Employer of Record in the Philippines: 2026 Guide

Philippine employment law mandates SSS, PhilHealth, and Pag-IBIG contributions totaling 12-17% of salary from the employer side, plus a mandatory 13th-month pay by December 24 each year. The Labor Code provides strong worker protections including security of tenure and complex termination requirements. An EOR absorbs these obligations through a local corporation.

Written by Maya PatelFact-checked by Chandrasmita

EOR Providers for Philippines

Remote logo

Remote

Owned Philippine entity with full statutory compliance

Remote operates its own corporation in the Philippines and handles SSS, PhilHealth, and Pag-IBIG enrollment and monthly contributions directly. Employment contracts comply with the Labor Code and include DOLE-required provisions for regular employment, probationary terms, and security of tenure.

The platform calculates 13th-month pay correctly — 1/12 of total basic salary earned during the calendar year, paid by December 24. Remote also handles the de minimis benefits (rice allowance, clothing allowance, medical cash allowance) that are common in Philippine compensation and have specific tax-exempt thresholds under BIR regulations.

Remote's IP Guard is configured for Philippine IP law, which follows the Intellectual Property Code (RA 8293). Employment contracts include work-for-hire provisions that properly assign copyright and patent rights to the client company.

Strengths in this market

  • Owned Philippine entity with direct SSS/PhilHealth/Pag-IBIG filing
  • De minimis benefit structuring for tax-efficient compensation
  • IP assignment under Philippine Intellectual Property Code

Limitations to know

  • $599/mo is significant relative to Philippine salary levels
  • No visa processing for foreign nationals working in the Philippines
  • HMO (health maintenance organization) options limited to partner plans
From $599/mo per employee
Multiplier logo

Multiplier

APAC-native EOR with deep Philippine market knowledge

Multiplier's Southeast Asian focus translates to strong Philippine operations. Their local team understands the nuances of the Philippine Labor Code including the distinction between regular and project employees, the requirements for just cause vs. authorized cause termination, and the 30-day notice to DOLE for retrenchment.

The platform manages all mandatory contributions: SSS (employer share of 9.5% on monthly salary credit), PhilHealth (2.25% employer), and Pag-IBIG (2% employer, capped at PHP 200/month for the mandatory component). Payroll includes BIR withholding tax calculations and generation of BIR Form 2316.

Multiplier offers HMO (private health insurance) as a standard benefit for Philippine employees, which is essential — Philippine employers are expected to provide HMO coverage even though it is not legally required. Not offering it signals a substandard employer.

Strengths in this market

  • HMO coverage included as standard for Philippine employees
  • Expert handling of just cause vs. authorized cause termination rules
  • BIR Form 2316 generation and withholding tax management

Limitations to know

  • Fewer integrations with Philippine-specific payroll and accounting tools
  • No Philippine office presence for in-person support
  • Benefit plan options may not match top Philippine employers
From $400/mo per employee
Deel logo

Deel

Contractor-to-employee conversion in the Philippines

The Philippines is one of the most common markets for contractor-to-employee conversion. Many companies start by engaging Filipino freelancers on contractor agreements and later want to formalize the relationship. Deel provides a structured conversion path that handles the legal transition, SSS/PhilHealth/Pag-IBIG enrollment, and contract reclassification.

Deel's Philippine EOR covers all mandatory contributions, 13th-month pay, and BIR compliance. The platform also supports the calculation of separation pay under the Labor Code — one month pay per year of service for authorized cause termination, or half month per year for certain grounds.

Equipment provisioning through Deel IT is available in Metro Manila and Cebu, which is useful for companies setting up remote employees who need company-provided hardware.

Strengths in this market

  • Structured contractor-to-employee conversion for Philippine workers
  • Separation pay calculation under Labor Code provisions
  • Equipment provisioning in Metro Manila and Cebu

Limitations to know

  • At $599/mo, cost is high for typical Philippine salary ranges
  • Filipino-language employee portal is basic
  • HMO not included by default — requires add-on configuration
From $599/mo per employee
Skuad logo

Skuad

Cost-effective EOR matching Philippine salary economics

Skuad's $299/mo rate for the Philippines aligns better with local salary levels. A mid-level developer in Metro Manila earns PHP 60,000-120,000/month ($1,100-2,200), so the EOR fee represents 14-27% of compensation rather than the 27-55% that $599 providers add.

The platform handles SSS, PhilHealth, Pag-IBIG, and BIR withholding tax. Employment contracts comply with DOLE requirements for regular employment. 13th-month pay is calculated and distributed by the December deadline.

Skuad's combined contractor and employee management is particularly useful in the Philippines, where teams often include a mix of full-time employees and project-based contractors under different engagement models.

Strengths in this market

  • Fee proportional to Philippine salary levels at $299/mo
  • Combined contractor and employee management on one platform
  • All mandatory contributions and 13th-month pay included

Limitations to know

  • No HMO or supplemental health insurance included
  • Limited advisory on complex Labor Code termination procedures
  • DOLE compliance advisory not available for specialized scenarios
From $299/mo per employee
Remofirst logo

Remofirst

Most affordable entry into Philippine hiring

At $199/mo per employee, Remofirst is the cheapest way to employ someone in the Philippines through an EOR. For companies hiring their first VA, customer support rep, or junior developer in the Philippines, this keeps the total cost manageable.

Core compliance is covered: SSS, PhilHealth, Pag-IBIG enrollment and contributions, BIR withholding tax, and 13th-month pay. Employment contracts meet Labor Code requirements for regular employment status.

The tradeoff is minimal benefits beyond statutory requirements. Philippine employees expect HMO coverage, and Remofirst does not include it by default. You will need to arrange supplemental health insurance separately or accept that your offer will be less competitive.

Strengths in this market

  • Lowest-cost Philippine EOR at $199/mo
  • All mandatory contributions (SSS, PhilHealth, Pag-IBIG) covered
  • Simple onboarding for standard Philippine roles

Limitations to know

  • No HMO included — significant gap in Philippine market expectations
  • Minimal support for termination procedures under the Labor Code
  • No night differential or overtime calculation support
From $199/mo per employee
Globalization Partners logo

Globalization Partners

Navigating complex Philippine labor disputes and DOLE compliance

G-P's Philippine operation handles the Labor Code's stringent termination requirements, which are among the strictest in Asia. Security of tenure is a constitutional right in the Philippines, and dismissal requires either just cause (employee misconduct) or authorized cause (business necessity), each with specific procedural requirements.

The platform supports twin-notice termination (for just cause: notice of charges, hearing opportunity, notice of decision) and the DOLE 30-day advance filing for authorized cause termination. G-P's local legal team can represent the employer in NLRC (National Labor Relations Commission) proceedings if disputes arise.

G-P also handles the complexity of Philippine holiday pay — with regular holidays, special non-working days, and the varying pay rates for work performed on each. This is one of the most error-prone areas in Philippine payroll.

Strengths in this market

  • Twin-notice termination procedure management
  • NLRC dispute representation through local legal team
  • Accurate holiday pay calculations across all Philippine holiday types

Limitations to know

  • Premium pricing significantly inflates total cost for Philippine roles
  • Slower onboarding than APAC-native competitors
  • Separate contractor product with separate billing
From $800+/mo per employee
Rippling logo

Rippling

Unified platform extending to the Philippines

Rippling's Philippines EOR fits into their broader platform, making it suitable for companies already using Rippling for US or other operations. Philippine employees are managed in the same system as everyone else — same onboarding workflows, same IT provisioning, same benefits enrollment interface.

For the Philippines specifically, Rippling handles SSS, PhilHealth, Pag-IBIG, BIR, and 13th-month pay. The platform supports the salary structure common in Philippine employment: basic pay plus de minimis allowances (rice, clothing, laundry, medical) configured within their tax-exempt limits.

The main value is consolidation. The limitation is that Philippine-specific complexities like DOLE compliance, Labor Code termination procedures, and NLRC proceedings require deeper local expertise than a platform-first provider typically offers.

Strengths in this market

  • Single platform for US and Philippine employees
  • De minimis allowance structuring within BIR limits
  • IT provisioning alongside payroll onboarding

Limitations to know

  • Requires Rippling core platform subscription
  • Limited depth on DOLE compliance and Labor Code nuances
  • Philippine-specific legal advisory is outsourced
Module-based pricing (contact for quote)
Velocity Global logo

Velocity Global

White-glove Philippine EOR with local legal counsel

Velocity Global assigns dedicated local counsel to Philippine engagements, providing advisory on the Labor Code's complex provisions. This is particularly valuable for the first termination you handle — getting it wrong in the Philippines can result in reinstatement with full back wages, which is a severe financial penalty.

The platform manages all statutory contributions, 13th-month pay, and BIR compliance. Velocity Global also helps structure competitive benefits packages that include HMO coverage, life insurance, and performance bonuses common in the Philippine market.

Their Philippine team provides salary benchmarking by role and location, differentiating between Metro Manila rates and the lower salary expectations in Cebu, Davao, and Clark/Pampanga where many BPO operations are based.

Strengths in this market

  • Dedicated local legal counsel for Labor Code compliance
  • HMO and supplemental benefits structuring included
  • Salary benchmarking by Philippine region and role

Limitations to know

  • Custom pricing without upfront transparency
  • Smaller Philippine footprint than dedicated BPO/EOR providers
  • Implementation takes 2-3 weeks
Custom pricing

Hiring in the Philippines: Employment Law and Costs

Philippine employment is governed by the Labor Code of the Philippines (Presidential Decree No. 442) and its implementing rules. The DOLE (Department of Labor and Employment) enforces labor standards, while the NLRC (National Labor Relations Commission) adjudicates disputes. Security of tenure is a constitutional right.

Mandatory employer contributions: SSS at 9.5% of monthly salary credit (employee pays 4.5%), PhilHealth at 2.25% each from employer and employee (on basic monthly salary), and Pag-IBIG at 2% employer (employee 1-2%, capped). Total employer statutory cost is approximately 12-17% depending on salary level.

13th-month pay is mandatory under PD 851: employees receive 1/12 of their total basic salary earned during the calendar year, paid no later than December 24. This is distinct from a 'Christmas bonus' — it is a legal obligation that cannot be waived or substituted.

Termination follows strict rules. Just cause termination (employee fault: serious misconduct, willful disobedience, gross neglect, fraud, crime) requires twin notice and a hearing. Authorized cause termination (business necessity: redundancy, retrenchment, closure) requires 30-day notice to DOLE and the employee, plus separation pay (one month per year of service for most grounds).

Working hours are 8 per day / 48 per week. Overtime is 25% above regular rate on normal days, 30% on rest days and special holidays. Night differential (10pm-6am) adds 10% of regular rate. The Philippines has approximately 18-20 holidays per year (regular holidays and special non-working days), each with different pay premiums.

How to Choose an EOR for the Philippines

HMO (private health insurance) inclusion should be a top criterion. PhilHealth provides basic coverage, but every competitive Philippine employer offers HMO through providers like Maxicare, Medicard, or Intellicare. If your EOR does not include HMO, you will struggle to attract quality candidates. Some providers bundle it; others charge extra.

Termination risk is the biggest legal exposure in the Philippines. The Labor Code's security of tenure protections mean that wrongful dismissal results in reinstatement with full back wages — potentially years of salary. Prioritize EOR providers with in-country legal teams experienced in NLRC proceedings.

Philippine salary levels make EOR fee ratios critical. A senior developer in Manila earns PHP 80,000-150,000/month ($1,450-2,700). At $599/mo, the EOR fee adds 22-41%. At $199-299/mo, it drops to 7-21%. Calculate based on your specific roles.

Night differential and holiday premium calculations are complex in the Philippines. Regular holidays, special non-working days, and rest days each have different premium rates, and these compound (e.g., overtime on a regular holiday that falls on a rest day is 390% of the daily rate). Confirm your EOR handles this accurately.

EOR vs Local Entity in the Philippines

Incorporating a domestic corporation in the Philippines takes 2-4 weeks through the SEC and costs $5,000-10,000 for registration, BIR tax identification, SSS/PhilHealth/Pag-IBIG employer registration, and business permits. Foreign ownership above 40% requires PEZA or BOI registration for incentives and may face sector restrictions.

Monthly compliance costs run $1,000-2,000 for accounting, payroll, BIR filings, and mandatory government submissions. The 2020 Revised Corporation Code simplified some procedures, but the regulatory overhead remains substantial for foreign-owned companies.

The EOR breakeven in the Philippines is typically 12-18 employees, partly because local payroll bureau costs are relatively low. However, the entity setup complexity and the risk of DOLE compliance issues extend the point where self-management becomes practical.

If using the Philippines as a major talent hub (20+ employees), consider the PEZA (Philippine Economic Zone Authority) route, which offers tax incentives but requires a physical office within an economic zone. An EOR lets you test the market before committing to a PEZA-registered entity.

Frequently asked questions

What is an employer of record?

An EOR is a third-party organization that becomes the legal employer of your workers in countries where you don't have an entity, handling payroll, taxes, benefits, and compliance on your behalf.

How much does an EOR cost?

EOR pricing typically ranges from $199 to $1,500 per employee per month depending on the provider, country, and service level. Most mid-market EORs charge $499-$699 per employee.

EOR vs PEO — what is the difference?

An EOR creates a new employment relationship in a country where you have no entity. A PEO co-employs workers alongside your existing entity. EOR is for international expansion; PEO is for domestic HR outsourcing.

EOR guides by country

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