Contractor vs employee calculator
Compare the cost of engaging someone as a contractor versus an employee through an EOR, with the country's misclassification notes.
| Option | Estimated annual cost | What you get |
|---|---|---|
| Contractor | $69,588 | Cheapest on paper. No statutory benefits; reclassification risk in Philippines if the relationship looks like employment. |
| Employee via EOR | $75,588 – $80,388 | Local contract, statutory benefits and payroll compliance handled by the EOR. |
Philippines contractor risk: 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. Not legal advice.
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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.