Philippines EOR Cost Calculator
Calculate the full employer cost of hiring in the Philippines through an Employer of Record. Includes SSS, PhilHealth, Pag-IBIG, 13th month pay, and the RecruitGo EOR fee.
What You Actually Pay to Hire in the Philippines
The Philippines has one of the most employee-friendly statutory regimes in Southeast Asia. Mandatory employer contributions add roughly 8 to 12 percent on top of gross salary, depending on the salary band. This includes SSS (around 10.1 percent, capped by Monthly Salary Credit), PhilHealth (2.5 percent, capped at P2,500), and Pag-IBIG (a flat P200 for anyone earning above P10,000).
The 13th month pay under Presidential Decree 851 adds another 8.33 percent when prorated monthly for budgeting purposes. Together with the RecruitGo EOR fee, the total landed cost is typically 20 to 25 percent above the gross salary, compared with 40 to 50 percent in markets like France or Germany.
Social Security System
SSS provides retirement, disability, sickness, maternity, and death benefits to private-sector employees. The total contribution rate reached 15 percent of Monthly Salary Credit (MSC) in January 2025, the final phase of increases under Republic Act 11199. The employer pays 10 percent and the employee pays 5 percent.
| Component | Rate | Max / month |
|---|---|---|
| Employer share | 10% of MSC | P3,500 |
| Employee share | 5% of MSC | P1,750 |
| EC (employer only) | Flat | P10 or P30 |
| MSC range | P5,000 - P35,000 | |
Philippine Health Insurance
PhilHealth provides national health insurance under the Universal Health Care Law (RA 11223). The premium rate is 5 percent of monthly basic salary, split equally between employer and employee at 2.5 percent each. The rate has been retained at 5 percent through 2026.
| Salary Range | Total Premium | Each Side |
|---|---|---|
| P10,000 and below | P500 (floor) | P250 |
| P10,000 - P100,000 | 5% of salary | 2.5% |
| P100,000 and above | P5,000 (ceiling) | P2,500 |
Home Development Mutual Fund
Pag-IBIG is the Philippines national savings and housing finance program. Under HDMF Circular 460, effective February 2024 and continuing through 2026, the Maximum Fund Salary (MFS) is P10,000. Contributions are capped at P200 per side regardless of salary above P10,000.
| Monthly Compensation | Employee | Employer |
|---|---|---|
| P1,500 and below | 1% | 2% |
| Above P1,500 | 2% | 2% |
| Maximum Fund Salary | P10,000 (capped) | |
Income Tax Brackets
The TRAIN Law (Republic Act 10963) introduced progressive tax brackets in 2018, with a second lower schedule taking effect January 2023 that continues unchanged through 2026. The first P250,000 of annual taxable income is exempt, meaning employees earning around P20,833 per month or less pay zero income tax.
| Annual Taxable Income | Tax Rate |
|---|---|
| P0 - P250,000 | 0% (Exempt) |
| P250,001 - P400,000 | 15% of excess over P250,000 |
| P400,001 - P800,000 | P22,500 + 20% of excess over P400,000 |
| P800,001 - P2,000,000 | P102,500 + 25% of excess over P800,000 |
| P2,000,001 - P8,000,000 | P402,500 + 30% of excess over P2,000,000 |
| Over P8,000,000 | P2,202,500 + 35% of excess over P8,000,000 |
Mandatory under Presidential Decree 851
All rank-and-file private sector employees in the Philippines are entitled to 13th month pay equal to one-twelfth of their annual basic salary. It must be paid on or before December 24 each year. The first P90,000 of combined 13th month pay and other benefits is tax-exempt under Republic Act 10963. For cost forecasting, this calculator prorates it monthly (gross salary / 12) so the annualised employer cost is accurate regardless of when in the year hiring occurs.
EOR Cost Calculator FAQ
Common questions about hiring costs in the Philippines through an Employer of Record.
SSS: 15% of Monthly Salary Credit (10% employer, 5% employee) with MSC range P5,000 to P35,000 under RA 11199, plus EC (P10 or P30 employer only). PhilHealth: 5% split 50/50 with a floor of P10,000 and ceiling of P100,000 under the Universal Health Care Law. Pag-IBIG: 2% employer plus 1-2% employee based on a Maximum Fund Salary of P10,000, capped at P200 each side under HDMF Circular 460. Withholding tax: TRAIN Law brackets (0%-35%) effective January 2023.
Gross salary, all mandatory employer contributions (SSS, PhilHealth, Pag-IBIG), prorated 13th month pay, and the RecruitGo EOR management fee. There are no hidden charges or separate setup fees.
The EOR fee is 10% of the total monthly employer cost (salary plus statutory contributions plus 13th month), with a minimum of USD 49.99 and a maximum of USD 250 per employee per month. For lower salaries the fee is proportionally less, and for high-paid roles the cap keeps costs predictable.
Yes. Under Presidential Decree 851, all rank-and-file employees in the Philippines are entitled to 13th month pay equal to one-twelfth of their annual basic salary, paid on or before December 24 each year. The first P90,000 of combined 13th month pay and other benefits is tax-exempt. This calculator prorates it monthly so the annualised employer cost is accurate.
SSS contributions are based on the Monthly Salary Credit (MSC), not the actual salary. Salaries are mapped to P500-increment brackets, with a minimum MSC of P5,000 and a maximum of P35,000. On top of the 15% regular contribution, the employer also pays a flat Employees Compensation (EC) contribution of P10 (MSC below P15,000) or P30 (MSC P15,000 and above).
Under Pag-IBIG HDMF Circular 460 (effective February 2024), the Maximum Fund Salary is P10,000. Employees earning above P10,000 still only contribute 2% of P10,000, or P200 per side. This cap continues in 2026.
Setting up a Philippine corporation requires SEC registration, BIR registration, a local bank account, and DOLE compliance. It typically costs USD 15,000-25,000 and takes 3-6 months. Through RecruitGo EOR, you can onboard an employee in 3-5 business days with zero setup cost. If you later choose to register your own entity, we assist with the transition.
No. This calculator uses basic gross salary only. Performance bonuses, transportation allowances, and other variable compensation are typically added on top and may have different tax treatment. For a full quote including any additional benefits, contact our team directly.
