Hiring and working in the Philippines as a foreign national requires more than just a job offer. It demands strict compliance with evolving local regulations. Central to this legal ecosystem is the Alien Employment Permit (AEP), a work authorization document issued by the Department of Labor and Employment (DOLE) to ensure foreign hires fill roles genuinely needed in the Philippine workforce.
For both employers and expatriates, understanding the AEP process, updated requirements, and potential pitfalls is critical for smooth, lawful business operations. This in-depth guide aligns with the latest AEP rules for 2025.
What Is an Alien Employment Permit (AEP) in the Philippines?
An AEP is an official certificate issued by DOLE that legally authorizes non-Filipino citizens to work in the Philippines for a specified employer and position. The AEP is not a visa, but it is required to obtain most long-term work visas, including the popular 9G work visa and certain special investor visas. It ensures employers first seek local talent, reserving foreign employment for roles where Filipino expertise is unavailable or where international skills and experience are vital.
Who Needs an AEP and Who Is Exempt?
Who Needs an AEP:
- Foreign professionals and specialists employed by local or foreign-registered businesses in the Philippines.
- Consultants and executives occupying technical, managerial, or specialist roles not filled by local candidates.
- Holders of long-term work visas (such as 9G, PEZA, or SIRV), when employed in a capacity beyond exemption categories.
Common Exemptions:
- Diplomats and officials of international organizations.
- Those with special temporary permits, short-term consultancy, or work covered by government-to-government agreements.
- Governing board members of Philippine companies (who do not hold operational roles).
- Foreign nationals married to Filipinos (in some cases).
- Treaty trader visa holders in certain circumstances.
- Senior executives transferred between multinational entities may also qualify for conditional exemptions.
Employers and applicants must verify exemption status on a case-by-case basis under DOLE Department Order No. 248, Series of 2025.
Updated 2025 Requirements for the AEP
To secure an AEP in 2025, both employers and foreign nationals must demonstrate a clear need for the foreign hire, supported by new documentary evidence and procedural steps:
- Notarized AEP application form (in updated DOLE format).
- Letter of request from the employer to DOLE.
- Secretary’s Certificate or Board Resolution, if appointing the foreigner to a technical, executive, or key role.
- Authenticated passport bio-page and valid work visa page (if already in PH).
- Copy of employment contract or appointment letter.
- Job Vacancy Publication proof—the job must be advertised in a newspaper of general circulation, on PhilJobNet, and at the relevant Public Employment Service Office (PESO) for 15 days to ensure no Filipino is available.
- Valid mayor’s permit and employer business registration documents.
- Proof of company tax compliance.
- Quarterly reporting of all foreign hires.
- Signed Understudy/Skills Transfer Program—employers must commit to upskilling at least two Filipinos for every foreign hire.
All documents must be submitted to the DOLE Regional Office with jurisdiction over the place of intended work.
The AEP Application Process
For foreign nationals, here is the complete process on how to secure an AEP:
1. Determine Eligibility
Confirm if the foreign candidate and the role require an AEP. Then, check exemptions against DOLE’s latest guidelines.
2. Conduct Labor Market Test
Publish the vacancy in the required media for 15 days. Secure evidence and monitor responses to demonstrate that no qualified Filipino was available.
3. Compile and Submit Applications
Gather all application materials and submit them, with payment of official fees (often around PHP 9,000 for a one-year permit), to the appropriate DOLE Regional Office.
4. DOLE Review and Assessment
DOLE reviews submissions, conducts verification interviews if needed, and checks for compliance with labor market and skills transfer requirements.
5. Issuance of AEP Card
Upon approval, DOLE issues a physical AEP card, which must be prominently displayed at the worksite and serves as the basis for further visa processing (9G, PEZA, etc.).
6. Appeals Process
If denied, applicants have the right to appeal to the DOLE Secretary within ten days, providing further evidence or documentation.
Renewal, Amendment, and Compliance Monitoring
AEPs are typically valid for 1 to 3 years (aligned with the employment contract) and are renewable for subsequent periods. Employers must report any changes to the employee’s job title, location, employer, or assignment to the DOLE within ten days. Non-compliance may lead to fines of up to PHP 10,000 per violation, ten-year bans on future applications for fraud, and even deportation.
Employers need to submit quarterly reports on their roster of foreign workers and maintain a working Understudy/Skills Transfer Program to ensure local development. Displaying the AEP at the workplace is mandatory for audit purposes.
Corporate Benefits of Ensuring AEP Compliance
When an employer secures an AEP, it:
- Allows legal employment of critical foreign talent while ensuring protection for Filipino jobseekers.
- Reduces risks of business disruption, penalties, and reputational damage from illegal employment practices.
- Enables smoother processing of employment-related visas, banking, and business registrations with other agencies.
- Enhances confidence among local authorities, customers, and investors about your company’s lawful hiring practices.
Common Pitfalls and Best Practices
If an employer fails to secure an AEP, this may happen:
- Failing to publish job vacancies properly or file reports promptly can result in costly delays or rejections.
- Incomplete documentation or outdated application forms are key causes for denial.
- Incorrect handling of exemptions, such as for board members, can lead to liability.
- Engaging a professional consultancy or legal adviser can prevent errors and track regulatory updates.
Final Thoughts
Navigating the AEP process in the Philippines has become more complex, but ultimately ensures both fair opportunities for Filipino workers and the integration of foreign expertise critical for modern enterprises. With comprehensive preparation, proactive compliance, and expert guidance, companies and expatriates can achieve seamless, legal employment, turning regulatory complexity into a competitive advantage.
Is Assistance Available?
Adapting to new AEP regulations requires expertise and real-time awareness of legal requirements. BusinessRegistrationPhilippines.com guides employers and foreign nationals through:
- Preliminary AEP eligibility checks and advice on exemptions.
- Step-by-step document preparation and filing support.
- Labor market test compliance and proof management.
- Liaison with DOLE for follow-ups and clarifications.
- Renewal, amendments, and compliance reporting services.
Our experienced team helps eliminate red tape, ensure proper skills transfer planning, and minimize the risk of costly mistakes, so that you can focus on business growth and talent development. Contact our team for reliable AEP assistance:
- Contact Us Here
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- Call us at +63 (02) 8540-9623