The Essential Guide to Hiring Foreigners in the Philippines

According to the Bureau of Immigration (BI), there are approximately 153,651 foreign workers in the Philippines in 2024, indicating a 13% increase since 2023. The growth in the number of foreign workers highlights their important role in various sectors of the Philippine economy, particularly in areas where there are skill shortages. 

In this article, we will give you a comprehensive overview of the Alien Employment Permit (AEP), working permits in the Philippines, and other essential steps in hiring foreigners in the country.

Legal framework for hiring foreigners in the Philippines

Compliance with Local Labor Laws

When hiring foreigners to work within your Filippino legal entity, it’s important that your business complies with labor laws set by the Department of Labor and Employment (DOLE). These laws protect both local and foreign workers, ensuring fair wages, safe working conditions, and access to benefits. 

Foreign employees are entitled to the same rights as Filipino workers under Philippine law. This includes:

• Minimum Wage – Both local and foreign employees receive at least the mandated wage (keep in mind that it is best practice to offer competitive rates in high-demand fields).
• Working Hours – Companies hiring foreigners must adhere to regulations regarding maximum working hours as well as compensation for night shifts and overtime. 
• Social Security Benefits –  It is mandatory for companies to provide health insurance and retirement benefits to foreign employees. Foreign employees are entitled to social security systems such as PhilHealth and Pag-IBIG.

Permitted Sectors for Foreign Employment

Foreign employment in the Philippines is primarily permitted in sectors where specialized skills are required and local talent is insufficient. There are also sectors that restrict or prohibit foreign employees to safeguard national interests, protect local jobs, and ensure the welfare of Filipino workers:

Status	Sectors
Permitted	– Information Technology – Engineering – Healthcare – Education – Business Process Outsourcing (BPO)
Restricted	– Construction and repair of public works – Exploration and utilization of natural resources – Educational institutions – Public utilities (e.g., electricity distribution)
Prohibited	– Mass media – Retail trade (with capital below a specified threshold) – Small-scale mining
Restricted for security	– Manufacture of explosives – Gunpowder production – Blasting supplies

Overview of visas and work permit regulations in the Philippines

What is an Alien Employment Permit (AEP)?

The Alien Employment Permit (AEP) is a requirement for foreign nationals who wish to work in the Philippines for 6 months or longer. To obtain this permit, the foreign national must already have a local employer who will petition them. This permit is usually valid for as long as the employee’s assignment in the Philippines.

Here’s what you need to apply for an Alien Employment Permit for foreign workers:

• Photocopy of the applicant’s passport bio-page
• Your company must be registered in the Philippines and have a valid job offer
• Copy of notarized employment contract
• Accomplished AEP application form from DOLE
• Valid Business Permit or Mayor’s Permit of the employer.
• Employer’s Certificate of Tax Identification Number (TIN)

Important: Your company must demonstrate that there are no qualified Filipino workers available for the position. A proof of publication of the job vacancy in a newspaper is required to demonstrate your company’s attempts to find a qualified Filipino candidate.

Different Types of Work Visas for Foreigners

A work visa is mandated for foreign employees who want to work in the country under Philippine law. Compared to tourist visas or Visa on Arrivals (VoAs), work visas typically offer longer validity periods. This allows foreign employees to stay in the country for extended durations based on their employment contract. 

Here are visa options for foreign workers in the Philippines:

Type of Work Visa	Eligibility	Validity
9(g) Pre-Arranged Employment Visa	– Must have a job offer from a Philippine-based employer. – Requires an AEP issued by DOLE – Must only work for the sponsoring employer. If they change employers, they must reapply for a new visa.	1-3 years, extendable depending on the contract
Special Visa for Employment Generation (SVEG)	– Must employ at least ten Filipinos in a lawful enterprise. – Requires an AEP and various documentation proving investment and employment stability.	1 year probationary, extendable indefinitely as long criteria is met
Provisional Work Permit	– Available to foreign nationals who have applied for a 9(g) visa or whose AEP application is pending. – Allows foreigners to work legally while waiting for their work visa approval.	3 months or until the issuance of the 9(g) visa
Special Investor’s Resident Visa (SIRV)	– Invest a minimum of PHP 4.4 million (USD 75,000) in a business in the Philippines.  – Proof of inward remittance for the investment	Valid indefinitely as long as the investment is maintained and complies with Philippine laws.
Treaty Trader’s Visa (9D)	– Applicants must demonstrate that they or their employers are engaged in substantial trade between the Philippines and their home country, involving an investment of at least ~PHP7 million (USD120,000).  – Must hold a supervisory or executive position and share the same nationality as the majority shareholder of the sponsoring company.	Up to 2 years
Quota Immigrant Visa	– Must be citizens of countries that maintain diplomatic relations with the Philippines. – Requires an AEP issued by DOLEPossess special qualifications such as high educational attainment, technical expertise, or exceptional ability in fields like science, arts, or business that would benefit the Philippine economy.	1 year but must be utilized within the same year it is granted (only 50 visas are issued per nationality)

How to hire foreigners in the Philippines

Before you hire foreign talent, you need to establish a legal entity in the country. This involves complying with local business registration laws, which may include obtaining a business permit from the local government unit (LGU) and registering with the Securities and Exchange Commission (SEC). 

These documents are crucial to applying for an AEP and a work visa for your foreign employees. Emerhub’s local experts can help you set up your company in the Philippines and navigate the entire visa application process for sponsoring foreign workers to work within your company:

1. Conduct a labor market test – as a requirement for a foreign employee’s AEP, you must provide proof that there is no qualified local talent for the job. A job vacancy must be published in a newspaper and should be in general circulation for at least 15 calendar days. If no applications are received, the employer must prepare a notarized affidavit stating this fact. 
2. Apply for a work visa – Select the appropriate visa type based on the employment duration. We can help gather the required documents and submit the application to the Bureau of Immigration. 
3. Register with BIR – After obtaining the work visa, Emerhub can help you obtain a Taxpayer Identification Number (TIN) from the Bureau of Internal Revenue (BIR).
4. Secure Employee Benefits – in compliance with Philippine Labor Laws, Emerhub can also help process all the employee benefits such as SSS and PAG-IBIG memberships. 

Ready to hire foreign talent? Emerhub can help arrange all the necessary documents needed to 

Want to sponsor foreign talent to work in your company in the Philippines? Contact us via the form below to get in touch with our relocation experts!