5 Steps To Choose Employer of Record To Hire in Philippines 

Partner with the best Employer of Record provider for your business expansion and growth.

reasons for eor to hire in philippines
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The Philippines has experienced exponential economic growth and is one of the most dynamic economies in the Asia Pacific region. Increasing urbanisation and a growing middle class alongside a large and young population are what made up the Philippines’ economic dynamism - one that is rooted in its strong consumer demand, supported by a vibrant labour market and robust remittances.1

Being the fastest growing economy across the region with a growth rate of 5.6% - just shy of its government’s target of 6.0% to 7.0% - the Philippines is expected to show continued significant growth in 2024 from 2023, demonstrating its economic resilience amidst various global economic pressures. Its key economy driver is the manufacturing sector, which contributes approximately 19% of GDP in 2022 and employs about 7% of the country’s labour force.2

Over the next decade, the Philippines’ economy is forecast to continue growing rapidly - with total GDP increasing from USD 440 billion in 2023 to USD 800 billion in 2030.

By the year 2033, the Philippines is forecast to become the Asia Pacific region’s one trillion-dollar economy - joining China, Japan, India, South Korea, Australia, Taiwan, and Indonesia in the cluster of the largest economies in APAC.3

Hire in Philippines with Employer of Record

One of the important facets of the labour market of the Philippines is the fact that it is never short of remarkable talent.

Foreign employers can hire in Philippines - either by setting up a legal entity in the country or by partnering with an Employer of Record (EOR) company. For foreign global companies, there are many reasons and benefits to hire through an Employer of Record Philippines, as an EOR company handles everything from hiring and onboarding to risk mitigation, global benefits administration, managing global payroll and providing ongoing HR support to help foreign companies hire and pay employees quickly and compliantly without establishing an entity.

Although an EOR company manages the heaviest HR tasks and processes for an organisation with distributed workforce abroad, the organisation still continues to own their employees’ day-to-day responsibilities and goals. Partnering with EOR solutions Philippines is a streamlined option that can help foreign employers test foreign markets and set up a workforce quickly in different countries with less financial commitment and risks.4

Role and benefits of an Employer of Record

An Employer of Record (EOR) is a third-party service provider that manages an organisation’s employee contracts on their behalf. Under an EOR agreement, the EOR becomes the legal employer of the organisation’s employees and assumes HR responsibilities such as payroll, taxes, benefits, and compliance. By acting as a partner to the organisation, an EOR provides support and guidance on compliance and employment issues - ensuring all necessary taxes and employee benefits are paid and that the organisation is compliant with all regulations.

For example, AYP’s EOR platform provides clients with a hassle-free way to manage their workforce through a streamlined employment process that has automated onboarding tasks and ensures compliance with local laws and regulations. Our EOR services include:

  • Employment contracts
  • Onboarding, orientation, and training of new hires
  • Accurate and timely payroll processing
  • Benefits, deductions, and taxes compliance
  • Expertise in labour laws of the host country regarding worker protections and local contracts
  • Bridging the channel between government authorities and the client
  • Creating timesheets and implementing incentive schemes
  • Terminating workers on behalf of the client

Some key benefits of using an EOR company’s services include:

  • Simplified global expansion process
  • Quick integration with new markets and speedy, safe hiring of talents
  • Minimised legal risks
  • Cost and time savings
  • Easy and streamlined management of a global workforce
  • Reduced administrative burden

Employer of Record in the Philippines: 5 steps to choose one for your business

If you are a business leader looking to expand your business in the Philippines and hiring talents in the country, choosing an EOR Philippines is a crucial step to help you achieve your goals. 

Here are 5 steps to consider when choosing an Employer of Record Philippines:

Step 1: Consider their available services and fees or costs

First and foremost, you should look at the services offered by an EOR provider. Some EOR companies may provide multiple services, while others may only have one or two options. EOR companies that have many services to offer are often the ideal option. Consider the benefits provided to discover and compare what is better. Another main factor to consider is the pricing structure. Understand the fees of the services that are included, and if there are any additional charges. Comparing pricing options can help you choose an EOR that suits your budget effectively.

Step 2: Discover more about the EOR company

Learning about the EOR Philippines company can give you insight into your HR partner. Look at the EOR company’s reputation, stability, and how long they have been running their business to understand them better and discover if their work values are the same as yours.

Step 3: Weigh the pros and cons 

Analyse the pros and cons of the EOR services that you are engaging in, and shortlist the EOR company that can help you simplify your international hiring experience.

Step 4: Survey online reviews from their customers or clients

You can gauge an EOR provider's services by checking out their website, online press coverage, and client testimonials. Reading reviews and testimonials on third-party review sites such as G2 can help you learn more about the sentiment around the EOR company’s operations as well as the level of customer service that they provide. 

Step 5: Choose the right EOR that accommodates your specific business needs

And finally, pick the EOR company that fits your business goals and needs - one that falls within your budget and other necessary requirements.

AYP provides EOR services that you can have peace of mind with when you hire with us, as we offer the following:

  • 100% compliant
  • Instant onboarding 
  • Easy to use with smart analytics
  • Top HR experts in Asia

Look no further than AYP to help you expand your business with EOR Solutions Philippines - talk to us here, or visit our blog posts for more information. We look forward to hearing from you! 


  1. The World Bank in the Philippines↩︎
  2. The Philippines economy in 2024: Stronger for longer?  ↩︎
  3. Philippines economy shows robust growth into the new year  ↩︎
  4. How to hire employees in the Philippines from another country ↩︎

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