In our spotlight on APAC series, we round up the latest developments across the region. In this post, we capture new guidelines that ease and clarify work permit issuance provisions in the Philippines. On 27 August 2025, the Department of Labor and Employment (DOLE) issued new additional guidelines on procedural updates on the issuance of work permits for foreign nationals in the Philippines. This initiation aims to streamline and normalise renewal requirements, strengthen local skills transfer with training programme requirements and labour market testing while safeguarding its Filipino citizens.
| Changes | Impact |
| Relaxed rules for labour market test compliance. | Applications can now be submitted as soon as the compulsory publication period (15 calendar days) in a newspaper of general circulation has completed.
Employers can better manage the timing of renewal application filings with visa expiration dates or permit validity periods while meeting compliance with the labour market test requirement. The newspaper publication must remain open and valid for at least 45 days from the date of posting. |
| Changes to the Skills Development Program (SDP) and Understudy Training Program (UTP) requirements.
Scope: SDP/UTP compliance will only apply to the following categories of companies: Those involved in the operation of public utilities, under the Foreign Investment Act, and qualify for fiscal incentives from the government; or those accredited as strategic investment by the Philippine government. Submission timeline: Can be submitted within 60 days from the employment start date or during the AEP application. Reporting schedule: One-year work permits: submission of semi-annual report or two-to-three year work permits: submission of annual report. Each report must reflect the attendance and competencies grown, program implementation, and to be signed by all parties (local and foreign workers). Transitional measure: Work permits issued before the new guidelines took effect on 10 February 2025, submission of SDP/UTP plan at the time of renewal. Evaluation mechanism: A Technical Working Group (TWG) consisted of various government agencies will develop assessment criteria and procedures to finalise the effectiveness and outcomes of the SDP/UTP. |
Employers who do not fall under the listed categories do not need to comply with the SDP/UTP. This will reduce compliance costs and administrative issues.
A clear reporting and submission schedule allows employers to strategically plan training programs and resources efficiently.
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| Exemptions from the SDP/UTP.
SDP/UTP will not apply to the following: Company owners and investors with equity contribution as reflected in the corporate registration, individuals already exempted or excluded from obtaining a work permit; and further categories identified by the TWG. |
Foreigner who qualifies for the exemption are not mandatory to prepare and submit training plans under the SDP/UTP for the duration of their assignment. However, for those foreigners who are not exempted must still partake in the SDP/UTP. |
| Economic Needs Test report.
The labour department will arrange a TWG that will create a public report (known as the Economic Needs Test report) that will evaluate the economic influence of employing foreign nationals. |
The reports provided by the TWG may be applied by companies as a reference point in assessing labour market conditions.
The conclusions in the report can help as useful guidance for employers making strategic hiring decisions involving foreign talent. |
With these changes, the Philippine government has created a more efficient, transparent and usable system for hiring foreign workers. The aim to shorten the job advertising process, simplify training program requirements, and implement an economic needs report. This will ensure that the country can remain to attract skilled workers while continuing its commitment to local workforce development.
For more information or any assistance you require pertaining to the above-mentioned, please do not hesitate to contact Rachel.ang@magrath.sg or Royston@magrath.sg.
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