Easily Hire, Manage, and Pay Your Employees in the Philippines
RecruitGo's Employer of Record (EOR) service in the Philippines enables employers to hire top Filipino talent quickly and compliantly — without the cost and delay of setting up a local company. You focus on growth; we handle the legal, HR, and payroll heavy lifting.
Why Foreign Companies Hire in the Philippines
The Philippines is the world's leading offshore talent market and the second-largest BPO destination after India. Over 1.3 million Filipinos work in the BPO sector alone. The country produces 700,000+ college graduates annually, with English as one of two official languages and the primary medium of instruction.
For foreign companies, the Philippines offers near-native English proficiency, strong cultural alignment with US and Australian business norms, competitive salary costs (60-75% lower than equivalent US roles), and a workforce deeply experienced in remote work, customer support, finance, and technology.
How RecruitGo Helps You Hire in the Philippines
Whether you need to hire your first employee without a local entity, run payroll for an existing Philippine team, manage employee benefits, or process work permits for foreign staff, RecruitGo has a specific service for each stage.
Employer of Record (EOR)
Hire employees in the Philippines without forming a local corporation. RecruitGo is the legal employer, handling contracts, SSS/PhilHealth/Pag-IBIG registration, payroll, 13th month pay, and all DOLE compliance.
Payroll Service
Already have a Philippine corporation? We process monthly payroll in PHP, withhold BIR income tax, remit all statutory contributions, and file compliance reports on your behalf.
Employee Benefits
Design and administer benefit packages that meet Philippine statutory requirements and compete in the BPO talent market.
Visa and Work Permits
Hiring foreign nationals to work in the Philippines requires an Alien Employment Permit (AEP) from DOLE and a working visa (9g) from the Bureau of Immigration.
Philippines Employment Snapshot
A quick-reference table covering the essentials of hiring employees in the Philippines.
| Currency | Philippine Peso (PHP) |
| Minimum wage (2025) | Varies by region. NCR (Metro Manila): PHP 645/day. Ranges from PHP 341 to PHP 645 |
| Standard working hours | 8 hours/day, 48 hours/week (6-day). Most offices: 40 hours/5 days |
| Overtime | 125% regular, 130% rest day, 200% special holiday, 260% regular holiday |
| Probation period | 6 months maximum. Standards for regularization must be communicated on day one |
| Contract types | Regular (indefinite), probationary, project-based, seasonal, fixed-term, casual |
| Annual leave | 5 days SIL after 1 year. Most employers offer 10-15 days |
| Maternity leave | 105 days fully paid (RA 11210). +15 days for solo parents |
| Paternity leave | 7 days fully paid for first 4 legitimate children |
| 13th month pay | 1/12 of total basic salary earned in calendar year. Due by December 24 |
| Income tax | Progressive: 0% (up to PHP 250K), 15%, 20%, 25%, 30%, 32%, 35% (above PHP 8M) |
| SSS | 15% total: employer 10%, employee 5%. Max MSC: PHP 35,000/month |
| PhilHealth | 5% total: split equally. Max salary base: PHP 100,000/month |
| Pag-IBIG | Employer 2% + employee 2%. Max base: PHP 10,000 |
| Separation pay | 1 month/year (authorized causes) or 0.5 month/year (retrenchment). None for just cause |
| Public holidays | ~18 regular and special non-working holidays per year |
| Language | Contracts in English or Filipino. English is standard for foreign employers |
How to Hire Employees in the Philippines as a Foreign Company
Foreign companies have three main options for hiring in the Philippines.
| EOR (RecruitGo) | PH Corporation | Contractor | |
|---|---|---|---|
| Time to first hire | 3 to 5 business days | 4 to 12 weeks (SEC) | Immediate |
| Setup cost | None | PHP 50K-200K+ plus capital | None |
| Compliance | RecruitGo | You | Contractor's responsibility |
| SSS/PhilHealth/Pag-IBIG | Handled by RecruitGo | Your responsibility | Not applicable |
| 13th month pay | Calculated and paid by EOR | Your responsibility | Not applicable (risk) |
| Ideal for | 1-20 employees, market testing | 20+, permanent operations | True project work |
Contractor misclassification is aggressively enforced: DOLE actively investigates contractor arrangements that look like employment. If the worker follows your schedule, uses your tools, or works exclusively for you, the relationship will be deemed employment — triggering backdated SSS/PhilHealth/Pag-IBIG, 13th month pay, separation pay, and penalties.
Key Employment Rules in the Philippines
Social security (SSS, PhilHealth, Pag-IBIG)
All employees must be registered with three government agencies. SSS covers retirement, disability, sickness, maternity, and death benefits at 15% of salary (employer 10%, employee 5%), max PHP 35,000 MSC. PhilHealth covers hospitalization at 5% (split equally), capped at PHP 100,000. Pag-IBIG (housing fund) is 2% employer + 2% employee, capped at PHP 10,000.
13th month pay
Every rank-and-file employee is entitled to 13th month pay equal to 1/12 of the total basic salary earned during the calendar year. It must be paid on or before December 24. This is not a bonus — it is a legal entitlement under Presidential Decree No. 851. Failure to pay triggers DOLE complaints and penalties.
Leave entitlements
Statutory minimum is 5 days of service incentive leave per year after 12 months. Most competitive employers offer 10-20 days vacation plus 10-15 days sick leave. Maternity leave is 105 days fully paid under RA 11210, with additional 15 days for solo parents. Paternity leave is 7 days for first 4 children.
Termination
Philippine labor law is strongly pro-employee. Termination must be for just cause (misconduct) with due process (two-notice rule and hearing), or authorized cause (redundancy, retrenchment, closure) with 30 days notice plus separation pay. Illegal dismissal triggers reinstatement plus back wages.
Foreign worker requirements
Foreign nationals need an Alien Employment Permit (AEP) from DOLE and a 9(g) pre-arranged employment visa from the Bureau of Immigration. Processing takes 4-8 weeks. PEZA-registered companies have streamlined processes. Short-term assignments under 6 months may use a Special Work Permit.
What It Costs to Employ Someone in the Philippines
Total employer cost is typically 122-130% of gross salary, making it competitive within the ASEAN region.
| Component | Monthly (PHP) | Rate |
|---|---|---|
| Gross salary | 35,000 | — |
| SSS (employer) | 3,530 | 10% (max MSC PHP 35,000) |
| PhilHealth (employer) | 875 | 2.5% of salary |
| Pag-IBIG (employer) | 200 | 2% (capped at PHP 10,000) |
| 13th month provision | ~2,917 | 8.33% (1/12 of annual) |
| Total employer cost | ~42,522 | ~121% of gross |
SSS based on monthly salary credit brackets. PhilHealth caps at PHP 100,000 salary base. Most competitive employers also provide private HMO, rice allowance, and transport allowance. EOR service fee not included.
Frequently Asked Questions
What companies ask most about hiring in the Philippines.
Yes, through an Employer of Record (EOR). The EOR is a locally registered Philippine corporation that legally employs workers on your behalf. You manage the day-to-day work. The EOR handles contracts, SSS/PhilHealth/Pag-IBIG registration, payroll, 13th month pay, tax withholding, and all DOLE compliance. This lets you hire in 3-5 days without forming a local corporation.
13th month pay is a mandatory benefit equal to 1/12 of an employee's total basic salary earned during the calendar year. It must be paid on or before December 24. It is not a Christmas bonus — it applies to all rank-and-file employees regardless of pay structure.
SSS is 15% total (employer 10%, employee 5%) with max MSC of PHP 35,000. PhilHealth is 5% total (split equally) capped at PHP 100,000. Pag-IBIG is 2% employer + 2% employee capped at PHP 10,000. Total employer statutory contribution is approximately 14.5% of salary.
Termination must be for just cause (misconduct, with two-notice rule and hearing) or authorized cause (redundancy, retrenchment, closure with 30 days notice and separation pay). Separation pay is 1 month per year for closure, 0.5 month per year for retrenchment. Illegal dismissal triggers reinstatement plus back wages.
Statutory minimum is 5 days SIL after 12 months. Maternity: 105 days fully paid. Paternity: 7 days for first 4 children. Solo parent: 7 additional days. No statutory sick leave, but SSS provides sickness benefit. Most employers offer 10-20 vacation + 10-15 sick days.
Typically 3-5 business days from signed agreement — including contract drafting, SSS/PhilHealth/Pag-IBIG registration, payroll setup, and benefits orientation. Setting up your own corporation takes 4-12 weeks.
