🇮🇳 Hire in India vs 🇵🇭 Philippines
Statutory employer on-costs are lower in India; the full picture depends on salary level, termination exposure and how fast you need the person on payroll.
Not professional advice. Rates, rules and prices change often. Figures here are researched estimates from the sources listed; anything marked “unverified” needs checking with the provider or a local adviser before you rely on it.
| India | Philippines | |
|---|---|---|
| Employer on-costs | 5–10% | 14–22% |
| Total cost on a $60,000 salary | $63,000–$66,000 | $68,400–$73,200 |
| Mandatory benefits | Provident fund; Gratuity; ESIC medical cover for lower-paid employees; Statutory bonus for eligible low-paid staff (8.33%-20%); Maternity benefit 26 weeks; Paid leave and holidays under state Shops & Establishments Acts | 13th-month pay (by 24 December); Service incentive leave (5 days after one year); Holiday pay for regular holidays; Maternity leave 105 days; Paternity leave 7 days; SSS, PhilHealth, Pag-IBIG coverage; Separation pay for authorized-cause dismissal |
| Probation | Not set by statute; commonly 3-6 months by contract. | Maximum 6 months; probationary employees must be told the regularisation standards at hiring. |
| Notice and severance | Notice is contractual (commonly 30-90 days). Retrenchment under the Industrial Relations Code is reported to require one month's notice and compensation of 15 days' average pay per completed year of service (not checked against the Code text); gratuity is separate. Fixed-term employees are entitled to gratuity pro rata after one year. | Authorized-cause termination (redundancy, installation of labour-saving devices) requires 30 days' written notice to the employee and DOLE and separation pay of 1 month or 1 month per year of service, whichever is higher; retrenchment/closure not due to serious losses: 1 month or 0.5 month per year, whichever is higher. No separation pay for just cause dismissal. Employee resignation requires 30 days' notice. |
| Paid leave | Set by state Shops and Establishments Acts and company policy, so it varies; typically 12-24 days of earned/casual/sick leave plus 8-15 public holidays (exact figures state-specific and not confirmed). The labour codes provide earned leave at 1 day per 20 days worked. | 5 days' service incentive leave after one year (many employers give more); 12 regular holidays plus special non-working days (varies per year). |
| Contractor risk | Contractors and freelancers are very common (consultancy agreements, invoicing under GST). Misclassification risk is moderate: Indian courts look at control and integration, and the labour codes tighten contract labour rules. Cross-border contractors can create permanent establishment or tax risks for the foreign company if directed from abroad. | The four-fold test (selection, wages, dismissal power, control) with the control test decisive. Misclassified freelancers can claim regularisation, 13th month, leave and back wages. DOLE Department Order 174 restricts labour-only contracting. Risk is moderate to high for full-time dedicated freelancers. |
| EOR onboarding | Days to ~2 weeks (provider claims; specific figure unverified) | Days to ~2 weeks (provider claims; specific figure unverified) |
| Time zone | IST (UTC+5:30), no DST; 9.5-10.5 hours ahead of US Eastern. | PHT (UTC+8), no DST; 12-13 hours ahead of US Eastern. |
| Data confidence | medium | medium |
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FAQ
Is it cheaper to hire in India or Philippines?
On statutory employer on-costs alone, India is lower (5–10%). Salary levels, EOR fees and benefits also matter; use the cost calculator.