solo parents. This leave can be availed for childbirth, miscarriage, or emergency termination of pregnancy.
- Paternity Leave: Fathers are entitled to seven days of paternity leave with pay, available for the first four deliveries of the lawful wife with whom the employee is cohabiting.
- Parental Leave for Solo Parents: Solo parents are granted an additional 7 days of leave per year, on top of other leave benefits, to fulfill parental duties and responsibilities.
- Special Leave Benefits for Women: Female employees who have undergone surgery due to gynecological disorders are entitled to up to two months of leave with full pay, based on medical necessity.
Optional and Company-Provided Leaves
- Bereavement Leave: Leave granted for the death of an immediate family member, with the duration and conditions varying by company.
- Emergency or Calamity Leave: Leave provided during natural disasters or emergencies, allowing employees to ensure their safety and attend to affected family members.
- Study Leave: Some organizations offer leave for employees pursuing further education or professional development, recognizing the value of continuous learning.
Holidays in the Philippines
Philippine holidays fall into two main categories, each with its significance and observance regulations:
- Regular Holidays: These are fixed dates that commemorate significant national events, such as Independence Day, and religious celebrations, like Christmas Day. Employees are entitled to 100% additional pay for work performed on these days, and if unworked, they still receive 100% of their daily wage.
- Special (Non-Working) Days: These days, while not regular holidays, are set aside to observe certain events or traditions, such as All Saints’ Day. Employees working on these days receive an additional 30% of their daily rate, but there’s no pay if the day is unworked unless company policy dictates otherwise.
Regular Holidays in the Philippines [2024]
The Philippines boasts a diverse array of national public holidays, each celebrated with fervor and reverence annually. Here’s a closer look at the calendar of public holidays for 2024, where each date not only signifies a break from the routine but also embodies the spirit and values of the Filipino people:
| Event | Date |
| New Year’s Day | January 1 (Mon) |
| Maundy Thursday | March 28 (Thu) |
| Good Friday | March 29 (Fri) |
| Araw ng Kagitingan | April 9 (Tue) |
| Labor Day | May 1 (Wed) |
| Independence Day | June 12 (Wed) |
| National Heroes Day | August 26 (Mon) |
| Bonifacio Day | November 30 (Sat) |
| Christmas Day | December 25 (Wed) |
| Rizal Day | December 30 (Mon) |
Special (Non-Working) Holidays in the Philippines [2024]
The Philippines boasts a diverse array of national public holidays, each celebrated with fervor and reverence annually. Here’s a closer look at the calendar of public holidays for 2024, where each date not only signifies a break from the routine but also embodies the spirit and values of the Filipino people:
| Event | Date |
| Ninoy Aquino Day | August 21 (Wed) |
| All Saint’s Day | November 1 (Fri) |
| Feast of the Immaculate Conception of Mary | December 8 (Sun) |
| Last Day of the Year | December 31 (Tue) |
| Additional Special (Non-Working) Day | February 9 (Fri) |
| Chinese New Year – Additional Special (Non-Working) Day | February 10 (Sat) |
| Black Saturday – Additional Special (Non-Working) Day | March 30 (Sat) |
| All Souls’ Day – Additional Special (Non-Working) Day | November 2 (Sat) |
| Christmas Eve – Additional Special (Non-Working) Day | December 24 (Tue) |
Employment Benefits in the Philippines
In addition to mandatory benefits for employee welfare such as the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and Home Development Mutual Fund (Pag-IBIG), along with paid holidays, Philippine labor laws also mandate the following benefits:
13th Month Pay: A Mandatory Benefit
The 13th month pay is a mandated benefit in the Philippines, requiring employers to provide their employees with an additional month’s worth of salary annually. This pay is typically given at the end of the year, serving as a financial boon for employees during the holiday season.
Key Features:
- Eligibility: All rank-and-file employees, regardless of the nature of their employment, who have worked for at least one month during the calendar year, are entitled to this benefit.
- Calculation: The 13th month pay in the Philippines is computed based on the total basic salary earned by the employee within the year, divided by 12 months. This excludes overtime, holiday pay, and allowances that are not part of the basic salary.
- Timing: It must be paid not later than December 24th each year, ensuring employees have this financial support in time for Christmas and New Year celebrations.
Bonuses: Beyond the Mandatory
Bonuses in the Philippines, while not mandated by law, are commonly given by many companies as a way to reward performance, share profits, and motivate employees. These can include annual bonuses, performance incentives, and profit-sharing schemes, varying significantly from one organization to another based on their policies and financial health.
Types of Bonuses:
- Annual Bonuses: Often given at the end of the fiscal year, reflecting the company’s appreciation for the employees’ contributions.
- Performance Bonuses: Linked to individual or team performance metrics, encouraging excellence and goal achievement.
- Profit-Sharing Bonuses: Some companies offer a share of the profits, directly linking employee rewards to the company’s success.
Termination of Employment in the Philippines
Termination in the Philippines is governed by strict regulations to protect the rights of employees while allowing employers to manage their workforce effectively.
- Just Causes for Termination: Include misconduct, willful disobedience, gross inefficiency, and similar grounds that warrant dismissal due to the fault of the employee.
- Authorized Causes for Termination: Cover business-related reasons such as redundancy, retrenchment to prevent losses, and closure of business, not attributable to employee fault.
- Due Process in Termination: Employers must follow due process, including notice and hearing, to ensure fairness and transparency in the termination process.
- Separation Pay: In cases of termination due to authorized causes, employees are entitled to separation pay, offering financial support during their transition.
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Tailor Your Outsourcing Solution
Outsourced Staffing Solutions in the Philippines
Staff
Augmentation
Scale swiftly, hire smartly. Expand your team's capabilities without the overheads.
Staff Augmentation
Scale swiftly, hire smartly. Expand your team's capabilities without the overheads.
IT Service Outsourcing
Transform ideas into innovation. Outsource your IT development for cutting-edge solutions.
Business Process Outsourcing (BPO)
Streamline success. Elevate your operations by outsourcing business processes.
Employer of Record (EOR) Services
Global talent, hassle-free. Navigate international hiring seamlessly with our EOR services.
Find Your Offshore Specialists
Top Outsourced Job Roles in the Philippines
Software Development
- Full Stack Developer
- Mobile App Developer
- Software QA Engineer
- DevOps Engineer
- UI/UX Designer
IT Maintenance
- Network Administrator
- System Administrator
- IT Support Specialist
- Help Desk Technician
- Hardware Engineer
Client Support
- Customer Service Representative
- Technical Support Specialist
- Account Manager
- Client Relations Coordinator
- Live Chat Support Agent
Data
- Data Analyst
- Database Administrator
- Data Scientist
- Data Engineer
- Business Intelligence Analyst
Accounting
- Accounts Payable/Receivable Clerk
- Payroll Specialist
- Tax Accountant
- Financial Analyst
- Bookkeeper
Content Creation
- Content Writer
- SEO Specialist
- Graphic Designer
- Social Media Manager
- Video Editor
Choose your Outsourced Team's workspace
From Home-Based Freedom to Full-Fledged Office-Based Setup
Boost your business with a team that molds to your work style, from the quiet of your home office to the buzz of a corporate setting. Our outsourcing solutions bring you the flexibility to expand and the expertise to excel, ensuring your success is always supported, no matter where you work.
Home-based Staff
Features
- Fully remote operation
- Ideal for independent professionals or small teams
- Economical due to zero physical office overhead
- Broad access to talent regardless of location
- Attracts those preferring to work without a commute
- Conducive to a balanced work and personal life
- Generally, remote staff are amenable to more modest wages
Hybrid Staff
Features
- Combination of remote and in-office work
- Flexible office attendance
- Suitable for teams of any size
- Collaborative co-working spaces
- Attractive for those who wish to occasionally work on-site
- Availability of meeting and collaborative spaces
- Modern office amenities
- Supports operational stability during disruptions
Office-based Staff
Features
- Exclusive, permanent in-office workstations at our HQ in Manila
- Facilitation of independent office sourcing and setup on your behalf.
- Optimized for larger organizations requiring dedicated facilities.
- Fosters teamwork and boosts productivity
- Ideal for roles critical to business operations and security.
- Full access to office amenities.
- On-site support and team events.
- Enhanced data protection with ISO-certified security measures
Common Questions About Outsourcing to the Philippines
FAQs
How does iScale handle data security and privacy in outsourcing projects?
iScale takes data security and privacy seriously. We adhere to strict data protection policies and employ advanced security measures, including encryption, secure VPNs, and regular security audits, to safeguard your data and ensure compliance with relevant regulations. Click here for more information.
What about time zone differences?
iScale is adept at managing projects across different time zones. We offer flexible working hours and shift arrangements to ensure overlap with our clients’ business hours, facilitating effective communication and collaboration regardless of geographical location.
