Local payroll and employment requirements that differ from or exceed Pennsylvania state law
Last updated: January 2025
Philadelphia follows the federal minimum wage. Pennsylvania preempts cities from setting higher minimum wages.
Philadelphia Promoting Healthy Families and Workplaces Ordinance. Applies to employers with 10+ employees. Smaller employers must provide unpaid sick leave.
Fair Workweek Ordinance applies to retail, hospitality, and food service with 250+ employees and 30+ locations. Includes 9-hour rest period, right to request schedule, access to hours.
Philadelphia residents pay 3.75% on all wages, salaries, commissions, and other compensation. One of the highest local income taxes in the nation.
Non-residents who work in Philadelphia pay 3.44% on wages earned in the city. Employers must withhold.
Self-employed individuals pay Earnings Tax at the same rates as Wage Tax. Must file quarterly estimates.
Tax on net profits from business, profession, or rental activity conducted in Philadelphia.
Two-component tax on businesses: gross receipts portion (0.1415%) and net income portion (5.99%). $100,000 gross receipts exemption.
Flat annual tax on anyone working in Philadelphia. Low-income exemption available. Withheld from first paycheck.
Philadelphia school district tax is included in the city wage tax rate, not a separate withholding.
Cannot ask about criminal history on initial application. Must wait until conditional offer to inquire. Covers employers with 10+ employees.
Cannot ask about salary history during hiring. Cannot rely on salary history to set compensation.
Domestic workers entitled to written contracts, minimum wage, overtime, paid rest days, and notice of termination.
Written contracts for work over $600. Timely payment requirements. Anti-retaliation protections.
These local rules apply in addition to Pennsylvania state law. Employers must comply with whichever law provides greater protection to employees. Always verify current requirements with official sources.