Employer of Record (EOR) Philippines

How Does an EOR Ensure Compliance? What Are the Compliance Issues to Take Note Of?

AYP Group’s EOR Philippines solution guarantees compliance by:

1. Employment Contracts

   We create and manage employment contracts that comply with Philippine labor laws, covering aspects like compensation, termination, and employee rights.

2. Tax and Social Security Contributions

   AYP Group handles all payroll-related taxes and contributions, ensuring adherence to Philippine tax laws and social security requirements.

3. Employee Benefits

   We ensure that your employees receive all legally required benefits, such as leave entitlements and social security contributions, in line with Philippine regulations.

4. Documentation and Reporting

   AYP Group maintains detailed documentation and provides regular reports to ensure transparency and compliance with local laws.

Key compliance issues include:

• Ensuring employment contracts meet Philippine labor law requirements.
• Complying with local tax and social security regulations.
• Keeping abreast of changes in labor laws and regulations.

What Are the Costs Associated with Using an EOR?

The costs of utilizing an EOR in Singapore generally include:

1. Monthly Service Fees

   AYP Group charges a monthly fee based on the number of employees managed, covering employment, compliance, and administrative services.

2. Payroll Costs

   Includes employee salaries, bonuses, statutory deductions, and mandatory contributions such as the Social Security System (SSS) and PhilHealth.

3. Setup Fees

   Initial costs related to onboarding new employees, including contract drafting and compliance checks.

4. Forex Mark-up and Bank Charges

   Managing multiple currencies involves forex mark-ups to handle exchange rate variations, ensuring accurate salary payments. Combined with applicable bank charges, these costs are essential for smooth international payroll operations.

How Does the Process of Using an EOR Work? What is the Timeline to Onboard an Employee?

AYP Group’s EOR Philippines service streamlines the process:

1. Initial Consultation:
   

   We start with a consultation to understand your hiring needs and business objectives in the Philippines.
   

2. Customized Proposal
   

   AYP Group provides a tailored proposal detailing the scope of services, costs, and timelines.

3. Agreement and Onboarding
   

   After finalizing the agreement, we commence the onboarding process, including contract preparation, payroll setup, and compliance checks.

4. Employee Onboarding
   

   AYP Group manages all aspects of onboarding, from executing employment contracts to enrolling employees in benefits programs.

The typical timeline to onboard an employee in the Philippines through our EOR service is 1 to 3 weeks, depending on specific requirements and complexity.

How Does an EOR Manage Employee Benefits and Payroll?

AYP Group’s EOR Philippines service meticulously manages employee benefits and payroll:

1. Payroll Management
   

   We ensure timely and accurate payroll processing, including salary disbursement, tax deductions, and contributions to SSS and PhilHealth.

2. Employee Benefits Administration
   

   AYP Group manages statutory benefits like health insurance, leave entitlements, and retirement contributions, ensuring compliance with Philippine laws.

3. Benefits Optimization
   

   We regularly review and enhance benefits packages to ensure they are competitive and compliant with local regulations.

What is the Process of EOR in Philippines for Foreign Employees?

AYP Group’s Employer of Record (EOR) in the Philippines service simplifies the hiring and management of foreign employees:

1. Needs Assessment
   

   We assess your business requirements to determine the appropriate work permit in the Philippines, such as the 9(g) Work Visa or Special Work Permit (SWP).

2. Work Permit Application
   

   AYP Group manages the entire application process for the work permit in the Philippines, ensuring full compliance with Philippine immigration regulations and timely approval.

3. Employment and Onboarding
   

   We draft compliant employment contracts according to Philippine labor laws and handle the onboarding process, including payroll setup and benefits administration.

4. Ongoing Compliance
   

   AYP Group ensures continuous adherence to local labor laws, manages HR issues, and handles the renewal of work permits in the Philippines as needed.

5. Offboarding
   

   When an employee’s term ends, we manage the exit process, including work permit cancellations and final payroll processing, ensuring all legal obligations are met.

This approach enables your company to efficiently hire and manage foreign talent in the Philippines without needing a local entity, utilizing AYP Group’s EOR Philippines services for seamless and compliant operations.

How to Get Started with EOR?

Getting started with AYP Group’s EOR Philippines solution is simple:

1. Contact Us
   

   Reach out to our team for an initial consultation to discuss how our EOR services in the Philippines can assist with your business expansion.

2. Assessment and Proposal
   

   We will evaluate your needs and provide a customized proposal, including detailed pricing and service offerings.

3. Agreement and Implementation
   

   Upon agreement, we will start the onboarding process, taking over all employment-related functions to ensure a smooth transition.

4. Ongoing Support
   

   AYP Group provides continuous HR, compliance, and payroll management support, ensuring your business operates smoothly in the Philippines.

Use Case: How Employer of Record (EOR) helps company to expand without an entity in Philippines

A US-based fintech company aimed to expand into the Philippine market to leverage its growing tech talent pool. Instead of establishing a local entity, which would involve substantial time and financial commitment, they chose AYP Group’s EOR Philippines solution.

Challenges:

• Immediate need to enter the Philippine market to leverage emerging opportunities.
• Navigating complex local employment regulations.
• Establishing a local HR infrastructure would have been resource-intensive.

Solution:

AYP Group provided a comprehensive EOR solution, including:

• Rapid Onboarding:
  

  Quick setup of employment contracts and payroll management.

• Compliance Management:
  

  Handling of all local tax and labor law compliance.

• Employee Benefits:
  

  Administration of statutory benefits like SSS, PhilHealth, and health insurance.

Outcome:

The company successfully hired and onboarded employees in the Philippines within weeks, allowing them to start operations immediately. They avoided the costs and complexities of setting up a local entity while staying fully compliant with all regulatory requirements. AYP Group’s EOR solution facilitated a smooth expansion, giving the company the agility to grow in a new market.

With AYP Group’s Employer of Record solution in the Philippines, businesses can expand operations without establishing a local entity, ensuring compliance, cost-efficiency, and a seamless transition into new markets. Contact us today to learn how our EOR Philippines services can support your business growth.