Looking to hire in Philippines

Sick leave is tracked separately from general paid time off. It follows an anniversary-year structure without carry-over of unused days, and employers are not required to collect medical certificates under this baseline policy.

Employees in the Philippines must submit current-year expenses within 60 days of the expense date or within 30 days after returning from a business trip, whichever is later. Prior-year expenses must be submitted no later than February 1 of the following year.

Some expense categories require a Bureau of Internal Revenue (BIR) invoice; a simple receipt is not accepted for these. This applies to phone and internet subscriptions, coworking, laptops, software subscriptions, visa fees, accommodation, flights, car rental, public transport, and training, courses, and books. For certain expenses incurred within the Philippines, tax invoices or receipts must also show the employer’s name and address.

Phone and internet subscriptions and coworking fees can be reimbursed tax-free when supported by a BIR invoice that clearly identifies the transaction and, for costs incurred in the Philippines, the employer’s details.

Work tools and supplies are generally reimbursable on a non-taxable basis when backed by proper tax invoices or receipts. For items bought in the Philippines, many categories must show the employer’s name and address on the document.

Business travel costs are widely covered on a non-taxable basis when supported by appropriate tax invoices or receipts. Several travel-related expenses incurred in the Philippines must be supported by a BIR invoice and include the employer’s name and address.

Routine meals and certain client-facing entertainment costs can be reimbursed as non-taxable when supported by a valid tax invoice or receipt that clearly identifies the merchant and transaction details.

A range of other business-related costs can be reimbursed tax-free when properly documented. Medical insurance and medical costs have specific annual non-taxable caps, after which any excess is treated as a taxable allowance.

Employers may provide per diems to cover incidental expenses during business travel, in addition to reimbursing direct travel costs. The typical ranges below reflect common company practice rather than a fixed Bureau of Internal Revenue rate.

De minimis benefits are small routine benefits or one-time awards provided on top of salary. In the Philippines, employees can receive up to PHP 90,000 per year in bonuses, 13th month salary, commissions, and other incentive compensation on a tax-exempt basis. If a de minimis benefit exceeds its specific cap, the excess counts toward this PHP 90,000 annual tax-exempt threshold; once that threshold is fully used, any further excess is taxable compensation. From January 6, 2026, new regulations increase several de minimis limits, as shown below.

Bonuses in the Philippines include contractual and discretionary payments such as incentives and commissions. These, together with allowances and 13th month salary, are not taxable up to a combined annual limit of PHP 90,000; any amount above this combined limit is taxable.