Philippines
The Philippines is governed by the Labor Code, with DOLE issuing implementing rules. Regional Wage Boards set minimum wages; SSS, PhilHealth, and Pag-IBIG contributions are statutory.
Probation cap
6 months
13th month
By 24 Dec
Maternity
105 days
SIL
5 days/yr
Employment contracts
Reviewed 2026-05-04Project-based and fixed-term hires are scrutinized for misclassification. If the work is continuous and necessary to the business, courts treat the worker as regular.
Probationary, regular, project-based, seasonal, and fixed-term employment all recognised. Written contracts strongly recommended.
Watch out
End-of-contract (endo) practices — repeated short-term contracts to avoid regularization — are explicitly disallowed and routinely cited in DOLE inspections.
Probation
Reviewed 2026-01-15The written-standards rule is strict. A generic 'will be evaluated' clause does not count.
Maximum 6 months. Standards for regularisation must be communicated in writing at engagement. Otherwise the employee is deemed regular.
Watch out
Failing to act on the regularization decision by month six = automatic regularization. Diary day 165 to make the call.
Termination
Reviewed 2026-05-04The twin-notice rule is procedural and absolute. Even with valid grounds, skipping a notice triggers nominal damages.
Just causes (misconduct) and authorised causes (redundancy, retrenchment) only. Twin-notice rule applies: written notice of charges + notice of decision after hearing.
- Separation pay: 1 month or 1 month per year of service (whichever higher) for authorised cause
- Retrenchment: half-month per year minimum
- Hearing must allow the employee a meaningful chance to respond
Watch out
'Constructive dismissal' is a real risk if you reduce scope, salary, or rank materially. Document the business reason for any change.
Minimum wage
Reviewed 2026-03-01If you operate across regions, payroll must be configured to apply the right regional rate per employee work location.
Set by Regional Wage Boards. NCR Metro Manila and CALABARZON typically have the highest rates.
Leave entitlements
Reviewed 2026-05-0413th month is a statutory minimum, not a bonus. It must be paid in cash, in full, no later than 24 December.
5 days Service Incentive Leave annually after 1 year. 105 days paid maternity (with option to extend). 7 days paternity. 13th month pay mandatory by 24 December.
Watch out
Many companies pay 13th month in two tranches (June and December). That is fine. Splitting it further or paying late is a violation.
Recent regulatory changes
Reviewed 2026-05-10Workplace mental health guidelines (May 2026) require a designated focal point. NPC advisory on biometric attendance data requires separate consent.
Recent changes
2026-05-10
DOLE workplace mental health guidelines issued
2026-05-04
13th month clarification for project hires
2026-04-04
Tax-exempt 13th month ceiling raised to ₱90,000
2026-04-02
Telecommuting Act protections expanded
Three things people get wrong about Philippines
- 1.Probation extends to whatever you want. Hard cap is 6 months — day 165 is your deadline.
- 2.13th month is a bonus. It's statutory — late or partial payment is a violation.
- 3.Twin-notice rule is procedural fluff. Skipping a notice triggers nominal damages even with valid cause.
Cross-country compare
Quick read across the six jurisdictions HR Asia tracks.
| Country | Probation | Notice | Leave |
|---|---|---|---|
| 🇮🇩 Indonesia | 3 months | — | 12 days |
| 🇸🇬 Singapore | 3–6 months | 2 weeks | 7 days |
| 🇲🇾 Malaysia | 3–6 months | 4 weeks | 8 days |
| 🇵🇭 Philippines | 6 months | — | 5 days |
| 🇮🇳 India | 3–6 months | 1 month | 12–21 days |
| 🇯🇵 Japan | 3–6 months | — | 10 days |
Managing this automatically? Aire handles contract generation tied to your live compliance requirements — country by country.
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This page is editorial, not legal advice. Always confirm with local counsel before acting on any specific case.