Side Hustles for Employees
From Phinvestopedia
Side Hustles, locally known as "Raket," refer to income-generating activities undertaken by an individual in addition to their primary full-time job. In the Philippine context, the stagnant growth of real wages combined with rising inflation has made having a side hustle a necessity for many employees rather than just a hobby.
While the "Gig Economy" offers freedom, it also presents legal grey areas regarding employment contracts and taxation.
Popular Side Hustles in PH
The barrier to entry for side hustles has dropped significantly due to the internet.
| Category | Examples | Potential Income |
|---|---|---|
| Digital Services | Virtual Assistant (Part-time), Graphic Design, Video Editing | ₱10k - ₱30k / month |
| E-Commerce | Shopee/Lazada Reselling, Facebook Marketplace (Buy & Sell) | Varies |
| Commission-Based | Real Estate Agent (Accredited), Financial Advisor (Insurance) | Commission only |
| Gig Work | GrabFood/Lalamove Rider, Content Creation (Vlogging/UGC) | ₱500 - ₱1,500 / day |
- Virtual Assistance (VA): Many BPO workers use their English skills to take 2-4 hour shifts for US clients after their main shift.
- Financial Advisor: Selling insurance (Sun Life, PruLife, etc.) is a popular side hustle because it requires no capital, only accreditation and licensure exams.
- Real Estate Accreditation: Employees often accredit with developers (SMDC, DMCI) to sell condos to their office colleagues for a commission.
Legal & Employment Risks (Moonlighting)
The most critical question: *Is it legal to have a side job while employed?*
- The Law: There is no prohibition in the Philippine Labor Code against having multiple jobs.
- The Contract: However, the law respects the Employment Contract. If your contract has an "Exclusivity Clause" or "Non-Compete Clause," your employer can legally fire you for "Loss of Trust and Confidence" if you are caught moonlighting.
- Government Employees: Civil servants are subject to stricter rules (RA 6713). They generally require written permission from their Department Head to engage in private business or practice a profession.
The Conflict of Interest Test
Before starting, ask yourself:
- Is it the same industry? (e.g., A bank teller selling insurance for a competitor). This is a major red flag.
- Is it done during office hours? (e.g., Replying to Shopee customers while on the company clock). This is grounds for termination (Theft of Time).
- Does it use company resources? (e.g., Using the office printer to print your flyers). This is valid ground for dismissal.
Pros and Cons
| Feature | Pros | Cons |
|---|---|---|
| Financial | Income Diversification. If you lose your main job, you don't hit zero. | Tax Complications. You become a "Mixed Income Earner," meaning you are disqualified from "Substituted Filing." You must file your own ITR (1701). |
| Career | Skill Building. You learn sales, marketing, and accounting faster than in a corporate role. | Performance Dip. Fatigue from the side hustle can cause errors in your main job, risking your promotion. |
| Lifestyle | Passion Project. You can monetize a hobby (e.g., Baking) without the pressure of it being your sole income. | Burnout. Working 12-16 hours a day (8h Job + 4h Hustle) is physically unsustainable long-term. |
Tips to Increase Chances of Success
- Read Your Handbook: Check your Company Code of Conduct. Some companies allow side businesses as long as you declare them.
- Automate: Use tools like Lalamove for deliveries or Chatbots for replies so you don't have to be glued to your phone during office hours.
- Keep it Separate: Never use your work laptop or work email for your side hustle. IT departments monitor traffic and can see if you are accessing freelancing sites.
- Target the "8% Tax Option": As a Mixed Income Earner, you can avail of the Freelancer Taxation (8% Rate) for your side income, which is often cheaper than the graduated tax table.
Alternatives to Side Hustles
Sometimes, the energy spent on a side hustle yields a lower return than focusing on your main career.
- Upskilling: Instead of earning ₱5,000 selling cookies, spending that time learning Data Analytics or Python might get you a promotion worth ₱20,000/month in your main job.
- Job Hopping: In the Philippines, loyalty tax is real. Often, the fastest way to increase income is not a side hustle, but moving to a competitor for a 30% salary bump.
