The Philippines isn’t just a “cheaper” talent market anymore—it’s a fiercely competitive ecosystem of well-educated, English-fluent professionals who can choose between hundreds of international employers. Benefits—especially paid time off—are now a deciding factor when top candidates compare offers. If you meet only the legal minimums, you’ll lose them to someone who does better.
If you want to hire and retain the highest quality employees in the Philippines, you need to have the best benefits. While these aren’t all requirements, we’ll lay the facts out.
Below is the “cheat-sheet” I give new HireTalent.ph clients when they ask, “How much vacation do Filipino team members actually get?” It blends the statutory rules with on-the-ground market practice. Do as you wish!
1. Service Incentive Leave (SIL)
| Legal minimum | Market reality |
|---|---|
| 5 paid days per year once an employee hits 12 months | 15–20 total paid days (vacation + sick) is now common for remote roles |
- All-purpose: Those five days can be used for anything—vacation, sick, personal errands. No doctor’s note required. (Labor Law)
- Cash-out rule: Whatever’s left unused must be converted to cash at year-end or on separation. No “use-it-or-lose-it.” (Omni HR)
- Who’s covered: Rank-and-file employees after a cumulative 12 months (even if broken service). Managers, true field personnel, and companies <10 staff are exempt. (Labor Law)
Founder tip: I recommend 10 additional PTO days on top of SIL to hit the magic 15-day mark local professionals expect. You’ll still out-compete many BPO giants that stick to 10-12.
2. Big-Ticket Leave Benefits
105-Day Maternity Leave (plus extras)
- 105 days fully paid for every birth or adoption—funded by the Social Security System (SSS), not you. (Philippine Commission on Women, Lawphil)
- Solo parents get +15 days; mothers may also tack on 30 days unpaid if they choose.
- Covers miscarriage (60 days paid).
7-Day Paternity Leave (+ up to 7 more)
- Married dads get 7 paid days for the first four deliveries. (eLibrary, Labor Law)
- The mother can hand over another 7 from her own leave, married or not.
SSS Sickness Benefit
- Up to 120 paid sick days per year at 90% of salary, reimbursed by SSS (employer advances, then files claim). (SSS, Labor Law)
Practical take: Most remote-first companies layer on 10–12 company-paid sick days so staff don’t have to hassle with SSS paperwork for short illnesses. Also clients hiring Filipino talent as contractors don’t worry about this.
3. 2025 Public Holidays (18 days!)
| Regular Holidays (10 – paid at 200 % if worked) | Special Non-Working (% of pay if worked) |
|---|---|
| New Year’s Day (Jan 1) Araw ng Kagitingan (Apr 9) Maundy Thursday Good Friday Labor Day (May 1) Independence Day (Jun 12) National Heroes Day (Aug 25) Bonifacio Day (Nov 30) Christmas Day (Dec 25) Rizal Day (Dec 30) | Chinese New Year (Jan 29) Black Saturday Ninoy Aquino Day (Aug 21) All Saints’ Day (Nov 1) Feast of the Immaculate Conception (Dec 8) Christmas Eve (Dec 24) New Year’s Eve (Dec 31) Additional “Special” days the President may proclaim |
Source: Office Holidays
4. Mandatory Year-End & Social Benefits
| Benefit | Rule of thumb | Who pays? |
|---|---|---|
| 13th-Month Pay | 1/12 of total basic salary, due by Dec 24 each year | Employer (fully) |
| SSS | 10 % employer / 5 % employee (total 15 %, salary ceiling PHP 35k) | Split |
| PhilHealth | 5 % of salary (2.5 % each, salary up to PHP 100k) | Split |
| Pag-IBIG | 2 % employer / 2 % employee (capped PHP 200) | Split |
5. Wages, Overtime & Differentials
- Metro Manila minimum wage: PHP 645 per day (effective July 2024).
- Overtime: +25 % after 8 hours; Night shift (10 PM–6 AM): +10 %.
- Holiday work: Double pay on regular holidays; +30 % on specials (see table above).
6. What Filipino Talent Actually Want
- 15–20 total PTO days (vacation & sick combined).
- Private HMO or global health insurance to top up PhilHealth.
- Flexible hours / remote stipends for home-office gear.
- Family-friendly perks—e.g., extended parental leave, childcare allowance.
- Upskilling allowances (Udemy, AWS certs, local conferences).
These extras cost far less than hiring in the US or western country but have an outsized impact on retention—and they’re exactly what the top tier companies offer.
Key Takeaways
- Legal floor: 5 SIL days + 18 public holidays + statutory social benefits.
- Market ceiling: 15-20 PTO days, private HMO, flexible work perks.
- Your edge: Beat the market average (it’s still cheaper than a single US hire).
Ready to Find Your Next Great Hire?
Join our growing community of employers and start connecting with skilled candidates in the Philippines.