🇻🇳 Hire in Vietnam vs 🇵🇭 Philippines
Statutory employer on-costs are lower in Philippines; the full picture depends on salary level, termination exposure and how fast you need the person on payroll.
Not professional advice. Rates, rules and prices change often. Figures here are researched estimates from the sources listed; anything marked “unverified” needs checking with the provider or a local adviser before you rely on it.
| Vietnam | Philippines | |
|---|---|---|
| Employer on-costs | 21.5–23.5% | 14–22% |
| Total cost on a $60,000 salary | $72,900–$74,100 | $68,400–$73,200 |
| Mandatory benefits | 12 days annual leave; 11 public holidays; 13th-month salary is customary and often contractual but not statutory; Maternity leave 6 months; Social insurance, health and unemployment insurance; Overtime pay | 13th-month pay (by 24 December); Service incentive leave (5 days after one year); Holiday pay for regular holidays; Maternity leave 105 days; Paternity leave 7 days; SSS, PhilHealth, Pag-IBIG coverage; Separation pay for authorized-cause dismissal |
| Probation | Up to 180 days for enterprise managers; 60 days for roles requiring college level or above; 30 days for intermediate-level roles; 6 working days for other jobs. Probation salary must be at least 85% of the job's salary. | Maximum 6 months; probationary employees must be told the regularisation standards at hiring. |
| Notice and severance | Indefinite-term contracts: employee must give 45 days' notice (employer must also give 45 days where lawful ground exists); fixed-term 12-36 months: 30 days; fixed-term under 12 months: 3 working days. Employment allowance (trop cap thoi viec): 0.5 month's average salary per year worked. Job-loss allowance for redundancy: 1 month per year, minimum 2 months. | Authorized-cause termination (redundancy, installation of labour-saving devices) requires 30 days' written notice to the employee and DOLE and separation pay of 1 month or 1 month per year of service, whichever is higher; retrenchment/closure not due to serious losses: 1 month or 0.5 month per year, whichever is higher. No separation pay for just cause dismissal. Employee resignation requires 30 days' notice. |
| Paid leave | 12 working days of annual leave for normal conditions (more for heavy/hazardous work and for each 5 years of service), plus 11 public holidays. | 5 days' service incentive leave after one year (many employers give more); 12 regular holidays plus special non-working days (varies per year). |
| Contractor risk | Independent contractors are common, but a worker who works under employer direction and receives wages is deemed an employee under the 2019 Labour Code. Misclassification can lead to administrative fines and back-payment of social insurance. Risk is moderate. | The four-fold test (selection, wages, dismissal power, control) with the control test decisive. Misclassified freelancers can claim regularisation, 13th month, leave and back wages. DOLE Department Order 174 restricts labour-only contracting. Risk is moderate to high for full-time dedicated freelancers. |
| EOR onboarding | Days to ~2 weeks (provider claims; specific figure unverified) | Days to ~2 weeks (provider claims; specific figure unverified) |
| Time zone | ICT (UTC+7), no DST; 11-12 hours ahead of US Eastern. | PHT (UTC+8), no DST; 12-13 hours ahead of US Eastern. |
| Data confidence | medium | medium |
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FAQ
Is it cheaper to hire in Vietnam or Philippines?
On statutory employer on-costs alone, Philippines is lower (14–22%). Salary levels, EOR fees and benefits also matter; use the cost calculator.