Hiring a remote team in the Philippines in 2025 has become an increasingly attractive option for global businesses. The country is renowned for its highly skilled, English-speaking workforce, competitive labor costs, and thriving outsourcing ecosystem. With strong expertise in IT, customer support, finance, and creative services, the Philippines provides companies with the flexibility to build remote teams across multiple functions. By understanding the employment landscape, legal requirements, and payroll practices, businesses can successfully hire remote teams in the Philippines while minimizing risks and optimizing costs.
One of the top global destinations for remote team hiring in Philippines is because of its robust talent pool and growing digital infrastructure. Companies that choose to hire remote team members here can access a workforce familiar with international standards, including Western business culture, English communication, and flexible time zone alignment for global collaboration. This guide explores the key aspects of hiring a remote team in the Philippines, including industry trends, salary insights, compliance requirements, and how partnering with an Employer of Record (EOR) like Asanify simplifies the process.
Table of Contents
- Overview of the Philippines for Remote Hiring
- Leading Industries Driving Employment in the Philippines
- Industry Landscape Snapshot
- Cost of Living for Remote Employees in the Philippines
- In-Demand Skills in the Philippines (2025)
- Key Legal Considerations for Hiring in the Philippines
- Payroll and Tax Compliance in the Philippines
- Salary Ranges for Remote Roles in the Philippines
- Steps to Hire a Remote Team in the Philippines
- Total Cost of Hiring Remote Employees in the Philippines
- How Can Asanify Simplify Hiring Remote Team in the Philippines?
- Conclusion
- FAQs
Overview of the Philippines for Remote Hiring
The Philippines is strategically located in Southeast Asia and serves as a hub for global outsourcing and remote work. It has a young, dynamic, and educated workforce with strong skills in customer service, IT, finance, and creative industries. The majority of professionals are proficient in English, making communication seamless for international businesses. The country’s time zone (GMT+8) also aligns well for collaboration with companies in the Asia-Pacific region, the US West Coast, and Europe.
Remote work has seen significant adoption since the pandemic, and the government has implemented initiatives to support digital work environments. High-speed internet access is widely available in metropolitan areas such as Metro Manila, Cebu, and Davao, and co-working spaces provide the necessary infrastructure for distributed teams. For global companies seeking to hire remote team members without establishing a physical office, the Philippines provides the perfect balance of cost-efficiency and talent availability.
Leading Industries Driving Employment in the Philippines
Several industries in the Philippines are particularly suited for remote hiring:
- Information Technology and Business Process Outsourcing (BPO): The country is globally recognized for its IT services, technical support, and call center capabilities.
- Finance and Accounting: Professionals skilled in bookkeeping, payroll processing, and international accounting standards are in high demand.
- Healthcare and Medical Support: Virtual healthcare services, medical billing, and medical transcription are rapidly growing.
- Digital Marketing and Creative Services: Companies can hire experts in SEO, social media, content creation, video editing, and design.
- E-commerce and Logistics Support: Remote roles supporting online retail, supply chain coordination, and customer management are increasing.
These sectors not only employ millions of Filipinos but also drive the demand for companies to hire remote teams in the Philippines for specialized and scalable roles.
Industry Landscape Snapshot
The Philippines has a diverse economic structure with multinational corporations, small businesses, and a growing startup ecosystem. The Business Process Outsourcing industry alone employs over a million people and contributes significantly to the country’s GDP. The government continues to encourage foreign investment, particularly in IT and remote-friendly sectors, through incentives and streamlined processes.
In 2025, remote hiring in the Philippines has become more structured, with many professionals accustomed to working for overseas employers. Tech startups in areas like fintech, healthtech, and SaaS leverage the country’s cost-effective yet skilled workforce. For international companies, this means hiring a remote team in the Philippines is not only affordable but also provides access to globally competitive talent.
Cost of Living for Remote Employees in the Philippines
One of the key advantages of hiring a remote team in the Philippines is the relatively low cost of living compared to Western countries. While salaries are competitive for local standards, global employers can still realize significant cost savings.
| Expense Category | Typical Monthly Cost (PHP) | Notes |
| Housing | ₱15,000 – ₱35,000 | Higher in Metro Manila, lower in provincial cities |
| Utilities | ₱3,500 – ₱6,000 | Includes electricity, water, and internet |
| Transport | ₱2,000 – ₱5,000 | Public transport and ride-hailing services |
| Food & Groceries | ₱10,000 – ₱20,000 | Varies by dining habits and family size |
| Leisure & Miscellaneous | ₱5,000 – ₱10,000 | Entertainment, gyms, and other expenses |
Employees working remotely in the Philippines can maintain a comfortable lifestyle with these costs, which helps companies attract and retain talent with competitive compensation packages.
In-Demand Skills in the Philippines (2025)
The Philippines has an abundant talent pool with skills that are highly relevant for remote team hiring:
- IT and Software Development: Full-stack, mobile, and cloud developers.
- Customer Support and BPO: Multichannel support specialists and virtual assistants.
- Finance and Accounting: Payroll specialists, tax professionals, and bookkeepers.
- Digital Marketing: SEO, content writing, social media, and email marketing.
- Healthcare and Medical Support: Virtual nursing, medical coding, and transcription.
These skills make the Philippines one of the most versatile and cost-effective destinations for hiring a remote team in 2025.
Suggested Read: Employer of Record Philippines: A Comprehensive Guide
Key Legal Considerations for Hiring in the Philippines
Hiring in the Philippines requires strict adherence to the Labor Code of the Philippines and other local labor and tax regulations to ensure compliance. Employers must follow rules regarding employment contracts, social security contributions, taxation, and proper worker classification. Failure to comply can result in penalties, audits, and reputational risks. Understanding Philippine employment regulations allows companies to hire efficiently while avoiding legal complications.
Employment Laws
The Philippines has comprehensive employment laws designed to protect workers and define employer obligations. Employers must comply with the Labor Code as well as policies on wages, leave, workplace safety, and anti-discrimination. Non-compliance can lead to legal disputes, administrative sanctions, or fines.
- Follow the Labor Code provisions on minimum wage, overtime, and leave entitlements.
- Register employees with the Social Security System (SSS), PhilHealth, and Pag-IBIG Fund.
- Ensure compliance with 13th-month pay, holiday pay, and mandatory leave benefits.
- Non-compliance can result in inspections, fines, or legal action from the Department of Labor and Employment (DOLE).
Work Hours and Overtime
The standard workweek in the Philippines is 48 hours, typically 8 hours per day, 6 days per week. Overtime work requires premium pay and must comply with DOLE regulations.
- Standard work schedule: 8 hours/day, 6 days/week.
- Overtime pay is at least 125% of the hourly rate, higher for holidays and night shifts.
- Employers must track work hours accurately to avoid disputes or fines.
Employment Contracts
Written employment contracts are strongly recommended (and mandatory in some cases) to prevent disputes and ensure clarity for both parties. Contracts should outline job responsibilities, compensation, benefits, and termination clauses.
- Specify job role, duties, salary, and benefits clearly.
- Include working hours, probationary period (up to 6 months), and leave entitlements.
- Termination clauses must comply with the Labor Code and due process requirements.
- Differentiate between regular, probationary, and project-based contracts.
Worker Classification
Correctly classifying employees and independent contractors is critical to compliance. Misclassification can lead to retroactive contributions, tax liabilities, and penalties.
- Employees: Receive full benefits and are covered by labor laws and social security programs.
- Contractors/Freelancers: Operate independently and manage their own taxes and benefits.
- Misclassification can trigger audits, back payments, and fines from DOLE and BIR.
- Clearly written contracts and well-defined roles help reduce compliance risks.
Payroll and Tax Compliance in the Philippines
Employers in the Philippines must comply with payroll and tax regulations to ensure employees are compensated correctly and all statutory contributions are met. This includes withholding income tax, paying mandatory government contributions, and filing reports with the relevant agencies. Non-compliance can lead to fines, audits, and other legal consequences, making robust payroll processes critical.
Payroll Taxes and Deductions
Employers are responsible for accurately deducting and remitting various statutory contributions and taxes from employee salaries. These ensure compliance with Philippine labor laws.
- Withhold Personal Income Tax based on progressive tax rates (0%–35%).
- Social Security System (SSS): Deduct the employee share and remit both employer and employee contributions.
- PhilHealth: Deduct and remit health insurance contributions.
- Pag-IBIG Fund: Deduct contributions for the housing and savings program.
- BIR Remittance: Submit monthly and annual tax returns to the Bureau of Internal Revenue (BIR).
Timely and accurate remittance is essential to avoid penalties.
Employer Contributions
In addition to employee deductions, employers must contribute to several mandatory programs that protect and support workers.
- SSS Employer Share: Covers retirement, disability, and sickness benefits.
- PhilHealth Employer Share: Provides healthcare coverage for employees.
- Pag-IBIG Employer Share: Contributes to the national savings and housing program.
- Employer contributions are mandatory and failure to pay may result in audits or surcharges.
Employee Benefits
Philippine labor law requires several statutory benefits, and many companies also provide additional perks to attract top talent.
- Mandatory Benefits: 13th-month pay, SSS, PhilHealth, and Pag-IBIG contributions.
- Leave Entitlements: Service incentive leave, paid public holidays, and maternity/paternity leave.
- Additional Perks: Many companies offer allowances, healthcare upgrades, or flexible work benefits.
Providing all mandatory benefits ensures compliance with the Labor Code and improves employee satisfaction.
Using an EOR for Payroll and Compliance
Companies can simplify payroll and compliance in the Philippines by partnering with an Employer of Record. An EOR ensures accurate payroll processing, statutory deductions, and benefits management while reducing compliance risks.
- Handles payroll, SSS, PhilHealth, Pag-IBIG, and tax filings in full compliance.
- Manages 13th-month pay, leave entitlements, and employee benefits.
- Reduces risk of misclassification or late remittances.
- Enables fast and compliant hiring without establishing a local entity.
Using an EOR for Payroll and Compliance
Partnering with an Employer of Record (EOR) helps companies simplify hiring a remote team in the Philippines. The EOR manage payroll, tax compliance, benefits administration, and social contributions, enabling companies to onboard employees within 1–2 weeks without establishing a local entity. This approach reduces legal risks, ensures timely tax filings, and helps avoid misclassification issues.
Salary Ranges for Remote Roles in the Philippines
| Role | Average Annual Salary (PHP) | Average Annual Salary (USD) |
| Software Developer | ₱600,000 – ₱900,000 | $10,500 – $16,000 |
| Data Analyst | ₱480,000 – ₱750,000 | $8,400 – $13,300 |
| Project Manager | ₱700,000 – ₱1,000,000 | $12,300 – $17,500 |
| Digital Marketing Specialist | ₱450,000 – ₱700,000 | $7,900 – $12,300 |
| HR & Payroll Specialist | ₱500,000 – ₱750,000 | $8,800 – $13,300 |
| Customer Support Executive | ₱300,000 – ₱480,000 | $5,300 – $8,400 |
| Finance & Accounting Analyst | ₱550,000 – ₱850,000 | $9,600 – $15,000 |
Steps to Hire a Remote Team in the Philippines
Building a remote team in the Philippines requires strategic planning, compliance with labor laws, and efficient HR processes. From defining your hiring needs to onboarding employees, each step ensures smooth operations and full legal adherence under the Philippine Labor Code.
Define Your Hiring Needs
Identify the roles, skills, and experience necessary for your remote team. Decide whether you need full-time employees, independent contractors, or a mix, aligning with your project scope and business goals.
- Outline roles and key skill sets required.
- Determine team composition: employees, contractors, or hybrid.
- Define project workload, timelines, and budget allocation.
Choose a Hiring Model
Select the most suitable hiring model for compliance and operations:
- Direct Hiring: Requires registering a local entity and full compliance with Philippine labor laws.
- Contractor Hiring: Offers flexibility but carries risk of misclassification and back payments.
- Employer of Record (EOR): Simplifies onboarding, payroll, and statutory compliance without setting up a local entity.
Source and Interview Candidates
Leverage local and international platforms to attract top Filipino talent.
- Post jobs on JobStreet, Kalibrr, and LinkedIn.
- Partner with Philippine recruitment agencies or global talent platforms.
- Conduct structured video interviews and technical assessments.
- Evaluate both technical proficiency and cultural fit for remote work.
Offer Letters and Contracts
Prepare legally compliant contracts per the Philippine Labor Code to avoid disputes.
- Include job title, duties, salary, and benefits.
- Specify 13th-month pay, leave entitlements, and probation terms (up to 6 months).
- Ensure compliance with SSS, PhilHealth, Pag-IBIG, and BIR requirements.
- Consider using an EOR to issue compliant contracts efficiently.
Onboard and Manage Remote Employees
A smooth onboarding process helps employees integrate quickly and work productively.
- Register employees with SSS, PhilHealth, and Pag-IBIG.
- Set up payroll systems and ensure accurate tax reporting to BIR.
- Provide access to collaboration tools, training resources, and clear policies.
- Use HR and project management tools to track performance and engagement.
Total Cost of Hiring Remote Employees in the Philippines
| Role | Average Gross Salary (PHP) | Employer Contributions | Estimated Benefits | Total Employer Cost (PHP) |
| Software Developer | ₱750,000 | ₱90,000 | ₱50,000 | ₱890,000 |
| Data Analyst | ₱600,000 | ₱72,000 | ₱40,000 | ₱712,000 |
| Project Manager | ₱900,000 | ₱108,000 | ₱60,000 | ₱1,068,000 |
| Digital Marketing Specialist | ₱550,000 | ₱66,000 | ₱35,000 | ₱651,000 |
How Can Asanify Simplify Hiring Remote Team in the Philippines?
Asanify acts as an Employer of Record (EOR), managing payroll, benefits, employment contracts, and compliance for global businesses. This allows companies to accelerate hiring by onboarding employees within 1–2 weeks, maintain full compliance to avoid misclassification and tax risks, and reduce costs by eliminating the need for local legal and administrative infrastructure. Additionally, Asanify manages social security contributions, tax filings, and labor law obligations, ensuring smooth and compliant cross-border operations. By centralizing HR, payroll, and compliance functions, Asanify enables businesses to focus on growth while scaling their global teams with ease.
Suggested Read: Understanding Labour Laws in the Philippines: Contracts, and Termination Rules
Conclusion
The Philippines is an attractive destination for hiring remote teams due to its highly skilled, English-speaking workforce, competitive labor costs, and strong cultural alignment with international businesses. By partnering with an Employer of Record provider, companies can streamline compliance with Philippine labor laws, accelerate hiring timelines, and manage payroll and benefits seamlessly. This approach eliminates the need to set up a local entity while ensuring complete legal and administrative compliance, allowing global businesses to scale confidently and efficiently.
FAQs
They can either register a local entity or use an Employer of Record (EOR) like Asanify to hire compliantly without setting up a company.
In Metro Manila, it is around PHP 610 per day (~PHP 15,860/month), with lower rates in provincial regions.
Employees typically work 8 hours per day, 40–48 hours per week, with overtime paid at a premium.
Employers must withhold income tax, SSS, PhilHealth, and Pag-IBIG contributions and remit them monthly to authorities.
Yes, including SSS, PhilHealth, Pag-IBIG, 13th-month pay, and mandatory leave entitlements.
Yes, but contractors manage their own taxes; misclassification risks exist if they function like employees.
Using an EOR, onboarding can be completed within 1–2 weeks; setting up a local entity can take months.
Asanify manages payroll, benefits, contracts, and compliance, allowing companies to focus on operations without local setup.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
