If you're a foreign national planning to work in the Philippines, or a local employer hiring one, the Alien Employment Permit (AEP) is usually the first legal hurdle to clear before any work can begin. Issued by the Department of Labor and Employment (DOLE), the AEP exists to confirm that hiring a foreign worker doesn't come at the expense of an equally qualified Filipino applicant. This guide breaks down the whole process — from the employer's side proving the need for a foreign hire, to the actual document checklist, fees, and how the AEP connects to your work visa.
This guide covers Step 1: Confirm Whether You Actually Need an AEP and Step 2: The Employer Must Prove No Qualified Filipino Is Available, with the full details below.
- An Alien Employment Permit (AEP) is required before most foreign nationals can legally work in the Philippines, issued by the Department of Labor and Employment (DOLE)
- The employer must first prove no qualified Filipino citizen is willing and able to fill the position — this is called the labor market test or Economic Needs Test
- AEP fees run roughly ₱8,000 for the first year, plus about ₱3,000 for each additional year, up to a maximum validity of 5 years
- Getting an AEP does not automatically give you a visa — you still need to secure the correct working visa (commonly the 9(g) Pre-arranged Employment Visa) separately from the Bureau of Immigration
- New DOLE Department Order 248 rules introduced stronger Economic Needs Tests and understudy training requirements meant to ensure Filipino workers are trained to eventually fill these roles
Step 1: Confirm Whether You Actually Need an AEP
Most foreign nationals seeking paid employment in the Philippines need an AEP, whether hired directly by a Philippine company, working as a resident foreign national, or coming in through an intra-company transfer. Some categories are exempt, such as members of diplomatic missions, foreign government employees, and certain officers of international organizations with treaty exemptions — check with DOLE or your employer's HR/legal team if you believe you might qualify for an exemption before assuming you need to apply.
Step 2: The Employer Must Prove No Qualified Filipino Is Available
Before DOLE issues an AEP, the sponsoring employer must demonstrate that no Filipino citizen who is competent, able, and willing at the time of application can perform the job. Under the newer Economic Needs Test introduced by DOLE Department Order 248, employers may be required to show evidence of a genuine, documented recruitment effort (like job postings) that failed to produce a qualified Filipino applicant. This is meant to protect local job opportunities while still allowing legitimate skills gaps to be filled by foreign talent.
Step 3: Gather the Foreign Worker's Personal Documents
- Duly accomplished AEP Application Form
- Original and photocopy of the applicant's passport (bio-page and current visa/entry stamp page)
- Two recent passport-size colored photographs (taken within the last 6 months)
- Notarized employment contract or appointment letter specifying position, salary, and duration of employment
- Curriculum vitae or resume showing relevant qualifications for the position
Step 4: Gather the Employer's Supporting Documents
- Certified true copy of the employer's SEC Certificate of Registration, DTI Certificate (for sole proprietorships), or CDA registration (for cooperatives)
- Mayor's/Business Permit
- Proof of at least 60% Filipino equity ownership, where required by law for the specific industry (some sectors are fully open to foreign ownership under the Foreign Investments Act)
- Evidence of the recruitment effort/Economic Needs Test showing the position was advertised to Filipino applicants first
- Understudy Training Program plan, if applicable, showing how a Filipino counterpart will eventually be trained to take over the role
Step 5: File the Application With the Correct DOLE Regional Office
Submit your complete application at the DOLE Regional Office covering the location where the foreign national will actually work — not necessarily where the company's head office is registered. Some DOLE regions now offer online pre-arrival AEP processing, allowing part of the application to be filed before the foreign worker even physically arrives in the Philippines, which can significantly shorten the wait once they land.
Step 6: Pay the AEP Filing Fees
Fees vary somewhat by DOLE regional office and permit duration, but budget roughly ₱8,000 for the first year of validity, plus around ₱3,000 for each additional year requested, up to a maximum AEP validity of 5 years. Renewal fees are typically lower than the initial application fee. Always confirm the current fee schedule with your specific DOLE regional office before filing, since amounts are periodically adjusted.
Step 7: Wait for DOLE's Decision and Receive the AEP
DOLE reviews the application, verifies the Economic Needs Test evidence, and checks all submitted documents before issuing the permit. If approved, you'll receive the physical AEP card or certificate, which the foreign national must carry along with their passport and visa documents while working in the Philippines. If denied, DOLE will specify the reason, and the employer may reapply with corrected or additional supporting evidence.
Step 8: Secure the Matching Work Visa From the Bureau of Immigration
An AEP by itself does not grant permission to stay or work long-term in the Philippines — it must be paired with the appropriate visa, most commonly the 9(g) Pre-arranged Employment Visa, processed through the Bureau of Immigration. Many employers file the AEP and visa applications in parallel or in close sequence to minimize the total waiting time before the foreign employee can legally start working.
Frequently Asked Questions
The Philippine employer typically files the AEP application on behalf of the foreign worker, since much of the required documentation (proof of the labor market test, business registration, Economic Needs Test evidence) comes from the employer's side. The foreign worker still needs to provide personal documents like their passport and employment contract, but the employer usually manages the DOLE filing process.
An AEP can be issued for up to 5 years depending on the employment contract duration and the position's justified need, though many are initially issued for 1 year and renewed annually or as needed. Renewal requires reapplying before expiration with updated employment and business documents, and renewal fees are generally lower than the initial application fee.
The Economic Needs Test requires employers to provide documented evidence — such as genuine job postings and recruitment records — proving that no qualified, willing, and able Filipino citizen was available to fill the position before hiring a foreign national. DOLE strengthened this requirement under Department Order 248 to ensure foreign hiring genuinely reflects skills gaps rather than being used to bypass local labor opportunities.
No, you should not begin working until your AEP is approved and issued, since working without a valid permit exposes both you and your employer to legal penalties, including possible deportation for the foreign worker and fines for the employer. Some DOLE regions now allow pre-arrival processing to shorten the gap, but the permit still needs to be finalized before employment legally begins.
Yes, certain categories are exempt, including accredited diplomats, officers and staff of international organizations covered by treaty agreements, and some intra-corporate assignees under specific reciprocity arrangements — but exemptions are narrowly defined and situation-specific. Always verify exemption eligibility directly with DOLE rather than assuming based on job title alone.
DOLE will state the specific ground for denial, which commonly relates to insufficient proof that no qualified Filipino was available, incomplete documentation, or discrepancies between the employment contract and the actual position description. The employer can typically reapply after addressing the cited deficiencies, though this restarts part of the review timeline.
No, the AEP and the work visa are separate approvals from two different government agencies — DOLE issues the AEP confirming the labor market justification, while the Bureau of Immigration separately issues the visa (commonly the 9(g) Pre-arranged Employment Visa) that actually authorizes your legal stay and work status in the country. Most employers process both together, but approval of one doesn't guarantee automatic approval of the other.
Conclusion
The Alien Employment Permit process exists to balance opening the Philippine labor market to needed foreign expertise while protecting opportunities for Filipino workers. Employers who prepare a solid Economic Needs Test case and complete document set upfront, and foreign workers who pair their AEP with the correct visa application promptly, tend to move through the process with far fewer delays.
