Here are Philippines’s statutory updates for 2025.
Effective June 2025
Philippines Issues Supplemental Guidelines for Alien Employment Permits
The Department of Labor and Employment (DOLE) has released supplemental guidelines affecting the upcoming Alien Employment Permit (AEP) framework, effective from 23 June 2025.
Key Details:
- Labour Market Test (LMT): Employers are no longer required to post job ads on PhilJobNet or PESO portals, but newspaper postings remain mandatory.
- Processing Times: AEP applications will now take up to 15 business days to process, increased from the previous five.
- Renewals: Employers may submit AEP renewal applications accompanied by an affidavit of undertaking regarding posting requirements and a UTP/SDP commitment; earlier renewals (issued before 10 February 2025) require a UTP training plan only.
- Training Requirements: UTP or SDP is required for firms under three categories: those with fiscal incentives, those operating public utilities or critical infrastructure, and strategic investment entities. Plans will be reviewed within five business days, and employers must submit implementation/progress reports—semi-annually for one-year AEPs and annually for longer permits.
- Economic Needs Test (ENT): DOLE regional offices supported by a technical working group will evaluate the economic need for hiring foreign nationals.
Source: Fragomen
Philippines Grants Visa-Free Entry to Indian Nationals
The Philippines has introduced a new visa-free entry policy for Indian nationals to encourage tourism.
Key Details:
- Indian passport holders may enter the Philippines without a visa for up to 14 days for tourism purposes.
- Travellers must hold a valid visa or permanent residence from the US, Japan, Australia, Canada, Schengen countries, Singapore, or the UK.
- Entry is permitted via all international ports of entry in the Philippines.
- Visitors must meet standard entry requirements, including return/onwards travel and sufficient funds.
Source: BAL
Effective April 2025
Philippines Introduces Digital Nomad Visa for Remote Workers
President Ferdinand Marcos Jr. has signed Executive Order No. 86, creating a Digital Nomad Visa (DNV) to attract remote workers.
Key Details:
- Allows remote workers to live in the Philippines while working for overseas employers.
- Valid for one year, renewable for another year.
- Applicants must show proof of remote work, sufficient income, health insurance, and a clean criminal record.
- The programme is expected to be piloted within 60 days, with full guidelines to follow.
Source: Official Gazette of the Republic of the Philippines
Effective February 2025
Philippines Implements Stricter Work Permit Rules
The Philippine Department of Labor and Employment (DOLE) has introduced new regulations affecting the employment of foreign nationals, potentially leading to longer processing times and stricter evaluations.
Key Details:
- Expanded Labor Market Test: Employers must now post job vacancies in multiple platforms, including newspapers, the government’s job portal (PhilJobNet), and local government job placement offices before hiring foreign nationals.
- Understudy Training Program (UTP) and Skills Development Program (SDP): Certain employers must implement structured training programs to facilitate skills transfer from foreign workers to Filipino employees.
These changes aim to prioritize local employment and enhance workforce development. Employers should expect extended processing times and additional documentation requirements.
Source: Fragomen
Philippines Updates Tax-Exempt “De Minimis” Benefits
The Bureau of Internal Revenue (BIR) has issued Revenue Regulations (RR) No. 004-2025, amending tax-exempt “De Minimis” benefits for employees.
Key Updates:
- Uniform and clothing allowance exemption increased from Php 6,000 to Php 7,000 per year.
- Employee achievement awards can now include cash and gift certificates, whereas previously, only tangible property (excluding cash and gift certificates) qualified. The annual exemption remains Php 10,000.
These changes align with Republic Act (RA) No. 11466 to enhance employee benefits.
Source: Ramco
Effective January 2025
Philippines Increases SSS Contribution Rates
The Social Security System (SSS) in the Philippines has updated its contribution schedule for 2025, affecting both employers and employees.
Key Updates:
- Increase in the contribution rate from 14% to 15%.
- Adjustment of the Employer share from 9.5% to 10%.
- Adjustment of the Employee share from 4.5% to 5%.
- Adjustment of the Minimum Monthly Salary Credit (MSC) from Php 4,000 to Php 5,000.
- Adjustment of the Maximum MSC from Php 30,000 to Php 35,000.
Source: SSS Circular No. 2025
PhilHealth Contribution Rate Remains at 5%
The Philippine Health Insurance Corporation (PhilHealth) has confirmed that the premium contribution rate for 2025 remains at 5.0% in line with the Universal Health Care (UHC) Act.
Key Updates:
- Contribution Rate: 5.0% of Monthly Basic Salary (MBS).
- Income Floor: Php 10,000 (minimum monthly contribution: Php 500).
- Income Ceiling: Php 100,000 (maximum monthly contribution: Php 5,000).
- MBS Definition: Excludes commissions, overtime, bonuses, and deductions due to tardiness or unpaid leave.
Employers must continue using MBS for contribution calculations.
