Philippines Payroll Knowledge

This article explains how payroll works for employees engaged in the Philippines through RemoFirst, covering pay schedules, deductions, government contributions, 13th Month Pay, leave and final pay.

 If you have a question that is not answered below, contact RemoFirst support, and the team will be happy to help.

Payroll Schedule in the Philippines

How often are employees paid in the Philippines?

Employees in the Philippines are paid semi-monthly.

When are employees paid in the Philippines?

The standard payment dates in the Philippines are the 15th and the 30th of the month. If a payment date falls on a public holiday or weekend, payment is generally made on the previous working day.

What currency are employees paid in the Philippines?

Employees in the Philippines are paid in Philippine Pesos (PHP).

Payslips in the Philippines

When are Philippine payslips issued?

Payslips in the Philippines are typically issued within 1 to 2 days following payroll processing and are made available through the platform.

Why does my Philippine payslip contain deductions?

Common deductions on a Philippine payslip include:

• Income Tax
• Social Security System (SSS)
• PhilHealth
• Pag-IBIG (HDMF)
• Private insurance deductions, where applicable

Salary Proration in the Philippines

Why was my first salary in the Philippines lower than expected?

Employees who join mid-month in the Philippines receive a prorated salary based on the days worked during the payroll period.

Are government deductions prorated in the Philippines?

No. Government contributions such as SSS, PhilHealth and Pag-IBIG may still be deducted in full according to local regulations, even when salary is prorated.

13th Month Pay in the Philippines

What is 13th Month Pay in the Philippines?

13th Month Pay is a mandatory benefit in the Philippines. It is equivalent to one-twelfth (1/12) of the employee's annual basic salary.

Who is eligible for 13th Month Pay in the Philippines?

Employees in the Philippines who have worked at least one month during the calendar year are eligible.

When is 13th Month Pay paid in the Philippines?

13th Month Pay in the Philippines is paid on or before 24 December each year.

Is 13th Month Pay prorated in the Philippines?

Yes. Employees joining or leaving during the year in the Philippines receive a prorated amount based on the service completed.

Is 13th Month Pay taxable in the Philippines?

13th Month Pay and other benefits are tax-exempt up to a combined total of ₱90,000 in the Philippines. Any amount above that ceiling is subject to income tax.

Tax and Government Contributions in the Philippines

Updated for 2026: SSS, PhilHealth and Pag-IBIG contribution rates have all reached their final legislated levels. The figures below reflect the current year.

What government deductions apply in the Philippines?

Employees in the Philippines contribute to three government programs:

• Social Security System (SSS): the employee share is 5% of the monthly salary credit for 2026, with the employer paying 10%, for a combined 15%. Contributions are based on a salary-credit bracket system rather than exact salary.
• PhilHealth: the premium is 5% of monthly basic salary for 2026, shared equally, so 2.5% for the employee. It applies between a salary floor of ₱10,000 and a ceiling of ₱100,000.
• Pag-IBIG (HDMF): 2% of monthly compensation, capped at ₱200 per month for the employee.

How does income tax work in the Philippines?

The Philippines operates a progressive income tax system, and the amount deducted depends on the employee's taxable income. The first ₱250,000 of annual taxable income is exempt from income tax.

What is tax annualization in the Philippines?

At year-end, payroll in the Philippines performs a reconciliation of the tax deducted during the year against the tax actually owed. This may result in either an additional tax deduction or a tax refund.

Public Holidays in the Philippines

How are public holidays treated in the Philippines?

The Philippines recognizes multiple public holidays throughout the year, and holiday pay depends on the type of holiday and whether the employee worked on it. The two main types are:

• Regular holidays: typically paid at 200% of the daily rate if worked. If the employee does not work but is otherwise eligible, the day is still generally paid at 100%.
• Special non-working days: typically paid at 130% of the daily rate if worked, and follow a "no work, no pay" principle if not worked, unless a more favourable company policy applies.

Applicable premiums are calculated automatically during payroll processing.

Leave in the Philippines

What annual leave entitlement applies in the Philippines?

Employees in the Philippines become eligible for Service Incentive Leave after one year of service. The statutory minimum entitlement is 5 days per year. Clients may offer enhanced leave benefits above this minimum.

Is sick leave mandatory in the Philippines?

No. There is no separate statutory paid sick leave in the Philippines. Additional sick leave is generally provided as a company benefit, and the Service Incentive Leave can be used for illness.

What maternity leave applies in the Philippines?

Eligible employees in the Philippines may receive:

• 105 calendar days of paid maternity leave
• 120 calendar days for qualifying solo mothers

Up to 7 days of the leave may be allocated to the child's father, and an additional 30 days of unpaid leave may also be requested.

What paternity leave applies in the Philippines?

Married male employees in the Philippines are entitled to 7 days of paid paternity leave for the first four deliveries of their lawful spouse.

What solo parent leave applies in the Philippines?

Qualified solo parents in the Philippines are entitled to 7 working days of paid parental leave per year, subject to meeting the eligibility requirements.

Expenses and Reimbursements in the Philippines

What expenses can be reimbursed in the Philippines?

Common reimbursable categories in the Philippines include:

• Business travel
• Accommodation
• Meals
• Internet and phone expenses
• Office supplies

What documentation is required for Philippine expense claims?

For an expense claim in the Philippines, employees should provide a receipt or invoice, the business purpose, and any required approvals.

When are reimbursements paid in the Philippines?

Approved expenses in the Philippines are generally paid through payroll.

Final Pay in the Philippines

What is included in final pay in the Philippines?

Final pay in the Philippines may include:

• Outstanding salary
• Unused eligible leave balances
• Prorated 13th Month Pay
• Other accrued contractual payments

When does an employee receive final pay in the Philippines?

Final pay in the Philippines is processed following completion of the offboarding and clearance process. Government guidance generally points to release within 30 days of separation, unless a different period applies.

For any payroll question about the Philippines not answered above, contact RemoFirst support and the team will be glad to help.