Employer of Record in Philippines
Hiring in Philippines at a glance
An Employer of Record (EOR) in the Philippines acts as the legal employer on your behalf, managing contracts, payroll, and statutory compliance under Philippine law.
Local hiring involves region-specific wage orders, mandatory contributions to SSS, PhilHealth, and Pag-IBIG, and DOLE registration requirements. Without local expertise, meeting these obligations consistently is difficult for foreign companies.
- EOR hiring can be completed in days, compared to 10 to 16 weeks required for local entity setup.
- The SSS total contribution rate reached 15% effective January 2025, split between employer and employee.
- The standard notice period for authorized-cause termination is 30 days under the Labor Code.
- 13th month pay is mandatory for all rank-and-file employees, payable on or before December 24 each year.
This page covers hiring options, Philippine employment law, payroll rules, visa requirements, EOR costs, and how to evaluate providers.
Gloroots operates as an EOR provider in the Philippines. This guide is written to help readers evaluate all available paths, not only Gloroots, so you can make an informed decision for your workforce.
What Is an Employer of Record in Philippines?
An EOR is a locally registered entity that employs workers on behalf of a foreign company, assuming full legal employer obligations under Philippine law, including contracts, payroll, and statutory filings.
Global tech firms, BPO operators, and startups entering the Philippines without a local entity are the primary users of this model.
The workflow runs as follows: the client selects a candidate; the EOR issues a Labor Code-compliant employment contract; the EOR registers the employee with SSS, PhilHealth, and Pag-IBIG; runs bi-monthly payroll; administers 13th month pay; and manages day-to-day HR compliance while the client directs the work. To understand how does EOR work in practice, see our detailed explainer.
Your Hiring Options in Philippines: EOR vs. Entity vs. Contractor
Companies entering the Philippines have three practical paths: engaging an independent contractor, incorporating a direct local entity, or working through an EOR. The right choice depends on headcount, timeline, and how much compliance responsibility you want to carry.
The contractor model suits short-term, project-based work where the worker operates with genuine independence and is not integrated into core business operations.
A direct entity makes sense for companies planning to employ 20 or more people, with a long-term market commitment and the capacity to absorb 10 to 16 weeks of setup time.
| Path | Setup Time | Compliance Ownership | Cost Structure | Best For |
|---|---|---|---|---|
| Independent Contractor | Days | Contractor owns compliance | Project or hourly fees | Short-term, project-based work |
| Direct Entity | 10 to 16 weeks | Full employer responsibility | High upfront and ongoing costs | Large, long-term headcount |
| Gloroots EOR | Days | Gloroots manages compliance | Predictable, country-specific pricing | Fast, compliant entity-free employment |
Philippine law applies DOLE's four-fold test to determine employment status. If a worker is controlled, paid, and integrated into operations, misclassifying them as a contractor carries significant legal and financial risk. Review Gloroots' EOR services to understand how compliant employment is structured.
How to Hire in Philippines Through an EOR: Step by Step
Hiring through an EOR in the Philippines follows a defined sequence from the initial hiring decision through to offboarding. Each step has a specific compliance or operational purpose under Philippine law.
The six steps below cover the full employment lifecycle: choosing the right model, selecting a provider, drafting a compliant contract, registering the employee with statutory agencies, running payroll, and managing the end of employment correctly.
Working through this sequence in order reduces the risk of registration gaps, payroll errors, and Labor Code violations. Companies that skip steps, particularly statutory registration, face penalties from SSS, PhilHealth, Pag-IBIG, and DOLE.
- Step 1: Decide between EOR, entity, or contractor
- Step 2: Vet and select an EOR provider
- Step 3: Draft and execute a compliant employment contract
- Step 4: Register the employee with SSS, PhilHealth, and Pag-IBIG
- Step 5: Run bi-monthly payroll and administer mandatory benefits
- Step 6: Manage termination or offboarding in line with the Labor Code
Step 1: Decide Between EOR, Entity, or Contractor
Assess your headcount, timeline, and compliance risk before engaging any provider. Use the three-path comparison table in the hiring options section above to make this decision first.
Step 2: Vet and Select an EOR Provider
Confirm the EOR owns its Philippine entity directly rather than operating through a third-party partner. Verify DOLE and BIR registration, check the support model, and confirm pricing transparency before signing any agreement.
Step 3: Draft and Issue a Compliant Employment Contract
Issue a written contract covering the role, compensation, probation period (up to six months), working hours, 13th month pay, statutory benefits, IP assignment, and termination grounds under the Labor Code.
Step 4: Enroll Employee in Statutory Programs
Register the employee with SSS, PhilHealth, and Pag-IBIG before the first payroll run. The EOR manages all agency filings and remits contributions on the employer's behalf.
Step 5: Run Compliant Bi-Monthly Payroll
Process payroll twice per month per Labor Code requirements. Apply regional wage orders, night shift differentials, and overtime premiums. Withhold income tax under TRAIN Law brackets and remit to BIR monthly.
Step 6: Manage Offboarding and Exit
Issue a 30-day notice for authorized-cause terminations. Complete the clearance process and release final pay within 30 days of separation, including pro-rated 13th month pay and unused leave conversion. Issue a Certificate of Employment within three working days of request.
How to Choose the Right EOR in Philippines
Choosing an EOR in the Philippines requires evaluating six factors before signing any service agreement.
The Philippines has distinct labor requirements: tri-agency contributions, regional wage board orders, DOLE compliance obligations, and strict termination procedures under the Labor Code. A provider without direct in-country experience creates compliance exposure from day one.
Use the criteria below to assess any provider before committing. Each factor reflects a real operational risk, not a generic checklist item. Reviewing a best employer of record comparison can also help you benchmark providers against these standards.
- Local legal knowledge and DOLE compliance track record
- Tri-agency enrollment and contribution remittance capability
- Contract drafting aligned with the Labor Code
- Payroll accuracy across regional wage orders
- Offboarding and final pay management
- Transparent, country-specific pricing
Local Legal Knowledge and DOLE Compliance Track Record
Verify the provider has direct experience with the Philippine Labor Code, DOLE advisories, regional wage board orders, and the tri-agency contribution system, not just general Southeast Asia coverage.
Own Entity vs. Partner Network
Confirm whether the EOR holds its own SEC-registered, DOLE-enrolled Philippine entity or subcontracts to a local partner. Own-entity providers carry direct compliance liability and typically resolve issues faster.
Support Model and Response Time
Assess whether the provider offers a dedicated account manager, local Philippine HR support, and a defined SLA for payroll queries and compliance issues. This matters given the Philippines operates at UTC+8.
Pricing Transparency
Request an all-in fee quote that includes statutory contribution pass-throughs, 13th month pay administration, and offboarding costs. Market rates range from USD 250 to 2,000 per employee per month. See Gloroots pricing for country-specific details.
Security and Data Privacy Compliance
Verify the provider complies with the Philippine Data Privacy Act (Republic Act 10173) and holds relevant security certifications such as ISO 27001 or SOC 2 for handling employee personal data.
Integration Capability
Confirm the EOR platform integrates with your existing HRIS, finance, and expense tools. Direct integration reduces manual data entry and reconciliation errors across payroll cycles.
Workforce and Talent Pool in Philippines
The Philippines has a workforce of approximately 49 million, with a median age of 25.7 years. Over 500,000 graduates enter the market annually, with strong representation in STEM, business, and healthcare fields.
Metro Manila (Makati, BGC, Quezon City), Cebu, and Davao anchor hiring across BPO, IT, finance, and healthcare sectors.
Filipino professionals are English-fluent and culturally aligned with Western business norms. Work culture is hierarchical yet collaborative, and remote-first adoption has remained high since the pandemic. Labor costs are competitive relative to markets like Singapore or Australia, making the Philippines a cost-effective hiring destination. For a comparable Southeast Asian market, see employer of record Vietnam.
| Workforce Snapshot | Detail |
|---|---|
| Workforce Size | ~49 million (2025 est.) |
| Median Age | 25.7 years |
| English Proficiency | High; ranked among top in Asia |
| Top Talent Hubs | Metro Manila, Cebu, Davao |
| Key Industries | BPO, IT, finance, healthcare |
Employment Law Essentials in Philippines
Employment contracts
The Philippine Labor Code requires written contracts specifying role, compensation, probation period (maximum 6 months), working hours, benefits, IP assignment, and grounds for termination. Gloroots issues locally compliant contracts for every hire.
Working hours and overtime
Standard working hours are 8 hours per day. The Labor Code permits up to 6 working days per week (48 hours). Overtime is paid at 125% of the hourly rate. Rest day and holiday work commands 130% to 200%.
Minimum wage
Minimum wage is set by regional wage boards across the Philippines. In the National Capital Region (NCR), the daily minimum wage is PHP 695 for non-agricultural workers and PHP 658 for agricultural workers, effective July 18, 2025, per the Regional Tripartite Wages and Productivity Board order. Other regions set lower rates, so employers must verify the applicable board order for each location where they hire.
Leave and Statutory Benefits in Philippines
Annual leave
The Labor Code mandates a minimum of 5 days paid service incentive leave (SIL) per year for employees with at least one year of service. Many employers offer more to stay competitive.
Sick leave
The Labor Code does not mandate a separate sick leave entitlement. The Social Security System (SSS) provides sickness benefit payments for qualifying employees. Most employers voluntarily offer additional sick leave days as part of their compensation packages.
Maternity and paternity leave
Female employees are entitled to 105 days of paid maternity leave, extended to 120 days for solo mothers, funded in part through SSS reimbursement. Married male employees receive 7 days of paid paternity leave. Solo parents receive an additional 7 days of parental leave under the Solo Parents' Welfare Act.
Public holidays
The Philippines observes 18 national public holidays in 2025, covering both regular holidays (full pay) and special non-working days (30% premium if worked). Regional variations apply.
Leave entitlements
| Leave type | Entitlement | Pay rate | Key conditions |
|---|---|---|---|
| Service incentive leave | 5 days/year | 100% | Minimum 1 year of service |
| Maternity leave | 105 days (120 for solo mothers) | 100% (SSS-funded in part) | Female employees; SSS contributions required |
| Paternity leave | 7 days | 100% | Married male employees |
| Solo parent leave | 7 additional days | 100% | Solo Parents' Welfare Act; solo parent ID required |
| Special non-working day | Varies | 130% if worked | 18 national holidays in 2025 |
Philippine national public holidays 2025
- January 1: New Year's Day
- April 9: Araw ng Kagitingan (Day of Valor)
- April 17: Maundy Thursday
- April 18: Good Friday
- April 19: Black Saturday (special non-working)
- May 1: Labor Day
- June 12: Independence Day
- August 21: Ninoy Aquino Day (special non-working)
- August 25: National Heroes Day
- November 1: All Saints' Day (special non-working)
- November 2: All Souls' Day (special non-working)
- November 30: Bonifacio Day
- December 8: Feast of the Immaculate Conception (special non-working)
- December 24: Christmas Eve (special non-working)
- December 25: Christmas Day
- December 30: Rizal Day
- December 31: Last Day of the Year (special non-working)
- Variable: Eid'l Fitr
Payroll, Tax and Statutory Contributions in Philippines
Payroll in the Philippines runs bi-monthly (twice per month) as required by the Labor Code. Employers must withhold income tax and remit it to the Bureau of Internal Revenue (BIR) monthly.
The highest compliance risk in 2025 is the SSS rate increase to 15% total and the PhilHealth increase to 5% total. Both took effect in January 2025 and require immediate payroll recalculation for any employer using pre-2025 rates. Gloroots manages these recalculations automatically. Employers hiring across Southeast Asia can compare payroll structures by reviewing the employer of record Singapore page.
2025 employer and employee statutory contributions
| Fund | Employer rate | Employee rate | Total | Notes |
|---|---|---|---|---|
| SSS | ~9.5% | ~4.5% | 15% | Effective January 2025 |
| PhilHealth | 2.5% | 2.5% | 5% | Salary floor PHP 10,000; ceiling PHP 100,000 |
| Pag-IBIG | 2% | 1-2% | Up to 4% | Employee contribution capped at PHP 100/month |
TRAIN Law income tax brackets
| Annual taxable income (PHP) | Tax rate |
|---|---|
| Up to 250,000 | 0% |
| 250,001 to 400,000 | 15% on excess over 250,000 |
| 400,001 to 800,000 | PHP 22,500 + 20% on excess over 400,000 |
| 800,001 to 2,000,000 | PHP 102,500 + 25% on excess over 800,000 |
| 2,000,001 to 8,000,000 | PHP 402,500 + 30% on excess over 2,000,000 |
| Over 8,000,000 | PHP 2,202,500 + 35% on excess over 8,000,000 |
Work Visas and Permits in Philippines
Foreign nationals working in the Philippines require a work visa. The most common type for employer-sponsored hires is the 9(g) Pre-Arranged Employment Visa.
An EOR can act as the sponsoring employer for a 9(g) visa application, covering the Alien Employment Permit (AEP) from DOLE and coordinating with the Bureau of Immigration. Processing typically takes 4 to 8 weeks.
Common visa types in the Philippines
| Visa type | Purpose | Validity |
|---|---|---|
| 9(g) Pre-Arranged Employment Visa | Employer-sponsored foreign workers | 1 year, renewable |
| Special Resident Retiree's Visa (SRRV) | Foreign retirees with qualifying deposits | Indefinite with conditions |
| PEZA work permit | Employees in PEZA-registered economic zones | Tied to PEZA registration |
| 47(a)(2) Special Non-Immigrant Visa | Intra-company transferees and treaty-based hires | Varies by treaty or project |
Equity and ESOP Consulting in Philippines
Equity compensation is increasingly common in the Philippines, particularly in the tech, BPO, and startup sectors where competition for senior talent is intense.
Stock options and RSUs granted to Philippine employees are subject to income tax upon exercise or vesting. The Bureau of Internal Revenue treats equity gains as compensation income, creating withholding obligations for the employer of record. Gloroots tracks these obligations and manages the required BIR filings as part of Employment Lifecycle Management.
Misclassification Risk in Philippines
Misclassifying an employee as an independent contractor in the Philippines violates the Labor Code and triggers DOLE enforcement, back-pay liability, and potential illegal dismissal claims.
Philippine courts and DOLE apply four criteria to determine employment status:
- Control: The employer directs work hours, processes, and tools used by the worker.
- Integration: The worker's tasks are integral to the company's core business operations.
- Exclusivity: The worker consistently serves only one client over time.
- Benefits: The worker receives no statutory benefits such as SSS, PhilHealth, Pag-IBIG, or 13th month pay.
Penalties for misclassification include:
- Back payment of all statutory contributions (SSS, PhilHealth, Pag-IBIG) from the date of engagement.
- Retroactive 13th month pay for all years of misclassified service.
- DOLE fines and potential criminal liability for willful violations.
- Illegal dismissal claims if the engagement is terminated without due process.
Converting an existing contractor to full-time employment through an EOR requires a formal offer letter, a new Labor Code-compliant employment contract, and enrollment in SSS, PhilHealth, and Pag-IBIG. Gloroots manages the documentation and government registration steps. The typical timeline from signed contract to active payroll is 5 to 10 business days.
An EOR employs workers under a compliant Philippine Labor Code contract from day one, removing misclassification risk before it arises.
Hiring, Onboarding, Termination and Offboarding in Philippines
Hiring in the Philippines follows a structured legal framework under the Labor Code. Employers must issue written employment contracts, enroll employees in statutory agencies, and comply with probationary rules before regularization.
The onboarding process involves government registrations with SSS, PhilHealth, Pag-IBIG, and the BIR. Each agency has its own enrollment timeline and documentation requirements. Missing a step creates compliance gaps that can surface during audits or employee disputes.
Termination requires documented cause and a defined procedural sequence. Skipping any step exposes the employer to illegal dismissal claims before the National Labor Relations Commission (NLRC).
Offboarding includes final pay computation, statutory separation reporting, and document issuance. Philippine law sets specific timelines for each obligation. Employers who miss these deadlines face monetary penalties and potential DOLE complaints.
Gloroots manages each phase of the employment lifecycle in the Philippines. Contracts, payroll, statutory filings, and separation documents are handled under a single governance layer, giving your team full visibility without the administrative overhead of a local entity.
Onboarding
- Before Day One: Collect government-issued IDs and TIN. Prepare a Labor Code-compliant employment contract with an IP assignment clause. Enroll the employee in SSS, PhilHealth, and Pag-IBIG. Set up the payroll record in the BIR system. Confirm equipment provisioning or BYOD policy.
- Day One: Issue the signed employment contract and company handbook. Complete statutory enrollment confirmation. Brief the employee on the bi-monthly payroll schedule and 13th month pay timeline. Confirm night shift differential applicability where relevant.
- First Week: Verify that SSS, PhilHealth, and Pag-IBIG numbers are active. Confirm BIR TIN registration. Complete DOLE-required new employee reporting where applicable. Set probationary performance standards in writing.
- Beyond: Conduct 30-day and 90-day probationary check-ins. Confirm regularization or extension decision before the 6-month probationary deadline. Enroll the employee in supplemental benefits such as health insurance and life insurance per company policy.
Termination
Termination in the Philippines requires just or authorized cause under the Labor Code. Employers must issue a Notice to Explain, allow a written response, conduct a hearing, and issue a Notice of Termination. Skipping any step creates illegal dismissal liability.
Offboarding
- Settlement: Compute final pay including unpaid salary, pro-rated 13th month pay, and unused Service Incentive Leave (SIL) conversion. Release payment within 30 days of the separation date.
- Documents: Issue a Certificate of Employment within 3 working days of request. Provide BIR Form 2316 for the separation year. Complete SSS, PhilHealth, and Pag-IBIG separation reporting.
- Exit: Run the clearance process. Confirm return of company property, settlement of financial obligations, and task handover sign-offs. Revoke system access on the last working day.
- Post-Exit: Retain employee records per Philippine Data Privacy Act (RA 10173) retention requirements. Respond to any NLRC or DOLE inquiries within prescribed timelines.
What's New: Recent Regulatory Changes in Philippines
Three significant regulatory changes took effect in 2025: the SSS contribution rate increase to 15% in January, the PhilHealth premium confirmation at 5%, and the NCR minimum wage increase to PHP 695 per day on July 18, 2025. Each requires immediate payroll adjustments.
- SSS total contribution rate increased to 15% effective January 2025. Employers must update payroll systems and remittance schedules to reflect the new employer and employee share split.
- PhilHealth confirmed the 5% premium rate for 2025. The salary floor is PHP 10,000 and the ceiling is PHP 100,000. The split is 2.5% employer and 2.5% employee.
- NCR minimum daily wage increased to PHP 695 for non-agricultural workers and PHP 658 for agricultural workers, effective July 18, 2025, per Regional Tripartite Wages and Productivity Board Wage Order NCR-24.
- DOLE continues to enforce the four-fold test for contractor classification. Misclassification enforcement actions increased in 2024 and 2025.
- National Privacy Commission enforcement of the Philippine Data Privacy Act (RA 10173) intensified in 2024, with new guidelines on employee data handling issued to employers.
Employers using pre-2025 contribution rates face retroactive liability. Payroll systems should be audited quarterly. Assign a compliance owner to monitor Regional Wage Board orders and NPC advisories.
Costs and Financial Planning for Hiring in Philippines
The true cost of employing someone in the Philippines exceeds base salary by 20 to 25% when statutory contributions and 13th month pay are included.
Two costs are commonly underestimated. The 13th month pay equals 8.33% of annual base salary and is mandatory for all rank-and-file employees. Combined employer statutory contributions add approximately 14% on top of gross salary: SSS at roughly 9.5%, PhilHealth at 2.5%, and Pag-IBIG at 2%.
The table below shows an illustrative Total Cost of Employment (TCE) breakdown for a Philippines-based employee.
| Cost Element | Percentage of Base Salary |
|---|---|
| Base Salary | 100% |
| 13th Month Pay | 8.33% |
| SSS Employer Share | ~9.5% |
| PhilHealth Employer Share | 2.5% |
| Pag-IBIG Employer Share | 2% |
| Total | ~122 to 125% |
| Cost Element | Direct Entity | Gloroots EOR |
|---|---|---|
| Entity Setup | Required. SEC, BIR, and agency registrations take 3 to 6 months. | Not required. Employment runs under Gloroots' existing entity. |
| Payroll Administration | Employer manages BIR filings, bi-monthly payroll, and statutory remittances. | Gloroots manages payroll, filings, and remittances end to end. |
| Statutory Contributions | Employer calculates and remits SSS, PhilHealth, and Pag-IBIG directly. | Gloroots calculates and remits all statutory contributions. |
| Legal and HR Costs | Ongoing legal counsel, HR staff, and compliance monitoring required. | Included in Gloroots' service fee. |
| Scalability | Each new market requires a separate entity setup process. | Scale across 140+ countries without new entity registrations. |
| Risk Exposure | Company bears full liability for audits, penalties, and disputes. | Gloroots manages compliance risk and employment governance. |
EOR pricing in the market ranges from USD 250 to USD 2,000 per employee per month, depending on service scope and headcount. For a detailed breakdown of what drives employer of record cost, see Gloroots' dedicated pricing resource. Gloroots pricing is available at gloroots.com/pricing.
Common Challenges and How Gloroots Solves Them in Philippines
The most common operational challenges for foreign employers in the Philippines are contribution rate changes, regional wage order tracking, and termination due process errors.
| Challenge | How Gloroots Addresses It |
|---|---|
| Outdated contribution rates (SSS/PhilHealth 2025 increases) | Gloroots automatically applies current rates and audits payroll quarterly. |
| Regional wage order changes (NCR and provincial) | Gloroots monitors all Regional Tripartite Wages and Productivity Board orders in real time. |
| Permanent establishment risk from sustained local employee activity | Gloroots acts as the legal employer, separating the foreign company from the Philippine employment relationship. |
| Contractor-to-employee conversion compliance | Gloroots manages the conversion process including new contract issuance, statutory enrollment, and misclassification clearance. |
| IP ownership uncertainty for tech hires | Gloroots includes IP assignment and NDA clauses in all Philippine employment contracts. |
| Data privacy compliance (RA 10173) | Gloroots handles employee data per Philippine Data Privacy Act requirements. |
Why Gloroots Is a Strong EOR Partner in Philippines
Gloroots is best suited for companies hiring 1 to 50 employees in the Philippines who need compliant employment without a local entity, particularly tech firms, BPO operators, and global teams expanding from Singapore, the US, or Europe.
Country-specific strengths include direct entity ownership in the Philippines, automated application of 2025 SSS and PhilHealth rates, regional wage order monitoring, and IP assignment clauses included in all employment contracts.
Gloroots enables Philippine hires to start within days, with full statutory enrollment and compliant contracts issued before the first payroll run.
The platform is well suited for companies converting existing Philippine contractors to full-time employees, or testing the market before committing to a local entity.
Buyers should verify Gloroots' own-entity status in the Philippines, confirm pricing at gloroots.com/pricing, and request a sample employment contract before signing a service agreement.
Conclusion
The Philippines' 18 public holidays, bi-monthly payroll cycle, and 2025 contribution rate increases make compliance a moving target for foreign employers.
Companies evaluating Philippine hiring should confirm their EOR provider's own-entity status, verify that 2025 SSS and PhilHealth rates are applied correctly, and request a sample contract before committing. The right employment structure saves months of setup time and reduces significant compliance risk.
Frequently Asked Questions About Employer of Record in Philippines
The questions below address the most common compliance, structure, and operational concerns for companies hiring in the Philippines through an Employer of Record.
Is using an Employer of Record legal in the Philippines?
Yes. EOR arrangements are legal in the Philippines under the Labor Code. The EOR is the registered local employer; the client company directs the work under a separate service agreement.
DOLE does not prohibit EOR structures. The EOR must be properly registered with SSS, PhilHealth, Pag-IBIG, BIR, and DOLE to serve as the compliant legal employer. This arrangement is distinct from labor-only contracting, which is prohibited under DOLE Department Order 174.
How is an EOR different from a BPO in the Philippines?
An EOR hires employees under a compliant employment contract with full statutory benefits, including SSS, PhilHealth, Pag-IBIG, and 13th month pay. The client company directs the work directly.
A BPO typically provides a service output under a commercial contract; the BPO's employees are not your employees. With an EOR, the worker is legally employed on your behalf, giving you direct control over role, performance, and deliverables while the EOR manages compliance.
How long does it take to hire an employee in the Philippines through an EOR?
Most EOR providers can onboard a Philippine employee within 3 to 7 business days, once the employment contract is agreed and the candidate's government IDs and TIN are available.
Setting up a direct entity in the Philippines takes 10 to 16 weeks, covering SEC registration, BIR enrollment, and local government permits. An EOR eliminates this delay by using its existing registered entity.
What statutory benefits must Philippine employees receive?
Philippine employees are entitled to SSS, PhilHealth, and Pag-IBIG contributions, 13th month pay, five days of service incentive leave per year, and maternity or paternity leave.
The 13th month pay equals one month's basic salary and must be paid by December 24 each year. SSS total contributions are 15% of the monthly salary credit (2025). PhilHealth is 5% of monthly salary (2025). Pag-IBIG is 2% employer plus 1 to 2% employee, capped at PHP 100 per month each.
How much does an EOR in the Philippines cost?
EOR services in the Philippines typically cost between USD 250 and USD 2,000 per employee per month, depending on the provider, headcount, and services included.
Specific provider benchmarks include RemoFirst at USD 199, Deel at USD 599, and Remote at USD 699 per employee per month. Gloroots' pricing is available at gloroots.com/pricing. Buyers should confirm whether statutory contribution pass-throughs, 13th month pay administration, and offboarding costs are included in the quoted fee. For a comparable cost reference in Asia, see employer of record India.
Can an EOR sponsor work visas for foreign nationals in the Philippines?
Yes. An EOR registered in the Philippines can act as the sponsoring employer for a 9(g) Pre-Arranged Employment Visa and the required Alien Employment Permit (AEP) from DOLE.
The AEP typically takes 3 to 4 weeks to process. The 9(g) visa takes 4 to 8 weeks in total. Buyers should confirm whether their EOR provider directly handles visa sponsorship or refers this to a third-party immigration firm, as processing timelines and costs vary.
What is the difference between an EOR and setting up a local entity in the Philippines?
A local entity gives full operational control and is cost-effective at scale, but requires 10 to 16 weeks to set up, a minimum paid-up capital of USD 200,000 for foreign-owned companies, and ongoing compliance with SEC, BIR, DOLE, and local government units.
An EOR lets you hire within days using the provider's existing entity, with no capital commitment and predictable monthly fees. The trade-off is that the EOR is the legal employer. You direct the work but do not hold the employment contract directly. Companies often start with an EOR and transition to a direct entity once headcount justifies the investment.
Can I transition from an EOR to my own Philippine entity later?
Yes. Companies can start with an EOR and later migrate employees to their own Philippine entity once the business case justifies the investment.
The transition involves setting up the new entity (10 to 16 weeks), re-issuing employment contracts under the new employer, novating statutory registrations (SSS, PhilHealth, Pag-IBIG, BIR) to the new entity, and ensuring continuity of employee benefits and tenure. A well-managed transition typically takes 3 to 6 months and requires coordination between the EOR, the client, and each employee.
Frequently asked questions
