The Philippines has emerged as a global hub for outsourcing, technology, and customer service, making it a strategic choice for businesses expanding into Asia. With a large English-speaking workforce, competitive salaries, and strong government support for foreign investment, hiring in the Philippines offers major opportunities in 2025. But compliance with complex labor codes, payroll rules, and benefits can be difficult—especially for companies without a local entity.
A Professional Employer Organization (PEO) or Employer of Record (EOR) simplifies this process. By using a PEO in the Philippines, companies can hire in the Philippines quickly, ensure compliance, and manage payroll processing efficiently all without setting up a legal entity.
Table of Contents
- What Is a PEO in the Philippines
- PEO vs EOR in the Philippines – What’s the Difference
- Why Use a PEO in the Philippines Instead of Setting Up an Entity
- Simplify Global Compliance
- Key Employment Insights in the Philippines
- No Entity? No Problem
- How a PEO Helps With Payroll, Tax & Benefits in the Philippines
- Philippine Labor Laws Made Simple With a PEO
- When to Choose a PEO Over Other Hiring Models
- What to Look for in a Philippine PEO Partner
- Asanify’s Advantage as a PEO in the Philippines
- What Does It Cost to Build a Team in the Philippines
- Ready to Hire in the Philippines? Here’s What to Do Next
- FAQs
What Is a PEO in the Philippines?
A PEO in the Philippines helps companies manage Human Resource Management functions locally while ensuring compliance with Philippine labor law. Operating as a co-employer, a PEO handles:
- Payroll processing & Payroll Managing
- Salary disbursement in Philippine peso with tax compliance
- Administration of statutory and optional benefits
- Employment contracts and HR documentation
- Filing with BIR (tax authority) and social agencies (SSS, PhilHealth, Pag-IBIG)
- Contractor Management solutions for freelancers and consultants
This model is perfect for startups, SMEs, and multinationals that want to hire in the Philippines without entity formation.
With Asanify PEO services, you can employ talent across the Philippines and 160+ countries. We ensure your team is paid accurately, receives market-standard benefits, and stays fully compliant.
PEO vs EOR in the Philippines – What’s the Difference?
Both PEO and EOR in the Philippines help companies expand without managing HR and compliance internally, but they differ in structure. A PEO requires a local entity and co-manages HR, while an EOR is the legal employer allowing you to operate without a Philippine entity.
| Feature | PEO in the Philippines | EOR in the Philippines |
| Legal Employer | Client (shared employer) | EOR provider (full legal employer) |
| Entity Requirement | Requires local entity | No entity required |
| Payroll & HR | Shared with client | Fully managed by EOR |
| Best For | Companies with local entity | Startups and market testing |
| Immigration & Visas | Client-managed | EOR-managed |
| Contracts | Client issues contracts | EOR issues compliant contracts |
| Switching to Entity | Already in place | Smooth migration supported |
Why Use a PEO in the Philippines Instead of Setting Up an Entity?
Partnering with a PEO in Philippines gives businesses compliance, speed, and cost savings. With Asanify, you can hire, onboard, and manage employees without opening a local entity.
Hire Top Talent in the Philippines
The Philippines has world-class talent in BPO, IT, finance, and creative industries. With Asanify, you can hire in the Philippines seamlessly.
- Access English-speaking professionals in Manila, Cebu, and Davao
- Skip long entity setup procedures
- Offer competitive, compliant compensation
Build Your Global Employer Brand
Employees value compliant HR and benefits.
- Provide statutory and market-aligned benefits
- Ensure legal employment contracts
- Use a Salary Calculator to benchmark pay
Reduce HR and Legal Overhead
Setting up in the Philippines means lawyers, payroll teams, and compliance experts.
- Avoid high entity setup costs
- Eliminate payroll mismanagement risks
- Save HR administration effort
Test & Expand Into New Markets
A PEO allows flexible entry into the Philippines.
- Hire one or multiple employees quickly
- Scale operations across regions
- Transition to your own entity later
Suggested Read: Employee Tax Optimization in the Philippines A Guide 2025
Simplify Global Compliance
The Philippines has detailed employment rules. With Asanify, compliance becomes stress-free.
- Align with 8-hour workday and 40–48-hour weekly limits
- Manage paid leaves, sick leave, and maternity/paternity benefits
- Rely on local HR experts for tax filings, audits, and government reporting
Key Employment Insights in the Philippines
Payroll Processing & Contributions
- Payroll typically bi-weekly or monthly
- Employer contributions: SSS, PhilHealth, Pag-IBIG (~12–15%)
- Employee contributions: ~5–7%
Leave Policies
- 18 national public holidays
- 5–15 days paid vacation (based on company policy and tenure)
- Sick leave: employer-determined (common 5–10 days)
- Maternity leave: 105 days paid (can be extended)
- Paternity leave: 7 days
Bonuses & Benefits
- 13th-month salary mandatory by law
- Popular perks: allowances, health insurance, flexible work
Income Tax (2025)
- 0% up to PHP 250,000
- 15% for PHP 250,000–400,000
- 20% for PHP 400,000–800,000
- 25% for PHP 800,000–2,000,000
- 30% for PHP 2,000,000–8,000,000
- 35% above PHP 8,000,000
Cultural Alignment and Professional Etiquette
- English widely spoken in business
- Respectful and relationship-based communication
- Strong emphasis on loyalty and teamwork
No Entity? No Problem
With Asanify as your PEO in the Philippines, you can start hiring without opening a local company.
- Onboard employees in days
- Avoid contractor misclassification risks
- Scale your workforce affordably
How a PEO Helps With Payroll, Tax & Benefits in the Philippines
A PEO in the Philippines manages end-to-end HR and payroll:
- Bi-weekly or monthly payroll processing and payroll managing
- Net salary calculation and deductions
- Statutory contributions and filings
- Bonus and 13th-month salary administration
Philippine Labor Laws Made Simple With a PEO
Labor laws in the Philippines are detailed and strictly enforced. A PEO ensures compliance across:
- Working hours: 8 hours daily, capped overtime
- Probation periods: Up to 6 months
- Paid leave: Vacation, sick, and holiday entitlements
- Termination rules: Notice periods and separation pay
- Union laws: Collective bargaining agreements in certain sectors
When to Choose a PEO Over Other Hiring Models
A PEO in the Philippines is ideal when you:
- Want to test the market before entity formation
- Need to hire quickly for projects
- Require flexible HR and payroll support
- Aim to reduce compliance risks
What to Look for in a Philippine PEO Partner
When selecting a PEO in the Philippines, prioritize:
- Local HR and compliance expertise
- Quick onboarding and setup
- Transparent and flexible pricing
- Reliable compliance and payroll systems
- Digital-first Human Resource Management and contractor management tools
Asanify’s Advantage as a PEO in the Philippines
Asanify goes beyond traditional PEOs with automation and compliance-first solutions:
- Onboarding within 48 hours
- Automated payroll with Salary Calculator integration
- Real-time compliance updates
- Local HR and legal support
- Transparent, scalable pricing
What Does It Cost to Build a Team in the Philippines?
Businesses typically choose between:
- Setting up a local entity in the Philippines, or
- Partnering with a PEO.
Option 1: Setting Up a Local Entity
- Requires SEC registration, tax registration, social contributions, and banking setup
- Timeline: 8–12 weeks
- Investment: $8,000–20,000+ upfront
- Best for large-scale, long-term operations
Option 2: Hiring Through a PEO in the Philippines
- No entity needed
- Hire in days
- Includes payroll, benefits, HR, and compliance
Indicative Monthly Pricing (2025):
| Service Type | Starting From (Per Employee/Month) |
| PEO Solution | $49 USD |
| Employer of Record | $199 USD |
Why Choose a PEO in the Philippines?
- Hire in days, not months
- Avoid entity setup costs
- Reduce HR and compliance risks
- Focus on business growth while we manage payroll and HR
Suggested Read: Employer of Record Philippines: A Comprehensive Guide 2025
Ready to Hire in the Philippines? Here’s What to Do Next
Hiring in the Philippines is simple with the right partner. Book a free consultation with Asanify to explore your expansion goals. We’ll walk you through a compliance checklist and ensure fast onboarding.
With Asanify’s platform, you can manage payroll, HR, and benefits within a week. Plus, get access to contractor management solutions and salary benchmarking with our Salary Calculator making it easy to scale in the Philippines.
FAQs
A PEO co-employs your staff and manages payroll, HR, benefits, and compliance alongside your local entity.
By managing payroll processing, contracts, and compliance, a PEO enables you to hire in the Philippines quickly.
Reduced HR overhead, compliant payroll managing, and cost savings.
A PEO requires a local entity, while an EOR becomes the legal employer without entity setup.
Yes, Asanify offers Contractor Management solutions for freelancers.
Yes, including salary calculations, deductions, and statutory contributions.
Local expertise, transparent pricing, digital HR tools, and compliance support.
Yes, Asanify supports smooth transition from PEO to an entity.
Most PEOs can onboard employees within one week.
Yes, Asanify includes a Salary Calculator to help design compliant pay packages.
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.
