According to Velocity Global's employment agreement template, when is the salary due in the Philippines?

Per our employment agreement template, salary in the Philippines is paid in arrears: one-half on the 15th of the month and the other one-half on the last day of the month.

What date does the law specify salary must be paid in the Philippines?

In the Philippines, local legislation specifies that wages must be paid at least once every 2 weeks or twice a month at intervals not exceeding 16 days.

How is salary calculated and what components does it consist of in the Philippines?

In the Philippines, salary is calculated on a semi-monthly basis.

• For hourly employees, salary is computed by multiplying the hourly rate by the total regular hours.
• For monthly employees, salary consists of half a month of their monthly salary and includes any applicable recurring allowances, overtime pay, night differential, paid time off (PTO), holiday pay, and rest day pay.

Is there a legal obligation to pay salaries in the same month in the Philippines?

No, there is no legal obligation to pay salaries in the same month in the Philippines. Wages must be paid at least once every 2 weeks or twice a month at intervals not exceeding 16 days.

How many salary payments are made per year in the Philippines?

In the Philippines, salary payments are made semi-monthly, totaling 24 times a year.

Is salary payment monthly and is payment standard at the end of the month in the Philippines?

In the Philippines, local legislation requires that wages be paid at least once every 2 weeks or twice a month, with intervals not exceeding 16 days. Typically, payments occur on the 15th and the last day of each month.

Should the employment agreement specify salary in monthly or annual amounts in the Philippines?

In the Philippines, it is common practice for the employment agreement to specify the salary in monthly gross amounts. Our employment agreement template reflects this practice by providing the monthly gross salary of the supported employee.

What tax and social security obligations do employees have in the Philippines?

In the Philippines, employees have specific tax and social security obligations. Taxable income encompasses various forms of compensation such as salaries, fees, wages, commissions, and annuities. Income tax rates are progressive, ranging from 0% to 35%, depending on an individual's income level. A withholding tax is applied to both regular compensation, which includes basic salary and fixed allowances, and supplementary compensation. Supplementary compensation may consist of commissions, overtime pay, fees (including directors' fees), profit sharing, monetized vacation leave beyond 10 days, sick leave, fringe benefits received by rank-and-file employees, hazard pay, taxable 13th-month pay and other benefits, as well as any other remuneration received from the employee-employer relationship. These taxes are assessed according to the Withholding Tax Table and Annual Tax Table.

What are the details of the statutory bonuses and 13th/14th-month salary, including the local name and payment schedule?

In the Philippines, employers must provide a statutory bonus known as the 13th month pay to supported employees who have completed at least 1 month of service during the calendar year. This bonus is locally referred to simply as "13th month pay" and must be disbursed no later than December 24. The payment is at minimum equal to 1/12th of the supported employee's total basic salary for that calendar year.

What is the minimum wage information in the Philippines?

As of July 18, 2025, the minimum wage in the Philippines is set at PHP 695 for non-agricultural workers and PHP 658 for workers in other sectors.

It is important to note that each of the 17 provinces in the Philippines has the authority to establish their own minimum wage requirements, which may vary from the national standard.