Looking to expand into the Philippines without setting up a legal entity? AYP offers trusted Employer of Record Philippines services that enable you to hire, manage, and pay employees compliantly under local labour laws. With our EOR Philippines solution, you gain speed to market and peace of mind while we handle all administrative and legal employment matters on your behalf.
Quick Reference for EOR Philippines Services:
Why Choose EOR Philippines in 2025: The Philippines' GDP of $394 billion and position as Asia's fastest-growing major economy make it ideal for business expansion. An Employer of Record Philippines eliminates setup complexities while ensuring complete regulatory compliance from day one.
An Employer of Record (EOR) Philippines is a third-party service that legally employs your workers in the Philippines on your behalf. While you maintain day-to-day management control, the EOR handles all legal employment responsibilities, payroll processing, benefits administration, and compliance with Philippine labor laws.
The EOR model has become increasingly popular in the Philippines as businesses recognize the country's potential as Asia's fastest-growing major economy. With the Philippines government actively promoting foreign investment through initiatives like the CREATE Act, Bayanihan to Recover as One Act, and the Digital Philippines 2030 program, international companies are seeking efficient ways to tap into this market without the complexities of establishing local entities.
The relationship between your company and the EOR creates a seamless employment experience where you retain complete operational control while transferring all legal and compliance obligations to local experts who understand the Philippines' intricate regulatory environment.
The Philippines stands as Asia's fastest-growing major economy and a strategic gateway to Southeast Asia, offering companies access to the world's largest English-speaking workforce outside the US and UK, well-developed digital infrastructure, and a government that actively promotes foreign investment. The country serves as a global hub for business process outsourcing (BPO), information technology, and emerging industries, providing exceptional opportunities for international expansion.
The Philippines Digital Transformation Roadmap represents a PHP1.5 trillion initiative focused on digital infrastructure, e-governance, cybersecurity, and digital skills development. The program aims to create over 2 million digital jobs by 2030, positioning the Philippines as a regional technology and innovation hub.
The country is also positioning itself as a key player in global supply chain diversification, particularly in electronics manufacturing and renewable energy. The Philippines expects significant investment in semiconductor assembly, solar panel manufacturing, and wind energy projects over the next five years.
With the Philippines positioned as the "Silicon Valley of Asia" for BPO and emerging as a major player in global technology services, the country's business-friendly environment continues to attract international investment across multiple sectors.
Navigating the Philippines' complex employment landscape presents significant challenges for international businesses. Philippine employment regulations encompass the comprehensive Labor Code of the Philippines, Social Security Law, National Health Insurance Act, and various implementing rules and regulations, making expert guidance essential for business success.
The regulatory framework requires deep understanding of SSS obligations, PhilHealth contributions, Pag-IBIG requirements, Bureau of Internal Revenue (BIR) tax regulations, and the Philippines' work permit processes. Quality EOR service providers must demonstrate expertise across all these areas while offering transparent pricing and comprehensive advisory support.
The Philippines implements a regional minimum wage system with rates varying by region and sector, reflecting local economic conditions and cost of living differences.
The minimum wage applies to basic daily pay and varies between non-agriculture and agriculture sectors. Regional Tripartite Wages and Productivity Boards review rates annually, with the latest adjustments effective throughout 2025.
The Philippines Labor Code establishes clear guidelines for working hours and overtime compensation, balancing employee protection with business flexibility.
Special provisions apply to flexible working arrangements under Republic Act 11165, allowing compressed workweeks and telecommuting arrangements with Department of Labor and Employment (DOLE) guidelines.
Philippine employees are entitled to various types of leave throughout the year, with entitlements based on company policies and legal requirements.
The Philippines provides 12 regular holidays and several special non-working holidays annually. The Maternity Leave Act provides 105 days for female employees, with recent amendments expanding coverage and benefits.
The choice between establishing a local entity or partnering with an Employer of Record represents a critical strategic decision that impacts timeline, investment requirements, operational control, and long-term business flexibility in the Philippines.
Traditional entity setup in the Philippines can cost over PHP5 million and take 14-20 weeks to complete. This lengthy process includes business registration with the Securities and Exchange Commission (SEC), minimum capital requirements, foreign investment registration with Bangko Sentral ng Pilipinas (BSP), and ongoing regulatory compliance with multiple agencies.
In contrast, EOR providers can reduce setup time by 95%+, enabling immediate market entry without capital investment or administrative burden. This speed advantage becomes crucial in the Philippines' rapidly evolving business environment where first-mover advantage can determine market success.
The EOR model provides particular value for companies testing Philippines market viability, requiring rapid deployment of specialized talent, or managing seasonal workforce variations. The Philippines' 40% foreign ownership limit in most sectors (with exceptions for certain industries) makes EOR an attractive alternative for market entry.
The EOR implementation process in the Philippines follows a structured approach designed to ensure compliance while minimizing time-to-market. Leading providers have streamlined this process to deliver predictable outcomes within established timelines.
Selecting the right EOR provider requires systematic evaluation of compliance capabilities, local expertise, and service delivery standards. The complexity of Philippine employment regulations and cultural considerations demands thorough due diligence to ensure provider reliability and regulatory adherence.
Critical evaluation criteria include compliance track record verification, with top providers maintaining zero-penalty track records and providing transparent compliance reporting. Verify provider registration with Philippine authorities and their understanding of Labor Code, SSS, PhilHealth, and Pag-IBIG requirements.
Working with your EOR partner, you'll define the employment structure that complies with Philippine labor standards while meeting your business objectives. This phase requires careful attention to both legal requirements and cultural expectations.
Employment contracts in the Philippines must include specific mandatory elements such as employee personal information, detailed job responsibilities, compensation structure, working conditions, and termination procedures. Contracts can be in English or Filipino, with English being standard for international businesses.
Once contracts are executed, the EOR manages comprehensive onboarding procedures that ensure immediate productivity while maintaining full regulatory compliance across all aspects of Philippine employment law.
The onboarding process includes SSS membership, PhilHealth enrollment, Pag-IBIG registration, Tax Identification Number (TIN) assignment, and benefit activation. For foreign employees, the EOR coordinates work permit applications and visa support, ensuring all Bureau of Immigration requirements are met.
Continuous compliance management ensures ongoing legal adherence while providing the reporting transparency and operational support necessary for successful business operations in the Philippines' dynamic regulatory environment.
Professional EOR providers maintain dedicated Philippines legal teams, conduct regular compliance audits, and implement automated regulatory monitoring systems. They provide compliance certificates and regular regulatory updates specific to Philippines requirements, ensuring your business stays ahead of regulatory changes.
The Philippines' payroll and taxation system requires precise compliance with Bureau of Internal Revenue (BIR) regulations and Labor Code provisions. Understanding the tax structure, contribution requirements, and processing timelines is essential for compliant employee compensation management.
Recent updates include the TRAIN Law implementation, CREATE Act incentives, and enhanced digital filing requirements, making expert payroll management increasingly valuable for international businesses operating in the Philippines.
The Philippines employs a progressive personal income tax system with rates ranging from 20% to 35% for resident individuals, with recent TRAIN Law modifications providing tax relief for lower-income earners.
The Philippines also offers various tax incentives under the CREATE Act for qualified business activities, including reduced corporate income tax rates and investment allowances.
Beyond salary and basic contributions, employers must budget for additional mandatory costs that support the Philippines' comprehensive social security and healthcare framework.
*13th Month Pay is mandatory for all employees who have worked at least one month during the calendar year, paid no later than December 24.
Monthly payroll processing follows established timelines that ensure employee satisfaction while meeting all regulatory deadlines and maintaining cash flow predictability for business planning.
Philippine practice typically involves semi-monthly salary payments (15th and 30th of each month), though monthly payments are also acceptable. All salary payments are made in Philippine Peso through local bank accounts.
The Philippines' comprehensive benefits framework combines statutory requirements with competitive market practices, creating attractive employment packages that support work-life balance and employee wellbeing. Understanding both mandatory and discretionary benefits is crucial for designing competitive compensation packages that attract and retain top talent.
Philippine business culture emphasizes relationship-building, respect for hierarchy ("pakikipagkapwa"), and maintaining harmony in professional interactions. English is widely spoken in business settings, making the Philippines particularly attractive for international companies. Understanding cultural nuances around "hiya" (shame/embarrassment), "utang na loob" (debt of gratitude), and family-oriented values significantly enhances business success.
Philippine employment law establishes comprehensive mandatory benefits designed to protect employees and provide financial security throughout their careers and beyond.
SSS provides comprehensive social security benefits including retirement pensions, disability benefits, and survivor benefits. PhilHealth offers universal healthcare coverage, while Pag-IBIG provides housing finance and savings programs.
While not legally required, competitive employers often provide additional benefits that enhance the total compensation package and improve employee retention in the Philippines' competitive talent market.
Health Maintenance Organization (HMO) coverage is highly valued, providing access to private healthcare networks beyond PhilHealth coverage. Transportation benefits help offset Manila's traffic challenges, while performance bonuses are often tied to company and individual KPIs.
Foreign nationals seeking employment in the Philippines must obtain proper work authorization through the Philippines' immigration and labor permit system. The process involves multiple government agencies and requires careful coordination between visa applications and work permit approvals.
The Philippines government has implemented the One Realty system to streamline government processes, though compliance with immigration requirements remains critical for both employers and employees.
Different visa categories serve various employment needs, from traditional working visas to specialized programs targeting high-skilled professionals and investors.
The Alien Employment Permit (AEP) is required for all foreign workers and must be obtained from the Department of Labor and Employment (DOLE) before starting work in the Philippines.
The work permit application process requires systematic documentation and compliance with Bureau of Immigration and DOLE requirements to ensure successful approval within established timelines.
Required documentation includes personal documents (passport, educational credentials, medical certificates), employment documents (contract, company registration, AEP), and financial documents (investment proofs for certain visa types).
Understanding the full cost structure for work permits and visas enables accurate budgeting for international talent acquisition while ensuring compliance with all regulatory requirements.
Annual requirements include AEP renewal, ACR-I card updates, and various reporting obligations. The total annual cost for maintaining foreign worker status typically ranges from PHP50,000-100,000 depending on visa type and services required.
The Philippines' termination laws balance employer flexibility with strong employee protection, requiring careful attention to legal procedures and legitimate grounds for dismissal. Understanding these requirements is essential for maintaining compliance while managing workforce changes effectively.
Legal termination grounds include just causes (serious misconduct, fraud, breach of trust) and authorized causes (redundancy, retrenchment, business closure). The Labor Code provides detailed procedures for each type of termination, with different notice and compensation requirements.
Severance pay requirements vary based on the reason for termination and length of service, providing financial protection for employees during career transitions.
Separation pay calculations include basic salary plus regular allowances, with unused service incentive leave also payable upon termination.
Notice periods provide adequate time for both parties to prepare for employment termination while ensuring orderly business operations.
Final settlement must include all accrued benefits, unused leaves, and applicable separation pay. Professional EOR providers manage this process to ensure compliance with Labor Code requirements while maintaining positive employee relations.
The Philippines EOR provider market has expanded significantly, with both international and regional service providers competing to serve growing demand from technology companies, BPO firms, manufacturing businesses, and multinational corporations establishing Asian operations.
Selecting the right EOR service provider requires evaluating several critical capabilities specific to the Philippines' complex business environment. Philippine employment law complexity and strong labor protections demand providers with deep local expertise and proven compliance track records.
AYP Group leads the Philippines EOR provider market through its unwavering commitment to regulatory excellence, comprehensive advisory support, and complete price transparency. With extensive local expertise and a proven zero-penalty track record in the Philippines' complex regulatory environment, AYP Group delivers unmatched peace of mind for companies expanding into this strategic Asian market.
AYP Group's Philippines operations are built on three core pillars: guaranteed compliance with no penalties, comprehensive advisory services eliminating uncertainty, and complete price transparency with no hidden costs. Their local team maintains deep expertise in Philippine Labor Code, SSS requirements, PhilHealth obligations, and work permit processes, ensuring clients never face compliance surprises.
Remote offers comprehensive EOR services in the Philippines through its global platform, providing standardized processes with local compliance expertise and multi-currency payroll capabilities suited to the Philippines' growing international business environment. Remote manages Philippine employment contracts, government contributions, and provides integrated work permit support for foreign employees.
Deel provides EOR services in the Philippines through its digital-first platform, emphasizing speed and technology integration for the Philippines' rapidly digitalizing business environment. Deel offers rapid onboarding capabilities, automated Philippine tax calculations, and integrated contractor-to-employee conversion services essential for fast-growing technology companies.
Oyster HR delivers EOR services across the Asia-Pacific region with specialized Philippines operations and deep understanding of Philippine business culture and relationship-focused practices. Oyster provides English/Filipino employment contracts, local benefits administration, and comprehensive government contribution management with cultural integration support.
Globalization Partners offers enterprise-grade EOR services in the Philippines with focus on large-scale deployments and complex organizational requirements suitable for major BPO operations and regional headquarters. GP provides dedicated Philippines entity management, comprehensive legal support, and enterprise-level compliance infrastructure.
Evaluating EOR service providers in the Philippines requires systematic assessment of compliance capabilities, local expertise, and service delivery standards. The complexity of Philippine employment regulations and strong labor protections demands thorough due diligence to ensure provider reliability and regulatory adherence.
Compliance track record verification should include detailed compliance histories, DOLE penalty records, and regulatory audit results. Top providers maintain zero-penalty track records and provide transparent compliance reporting, with verification of provider SEC registration and understanding of Labor Code requirements.
Local expertise assessment involves evaluating provider teams' Philippines market knowledge, English/Filipino language capabilities, and cultural understanding. Assess their ability to handle regional wage variations and navigate the Philippines' relationship-focused business environment and hierarchical structures that characterize successful Philippine business operations.
Pricing structure transparency requires detailed cost analysis including setup fees, monthly charges, government contribution handling, and potential penalty fees. Compare total cost of ownership and ensure providers offer clear, predictable pricing without hidden charges for regulatory changes, 13th month pay administration, or compliance updates.
Successfully implementing EOR services in the Philippines requires careful planning, clear communication, and attention to both regulatory requirements and cultural considerations that characterize Philippine business relationships.
Define your hiring needs clearly, including specific roles, timelines, and budget parameters. Research EOR providers thoroughly, comparing services, pricing, and local expertise while checking references from clients with similar Philippines operations.
Review contracts carefully, paying attention to terms, service level agreements, and termination clauses. Establish clear communication protocols and reporting procedures to ensure smooth ongoing operations and rapid issue resolution.
Understanding and respecting Philippine business culture significantly enhances employee integration and retention. Philippine workplaces emphasize relationship-building ("pakikipagkapwa"), respect for hierarchy, and family-oriented values requiring sensitivity to organizational dynamics and communication styles.
Provide English/Filipino language support as needed while respecting the Philippines' strong family culture. Offer flexible arrangements to accommodate family obligations and recognize local festivals to demonstrate respect for work-life balance and cultural traditions.
Monitor monthly payroll accuracy and compliance through regular reviews with your EOR provider. Conduct quarterly compliance checks to stay updated on regulatory changes while maintaining annual contract reviews to update terms and compensation structures.
Track EOR service quality through performance monitoring and plan for expansion as your business grows in the Philippines' dynamic market environment.
AYP Group distinguishes itself in the Philippines EOR provider market through its unique combination of guaranteed compliance, comprehensive advisory support, and complete price transparency—delivering unmatched peace of mind for businesses expanding into the Philippines' dynamic and relationship-focused market environment.
AYP Group's zero-penalty compliance guarantee sets the standard for Philippines EOR services, backed by deep local expertise and proactive regulatory monitoring across the Philippines' complex employment regulations. Our comprehensive advisory approach eliminates uncertainty by providing strategic guidance on Philippine employment best practices, cultural considerations, and relationship management strategies.
Complete price transparency ensures clients understand all costs upfront with no hidden fees for compliance management, government contribution administration, or regulatory changes. This transparency, combined with our advisory expertise, enables accurate budgeting and confident decision-making throughout your Philippines expansion journey.
Our Philippines operations combine cutting-edge technology with human expertise, providing real-time compliance monitoring while maintaining the personal relationships and cultural sensitivity essential for successful Philippine business operations.
The Philippines' economy is transforming rapidly, and the businesses that thrive will be those who act fast, hire smart, and scale with agility. Partnering with an Employer of Record like AYP Group gives you a strategic edge—enabling you to unlock the Philippines' market potential quickly, legally, and cost-effectively.
The opportunity in the Philippines is clear: Asia's fastest-growing major economy offers exceptional growth potential, the world's largest English-speaking workforce outside the US/UK, and government support for international businesses. However, success requires navigating complex regulations while respecting local culture and business practices.
Take the next step in your Philippines expansion with confidence:
Our Philippines team combines deep local expertise with international best practices, ensuring your expansion succeeds from day one. Whether you're hiring your first employee in the Philippines or scaling an existing operation, we provide the compliance guarantee and cultural guidance essential for Asian success.
"AYP Group transformed our Philippines expansion by eliminating compliance concerns and providing transparent, predictable costs. Their advisory team's deep local knowledge helped us navigate complex regulatory requirements and cultural expectations while their zero-penalty guarantee gave us complete confidence in our Philippines operations and Asian growth strategy."
— Fintech Company CEO, expanding from Australia to Manila
Don't let regulatory complexity delay your Philippines market entry. AYP Group's proven EOR Philippines platform enables you to hire top local talent within days while maintaining full compliance with local employment laws.
Our commitment to transparency, compliance excellence, and client success makes us the preferred EOR provider for discerning businesses entering the Philippines' relationship-focused and family-oriented market.
Ready to unlock the Philippines' potential? Contact AYP Group today and discover how guaranteed compliance and transparent pricing can accelerate your business success in Asia's fastest-growing major economy.
AYP Group has been simplifying global employment across Asia for over a decade. Our Philippines EOR services eliminate compliance complexity while accelerating your market entry with zero penalties guaranteed. Trust the experts who understand both the regulations and the relationships that drive Philippine business success.
Legal Disclaimer: This guide provides general information about Philippines employment regulations and EOR services. Specific legal advice should be obtained from qualified professionals. Employment laws and regulations are subject to change, and this information should not be considered as legal counsel. AYP Group maintains current regulatory knowledge and provides updates to clients as part of comprehensive EOR services.
An Employer of Record (EOR) in the Philippines legally employs your staff on your behalf, taking care of HR, compliance, tax, and payroll—allowing you to operate without a local entity.
EOR Philippines allows companies to bypass incorporation, handle SSS/PhilHealth/PAG-IBIG registration, and meet local labor code requirements without direct risk.
AYP is a regional expert with a local team in the Philippines, enabling fully compliant hiring through its EOR service.
Yes! With an Employer of record (EOR) in Philippines, benefits may be customized for private health insurance, wellness related programmes, to fit the needs of employees, the local culture or standard practice of the organisation. The Employer of Record (EOR) Philippines partner will be the one to advise and ensure that benefits are compliant with local laws and best practices.
Yes. We handle Alien Employment Permits (AEP) and 9G visa processes as part of our Employer of Record Philippines service.
Yes. AYP facilitates documentation, permits, and contract conversion under our EOR Philippines framework.
AYP calculates payroll, applies statutory deductions, and submits reports to BIR and SSS.
Philippine-based employees are subject to progressive income tax. AYP handles monthly withholding and annual filing support.
Still have more questions? Contact us today
