The Wild Ride of Gig Work in the Philippines: the Good, the Bad, and What’s Missing
Atty. Mary Rosarie Sto Tomas
Atty. Rhenelle Mae Operario
JANUARY 2026
Would you rather be a regular employee or build a career in the gig economy?
A steady paycheck, fixed hours, and guaranteed benefits. Or flexible schedules, multiple clients, and income that depends on how fast, how skilled, or how connected you are. For millions of Filipinos today, this is no longer a hypothetical question. It is a real-life career crossroads.
With just a smartphone and an internet connection, a person can now become a delivery rider navigating Manila traffic, a freelance graphic designer working out of a Quezon City café, or a Virtual Assistant answering emails while watching the sunset with family in tow. This is the gig economy: a digital marketplace where work is on demand, careers are self-built, and freedom is often just one app away.
At its heart, gig economy is defined as “an economic system that uses online platforms to digitally connect workers or individual service providers with consumers,”1 . Ride-hailing apps, food delivery platforms, and online freelancing websites have reshaped how Filipinos earn a living. In fact, around 9.9 million2 Filipinos have turned to gig work, some by choice, others by necessity.
But behind the promise of flexibility lies an uncomfortable truth. While the digital economy has raced ahead, labor protection has lagged behind.
The appeal of gig work is undeniable. You choose your hours, work from almost anywhere, and escape the rigidity of traditional office life. For many Filipinos, especially those balancing family responsibilities or living outside major urban centers, this flexibility is not a luxury but a lifeline.
Yet this freedom comes at a cost. Most gig workers are treated as independent contractors, not employees. That means no guaranteed minimum wage, no paid leave, no job security, and no automatic social protection such as SSS, PhilHealth, or Pag-IBIG coverage.3
Digital platforms wield significant power. They determine pay rates, assign tasks, and can even remove workers from the platform altogether, often through algorithm-based systems that operate with little transparency. While this business model minimizes costs and legal obligations for platforms, it exposes workers to sudden income loss and economic instability, particularly for those who rely on gig work as their primary livelihood.
Presently, the legal problem is not ambiguity, it is misalignment.
Philippine labor laws do not specifically cover gig workers. Ultimately, they are generally classified as independent contractors, placing them outside the protective mantle of the Labor Code.
To determine whether a worker is an employee or an independent contractor, courts apply what is known as the four-fold test, with special emphasis on control.
The Supreme Court has explained what an independent contractor is in several cases. In ABS-CBN Corporation v. Concepcion (G.R. No. 230576, October 5, 2020), the Court said that an independent contractor is someone who works independently and is not closely supervised or controlled by the company hiring them. What matters is not just what work is done, but how the work is done. If the worker decides how to perform the job, they are more likely an independent contractor.
A steady paycheck, fixed hours, and guaranteed benefits. Or flexible schedules, multiple clients, and income that depends on how fast, how skilled, or how connected you are. For millions of Filipinos today, this is no longer a hypothetical question. It is a real-life career crossroads.
With just a smartphone and an internet connection, a person can now become a delivery rider navigating Manila traffic, a freelance graphic designer working out of a Quezon City café, or a Virtual Assistant answering emails while watching the sunset with family in tow. This is the gig economy: a digital marketplace where work is on demand, careers are self-built, and freedom is often just one app away.
At its heart, gig economy is defined as “an economic system that uses online platforms to digitally connect workers or individual service providers with consumers,”1 . Ride-hailing apps, food delivery platforms, and online freelancing websites have reshaped how Filipinos earn a living. In fact, around 9.9 million2 Filipinos have turned to gig work, some by choice, others by necessity.
But behind the promise of flexibility lies an uncomfortable truth. While the digital economy has raced ahead, labor protection has lagged behind.
The appeal of gig work is undeniable. You choose your hours, work from almost anywhere, and escape the rigidity of traditional office life. For many Filipinos, especially those balancing family responsibilities or living outside major urban centers, this flexibility is not a luxury but a lifeline.
Yet this freedom comes at a cost. Most gig workers are treated as independent contractors, not employees. That means no guaranteed minimum wage, no paid leave, no job security, and no automatic social protection such as SSS, PhilHealth, or Pag-IBIG coverage.3
Digital platforms wield significant power. They determine pay rates, assign tasks, and can even remove workers from the platform altogether, often through algorithm-based systems that operate with little transparency. While this business model minimizes costs and legal obligations for platforms, it exposes workers to sudden income loss and economic instability, particularly for those who rely on gig work as their primary livelihood.
Presently, the legal problem is not ambiguity, it is misalignment.
Philippine labor laws do not specifically cover gig workers. Ultimately, they are generally classified as independent contractors, placing them outside the protective mantle of the Labor Code.
To determine whether a worker is an employee or an independent contractor, courts apply what is known as the four-fold test, with special emphasis on control.
The Supreme Court has explained what an independent contractor is in several cases. In ABS-CBN Corporation v. Concepcion (G.R. No. 230576, October 5, 2020), the Court said that an independent contractor is someone who works independently and is not closely supervised or controlled by the company hiring them. What matters is not just what work is done, but how the work is done. If the worker decides how to perform the job, they are more likely an independent contractor.
1. Who hires the worker;
2. Who pays the worker;
3. Who can dismiss the worker; and
4. Who controls how the work is done.
2. Who pays the worker;
3. Who can dismiss the worker; and
4. Who controls how the work is done.
Among these, the power to control the work is the most important.5 In gig work, platforms usually do not tell workers exactly how to do their tasks. Riders choose when to log in, freelancers choose which projects to accept, and workers often use their own tools. Because of this, courts usually find that there is no employer-employee relationship.
The Labor Code itself does not mention gig workers. While Article 106 of the Code allows companies to contract out work, it does not extend labor protections to independent contractors.6 Instead, gig work is largely governed by the Civil Code, particularly Article 1713, which recognizes contracts where a person agrees to provide a service for a fee.
The consequences are significant. Because gig workers are considered independent contractors, they are not automatically entitled to minimum wage, paid leave, security of tenure, or mandatory employer contributions to SSS, PhilHealth, and Pag-IBIG. When disputes arise, these are treated as ordinary contract issues and must be filed in regular courts, making justice slower, costlier, and less accessible.
In short, the law is doctrinally consistent but socially outdated. It explains why gig workers are classified as independent contractors, yet exposes a major gap: workers may be independent on paper, but economically dependent on digital platforms in practice.
Aware of this disconnect, our lawmakers have begun proposing reforms to address the realities of platform-based work.
1. The Delivery Platform Riders Protection Act — Senate Bill No. 1275
This bill seeks to provide delivery riders with work benefits and social protection, including minimum wage standards and access to SSS and PhilHealth, recognizing that riders deserve labor protection even if they operate within platform-based arrangements.7
2. The Protektadong Online Workers, Entrepreneurs, Riders, at Raketera (POWERR) Act
The Protektadong Online Workers, Entrepreneurs, Riders, at Raketera Act proposes broader reform: 8
The Labor Code itself does not mention gig workers. While Article 106 of the Code allows companies to contract out work, it does not extend labor protections to independent contractors.6 Instead, gig work is largely governed by the Civil Code, particularly Article 1713, which recognizes contracts where a person agrees to provide a service for a fee.
The consequences are significant. Because gig workers are considered independent contractors, they are not automatically entitled to minimum wage, paid leave, security of tenure, or mandatory employer contributions to SSS, PhilHealth, and Pag-IBIG. When disputes arise, these are treated as ordinary contract issues and must be filed in regular courts, making justice slower, costlier, and less accessible.
In short, the law is doctrinally consistent but socially outdated. It explains why gig workers are classified as independent contractors, yet exposes a major gap: workers may be independent on paper, but economically dependent on digital platforms in practice.
Aware of this disconnect, our lawmakers have begun proposing reforms to address the realities of platform-based work.
1. The Delivery Platform Riders Protection Act — Senate Bill No. 1275
This bill seeks to provide delivery riders with work benefits and social protection, including minimum wage standards and access to SSS and PhilHealth, recognizing that riders deserve labor protection even if they operate within platform-based arrangements.7
2. The Protektadong Online Workers, Entrepreneurs, Riders, at Raketera (POWERR) Act
The Protektadong Online Workers, Entrepreneurs, Riders, at Raketera Act proposes broader reform: 8
• It would require platform workers to be treated like regular employees for wage and benefit purposes.
• It establishes a legal presumption that gig workers should be covered by minimum wage laws, paid leave, and social protection programs such as SSS and PhilHealth.
• It introduces platform accountability measures, including algorithm transparency and enhanced safety protections.
• It establishes a legal presumption that gig workers should be covered by minimum wage laws, paid leave, and social protection programs such as SSS and PhilHealth.
• It introduces platform accountability measures, including algorithm transparency and enhanced safety protections.
Similar measures in the House of Representatives seek to mandate written contracts for freelancers and provide benefits such as hazard pay and night differentials. 9
These legislative efforts reflect a growing recognition that gig workers are no longer on the fringes of the labor market, they are central to it.
While the Philippines continues to deliberate, other countries in the region are already moving forward.
In 2025, Singapore’s Platform Workers Act took effect, requiring gig workers and platform companies to share social security contributions and extending workers’ compensation and insurance coverage to gig workers.10
Malaysia is in the final stages of passing its Gig Workers Bill, which promises minimum wages, dispute resolution mechanisms, and social protections for more than a million platform workers.11
These developments signal a regional shift toward recognizing the human cost of digital convenience, one the Philippines is still catching up to.
The gig economy has permanently reshaped how Filipinos work and earn. It offers opportunity, autonomy, and access; but also risk, uncertainty, and legal invisibility.
While bills such as the POWERR Act and the Delivery Platform Riders Protection Act are steps in the right direction, meaningful reform will require more than proposals. It will demand data-driven policymaking, collaboration between stakeholders, and the political will to rethink traditional labor categories.
The question is no longer whether gig work is legitimate. It clearly is.
The real question is this: Can Philippine labor law evolve as fast as the digital economy it seeks to regulate?
Only time, and smart legislation, will tell.
These legislative efforts reflect a growing recognition that gig workers are no longer on the fringes of the labor market, they are central to it.
While the Philippines continues to deliberate, other countries in the region are already moving forward.
In 2025, Singapore’s Platform Workers Act took effect, requiring gig workers and platform companies to share social security contributions and extending workers’ compensation and insurance coverage to gig workers.10
Malaysia is in the final stages of passing its Gig Workers Bill, which promises minimum wages, dispute resolution mechanisms, and social protections for more than a million platform workers.11
These developments signal a regional shift toward recognizing the human cost of digital convenience, one the Philippines is still catching up to.
The gig economy has permanently reshaped how Filipinos work and earn. It offers opportunity, autonomy, and access; but also risk, uncertainty, and legal invisibility.
While bills such as the POWERR Act and the Delivery Platform Riders Protection Act are steps in the right direction, meaningful reform will require more than proposals. It will demand data-driven policymaking, collaboration between stakeholders, and the political will to rethink traditional labor categories.
The question is no longer whether gig work is legitimate. It clearly is.
The real question is this: Can Philippine labor law evolve as fast as the digital economy it seeks to regulate?
Only time, and smart legislation, will tell.
FOOTNOTES
1. Duggan J., Sherman U., Carbery R., McDonnell A. (2020). Algorithmic management and appwork in the gig economy: A research agenda for employment relations and HRM. Human Resource Management Journal, 30(1), 114–132. Retrieved from https://onlinelibrary.wiley.com/doi/epdf/10.1111/1748-8583.12258.
2. Ipsos Strategy3. (2025). Gig Life PH: Understanding the realities and preferences of Filipino gig workers. Ipsos. https://www.ipsos.com/sites/default/files/ct/publication/documents/2025-10/Ipsos%20S3%20Gig%20Life%20PH.pdf
*The views and opinions expressed are based on applicable laws, constitutional provisions, and/or jurisprudence in force at the time of writing, and do not constitute legal advice or an official stance on any political matter. Subsequent legal or factual developments may affect the relevance or applicability of the views and opinions herein expressed.