Employer of Record (EOR) in the Philippines: Hire Without a Local Entity
- Save upto 3% on your payroll cost
- Hire full-time employees in the Philippines without setting up a local entity
- Stay compliant with Philippine labor laws, payroll, and benefits through Asanify's EOR
- Onboard Filipino talent quickly with end-to-end employment management
- Access the Philippines' skilled workforce without legal complexity
- Scale your team with confidence backed by local compliance expertise
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Currency
Philippine Peso (PHP)
Capital
Manila
Official Language
Filipino and English
Payroll Cycle
Monthly
Recognized Globally: Ranked #1 for ‘Ease of Use’ & ‘Customer Support’
our advantage
Why Choose Asanify's EOR in Philippines
Asanify is ranked #1 on G2 for Ease of Use and Customer Support, rated 4.9 out of 5 from more than 350 reviews. Our Philippines EOR lets you hire Filipino employees without a local entity, at a listed $199 per employee per month, with the HRMS platform included. We handle contracts, payroll in Philippine Pesos, BIR withholding, and SSS, PhilHealth and Pag-IBIG remittance.
Hire Quickly and Legally
Onboard employees in the Philippines in 3 to 5 business days rather than the 3 to 6 months an incorporation takes. Contracts meet the Labor Code of the Philippines, including the six month probationary cap and correct regional wage rates.
Complete Payroll and Tax Management
Monthly payroll in Philippine Pesos with income tax withheld against current BIR tables. We file BIR Form 1601-C monthly, issue BIR Form 2316 annually, and remit SSS, PhilHealth and Pag-IBIG on schedule.
Full Compliance Assurance
We manage statutory benefits, working hours, overtime and night shift differential, leave entitlements, 13th month pay and termination procedures under the Labor Code of the Philippines, so obligations are met without you tracking them.
Cost-Effective Global Expansion
No incorporation fees, no local registered office, no separate payroll vendor. Philippines EOR is listed at $199 per employee per month against Deel at $599, a difference of $48,000 a year on a team of 10.
What Asanify Manages as Your Employer of Record in the Philippines
Asanify becomes the legal employer of your Philippine team while you keep full operational control of the work. We manage the employment contract, payroll, statutory contributions and compliance. You manage priorities, performance and day to day direction.
- Legal employment. Compliant contracts under the Labor Code of the Philippines, issued and maintained
- Payroll and benefits. Monthly peso payroll, BIR withholding, and SSS, PhilHealth and Pag-IBIG remittance
- Compliance. Regional wage orders, working hours, leave, 13th month pay and termination handled to DOLE standards
- Employee support. Payslip and benefits questions answered directly, over WhatsApp
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Employer of record
Statutory Contributions Asanify Manages in the Philippines
Employment in the Philippines is governed by the Labor Code of the Philippines and administered by the Department of Labor and Employment (DOLE), the Bureau of Internal Revenue (BIR), the Social Security System (SSS), PhilHealth and Pag-IBIG. Asanify manages registration, monthly remittance and statutory filing for every employee.
Employer contributions are 10% of the Monthly Salary Credit to SSS, with the employee contributing 5% of a 15% total. The Monthly Salary Credit runs from PHP 5,000 to PHP 35,000. Employers additionally fund the Employees’ Compensation contribution of PHP 10 or PHP 30 per month depending on salary credit. PhilHealth is a 5% premium split evenly, 2.5% from each side, applied between an income floor of PHP 10,000 and a ceiling of PHP 100,000. Pag-IBIG is 2% from each side, capped at a PHP 10,000 fund salary, so PHP 200 per side per month.
Eligible employees are entitled to 13th month pay, payable on or before 24 December each year under Presidential Decree No. 851. Employees who complete one year of service receive at least five days of Service Incentive Leave. Probationary employment is capped at six months, after which the employee becomes regular unless employment is lawfully ended.
Termination must follow due process under the Labor Code, and employers must handle employee data in line with the Data Privacy Act of 2012.
- SSS at 15% of Monthly Salary Credit, PhilHealth at 5% and Pag-IBIG at 2% per side, registered and remitted monthly
- 13th month pay paid on or before 24 December, plus service incentive leave and all statutory leave entitlements
- BIR Form 1601-C filed monthly and BIR Form 2316 issued annually to every employee
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Table of Contents
What Is an Employer of Record in the Philippines?
An Employer of Record (EOR) in the Philippines is a company that becomes the legal employer of your Filipino staff. It holds the employment contract, runs payroll in Philippine Pesos, files withholding tax with the Bureau of Internal Revenue, and remits SSS, PhilHealth and Pag-IBIG contributions. You direct the work, set priorities and manage performance. The EOR carries the employment liability.
This model fits when you want to:
- Hire Filipino employees without incorporating a local entity or subsidiary
- Stay compliant with the Labor Code of the Philippines and DOLE requirements from the first hire
- Test the Philippine market before committing to a permanent establishment
- Move quickly, in days rather than the months an incorporation takes
- Keep administrative overhead low while you build the team
Asanify provides the full employment infrastructure in the Philippines, so a foreign company can hire, pay and manage Filipino employees compliantly without a local entity.
How to Choose an EOR Provider in the Philippines
EOR providers in the Philippines differ more than their marketing suggests. These are the factors worth testing before you sign.
| Selection factor | What to look for |
|---|---|
| Philippine legal depth | Direct working knowledge of DOLE rules, BIR filing, and SSS, PhilHealth and Pag-IBIG remittance, not a generic global playbook applied to every country |
| Regional wage compliance | Whether the provider tracks the correct regional wage order for each employee’s location rather than applying one national figure |
| Pricing transparency | A listed per-country price you can budget against, rather than a quote-only model |
| Onboarding speed | A stated turnaround in days, with a clear document checklist up front |
| Platform scope | Whether HR software, payroll, leave and attendance are included or charged as extras |
| Employee support | How your Filipino employees raise payroll and benefits questions, and how quickly those are answered |
| Data handling | How employee records are stored and processed under the Data Privacy Act of 2012 |
Asanify lists Philippines EOR pricing publicly at $199 per employee per month, includes the HRMS platform at no extra charge, and onboards in 3 to 5 business days. If you are comparing providers, see our guide to the top Employer of Record providers.
How to Hire in the Philippines Through an EOR: Step by Step
Hiring through an Employer of Record in the Philippines takes days rather than the months an incorporation requires. The sequence below is what actually happens.
Step 1: Decide between an EOR and a Philippine entity
If you are hiring fewer than roughly 20 people, or testing the market, an EOR is normally faster and cheaper. If you are building a large permanent operation with a physical office, incorporation may make more sense over time.
Step 2: Select your candidate
You recruit and choose the person. Asanify does not select or supply candidates. Once you have made the offer decision, we confirm the salary structure against the applicable regional wage order.
Step 3: Issue a compliant employment contract
Asanify drafts and issues an employment contract that meets the Labor Code of the Philippines, covering job role, salary, working hours, the probationary period, leave entitlements, notice and termination. Probationary employment is capped at six months, after which the employee becomes regular.
Step 4: Collect documents and complete government registrations
To onboard a Filipino employee, we collect:
- Full legal name, matching the bank account that will receive salary
- Date of birth and agreed start date
- Philippine residential and mailing address
- Bank account details for peso payment
- Tax Identification Number (TIN)
- SSS number
- PhilHealth number
- Pag-IBIG MID number
- BIR Form 1902 for first-time registrants, or BIR Form 2305 where the employee is updating an existing record
Asanify then completes registration or update with SSS, PhilHealth and Pag-IBIG.
Step 5: Run payroll and file with the BIR
Monthly payroll is processed in Philippine Pesos with income tax withheld against current BIR tables. Asanify files monthly withholding returns on BIR Form 1601-C, issues the annual certificate on BIR Form 2316, remits SSS, PhilHealth and Pag-IBIG contributions, and pays the 13th month benefit on or before 24 December.
Onboarding typically completes in 3 to 5 business days from signed offer.
Employer of Record vs Setting Up a Philippine Entity
| Criteria | Employer of Record (EOR) | Entity Setup |
|---|---|---|
| Best For | Quick market entry, global hiring, remote teams, distributed teams, remote employees, and businesses building a scalable global workforce | Long-term operations, large teams, workforce planning, and businesses requiring a permanent physical presence in the Philippines |
| Speed to Hire | 3-5 days with rapid onboarding, employee onboarding support, and streamlined onboarding processes | 3-6 months for full incorporation, registrations, local compliance setup, and operational approvals |
| Setup Cost | No upfront incorporation costs, transparent pricing, payroll outsourcing support, and predictable monthly payroll services fees | ₱200,000-₱500,000+ in legal, registration, compliance management, payroll management, and setup fees |
| Compliance | Fully managed legal compliance, payroll compliance, tax regulations, local labor laws, statutory benefits, and compliance management handled by local experts | Your responsibility; requires local expertise, HR management, payroll management, tax filings, and ongoing monitoring of Philippine labor laws and local regulations |
| Flexibility | Easy to scale remote employees, international employees, and distributed teams up or down with reduced compliance risks and simplified workforce management | Fixed infrastructure, higher administrative overhead, increased compliance risks, and complex exit procedures |
| Legal Presence | No local entity required; EOR partner manages legal and administrative tasks, local payroll, and employment obligations | Full Philippine corporation with SEC registration, independent local payroll operations, and direct compliance responsibilities |
Employer of Record Philippines Cost: Pricing and Employer Contributions
Asanify’s Employer of Record in the Philippines is priced at $199 per employee per month, listed and non-discounted. Deel lists $599 for the same market. Across a team of 10 employees that difference is $48,000 per year.
The service fee is only part of the budget. The full employer cost of a Filipino employee is gross salary, plus employer statutory contributions, plus accrued 13th month pay, plus the EOR fee.
Employer statutory contribution rates
| Contribution | Employer share | Employee share | Basis and cap |
|---|---|---|---|
| SSS | 10% | 5% | 15% total of Monthly Salary Credit. MSC runs from PHP 5,000 to PHP 35,000 |
| Employees’ Compensation (EC) | PHP 10 or PHP 30 per month | None | PHP 30 where the MSC is PHP 15,000 or above. Employer funded only |
| PhilHealth | 2.5% | 2.5% | 5% premium. Income floor PHP 10,000, ceiling PHP 100,000 |
| Pag-IBIG | 2% | 2% | Capped at a PHP 10,000 fund salary, so PHP 200 maximum each side |
| 13th month pay | One twelfth of annual basic salary | None | Payable on or before 24 December each year |
What a Filipino employee actually costs
For an employee in Metro Manila on a basic salary of PHP 60,000 per month, the employer side works out as follows.
| Line | Monthly amount |
|---|---|
| Gross basic salary | PHP 60,000 |
| SSS employer share (10% of the PHP 35,000 MSC ceiling) | PHP 3,500 |
| Employees’ Compensation | PHP 30 |
| PhilHealth employer share (2.5%) | PHP 1,500 |
| Pag-IBIG employer share (capped) | PHP 200 |
| 13th month pay accrual | PHP 5,000 |
| Total employer cost in PHP | PHP 70,230 |
| Asanify EOR fee | $199 |
Employer statutory cost above the salary comes to PHP 10,230 per month in this example, roughly 17% on top of basic pay. Setting up a Philippine entity instead adds incorporation, registration and ongoing filing costs before the first employee is hired.
What changes your price
- Team size. Volume pricing applies as headcount grows
- Pay structure. Multiple allowances, commissions or variable pay add payroll complexity
- Benefits. Supplementary health cover or benefits above the statutory minimum
- Immigration. Work permits and visa support for foreign nationals
Minimum Wage and Mandatory Benefits in the Philippines
Minimum wage in the Philippines is set regionally, not nationally. Regional Tripartite Wages and Productivity Boards issue wage orders under the Wage Rationalization Act (Republic Act No. 6727), so the floor depends on where your employee is based.
Regional daily minimum wage, non-agricultural
| Region | Main cities | Daily minimum wage | Wage order |
|---|---|---|---|
| NCR | Metro Manila | PHP 755 | NCR-27, effective 25 July 2026. Rises to PHP 780 on 20 January 2027 |
| Region VII | Cebu | PHP 540 (Class A), PHP 500 (Class B) | ROVII-26, effective 4 October 2025 |
| Region VI | Iloilo, Bacolod | PHP 550 (over 10 workers), PHP 525 (10 or fewer) | RBVI-29, effective 19 November 2025 |
| Region XI | Davao | PHP 525, rising to PHP 540 on 1 September 2026 | RB XI-24, effective 13 March 2026 |
Wage orders are revised regularly. Asanify tracks the applicable order for each employee’s region and applies it to payroll automatically.
Mandatory employee benefits
| Benefit | Entitlement | Legal basis |
|---|---|---|
| 13th month pay | One twelfth of annual basic salary, on or before 24 December | Presidential Decree No. 851 |
| Service incentive leave | 5 days per year after one year of service | Labor Code, Article 95 |
| Maternity leave | 105 days on full pay, normal or caesarean delivery. 15 additional days for a solo parent. 60 days for miscarriage | Republic Act No. 11210 |
| Paternity leave | 7 days on full pay, married employees, first four deliveries | Republic Act No. 8187 |
| Solo parent leave | 7 working days per year | Republic Act No. 8972, as amended by Republic Act No. 11861 |
| Special leave for women | Up to 60 days on full pay following gynaecological surgery | Republic Act No. 9710 |
| Night shift differential | 10% premium for hours worked between 10pm and 6am | Labor Code, Article 86 |
| Overtime | 25% premium beyond 8 hours on an ordinary working day | Labor Code, Article 87 |
The Philippines observes 12 regular holidays and 8 special non-working days in 2026. Night shift differential matters in particular for teams supporting North American or European hours, which covers a large share of Philippine technology and shared-services roles.
Why Asanify Is the #1 Rated EOR for the Philippines
Asanify is ranked #1 on G2 for Ease of Use and Customer Support, with a 4.9 out of 5 rating from more than 350 reviews. For the Philippines specifically, the differences that matter are these.
Published price, well below the market
Asanify lists Philippines EOR at $199 per employee per month. Deel lists $599. On a team of 10 that is $48,000 saved each year. Most providers will not publish a Philippines price at all.
HRMS included, not sold separately
Payroll, leave, attendance and employee records run on one platform at no additional licence cost. There is no separate HR software line on the invoice.
Onboarding in 3 to 5 business days
Contract issue, document collection and SSS, PhilHealth and Pag-IBIG registration complete inside a week from signed offer.
Support employees actually use
Filipino employees can raise payroll, payslip and benefits questions over WhatsApp rather than a ticket portal, which is a meaningful difference in response rates.
Regional wage accuracy
Payroll applies the correct regional wage order for each employee’s location, whether that is NCR, Cebu, Iloilo, Bacolod or Davao, rather than a single national assumption.
Asanify is backed by Techstars. If you are hiring across Asia, see our Global EOR hub, our Singapore EOR solution, or how to hire employees in India.
EOR vs PEO vs BPO in the Philippines
Buyers hiring in the Philippines often weigh three different models. They are not interchangeable, and the Philippines is one market where the distinction genuinely matters because of the size of the outsourcing sector.
| EOR | PEO | BPO | |
|---|---|---|---|
| Who legally employs the worker | The EOR | Co-employment with your entity | The BPO provider |
| Who directs the work | You | You | The BPO provider |
| Local entity required | No | Usually yes | No |
| You choose the individual hired | Yes | Yes | No, the provider staffs the function |
| Employment liability sits with | The EOR | Shared | The BPO provider |
| Best suited to | Hiring specific people you selected, without an entity | An existing entity that wants HR administration support | Outsourcing an entire function or process |
Employer of Record. You recruit and select the person. The EOR employs them on your behalf, so the employee works only for you while the EOR handles contracts, payroll, statutory contributions and compliance. No Philippine entity is needed.
Professional Employer Organisation. A PEO shares employer responsibilities with your company under a co-employment arrangement. In most cases you still need your own registered entity in the Philippines, which is the main practical difference from an EOR.
Business Process Outsourcing. A BPO delivers an outcome, such as a staffed support desk or a finance and accounting function. The provider recruits, employs and manages the team. You buy a service, not a specific employee. If you want to choose and direct named individuals, an EOR is the correct model.
Philippine Labor Law Compliance Requirements
Employing staff in the Philippines means meeting obligations set by DOLE, the BIR, SSS, PhilHealth and Pag-IBIG. These are the requirements that most often catch foreign employers.
Employment contracts and the probationary period
Contracts must specify the role, salary, working hours (a maximum of 8 hours a day), overtime treatment, leave entitlements and termination terms. Probationary employment is limited to six months. After that the employee becomes regular unless employment has been lawfully ended, and the standards for regularisation must be communicated at hiring.
Payroll tax and BIR withholding
Income tax is withheld monthly against BIR tables. Employers file BIR Form 1601-C monthly and issue BIR Form 2316 annually to each employee. Late or incorrect filing carries penalties and interest.
Termination, notice and separation pay
Termination must rest on a just cause or an authorised cause. Authorised-cause terminations such as redundancy or retrenchment require 30 days written notice to both the employee and DOLE. Separation pay is one month per year of service for redundancy, and half a month per year of service for retrenchment or closure, in each case subject to a one month minimum. Just-cause dismissals require documented due process, including written notice and an opportunity to respond. Procedural failures can result in reinstatement orders and back pay even where the underlying cause was valid.
Data privacy
The Data Privacy Act of 2012 governs how employee records are collected, stored and processed. Employers need a lawful basis for processing, privacy notices, and security measures appropriate to the sensitivity of the data.
Work permits for foreign nationals
Foreign nationals working in the Philippines generally need an Alien Employment Permit from DOLE and a 9(g) pre-arranged employment visa. The employer is responsible for ensuring status remains valid throughout employment.
Employer of Record (EOR) Services Across Major Philippine Cities
The Philippines is one of the world’s leading IT and business process management destinations. Talent sits in Metro Manila and in a group of secondary cities tracked as next wave locations. Because minimum wage is set regionally, the wage floor changes with the city, and Asanify applies the correct wage order to each employee’s payroll.
Employer of Record (EOR) in Manila
Metro Manila is the capital region and the centre of the Philippine IT and BPM industry, covering contact centres, finance and accounting, healthcare information services and a growing software sector. It has the deepest pool of customer service, technical support, finance and engineering talent in the country. The NCR minimum wage is PHP 755 per day under Wage Order NCR-27, effective 25 July 2026, rising to PHP 780 on 20 January 2027.
Employer of Record (EOR) in Cebu
Cebu is the strongest secondary hub, with established contact centres, software development studios, animation and creative services, and shared services operations. It offers a large English-speaking talent base at lower salary bands than Manila. Region VII pays PHP 540 per day in Metro Cebu and the expanded area, and PHP 500 elsewhere, under Wage Order ROVII-26, effective 4 October 2025.
Employer of Record (EOR) in Davao
Davao is the largest city in Mindanao and the commercial gateway to the south, with a growing IT and BPM cluster and improving infrastructure for offshore operations. Cost of living sits below Manila and Cebu. Region XI pays PHP 525 per day, rising to PHP 540 on 1 September 2026, under Wage Order RB XI-24.
Employer of Record (EOR) in Iloilo
Iloilo in Western Visayas is one of the fastest growing next wave locations, with investment across voice, non-voice and knowledge process outsourcing, and a strong base of business, IT and communications graduates. Region VI pays PHP 550 per day for employers with more than 10 workers and PHP 525 for smaller employers, under Wage Order RBVI-29, effective 19 November 2025.
Employer of Record (EOR) in Bacolod
Bacolod, capital of Negros Occidental, anchors a BPO and shared services cluster alongside a strong agribusiness economy, with contact centres, animation studios and back office operators. It shares the Region VI wage order with Iloilo at PHP 550 and PHP 525 per day.
Wherever your team sits, Asanify runs peso payroll, BIR withholding, and SSS, PhilHealth and Pag-IBIG remittance to the same standard, and applies night shift differential where employees work between 10pm and 6am to cover North American or European hours.
Employer of Record Philippines: FAQs
What is an Employer of Record in the Philippines?
An Employer of Record (EOR) in the Philippines is a third-party organization that becomes the legal employer of your workforce, handling all employment-related responsibilities including contracts, payroll, taxes, statutory benefits, and compliance with Philippine labor law. This allows your company to hire Filipino employees without establishing a local entity.
How quickly can I hire employees in the Philippines through Asanify?
With Asanify’s EOR service, you can onboard employees in the Philippines within 3-5 business days. We handle all documentation, employment contracts, and compliance requirements, allowing your team to start working quickly without the delays associated with entity setup.
What statutory benefits are required in the Philippines?
Philippine law mandates several statutory benefits including Social Security System (SSS) contributions, PhilHealth health insurance, Pag-IBIG housing fund, 13th month pay, service incentive leave, maternity and paternity leave, and holiday pay. Asanify ensures all these benefits are properly administered and compliant.
Does using an EOR create permanent establishment risk in the Philippines?
No, using Asanify’s EOR service significantly reduces permanent establishment risk. As the legal employer, Asanify holds the employment liability and regulatory obligations, allowing your company to operate in the Philippines without triggering permanent establishment concerns.
How does payroll work with Asanify in the Philippines?
Asanify processes monthly payroll for your Philippine employees, handling salary payments in Philippine Peso, calculating and withholding income taxes, managing SSS, PhilHealth and Pag-IBIG contributions, and ensuring timely payment of the mandatory 13th month pay and other benefits.
Is 13th-month pay mandatory in the Philippines?
Yes. Eligible employees in the Philippines are legally entitled to receive a mandatory 13th-month pay, typically paid before the end of each calendar year.
Can I terminate an employee in the Philippines through an EOR?
Yes, Asanify manages the termination process in compliance with Philippine labor law, including just cause and authorized cause terminations, notice requirements, separation pay calculations, and final pay processing. We ensure all procedures follow DOLE regulations to minimize legal risks.
Can a US company hire employees in the Philippines without a local entity?
Yes. A US company can hire employees in the Philippines without establishing a local entity by partnering with an Employer of Record such as Asanify, which acts as the legal employer and manages local compliance.
How much does an Employer of Record in the Philippines cost?
Asanify’s Employer of Record service fee for the Philippines is $199 per employee per month, listed and non-discounted. On top of the fee you budget the employee’s gross salary, employer statutory contributions to SSS, PhilHealth and Pag-IBIG, and accrued 13th month pay. For an employee on PHP 60,000 a month, employer statutory cost and 13th month accrual add roughly PHP 10,230 per month.
How long does it take to onboard an employee in the Philippines?
3 to 5 business days from a signed offer. Asanify issues the employment contract, collects the employee’s TIN, SSS, PhilHealth and Pag-IBIG numbers and bank details, and completes government registrations within that window.
