Recent developments in the Philippines
We understand the challenges of keeping up with changing laws and regulations. That’s why we actively monitor developments, so you don’t have to. Below are the key employment-related updates applicable in the Philippines during 2026.
Employment Promotion and Skills Development Initiatives (2026)
The Philippine government continues to promote employer-led skills development and workforce upskilling through incentives and public–private partnerships. These initiatives aim to address skills mismatches, improve job quality, and support productivity, particularly in digital, technical, and high-growth sectors.
National Employment Master Plan – Trabaho Para sa Bayan Act (2026)
The Trabaho Para sa Bayan Act remains in effect in 2026. The law establishes a national employment master plan focused on:
- Job creation and employment recovery.
- Reducing underemployment and informal work.
- Aligning education and training with labour market needs.
- Supporting digitalisation and future-ready skills.
Government agencies continue coordinating policies under this framework to strengthen labour market resilience.
PhilHealth Contribution Framework (2026)
The updated Philippine Health Insurance Corporation (PhilHealth) contribution structure continues to apply in 2026.
The monthly salary cap remains at PHP 100,000.
Contributions are shared between employer and employee at the statutory rate in force, calculated based on monthly basic salary.
Employers must ensure payroll systems remain compliant with the applicable contribution ceilings and rates.
Home Development Mutual Fund (Pag-IBIG / HDMF) Contributions (2026)
The revised HDMF contribution rules remain applicable in 2026:
- The salary base cap remains at PHP 10,000.
- Employer and employee contributions continue at 2% each, subject to the cap.
These contributions support housing loans, savings, and related benefits for employees.
Ongoing Labour Law Compliance Focus
Authorities continue to emphasise compliance across key labour law areas, including:
- Employment terms and conditions.
- Wages and statutory benefits.
- Non-discrimination and equal opportunity.
- Maternity, paternity, and family-related leave rights.
- Employee protections in business transfers and restructuring.
Regular audits and updated internal policies remain essential for employers operating in the Philippines.
