Hire employees in the Philippines without setting up a local company. Fast, compliant and hassle-free.
EOR Philippines connects international companies with a local Employer of Record (EOR) partner. The EOR becomes the legal employer of your team in the Philippines and handles employment contracts, payroll in PHP, the 13th-month salary, SSS, PhilHealth and Pag-IBIG contributions and withholding tax, while you manage the daily work.
Understand how an Employer of Record simplifies hiring in the Philippines for international businesses.
An Employer of Record (EOR) is a company with a local legal entity that formally employs your staff on your behalf. The EOR issues the employment contract, runs payroll, pays statutory contributions and taxes, and keeps the employment relationship compliant, while you direct the daily work.
Philippine employment law is protective of employees and strictly enforced. Employees have security of tenure, a mandatory 13th-month salary, several statutory leaves and contributions to three government agencies. An EOR lets you hire quickly and handle all of this through a local employer, instead of building your own HR and payroll setup first.
Setting up your own company means registering the entity, opening bank accounts, registering with the tax and social agencies, and running local payroll and compliance on an ongoing basis. An EOR lets you start hiring without a legal entity. Many companies begin with an EOR and set up their own entity once their team in the Philippines grows.
The arrangement has to be set up properly. DOLE Department Order No. 174 prohibits labor-only contracting, so the EOR must be a legitimate local employer that holds the employment relationship and carries the employer's obligations. A reliable EOR partner structures your contract accordingly.
Start hiring without registering a Philippine entity first.
Dismissals require a just or authorized cause and a defined process. The EOR follows the procedure, so mistakes do not become your liability.
Hire your first employee without waiting for entity registration and local set-up.
13th-month pay, SSS, PhilHealth, Pag-IBIG and withholding tax are calculated and paid on time.
Employees are paid in pesos on a regular schedule with compliant payslips.
Notice periods, separation pay and final pay are handled according to Philippine law.
Share the role, salary and work location.
You get a proposal from our EOR partner that lists all fees.
The EOR issues a compliant employment contract and registers the employee with SSS, PhilHealth and Pag-IBIG.
The EOR runs payroll every pay period and handles contributions, payslips and HR administration.
Key rules employers should know. Last updated: November 2026.
Employees can be hired as regular, probationary or fixed-term employees. Probation may not exceed six months, and an employee who continues to work after probation becomes a regular employee. There is no at-will employment in the Philippines: employees have security of tenure.
Minimum wages are set by region and apply by workplace location. In Metro Manila (NCR) the non-agricultural minimum is PHP 755 per day since 26 September 2026 (Wage Order No. NCR-28). Other regions set lower rates. Wage orders change, so always check the current rate for the workplace. A contract cannot pay below the applicable minimum.
Under Presidential Decree No. 851, employers must pay a 13th-month salary equal to at least one twelfth of the basic salary earned in the calendar year, no later than December 24. It is paid pro rata to employees who joined or left during the year, provided they worked at least one month.
Service Incentive Leave: 5 paid days after one year of service, usable as vacation or sick leave. Maternity leave: 105 days with full pay under Republic Act No. 11210, plus 15 additional days for solo parents. Paternity leave: 7 days. Many employers offer more paid leave than the statutory minimum to stay competitive. Work on a regular holiday is paid at 200% of the daily rate and on a special non-working day at 130%.
The normal working day is eight hours. Overtime on an ordinary day is paid at a premium of at least 125% of the hourly rate, with higher premiums on rest days and holidays. Managerial employees are generally exempt from overtime rules.
An employee can only be dismissed for a just cause (for example serious misconduct) or an authorized cause (for example redundancy, retrenchment or closure), following due process. Authorized-cause terminations require 30 days' written notice to the employee and to the Department of Labor and Employment (DOLE). Separation pay is generally one month's pay per year of service for redundancy and labor-saving devices, and one-half month per year for retrenchment or closure. Final pay must be released within 30 days of separation. A mutual separation by agreement is also possible.
Salaries are usually paid twice a month, on the 15th and on the last day of the month, with an itemized payslip.
| Item | Employer | Employee | Basis |
|---|---|---|---|
| SSS (Social Security System) | 10% | 5% | 15% of the monthly salary credit (minimum PHP 5,000, maximum PHP 35,000). The employer also pays a small fixed Employees' Compensation contribution. |
| PhilHealth | 2.5% | 2.5% | 5% of basic monthly salary, income floor PHP 10,000, ceiling PHP 100,000 (maximum PHP 2,500 each). |
| Pag-IBIG | 2% | 2% | On monthly compensation up to PHP 10,000 (maximum PHP 200 each). |
| Income tax | - | Withheld by the employer | Progressive rates from 0% to 35%. |
| Employee SSS | PHP 1,750 |
|---|---|
| Employee PhilHealth | PHP 2,500 |
| Employee Pag-IBIG | PHP 200 |
| Withholding tax (approx., annualized) | PHP 28,263 |
| Net pay (approx.) | PHP 117,287 |
| Employer SSS (10% plus EC contribution) | PHP 3,530 |
| Employer PhilHealth | PHP 2,500 |
| Employer Pag-IBIG | PHP 200 |
| 13th-month accrual (1/12) | PHP 12,500 |
| Employer cost before the EOR fee (approx.) | PHP 168,730 |
Illustration only. Withholding tax is calculated on an annualized basis without other deductions. Actual amounts depend on the employee's situation. Rates change, so confirm current figures with the authorities.
Sources: SSSPhilHealthPag-IBIGDOLENWPC
Understand salary, statutory contributions, 13th-month pay and the EOR service fee.
Read moreCompare hiring through an EOR with the responsibilities of your own Philippine entity.
Read moreUnderstand genuine independence, the four-fold test and misclassification risks.
Read moreCompare local compliance, payroll, contract terms and pricing transparency.
Read moreReview contracts, leave, statutory contributions and termination rules for Philippine employees.
Read moreEOR pricing depends on the number of employees, the salary level, the contract length and the services included. Providers typically charge either a flat monthly fee per employee or a percentage of payroll. Tell us about your hire and receive a written proposal with all fees listed.
Get a QuoteContracts, payroll and statutory filings follow Philippine law.
You receive a written proposal with all fees listed before you sign.
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An EOR is a locally registered company that legally employs your staff in the Philippines on your behalf. It handles contracts, payroll, statutory contributions and compliance while you manage the daily work.
Yes, when it is a legitimate local employer. DOLE Department Order No. 174 prohibits labor-only contracting, so the EOR must genuinely act as the employer and be properly set up. Choose a provider with a Philippine entity and ask how the arrangement is structured.
You pay the employee's salary, the mandatory employer contributions and the 13th-month salary, plus the EOR service fee, which is usually a flat monthly fee per employee or a percentage of payroll. Ask for a written proposal with all fees.
Usually days to a few weeks, depending on the provider, the paperwork and the candidate's notice period at their current job.
Yes. Employers must pay at least one twelfth of the basic salary earned in the calendar year as a 13th-month salary, no later than December 24. It is paid pro rata for employees who joined or left during the year.
No. There is no at-will employment in the Philippines. A dismissal requires a just or authorized cause and due process, and authorized-cause terminations require separation pay.
Six months. An employee who continues to work after the probation period becomes a regular employee.
Only if the person is genuinely independent. Philippine authorities look at who controls the work, so a person who works like an employee may be treated as one, with back pay, contributions and penalties. An EOR is the compliant route for employee-style work.
Tell us about your hire and we will get back to you with a written proposal.
