What is an Employer of Record (EOR), and How Does it Work?
An Employer of Record (EOR) in the Philippines is a service that enables companies to employ and manage staff in the Philippines without the necessity of setting up a local legal entity. With AYP Groupโs EOR Philippines solution, we act as the legal employer for your workforce, handling all administrative and legal duties. This includes managing payroll, taxes, benefits, and ensuring adherence to local employment regulations.
By utilizing AYP Groupโs EOR services in the Philippines, your company can smoothly enter the Philippine market while we manage the complexities of employment.
What are the Advantages of Using an EOR?
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Accelerated Market Entry
AYP Groupโs EOR Philippines solution allows your business to rapidly establish a presence in the Philippines, bypassing the lengthy setup processes. This lets you begin operations and hire employees quickly.
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Cost Efficiency
Avoid the high costs associated with establishing a local entity, such as legal, administrative, and HR expenses. The EOR model offers a cost-effective alternative, letting you focus resources where they are most needed.
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Regulatory Compliance
Understanding and adhering to Philippine labor laws can be challenging. AYP Group ensures comprehensive compliance with all local employment regulations, protecting your business from legal complications.
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Administrative Management
AYP Group manages all HR-related functions, including payroll and benefits administration, allowing your internal team to concentrate on strategic priorities.
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Scalability
Easily adjust your workforce in the Philippines based on business needs without the constraints of managing a local entity. This flexibility is essential for businesses looking to enter or expand within the Philippine market.
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How Does an EOR Ensure Compliance? What Are the Compliance Issues to Take Note Of?
AYP Groupโs EOR Philippines solution guarantees compliance by:
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Employment Contracts
We create and manage employment contracts that comply with Philippine labor laws, covering aspects like compensation, termination, and employee rights.
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Tax and Social Security Contributions
AYP Group handles all payroll-related taxes and contributions, ensuring adherence to Philippine tax laws and social security requirements.
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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.
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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:
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Monthly Service Fees
AYP Group charges a monthly fee based on the number of employees managed, covering employment, compliance, and administrative services.
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Payroll Costs
Includes employee salaries, bonuses, statutory deductions, and mandatory contributions such as the Social Security System (SSS) and PhilHealth.
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Setup Fees
Initial costs related to onboarding new employees, including contract drafting and compliance checks.
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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 Groupโs EOR Philippines service streamlines the process:
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Initial Consultation:
We start with a consultation to understand your hiring needs and business objectives in the Philippines.
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Customized Proposal
AYP Group provides a tailored proposal detailing the scope of services, costs, and timelines.
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Agreement and Onboarding
After finalizing the agreement, we commence the onboarding process, including contract preparation, payroll setup, and compliance checks.
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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 Groupโs EOR Philippines service meticulously manages employee benefits and payroll:
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Payroll Management
We ensure timely and accurate payroll processing, including salary disbursement, tax deductions, and contributions to SSS and PhilHealth.
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Employee Benefits Administration
AYP Group manages statutory benefits like health insurance, leave entitlements, and retirement contributions, ensuring compliance with Philippine laws.
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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 Groupโs Employer of Record (EOR) in the Philippines service simplifies the hiring and management of foreign employees:
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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).
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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.
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Employment and Onboarding
We draft compliant employment contracts according to Philippine labor laws and handle the onboarding process, including payroll setup and benefits administration.
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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.
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Offboarding
When an employeeโs 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 Groupโs EOR Philippines services for seamless and compliant operations.
How to Get Started with EOR?
Getting started with AYP Groupโs EOR Philippines solution is simple:
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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.
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Assessment and Proposal
We will evaluate your needs and provide a customized proposal, including detailed pricing and service offerings.
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Agreement and Implementation
Upon agreement, we will start the onboarding process, taking over all employment-related functions to ensure a smooth transition.
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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 Groupโs 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:
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Rapid Onboarding:
Quick setup of employment contracts and payroll management.
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Compliance Management:
Handling of all local tax and labor law compliance.
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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 Groupโs EOR solution facilitated a smooth expansion, giving the company the agility to grow in a new market.
With AYP Groupโs 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.
FAQs
What is Employer of Record Philippines?
What is the cost of hiring through Employer of Record (EOR) Philippines services?
Why choose Employer of Record (EOR) Philippines over direct hiring?
Who is the Employer of Record (EOR) service provider in Philippines?
What is the process of hiring EOR employees in Philippines?
The hiring process for employees in the Philippines through AYP Employer of Record (EOR) involves several streamlined steps:
- Requirement Analysis: AYP conducts a thorough analysis of your hiring needs to understand your specific requirements.
- Cost Simulation: AYP performs a cost simulation to provide a clear understanding of the total cost of hiring in the Philippines.
- Work Permit Application: If necessary, AYP handles the application for work permits to ensure compliance with local regulations.
- Contract Preparation: AYP prepares employment contracts that align with the local Philippines labor laws
- Benefits Enrollment: AYP enrolls employees in the required benefits programs, ensuring they receive all mandatory entitlements.
- Employee Onboarding: AYP sends a welcome email and facilitates a smooth onboarding process, making sure the new hires are ready to start their roles effectively.
This comprehensive hiring process allows businesses to onboard employees in the Philippines quickly and compliantly, with AYP managing all administrative and legal aspects.
Hire compliantly in the Philippines with no hidden cost
Local labor compliance, payroll management, onboarding, and expert advisory โ all in one service