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Hiring in Philippines

Statutory employer contributions add 14.5% on top of gross salary, before any provider fee. Payroll runs twice monthly in PHP.

Asia/Manila | Filipino, English, Tagalog | Asia Pacific

Last verified 6 Oct 2026Next review 14 Nov 2026Methodology
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Overall score 8.1 out of 10
DeelVerified

115countries covered

  • Price 599 USD per employee per month

Deel covers more countries than most EOR providers and owns its own entities in over 100 of them. At USD 599 per employee per month, its EOR fee is in line with the other large platforms. It suits companies hiring both contractors and employees across several countries. Before signing, ask for the deposit amount, FX markup and any offboarding fees in writing.

Overall score 8.2 out of 10
RemoteVerified

90countries covered

  • Price 699 USD per employee per month

Remote employs your staff through entities it owns in every EOR country it covers, and backs this with uncapped indemnity, so it ranks well on compliance. Contracts are less flexible: order forms run for 12 months and renew automatically unless you give 30 days’ notice. Put it on your shortlist if you want a single owned-entity provider and can commit for a year, and get the FX margin and renewal terms in writing before you sign.

Hiring here at a glance

Employer contributions
14.5%
Probation cap
6 months
Annual leave
5 days
Public holidays
18 days
Standard week
40 hours
Annual bonus
Required
Termination difficulty
4 out of 5
Payroll
Twice monthly

Notice: 30 days statutory minimum

Statutory employer contributions

Statutory contributions in Philippines
ContributionEmployerEmployeeStatus
Social Security System (SSS)10.0%5.0%Mandatory
PhilHealth2.5%2.5%Mandatory
Pag-IBIG (housing fund)2.0%0.0%Mandatory
Total14.5%7.5%

Employment contracts

Written contracts in Philippines are effectively mandatory for EOR hiring, and the EOR signs them as the legal employer. Your company signs a separate service agreement.

The contract sets out role, salary in PHP, working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

Contracts must be executed in a language understood by the employee. For white-collar, BPO, tech, and EOR remote hires, English is an official national language of the Philippines and serves as the standard legal medium. A local-language (Filipino/Tagalog) or bilingual version is only required by DOLE if the worker cannot read or comprehend English.

Fixed-term contracts are treated cautiously. Repeated renewals can convert an engagement into an indefinite one, and most EORs will default to indefinite terms.

Probation

Probation in Philippines is capped at 6 months. Notice during probation is shorter, but dismissal is not consequence free.

Set probation in the contract from day one. It cannot usually be added later, and an extension beyond the statutory cap is normally unenforceable.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Working time and overtime

The standard week is 40 hours. Overtime is paid at a statutory premium and is often capped per week and per year.

Overtime premiums of 125% to 200% apply depending on when the hours fall. Night work, rest days and public holidays usually attract the higher end.

Exempt categories are narrower than most buyers expect. Seniority alone rarely removes an overtime entitlement.

Leave and public holidays

Employees get at least 5 days of paid annual leave plus 18 public holidays. Sick leave, parental leave and carer leave sit on top.

Accrual rules differ from the headline. Leave often accrues monthly and carries over for a limited window before it lapses or must be paid out.

Parental leave is usually part statutory pay and part employer top up. Confirm which side the EOR funds before you quote a package.

Termination and severance

Termination difficulty here is 4 out of 5. 30 days statutory minimum. Severance is calculated on tenure and final salary.

At-will employment does not exist. You need a documented, lawful reason, and in many cases a process that predates the decision.

The EOR runs the process and carries the liability, so expect it to insist on its own timeline and paperwork. Budget for notice, accrued leave, severance and, where applicable, a settlement uplift.

Statutory benefits

Mandatory benefits include a thirteenth month payment, pension or social insurance and statutory medical cover. Market-competitive packages usually add private cover.

Statutory minimums win offers rarely. Private medical, life cover and a meal or transport allowance are common market practice.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Payroll and tax

Payroll runs twice monthly in PHP. The EOR withholds income tax and social contributions and files them under its own registrations.

Employer contributions add 14.5% on top of gross salary. That is before the EOR fee.

Cut-off dates are strict. Late variable pay data usually lands in the following cycle rather than being rerun.

Work permits

Only some EORs sponsor work permits in Philippines, and sponsorship depends on the entity holding a licence. Processing takes 4 to 12 weeks.

If you are hiring a non-national, ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all.

Start dates should be set after approval, not before.

Data protection

Employee data is processed under the local data protection framework, with the EOR acting as controller for employment records and processor for your instructions.

Get the data processing terms in the service agreement, not just the privacy notice. Cross-border transfers need a lawful basis.

Ask where payroll data is hosted and who in the partner chain can see it.

When to open your own entity

The usual trigger in Philippines is 5 to 15 employees, or a permanent commercial presence. Below that, an EOR is normally cheaper and faster.

Run the comparison on total cost, not fee per head. Entity setup, local directors, accounting, audit and payroll software add a fixed annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.

Editorial ranking

Best EOR providers in Philippines

Best EOR providers in Philippines

Ranked by our seven criteria, with the coverage score adjusted for whether the provider owns an entity here. Complete list of Best EOR providers in Philippines

Verified provider
RemoteVerified

90countries covered

Owned
  • Price 699 USD per employee per month
  • Billing flat fee per employee per month, billed annually
  • Minimum term 12 months
  • Deposit None reported
  • FX margin Not published

Remote employs your staff through entities it owns in every EOR country it covers, and backs this with uncapped indemnity, so it ranks well on compliance. Contracts are less flexible: order forms run for 12 months and renew automatically unless you give 30 days’ notice. Put it on your shortlist if you want a single owned-entity provider and can commit for a year, and get the FX margin and renewal terms in writing before you sign.

Verified provider
DeelVerified

115countries covered

Owned
  • Price 599 USD per employee per month
  • Billing flat fee per employee per month
  • Minimum term None reported
  • Deposit Required
  • FX margin Not published

Deel covers more countries than most EOR providers and owns its own entities in over 100 of them. At USD 599 per employee per month, its EOR fee is in line with the other large platforms. It suits companies hiring both contractors and employees across several countries. Before signing, ask for the deposit amount, FX markup and any offboarding fees in writing.

Verified provider

156countries covered

Unknown
  • Price 599 USD per employee per month
  • Billing flat fee per employee per month, billed monthly
  • Minimum term None reported
  • Deposit Required
  • FX margin Not published

G-P scores exceptionally well on compliance certainty and depth of infrastructure, though it commands a premium price and a slower sales-led onboarding cycle. Consider adding it to your shortlist when you are an enterprise organization prioritizing risk mitigation in heavily regulated jurisdictions, and make sure to request a full breakdown of setup fees and country activation costs before signing.

Verified provider
OysterVerified

116countries covered

Unknown
  • Price 699 USD per employee per month
  • Billing flat fee per employee per month, billed monthly
  • Minimum term None reported
  • Deposit Required
  • FX margin Not published

Oyster is ideal for remote teams wanting monthly flexibility and strong HRIS integrations. Despite higher pricing and variable regional support, its transparent terms and solid compliance make it an efficient global hiring choice

Questions buyers ask about Philippines

How much does it cost to employ someone in Philippines through an EOR?
Budget the gross salary, plus 14.5% in employer contributions, plus the EOR fee. Published EOR fees sit in the 199 to 699 USD per employee per month band, or a percentage of payroll.
How long does it take to onboard an employee in Philippines?
Typically 3 to 10 working days once the candidate has accepted and right to work is confirmed. Work permit cases take considerably longer.
Can an EOR terminate an employee in Philippines?
Yes, but the EOR runs the process as the legal employer and will require a lawful reason and documentation. Termination difficulty here is 4 out of 5.
Does the EOR need its own entity in Philippines?
Someone in the chain must hold a local entity. Providers either own one or use a partner. Ask which, in writing, because it changes who carries the liability.

Popular roles hired here: Customer support, Virtual assistant, Accountant, Developer.

Verified EOR providers in Philippines

Entity model by provider

Verified EOR providers in Philippines
ProviderEntity model
RemoteOwned
DeelOwned
G-P (Globalization Partners)Unknown
OysterUnknown