Internship / OJT Guide for Philippine Employers
Clear, Philippines-focused checklist for business owners who want to take on interns, whether school-required OJT or private internships. Covers agreements, safety, stipend vs unpaid, and possible employer costs.
1) Decide the type of internship
Before anything else, clarify what type of intern you are taking. This affects the documents and your legal obligations.
- School-required student internship / OJT / practicum. Typically arranged through the student's college, university, or TVET institution. Usually requires a Memorandum of Agreement (MOA) or internship contract between the school, the student, and your business.
- Non-school internship (graduate / voluntary intern or paid trainee). Often treated like a short-term hire. If you pay them and they perform productive work similar to employees, they are usually considered employees for SSS, PhilHealth, Pag-IBIG, and withholding tax purposes.
2) Agreements & documents to prepare
Core documents
- Internship/Training Plan — learning objectives, duration, daily hours, tasks, supervisor/mentor, and evaluation criteria. Note total required hours (many HEIs require minimum OJT hours).
- MOA / Internship Contract — for student OJT, usually a three-party agreement (HEI, student, company). Should cover duties, working hours, duration, supervision, safety measures, insurance/liability, confidentiality, and termination grounds.
Intern's personal documents (as required)
- School ID and proof of current enrollment (for OJT students).
- Parental consent if the intern is a minor.
- NBI / Barangay clearance if requested by the school or by your company policy.
- Medical certificate or vaccination proof when required for workplace safety.
Workplace orientation & safety
- Provide orientation on company rules, data privacy, and safety.
- Assign a supervisor/mentor responsible for day-to-day guidance.
- Provide PPE or safety gear when needed and keep attendance/performance records.
3) Money: stipend vs unpaid & legal implications
Paid intern (with stipend or allowance)
If you provide a regular stipend and the intern performs work similar to employees, authorities may treat them as employees. In that case, standard employer obligations can apply:
- Register them as employees with SSS, PhilHealth, and Pag-IBIG.
- Compute and remit employer and employee share contributions.
- Withhold and remit compensation tax if pay exceeds thresholds.
Unpaid school OJT (strictly training)
Many school-required internships are unpaid and covered by the school's training/accident insurance. Even so, you should:
- Maintain a proper MOA and Internship Plan.
- Clarify insurance coverage between HEI and host company.
- Provide a safe learning environment and follow school guidelines.
4) Typical employer costs to consider
Use official calculators and the latest SSS, PhilHealth, Pag-IBIG, and BIR issuances for exact numbers. Below are typical cost categories rather than fixed amounts.
- Stipend / allowance — your chosen monthly or hourly amount; practices vary by industry and city.
- SSS contributions — employer and employee shares if the intern is treated as an employee. Based on monthly salary credit brackets.
- PhilHealth contributions — employer and employee shares under current PhilHealth rules.
- Pag-IBIG (HDMF) — employer and employee contributions if covered.
- Withholding tax — on compensation, if stipend reaches taxable levels.
- Intern accident / liability insurance — recommended for unpaid OJT. This can be a modest one-time premium or may be provided by the HEI.
5) Practical checklist & timeline (copy/paste)
- Confirm intern type with the candidate and/or school (OJT vs private internship).
- Prepare an Internship Plan (duration, hours, tasks, supervisor, learning goals).
- Draft and sign a MOA / Internship Contract (with HEI, if applicable).
- Decide if you will pay a stipend. If yes and work is employee-like, register the intern for SSS/PhilHealth/Pag-IBIG.
- Collect required documents: school ID/enrollment cert, clearances, medical, as needed.
- Conduct workplace orientation and safety briefing; assign a mentor or supervisor.
- Keep records: attendance logs, evaluations, and a certificate of completion at the end.
6) Where to confirm exact rules & templates
- DOLE / DOLE Institute for Labor Studies — for guidance on internship programs and labor compliance.
- CHED / HEI internship offices — for OJT policies and standard MOA templates (many HEIs publish samples).
- SSS, PhilHealth, Pag-IBIG — for up-to-date contribution rates and registration rules.
- Example university MOA templates — use the intern's school template where possible to minimize friction.