HR Starter Pack — Nana Bambi's

Pahinga · Hinga · Dahan-dahan

BAMBI'S PLACE

HR & Employment Starter Pack

First hires · Legal obligations · Contracts · Government contributions

Everything you need to employ people correctly in the Philippines from day one. Not optional. Not 'we'll sort it later'. From the first paid worker, every peso in wages must be documented and every government contribution must be remitted.

Philippine labour law is employee-protective. The Department of Labor and Employment (DOLE) enforces it actively.

Getting employment wrong — even informally — exposes the business to back-pay claims, government penalties, and DOLE inspection findings that can shut operations down.

Do it right from the first hire. It costs almost nothing extra and protects everyone.

1. Minimum Wage — Bicol Region (Region V)

The Regional Tripartite Wages and Productivity Board (RTWPB) sets minimum wages. As of 2026, the rates for non-agricultural workers in Region V are:

Category	Daily Minimum Wage	Monthly Equivalent (26 days)	Notes
Non-agricultural — private sector	₱420–450/day	~₱10,920–11,700/mo	Ragay falls under this rate — confirm current rate with DOLE Region V
Agricultural — plantation	₱380–410/day	~₱9,880–10,660/mo	For farm workers on agricultural land
Agricultural — non-plantation	₱360–390/day	~₱9,360–10,140/mo	Smallholder farm workers
Household worker (kasambahay)	₱3,500–4,000/mo minimum	Set by RA 10361	Kasambahay Act applies to live-in domestic workers

Always verify current rates with the DOLE Region V office in Naga City or at dole.gov.ph before making your first hire. Minimum wages are reviewed and updated periodically.

2. Mandatory Government Contributions

These are not optional. Every employee must be registered and contributions must be remitted monthly. Failure to remit is a criminal offence under Philippine law.

Agency	What It Is	Employee Rate	Employer Rate	Action Required
SSS	Social Security System — retirement, disability, maternity, death benefits	4.5% of monthly salary	9.5% of monthly salary	Register employer. Register each employee. Remit monthly by the deadline.
PhilHealth	National health insurance — hospitalisation, medicines, outpatient	5% of monthly salary (split equally)	5% of monthly salary (split equally)	Register employer. Register each employee. Remit monthly.
Pag-IBIG (HDMF)	Home Development Mutual Fund — housing loans, savings	2% of monthly salary (min ₱100)	2% of monthly salary (min ₱100)	Register employer. Register each employee. Remit monthly.
BIR	Income tax withholding on employee wages	Per BIR tax table (low incomes may be exempt)	Employer withholds and remits	Register employer with BIR. File monthly withholding.

Practical example — worker earning ₱12,000/month:

SSS employee: ₱540 | SSS employer: ₱1,140

PhilHealth employee: ₱300 | PhilHealth employer: ₱300

Pag-IBIG employee: ₱240 | Pag-IBIG employer: ₱240

Total employer cost above base wage: approximately ₱1,680/month per employee.

Budget for this — it is not optional and it is not a surprise.

3. Employee Entitlements — What You Must Provide

Entitlement	Legal Basis	Detail
Service Incentive Leave	Labor Code Art. 95	5 days paid leave per year for employees who have worked 1 year. Convertible to cash if unused.
13th Month Pay	PD 851	Mandatory. Equal to 1/12 of total basic salary earned in the year. Must be paid on or before 24 December.
Rest day	Labor Code	At least one rest day per week. Worker may request a specific day for religious reasons.
Overtime pay	Labor Code Art. 87	Work beyond 8 hours = 125% of hourly rate. Holiday overtime = 200%+ depending on type.
Night differential	Labor Code Art. 86	Work between 10pm–6am = additional 10% of basic hourly rate minimum.
Regular holiday pay	Labor Code Art. 94	12 regular holidays per year. Employee not required to work = 100% of daily rate. If required = 200%.
Special non-working holiday	Proclamation	If required to work = 130% of daily rate. If not required to work = no pay (unless CBA states otherwise).
Separation pay	Labor Code	If terminated for authorised causes (retrenchment, illness): ½ month pay per year of service. Not required for just causes.
Maternity leave	RA 11210	105 days paid maternity leave. Additional 15 days for solo parents. Can extend 30 days without pay.
Paternity leave	RA 8187	7 days paid paternity leave for married male employees. First 4 deliveries/miscarriages only.

4. Employment Contract — What To Include

Every worker must have a written employment contract — even casual or probationary staff. Verbal agreements leave the business exposed.

Required Elements in Every Contract

Full legal names of employer (Aileen Mulkerrins / Nana Bambi's) and employee
Position title and job description — specific duties, not just a job title
Employment status — probationary (max 6 months), regular, casual, project-based, or seasonal
Start date and, if applicable, end date
Daily or monthly wage rate — explicitly stated in Philippine Pesos
Work schedule — days and hours per week, rest day
Location of work — Agrupacion, F. Simeon, hub site, or combination
Probationary performance standards — what the employee must achieve to become regular
Grounds for termination — just causes per the Labor Code
Confidentiality clause — basic protection for business information
Signatures of both parties, witnessed and dated

Probationary period is maximum 6 months. If a probationary employee is allowed to work beyond 6 months without a new contract, Philippine law automatically treats them as a regular employee — with full regularisation rights. Set a calendar reminder.

5. Employment Status — Choosing the Right Type

Status	When To Use	Key Rules
Probationary	New hires for ongoing roles	Max 6 months. Must set clear performance standards. Becomes regular if standards met and period lapses.
Regular	Proven ongoing employees	Full Labor Code protections. Can only be terminated for just or authorised causes with due process.
Casual	Work that is not regular, necessary, or desirable in the usual course of business	Cannot be used for roles essential to the core operation. Risk of misclassification claims.
Project-based	Specific project with defined end — e.g. building a container structure	Contract must specify the project. Employment ends when project ends. Must be genuinely project-specific.
Seasonal	Work that only happens in a season — e.g. harvest, planting	Legitimate for genuinely seasonal roles. Employee may be rehired season to season.

Do not use 'endo' (end-of-contract) arrangements to avoid regularisation. The practice of cycling workers through 5-month contracts to prevent them reaching regular status violates DOLE regulations and exposes the business to significant back-pay liability. If a role is ongoing — hire properly.

6. Terminating Employment — Due Process

Philippine law requires due process for all terminations. Getting this wrong — even for legitimate cause — can result in illegal dismissal findings and reinstatement orders or back-pay liability.

Two-Notice Rule for Just Cause Termination

First notice (show cause notice) — written notice specifying the specific act or omission, with 5 days for the employee to explain in writing
Hearing or conference — opportunity for the employee to respond, with assistance of counsel if desired
Second notice (notice of decision) — written notice of the decision to terminate, stating grounds clearly

Just Causes for Termination (Labor Code Art. 297)

Serious misconduct or wilful disobedience
Gross and habitual neglect of duties
Fraud or wilful breach of trust
Commission of a crime against the employer, family, or representative
Other analogous causes

Authorised Causes (Redundancy, Retrenchment, Illness)

30 days written notice to both the employee and the DOLE Regional Office
Separation pay of ½ month per year of service (retrenchment/closure) or 1 month per year (redundancy)

Before terminating any employee, consult a Philippine labour lawyer or DOLE. A single procedural error — even when the substantive cause is legitimate — can result in an illegal dismissal finding.

7. Registration Checklist — Before First Hire

✓	Complete Before First Payroll
☐	DTI registration	Business name registered under Aileen's name. Required before any employment.
☐	BIR employer registration	Register as employer with BIR. Get TIN for the business. Required for payroll tax withholding.
☐	SSS employer registration	Register at sss.gov.ph or SSS office. Get employer SSS number.
☐	PhilHealth employer registration	Register at philhealth.gov.ph or PhilHealth office. Get PhilHealth employer number.
☐	Pag-IBIG employer registration	Register at pagibigfund.gov.ph. Get Pag-IBIG employer number.
☐	DOLE establishment registration	Required for businesses with 5+ employees. Register with DOLE Region V.
☐	Payroll system set up	Even a simple Google Sheet with employee name, daily rate, days worked, deductions, net pay. From day one.
☐	Employee records file	Physical or digital file per employee: signed contract, SSS/PhilHealth/Pag-IBIG numbers, government ID copy, 201 form.

8. Wages — How To Handle Practically

Item	Recommendation
Pay frequency	Weekly pay is standard for manual/farm workers in rural Philippines. It builds trust faster than monthly.
Pay method	Cash is still the norm in rural Bicol. Keep a petty cash system with signed receipts. As the business grows, move to GCash or bank transfer.
Payslip	Every worker gets a payslip — even handwritten — showing gross pay, deductions, and net pay. This protects the business if a wage dispute arises.
Record keeping	Keep a wage register: date, employee name, days worked, daily rate, gross pay, deductions (SSS, PhilHealth, Pag-IBIG), net pay, signature of receipt.
13th month tracking	Track total basic pay earned each month. Divide by 12 at year end to calculate 13th month obligation. Do not leave this as a surprise in December.

Live with the land, not on it. · Makiisa sa kalikasan.

Nana Bambi's · Ragay, Camarines Sur, Bicol · March 2026