Work Permits and Visas in 2024: Your Handbook for the Philippines

The Philippines are among some of the most desired locations to live and work today. With its growing economy and unique culture, the Philippines offers a lot to newcomers looking to live and work there.

As someone who wants to move to the Philippines, or as an employer who wants to relocate their team there, you should understand work permits and visas for this country. Navigating different permits and visas can be tricky in the Philippines, so here is all you need to know about obtaining work visas and permits.

Let’s get into details on what types of visas are available and what the application process looks like. It is also important to cover employer’s obligation toward their employees in the Philippines in terms of taxes, and other considerations when relocating there.

Who needs a work visa or work permit in the Philippines?

Every foreigner who wants to live and work in the Philippines must obtain the necessary permits and work visas.

If you are not a Philippine citizen, and you would like to work in the country, you’ll need to obtain a work visa from the Bureau of Immigration.

You also must secure an Alien Employment Permit (AEP) from the Department of Labor and Employment (DOLE).

Work visas in the Philippines typically last from a year to three years. The visa length will depend on the length of the contract your employees have. However, your employees can extend their visas for up to three additional years.

The process for obtaining the required visas may be lengthy. Employers and employees should start the process as early as possible.

Types of work visas in the Philippines

As mentioned before, you’ll need to obtain a work visa if you would like to stay and work in the Philippines. There are several work visas in the Philippines you can get depending on your circumstances.

The Alien Employment Permit (AEP)

The alien employment permit is something every foreigner must obtain if they want to work in the Philippines. While there are some exceptions to the rule, you must obtain this permit and an accompanying visa to work in the Philippines legally.

To obtain the Alien Employment Permit, you’ll need to submit the relevant documents to the ​​Regional DOLE Office of Field Office which has the jurisdiction over the place of work. To obtain it, you’ll have to submit your passport and original employment contract.

Depending on the nature of the work and the job you applied for, you might have to get some additional permits. These could be the Special Work Permit, Pre-arranged Employment Visa, or other documents.

This permit is typically valid for the duration of the contract. It could be issued for a year, or up to three years. The employee has the right to extend it. Once you obtain your Alien Employment Permit, you should start working on obtaining your visa.

The Alien Employment permit, though crucial for obtaining the work permit, is also one of the main reasons employers fall out of compliance with the Philippines law.

As Alien Employment states clearly the employer and the job position the employee has to fill. The Alien Employment permit is no longer valid if any of these changes. Your company may face significant penalties and fees if it is found that your employee's Alien Employment permit is invalid.

Pre-arranged Employment Visa (9G)

The pre-arranged employment visa (9G) is the most common choice for foreigners looking to live and work in the Philippines. The validity of this visa depends on the contract, and it allows employees multiple entries into the country during the employment period. An Alien Employment Permit must accompany it.

To get this visa, you should start the process a bit in advance, as it can take up to several months. You will need to submit a lot of paperwork, including, but not limited to:

1. Your passport

2. Alien Employment Permit

3. Your contract with the employer

4. A letter from both you and your employer

5. Bureau of Immigration (BI) Clearance Certificate

Which documents you’ll have to submit depends on your specific circumstances. You might also need to submit documents about the employer, your latest Income Tax Return, or other documents.

The process usually requires paying the relevant fees, attending the hearing, capturing biometrics, and visa implementation. That is why it is advised to start the process a bit in advance.

Provisional Work Permit

The provisional work permit is another one you can rely on to live and work in the Philippines. This visa is intended for those visiting the Philippines on a tourist visa but would like to stay and work there. It is also the route for those with their 9G visa pending, as it allows them to obtain the right to live and work in the Philippines much faster.

The provisional work permit is also slightly more expensive than the 9G visa. It typically lasts for three months, but employees can request an extension on their provisional work permit while they wait for the 9g visa approval.

Special Work Permit

The employers who want to move their employees to the Philippines for a short period can rely on a Special Work Permit. This work permit is valid for up to six months. It is issued by the Bureau of Immigration.

To obtain it, the employee must submit all the necessary documents, including the application, necessary certification, passport, and other documents.

Treaty Trader or Treaty Investor Visa (9D)

Employers and employees from the United States, Japan, and Germany can rely on a Treader Trader or Treaty Investor Visa (9D). This visa allows a stay of up to two years, thanks to the bilateral trade agreement.

There are several other requirements both employers and employees have to meet on top of the country of origin. For example, both employers and employees must come from the same country.

The employee must have the intention to leave the Philippines as soon as the work contract is over. The employer, on the other hand, must have a continuous trade with the Philippines, amounting to at least $120,000. Lastly, the employee has to have a certain position in the company. They have to be an executive or in a supervisory position.

Is there a digital nomad visa for the Philippines?

The Philippines started offering a Digital Nomad Visa in June 2023. It allows remote workers to live in the Philippines while continuing their jobs for foreign companies. Applicants must work remotely for a business based outside the Philippines to be eligible for this visa. They also cannot be involved in any local business activities.

Digital nomads need to have an annual income of at least $24,000. You’ll also need a valid passport that covers your entire stay and health insurance. You must also submit a certificate proving you have no criminal convictions from your home country or current residence.

Digital nomads will also need proof of employment from a foreign company. This proof can be a contract, payslips, or other employment documents. Freelancers and self-employed individuals must provide business documentation showing their remote work.

What is the process of obtaining a work visa for the Philippines?

Getting a work visa for the Philippines involves a few key steps and documents. First, you, or your future employer in the Philippines, need to secure an Alien Employment Permit (AEP). To do this, they must apply at the Department of Labor and Employment (DOLE).

This application requires documents such as your job offer, passport copy, and proof that no Filipino can fill your job position. Once approved, the AEP allows you to work in the Philippines. It usually takes about 2-4 weeks to process.

Next, you need to apply for a work visa. It could be the Pre-arranged Employment Visa, or any other listed above, depending on your situation. Start by submitting your application to the Bureau of Immigration (BI). You can also submit documents at the Philippine consulate if you apply from abroad.

You'll need your AEP, employment contract, passport, medical certificate, and other documents. After submitting these, you’ll wait for the visa to be approved, which can take a few weeks to a few months.

Risks and Implications of Illegal Employment in the Philippines

As with any other country, there are many risks of illegal employment in the Philippines. These risks can affect both employers and illegal employees.

Both the employer and employee working illegally in the country will certainly face fees and penalties. The employee working without a working visa will be fined a penalty of ten thousand pesos (P10,000.00) for each year they worked illegally in the Philippines. The employer will face the same amount in fines.

However, the employee can expect deportation after they pay the fine. In the worst-case scenario, the employee can face imprisonment for three months up to three years. The employee can also expect to be placed on the Bureau of Immigration’s blacklist.

The company that hired an illegal employee may also face suspension.

How to pay your employees in the Philippines

Once you get your team to the Philippines, it is time to consider all the legalities regulating their employment. Here is what you should know:

1. Choosing a Payment Method

In the Philippines, employees are typically paid through bank transfers, checks, or cash. Most companies prefer direct bank deposits because they are more convenient and secure.

2. Follow the Pay Schedule

By the Philippines law, the employer must pay their employees at least twice a month. This is usually every 15th and 30th. Make sure to meet these deadlines to stay compliant with local labor laws.

3. Calculate Salaries Accurately

To calculate salaries, consider the basic wage plus any overtime, bonuses, or allowances. You will also need to make deductions like taxes, social security (SSS), health insurance (PhilHealth), and housing funds (Pag-IBIG). You should calculate these and pay them before finalizing the net pay.

4. Provide Payslips

By law, you also must issue detailed payslips to employees each payday. These payslips should show their gross pay, deductions, and net pay.

Managing Tax for Your Employees in the Philippines

As an employer in the Philippines, you'll have to meet certain obligations to remain compliant with local labor law. Here is what you should know:

1. Understand local taxation

In the Philippines, employee salaries are subject to income tax. The income tax is deducted from their paychecks. The tax rate varies depending on the employee's income level, ranging from 0% to 35%.

2. Register with BIR

As an employer, you must register with the Bureau of Internal Revenue (BIR). There, you'll have to obtain a Tax Identification Number (TIN) for your company. You will also need to withhold taxes from employees' salaries and remit them to the BIR.

3. Provide Form 2316

At the end of each year, give your employees their BIR Form 2316. This form summarizes their total salary and taxes withheld. The employees use this form for annual tax filing. It also serves as proof of income and tax payment.

4. Handle Tax Deductions and Benefits

Regularly update and manage deductions for income tax, SSS, PhilHealth, and Pag-IBIG. Employers are responsible for contributing a portion to these benefits. The rest is deducted from employees' salaries.

5. Stay Compliant

Regularly consult with tax professionals or the BIR for updates on the Philippines tax laws and rates.

FAQ:

How do I get a work permit in the Philippines?

To get a work permit in the Philippines, you need a job offer from a Philippine company. Your employer will help you apply for an Alien Employment Permit (AEP) and a work visa. You’ll also need to submit documents like your passport, job contract, and sometimes a medical certificate.

Can US citizens work in the Philippines?

Yes, US citizens can work in the Philippines if they have a valid work visa and permit. They must first secure a job offer from a local company and then apply for a Pre-arranged Employment Visa (9G) and an Alien Employment Permit (AEP).

Is a Philippines visa hard to get?

Getting a Philippine visa can be straightforward if you have all the required documents and follow the right steps. For short visits, many nationalities, including US citizens, can enter without a visa and stay for up to 30 days. For longer stays or work, you’ll need specific visas and permits, which might take more time and paperwork.