🇵🇭 Hire in Philippines: cost, rules and best EOR options
Large pool of English-fluent talent in customer support, back office, virtual assistance, design and growing software development. Culturally aligned with US business, and the time zone favours Asia-Pacific and US night shifts.
- Employer on-costs: 14–22% of gross salary (on a $60,000 salary, about $68,400–$73,200 total)
- EOR onboarding: Days to ~2 weeks (provider claims; specific figure unverified); own entity: About 1-3 months (estimate, not verified)
- Probation: Maximum 6 months; probationary employees must be told the regularisation standards at hiring.
- Currency: Philippine peso (PHP)
- Data confidence: medium, verified 2026-10-05
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What it costs to employ someone in Philippines
Employer on-costs run roughly 14–22% on top of gross salary. Employer contributions: SSS 10% of monthly salary credit (MSC range PHP 5,000-35,000, so max PHP 3,500 plus small EC premium), PhilHealth 2.5% of basic salary up to PHP 100,000 (max PHP 2,500), Pag-IBIG 2% of monthly fund salary capped at PHP 10,000 (max PHP 200). Together about 6% of pay at PHP 100,000 salary rising to about 13% at PHP 30,000. Adding the mandatory 13th-month pay (8.33% of basic) gives ~14.5% to ~21.5%. Excludes service incentive leave cash conversion, HMO and other benefits. Rechecked 5 Oct 2026: at PHP 100,000/month employer cost = SSS 3,500 + EC 30 + PhilHealth 2,500 + Pag-IBIG 200 = 6,230 (6.2%); at PHP 30,000 = SSS 3,000 + EC 30 + PhilHealth 750 + Pag-IBIG 200 = 3,980 (13.3%). PwC's maximum (SSS PHP 2,000 + provident fund PHP 1,500 + EC PHP 30) reconciles with 10% of the PHP 35,000 maximum salary credit. 13th-month pay (8.33%) brings these to about 14.5%-21.6%.
| Contribution | Rate | Notes |
|---|---|---|
| SSS (Social Security System) | 10% of monthly salary credit (total 15%, employee 5%) | MSC PHP 5,000-35,000 since 2025; plus EC contribution PHP 10-30. |
| PhilHealth | 2.5% of basic salary (total 5%) | Income ceiling PHP 100,000/month, max employer share PHP 2,500. |
| Pag-IBIG (HDMF) | 2% of monthly fund salary, capped at PHP 10,000 (max PHP 200) | Employee contributes 2% (1% if earning PHP 1,500 or below). |
Employer withholds employee SSS (5%), PhilHealth (2.5%), Pag-IBIG (2%) and withholding tax on compensation (progressive up to 35%), and remits monthly.
Mandatory benefits
- 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
Employment rules at a glance
| Payroll | semi-monthly (at least twice a month, intervals not exceeding 16 days) |
|---|---|
| Probation | Maximum 6 months; probationary employees must be told the regularisation standards at hiring. |
| Notice & severance | 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. |
| Working time | 8 hours/day, 48 hours/week. Overtime at +25% on ordinary days and +30% on rest days/holidays; night differential 10% from 10pm to 6am. |
| Paid leave | 5 days' service incentive leave after one year (many employers give more); 12 regular holidays plus special non-working days (varies per year). |
| Minimum wage | NCR (Metro Manila) non-agriculture minimum raised from PHP 695 to PHP 755 per day from 26 September 2026 (PHP 718 for agriculture, small retail/service and small manufacturing), reported by GMA, Philstar and Tribune as Wage Order NCR-28 confirmed by the NWPC. A second step to PHP 780 on 20 January 2027 appeared only in the earlier Wage Order NCR-27, which a secondary source says was enjoined by a court and never took effect; it is not confirmed. Rates differ by region. |
Termination
Security of tenure applies; dismissal must be for just cause (misconduct, neglect of duty, etc.) or authorized cause, with the two-notice rule and an opportunity to be heard. Illegal dismissal means reinstatement with full back wages, or separation pay in lieu. Courts and NLRC are generally employee-friendly.
Employee or contractor in Philippines?
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.
Compare contractor vs employee cost →
Hiring through an EOR in Philippines
Direct employment requires a Philippine entity registered with SEC, BIR, SSS, PhilHealth, Pag-IBIG (with foreign ownership rules in some sectors). EOR is common for foreign firms hiring virtual assistants, developers and support staff. Providers advertise days to a couple of weeks.
Typical onboarding: EOR Days to ~2 weeks (provider claims; specific figure unverified); own entity About 1-3 months (estimate, not verified). PHT (UTC+8), no DST; 12-13 hours ahead of US Eastern.
Providers worth shortlisting
| Provider | Best for | EOR pricing | Coverage | |
|---|---|---|---|---|
| Deel | Companies that want one platform for contractors, EOR and a US PEO, with transparent per-seat list prices. | $599 per EOR employee per month (public list price, checked 2026-10-05) | 150+ countries (vendor claim, per Deel's own and third-party descriptions) | Visit Deel |
| Remote | Teams that want a published price for each product (EOR, global payroll, contractors, contractor of record, US PEO) and an affiliate program with 12-month revenue share. | $699 per employee/month (public list price, checked 2026-10-05) | 90+ countries for EOR (vendor pricing page claim) | Visit Remote |
| Rippling | Companies already running (or willing to adopt) a unified HR, IT and finance platform who want global hiring as an add-on module. | — | Visit Rippling | |
| Oyster | Distributed teams that want published EOR and contractor prices and a long-running affiliate program with tiered revenue share. | $699 per employee/month (public list price, checked 2026-10-05); annual discounts available; refundable deposit required | 120+ countries EOR; contractors in 180+ countries (vendor claim) | Visit Oyster |
| Papaya Global | Mid-size and larger companies that need multi-country payroll orchestration and workforce payments, and will go through a sales process. | 160+ countries (vendor claim as repeated on FlexOffers listing and third-party pages) | Visit Papaya Global | |
| Multiplier | Cost-conscious teams that want EOR priced below $500 per employee with an annual discount. | Third-party summary of Multiplier's pricing: EOR from $459/employee/month on annual contracts and $499 on monthly contracts (not confirmed; multiplier pricing page returned 403 to our fetch) | — | Visit Multiplier |
| Remofirst | Small teams that want the lowest published EOR starting price and a free contractor tier. | Starting at $199 per person/month (public list price, checked 2026-10-05); 'no hidden fees, setup fees, or minimum contract terms' per vendor page | 185+ countries for EOR (vendor claim) | Visit Remofirst |
| Pebl (formerly Velocity Global) | Companies that want an EOR with a tiered reseller/partner program and are comfortable with a recently rebranded vendor. | Third-party reports a flat $399 per employee/month (not confirmed on vendor page; hellopebl.com/pricing returned 404) | 185+ countries (third-party report) | Visit Pebl (formerly Velocity Global) |
Paying and covering your team in Philippines
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FAQ
What are the employer contributions in the Philippines?
SSS 10% of salary credit (max PHP 3,500), PhilHealth 2.5% up to PHP 100,000 and Pag-IBIG 2% capped at PHP 10,000 (PHP 200).
Is the 13th-month pay mandatory?
Yes, equal to 1/12 of basic salary earned in the year, paid on or before 24 December.
How long can probation last?
Up to 6 months.
What is the separation pay for redundancy?
At least one month's pay or one month per year of service, whichever is higher, with 30 days' notice to the employee and DOLE.