Philippines EOR Cost Calculator
Find out what it costs to employ someone in the Philippines through an Employer of Record. Enter a gross monthly salary to see employer contributions, 13th month pay and the EOR fee, using the latest rates.
- SSS: RA 11199
- PhilHealth: RA 11223
- Pag-IBIG: HDMF Circular 460
- 13th month: PD 851
The role
2026 Rates: SSS 15%, PhilHealth 5%, Pag-IBIG 2% (MFS cap ₱10K), TRAIN Law withholding tax.
Results
For one employee, per month
- Gross salary
- 13th month
- SSS
- PhilHealth
- Pag-IBIG
- EOR fee
| Gross salary | ₱50,000 |
|---|---|
| 13th month payAccrued at 1/12 of salary | +₱4,167 |
| SSS10% of ₱35,000 MSC + ₱30 EC | +₱3,530 |
| PhilHealth2.5% employer share | +₱1,250 |
| Pag-IBIG2%, capped at ₱200 | +₱200 |
| RecruitGo EOR fee15%, min $99 · 1 USD = ₱62 | +₱8,872 |
| Total employer cost | ₱68,019 |
Estimate based on 2026 statutory rates. Assumes rank-and-file employee, resident Philippine citizen. Excludes bonuses, allowances, night differential, overtime, and optional benefits. Exchange rate used: 1 USD = ₱62, to convert the USD 99 minimum EOR fee.
What your employee takes home
Their net pay per month, useful when you agree the offer
| Gross salary | ₱50,000 |
|---|---|
| SSS5% of ₱35,000 MSC | −₱1,750 |
| PhilHealth2.5% employee share | −₱1,250 |
| Pag-IBIG1 to 2%, capped at ₱200 | −₱200 |
| Withholding taxTRAIN Law | −₱4,568 |
| Net take-home pay | ₱42,232 |
- Net pay as a share of gross
- 84%
- Your cost for every ₱1 they take home
- ₱1.61
These come out of the salary, not on top of it. RecruitGo withholds them and remits them to SSS, PhilHealth, Pag-IBIG and the BIR.
Hire through RecruitGo
No Philippine entity needed. We employ them for you.
- Salary, 12 months
- ₱600,000
- 13th month payPaid by December 24
- ₱50,000
- SSS, PhilHealth and Pag-IBIG
- ₱59,760
- RecruitGo EOR fee15%, min $99
- ₱106,464
- Compliant employment contract and onboarding in 3 to 5 business days
- Payroll, SSS, PhilHealth, Pag-IBIG and BIR filings handled every month
- 13th month pay, leave and final pay managed for you
EOR vs Setting Up Your Own Entity
Your own entity
- Setup costSEC, BIR and bank registration
- $15K – $25K
- Time to first hireTo register and start operating
- 3 – 6 months
- Payroll and compliancePayroll plus SSS, PhilHealth, Pag-IBIG and BIR filings
- Your team
Through RecruitGo EOR
- Setup costNo setup or onboarding fees
- $0
- Time to first hireContract and onboarding included
- 3 – 5 business days
- Payroll and complianceRecruitGo runs payroll and every filing, monthly
- Handled for you
How it is computed
How your cost is worked out
Each figure above, computed from a monthly salary of ₱50,000 using the 2026 rates.
SSS employer share
- Monthly salary credit (MSC): ₱35,000, the maximum credit.
- You pay 10% of the MSC plus ₱30 for Employees' Compensation: ₱3,530 a month.
- The employee pays another 5% (₱1,750), withheld from their salary.
Source: Republic Act 11199 (Social Security Act of 2018), 15% total rate from January 2025.
PhilHealth employer share
- Premium base: ₱50,000, the salary itself.
- The 5% premium is split equally. You pay ₱1,250 a month, and the employee pays the same.
Source: Republic Act 11223 (Universal Health Care Act), 5% premium from 2024.
Pag-IBIG employer share
- You pay 2% of salary up to the ₱10,000 maximum fund salary: ₱200 a month.
- The employee pays ₱200, withheld from their salary.
Source: HDMF Circular 460, from February 2024 (₱10,000 maximum fund salary).
13th month pay
- You owe one month of basic salary a year, ₱50,000, paid on or before December 24.
- Setting aside ₱4,167 each month covers it. That is the accrual in the breakdown above.
- It is tax-free for the employee up to ₱90,000 a year, together with other benefits.
Source: Presidential Decree 851; ₱90,000 exemption under RA 10963 (TRAIN Law).
RecruitGo EOR fee
- Total monthly payroll: ₱59,147, the salary plus employer contributions and the 13th month accrual.
- 15% of that is ₱8,872. The USD 99 minimum is ₱6,138 at 1 USD = ₱62.
- The higher one applies: ₱8,872 a month.
Source: RecruitGo EOR pricing: 15% of total monthly payroll or USD 99, whichever is higher.
Withholding tax
- Not a cost to you. It comes out of the employee's salary, and RecruitGo withholds it and remits it to the BIR every month.
- On ₱46,800 of monthly taxable income, that is ₱4,568 a month.
- For the employee's side in full, use the Philippines salary calculator.
Source: Republic Act 10963 (TRAIN Law), tax schedule in effect from January 2023.
Overview
How Much Does an Employer of Record Cost in the Philippines?
The total cost of hiring through an Employer of Record in the Philippines has three components: the employee's gross salary, mandatory statutory contributions, and the EOR management fee. Mandatory employer contributions add roughly 8 to 12 percent on top of gross salary, depending on the salary band. This includes SSS (around 10 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 EOR fee, the total landed cost is typically 30 to 40 percent above the gross salary for salaries between PHP 35,000 and PHP 150,000, and higher at entry level, where the fee's USD 99 minimum is a larger share of pay. This makes the Philippines one of the most cost-effective markets for EOR hiring, compared with 40 to 50 percent employer overhead 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 - P800,000This hire | 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 |
Highlighted: the bracket for ₱561,600 of annual taxable income, from the salary above.
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. To work out the exact amount for a partial year or with unpaid absences, use our Philippines 13th month pay calculator.
More tools for hiring in the Philippines
Philippines EOR Cost Calculator FAQ
Common questions about EOR costs, employer contributions, and what you actually pay to hire in the Philippines.
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 15% of total monthly payroll or USD 99, whichever is higher, per employee per month. Total monthly payroll here means salary plus statutory employer contributions plus prorated 13th month pay. The USD minimum is converted at 1 USD = PHP 62, so it applies until payroll reaches about PHP 41,000 a month (a gross salary of roughly PHP 34,000); above that, the fee is a straight percentage with no cap.
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.
The total EOR cost per employee in the Philippines depends on salary level. For a PHP 50,000/month employee (~$806 USD), total employer cost including SSS, PhilHealth, Pag-IBIG, 13th month pay, and the EOR management fee is approximately PHP 68,000/month (~$1,100 USD), of which the EOR fee is about PHP 8,900 (~$143). The EOR fee is 15% of total monthly payroll or USD 99, whichever is higher. Use the calculator above to get exact figures for any salary.
