Hire a remote team in Philippines

Rivermate is a global employment solutions company that provides Employer of Record services in Philippines.As an employer of record, we help you hire employees and run payroll services in Philippines, allowing you to avoid the necessity of first establishing a branch office or subsidiary in Philippines.It is not necessary to establish an entity in order to hire an employee. We can hire your employee in any country with a few mouse clicks. Using our Employer of Record solution, you can have full compliance, benefits, and automated payments.If you wish to hire a remote team in Philippines or individually hire remote employees in Philippines, Rivermate’s global employer of record services will make sure that the process will be as seamless as possible for you.Send us a message so we can talk about how Rivermate’s Employer of Record Philippines services can best help your company!

The cost of living in the Philippines is $587, or 1.59 times less than the global average. The Philippines ranked 146th out of 197 countries in terms of cost of living and 106th in terms of quality of life.In the Philippines, the average after-tax salary is $302, which is enough to cover living expenses for 0.5 months.

The output of the manufacturing sector is distributed as follows: consumer goods (57%), intermediate goods (25%), and capital goods (18%). Food and beverage, clothing, footwear, and tobacco remain the most important consumer goods sub-sectors. Petroleum and coal for power generation, as well as chemicals for drugs and personal care products, continue to be in high demand as intermediate goods. Electronics, including semi-conductors, and iron and steel drove capital goods manufacturing.Mineral resources abound in the Philippines. The Mining Act of 1995 liberalized the industry by providing a package of incentives, including net operating loss carry-over and accelerated depreciation, to foreign mining firms.Rice, corn, coconut, and sugar are the most important agricultural products.The Philippines is one of the largest exporters of coconut oil and sugar, but its comparative advantage has dwindled over time due to the development of substitutes and an increase in the number of other exporter countries. Poultry and livestock have emerged as the sector's new growth areas.The construction industry, which began in 1994, is expected to continue growing. The private sector is regarded as the primary mover. Private investors are becoming more interested in infrastructure projects through expanded build-operate-transfer (BOT) programs. Office and residential buildings, as well as shopping malls, subdivision projects, and industrial estates, continue to be in high demand.

In the Philippines, the average workweek is 40 hours, with an eight-hour workday, though some industries require 48-hour workweeks with overtime. Overtime is permissible and must be compensated at a rate of at least 125% of the employee's regular rate of pay.Aside from skilled apprenticeship programs, employment compliance in the Philippines includes an optional six-month probationary period that cannot be extended beyond six months.While Filipino employees are legally permitted to unionize, collective bargaining is uncommon in the country. A union or collective bargaining association represents only about 10% of the workforce.

The Philippines' economy has been one of the most dynamic in the East Asia Pacific region. Between 2010 and 2019, average annual growth increased to 6.4%, up from 4.5% on average between 2000 and 2009. The Philippines' economic dynamism is rooted in strong consumer demand, which is supported by a vibrant labor market and robust remittances, owing to increasing urbanization, a growing middle class, and a large and young population. Business activity is brisk, with notable performance in the services sector, which includes BPO, real estate, tourism, and the finance and insurance industries. The Philippine economy has also made strides toward inclusive growth, as evidenced by a drop in poverty rates and the Gini coefficient. Poverty fell from 23.3% in 2015 to 16.6% in 2018, while the Gini coefficient fell from 44.9 to 42.7 during the same time period.However, the country's COVID-19 pandemic and community quarantine measures have had a significant impact on economic growth and poverty reduction. In 2020, growth contracted significantly, owing to sharp declines in consumption and investment growth, which were exacerbated by a slowdown in tourism and remittances. Similarly, the previous trend in real wages, which was expected to have a positive impact on household incomes—particularly those from lower income groups—has been severely hampered by the COVID-19, with negative implications for poverty reduction in the Philippines.Nonetheless, the economy has begun to recover, with a 5.6% year-on-year growth rate in 2021, aided by public investment and a recovery in the external environment. With continued recovery and reform efforts, the country is resuming its path from a lower middle-income country with a gross national income per capita of US$3,430 in 2020 to an upper middle-income country (per capita income ranging from US$4,096 to US$12,695) in the short term. The economy is expected to rebound further, fueled by a recovering domestic environment, declining COVID-19 cases, and broader economic reopening. Still, the economy faces downside risks from a weak external environment, which includes an expected slowing of global growth, rising inflation, and geopolitical turmoil. The recovery is expected to have a positive overall impact on poverty reduction.

The minimum wage for workers in the agricultural sector is 500.00 PHP per day, while in the non-agriculture sector it is 537.00 PHP per day.