When should a company consider converting a contractor to an employee?

A company may review conversion when the relationship is ongoing, the worker operates as part of the company’s team, the company directs the daily work or the business wants a formal employment structure.

What factors should be reviewed before conversion?

Review the actual responsibilities, level of control, supervision, payment structure, duration of the engagement, work schedule and intended future relationship.

Can a contractor be converted through an EOR?

Yes. An EOR can employ the worker in the Philippines and manage employment administration while the customer continues to manage the employee’s daily work.

How quickly can an existing contractor be onboarded?

Existing contractors can generally be onboarded in as little as five business days once the applicable agreement, employee information, required documentation and funding are complete.

What happens to the final contractor payment?

The company should confirm the final contractor invoice or payment, the contractor end date, any work handover and the employee start date before beginning the new arrangement.

Is recruitment included in the EOR management fee?

Recruitment is not assumed to be included in the standard EOR management fee. Recruitment support, where requested, should be confirmed separately.

Should a company obtain legal or tax advice?

Companies should obtain professional advice where the classification, conversion or tax treatment depends on the specific facts of the relationship.

Are developers in the Philippines suitable for international teams?

The right fit depends on the developer's experience, technology stack, communication skills, role requirements and ability to work within your development processes. Candidates should be assessed against the specific technical and product requirements of the role.

What is the average developer salary in the Philippines?

There is no single salary that applies to all developers. Compensation depends on seniority, technology stack, experience, role scope and working arrangement. Total employment cost should also account for statutory contributions, 13th-month pay, benefits, allowances, equipment and the EOR management fee.

Can I hire developers without a company in the Philippines?

Yes. An Employer of Record arrangement can allow your company to employ developers in the Philippines without immediately establishing its own Philippine entity.

Is an agency better than an EOR?

The appropriate model depends on how you want the work to be managed. An EOR may suit companies that want to manage developers directly, while an agency or outsourcing arrangement may use a different delivery and management structure.

How do I maintain quality in a distributed development team?

Use clear requirements, documented workflows, code-review procedures, testing standards, communication processes, reporting expectations and regular performance management. Your company manages technical quality and daily performance.

What is the biggest mistake companies make when hiring developers?

A common problem is hiring without clearly defining the technology stack, role scope, reporting line, development workflow, security requirements and expected deliverables. These requirements should be defined before recruitment or employment setup.

What is the SOS EOR fee?

SOS charges one EOR management fee of US$190 per employee per month. This is the only SOS EOR rate. It is not a starting price, estimate or price range.

How quickly can an existing developer be onboarded?

Existing developers can generally be onboarded in as little as five business days once the required agreement, employee information, documentation and funding are complete. Recruitment of a new candidate may require additional time.

Who manages the developer's daily work?

Your company manages the developer's daily technical work, including projects, priorities, workflows, tools, code reviews, training and performance. SOS manages employment administration, payroll, statutory processes, employee records and agreed HR support.

Are SDRs in the Philippines suitable for international teams?

The right fit depends on the SDR's communication skills, sales experience, target-market knowledge, role requirements and ability to follow the company's sales process. Candidates should be assessed against the specific market, buyer profile, outreach channel and qualification requirements.

What is the average SDR salary in the Philippines?

There is no single salary that applies to all SDRs. Compensation depends on experience, role scope, target market, working hours, seniority and any approved incentive or commission structure. Fully loaded cost also includes statutory costs, 13th-month pay, benefits, tools, commissions and provider fees.

Can SDRs handle cold calling?

Yes. Cold calling can be included where the role, employee skills, systems, training, working hours and approved sales process support that arrangement.

Do I need to set up a company to hire SDRs?

Not immediately for an EOR arrangement. SOS can employ the SDR in the Philippines as the legal employer while your company manages the employee's daily sales-development work.

How do I maintain SDR performance?

Define the target market, outreach process, qualification criteria, KPIs, CRM requirements, reporting process and coaching schedule. Your company manages the SDR's daily performance and sales activity.

What is the biggest mistake companies make when hiring SDRs?

A common problem is hiring without clearly defining the target market, buyer profile, sales process, outreach expectations, qualification rules, reporting line and performance measures. These requirements should be defined before recruitment or employment setup.

What is the SOS EOR fee?

SOS charges one EOR management fee of US$190 per employee per month. This is the only SOS EOR rate. It is not a starting price, estimate or price range.

What roles can I hire in the Philippines as a startup?

Startups can hire customer support, operations, administrative, sales development, marketing, finance, quality assurance, data and development roles in the Philippines.

Can I hire an employee in the Philippines without setting up a company?

Yes. An EOR can act as the local legal employer and manage employment administration while your startup directs the employee's daily work.

How quickly can I onboard an existing employee?

Existing employees can generally be onboarded in as little as five business days once the MSA, employee information, required documentation and funding are complete.

Can I convert an existing Philippine contractor to an employee?

Yes. An existing contractor may be assessed for conversion to Philippine employment through an EOR. The transition should be reviewed carefully to avoid duplicate payments, missed final contractor invoices or incorrect employment start dates.

How Startups Can Hire Offshore Talent in the Philippines

PHILIPPINES STARTUP HIRING GUIDE

How Startups Can Hire Offshore Talent in the Philippines

Updated September 17, 2026 By Martin English, Co-founder

Startups evaluating offshore hiring in Southeast Asia can build a Philippines-based team without immediately establishing their own local company.

Through an Employer of Record arrangement, Global BPO Solution Philippines Inc. legally employs the worker in the Philippines. SOS manages the agreed employment administration, while your startup directs the employee’s daily work, priorities, performance, tools and team integration.

The Philippines can support startup roles across customer support, operations, sales, marketing, finance, administration, and technology.

Discuss Your Startup Hiring Requirements ↗

Key Takeaways

Startups can hire employees in the Philippines without immediately creating a local entity.
Global BPO Solution Philippines Inc. is the Philippine legal employer under the EOR arrangement.
Your startup manages the employee’s daily work and operational priorities.
The standard EOR management fee is US$190 per employee per month.
Recruitment and candidate selection are included in the standard EOR management fee.
Salary, statutory contributions, 13th-month pay, benefits, allowances, equipment and other applicable employee-specific costs are separate.
There are no separate SOS setup, onboarding, exit, or offboarding fees under the standard pricing structure.
An existing employee may be onboarded in as little as five business days after the service agreement, employee information, required documentation, advance payroll funding and the refundable security deposit are complete. This is a possible timeline, not a guaranteed deadline.

Can a Startup Hire in the Philippines Without Setting Up a Company?

Yes. An Employer of Record allows a startup to hire a specific employee in the Philippines without immediately establishing its own local company.

Under the arrangement:

Your startup defines the role and hiring requirements.
You select a candidate, or SOS supports recruitment and candidate selection as part of the EOR service.
SOS prepares the employment documentation.
Global BPO Solution Philippines Inc. legally employs the worker in the Philippines.
SOS manages payroll and employment administration.
Your startup manages the employee’s daily work.
SOS provides ongoing HR and statutory administration support.

Learn more about hiring employees in the Philippines without setting up a company.

Why Do Startups Consider the Philippines?

A Philippines-based team may help a startup add capacity without immediately building its own local employment and HR infrastructure.

Startups may consider the Philippines when they need:

Customer support coverage
Administrative and operations support
Sales development capacity
Marketing assistance
Finance or bookkeeping support
Software development
Technical support
Quality assurance
Data and research assistance
Dedicated remote team members

The right hiring decision depends on the role, working relationship, level of control, business requirements, and expected duration of the engagement.

What Roles Can a Startup Hire?

Customer support

Startups may hire customer support professionals for:

Email support
Live chat support
Voice and phone support
Helpdesk support
Customer onboarding
Customer success
Technical support
Order and account support
Quality assurance
Customer support team leadership

See customer support teams in the Philippines.

Operations and administration

Common roles include:

Operations Coordinator
Administrative Assistant
Executive Assistant
Project Administrator
Data Entry Specialist
Workforce Coordinator
Document Controller
Finance Administration Assistant

Sales and marketing

Startups may hire:

Sales Development Representatives
Lead Generation Specialists
Marketing Assistants
Content Assistants
Social Media Coordinators
Customer Research Assistants

Technology

Technology roles may include:

Software Developers
Technical Support Specialists
QA Testers
Systems Administrators
Data Specialists
Product Support Specialists

See how to hire developers in the Philippines.

Virtual and remote support

Startups may also build support capacity through:

Virtual Assistants
Executive Assistants
Research Assistants
Calendar and Scheduling Assistants
Administrative Support Specialists

Explore virtual assistant services in the Philippines.

How Much Does It Cost to Hire Through an EOR?

The standard Smart Outsourcing Solution EOR management fee is:

US$190 per employee per month

This is the standard EOR administration fee. It is not a starting price or a price range.

The total employment cost may also include:

Employee salary
Employer statutory contributions
13th-month pay
HMO or other agreed benefits
Allowances
Equipment
Software and connectivity
Other employee-specific costs

The general cost formula is:

Total monthly employment cost = employee salary + employer statutory contributions + 13th-month pay allocation + benefits and allowances + equipment or other employee-specific costs + US$190 EOR management fee

Review the Philippines EOR pricing guide.

Is Recruitment Included in the EOR Fee?

Yes. Recruitment and candidate selection are included in the standard EOR management fee of US$190 per employee per month.

The hiring timeline may vary based on:

Role requirements
Required experience
Candidate availability
Interview stages
Background checks
Documentation
Customer approvals
Funding and employment start date

The standard fee includes recruitment support, but it does not guarantee a specific hiring timeline or candidate outcome.

What Costs Are Passed Through Separately?

Salary and applicable employee-specific costs are billed separately.

These may include:

Employee salary
Employer statutory contributions
13th-month pay
HMO or private healthcare
Internet, communication, transport, or meal allowances
Equipment and software
Other agreed employee benefits

Private HMO or healthcare coverage is not automatically included in the standard EOR management fee.

A refundable security deposit equal to one month of the employee’s base salary is required before employment and renewed annually. Any remaining balance is returned after employment obligations are settled.

Are There Additional SOS Fees?

Under the standard pricing structure, there are no separate SOS fees for:

Setup
Employee onboarding
Exit
Offboarding
Termination administration
Foreign exchange markup

Approved third-party costs and employee-specific costs remain separate.

What Does SOS Manage?

As the Philippine legal employer, Global BPO Solution Philippines Inc. manages:

Philippine employment contracts
Employee onboarding administration
Payroll processing
Salary disbursement coordination
Employee records
Tax withholding administration
SSS, PhilHealth, and Pag-IBIG administration
13th-month pay administration
Benefits administration where applicable
HR administration and employee support
Employment documentation
Offboarding administration
Philippine employment compliance support

What Does the Startup Manage?

Your startup manages the employee’s daily work and operational direction, including:

Responsibilities and priorities
Training
Working hours
Performance
Systems and tools
Workflows
Team communication
Quality and output
Business decisions affecting the role

Formal warnings, disciplinary action, suspension and termination must be coordinated with and executed through Global BPO Solution Philippines Inc., the legal employer.

How Quickly Can a Startup Onboard an Employee?

Existing employees may be onboarded in as little as five business days after the following are complete:

Applicable agreement
Employee information
Required documentation
Employment details
Advance payroll funding and the refundable security deposit

For a new hire, the timeline may be longer because recruitment, interviews, background checks, approvals, and candidate availability must be considered.

How Does Payroll Work?

The standard payroll cycle includes:

Work period from the 1st to the 15th of the month
Work period from the 16th to the last day of the month
Invoice issued by the fifth calendar day after each work period
Customer funding cleared within eight calendar days of the invoice
Salary paid on the 15th and 30th, or the next business day where applicable

EOR, Contractor, or BPO?

An EOR may be appropriate when the person will work as a dedicated employee under your startup’s direction.

A contractor may be appropriate for genuinely independent, project-based work where the individual controls how the services are delivered.

A BPO may be appropriate when you want an external provider to manage a defined service, process, or outcome.

The correct model depends on the actual working relationship, level of control, responsibilities, and business requirements.

How to Build a Startup Offshore Team

A startup can begin with one employee and expand as its operational requirements develop.

A practical process is:

Define the business function.
Document the role and responsibilities.
Confirm working hours and reporting lines.
Establish salary and employment requirements.
Select the appropriate hiring model.
Select a candidate or begin recruitment.
Complete employment documentation.
Provide systems, tools, and training.
Set performance and reporting expectations.
Review the team structure as the startup grows.

For planning guidance, see offshore team structures.

Converting an Existing Contractor to an Employee

If your startup already works with a contractor in the Philippines, that person may be able to transition into an employee arrangement through an EOR.

Before making the change, review:

Existing contractor terms
Final contractor payment
Proposed employment start date
Salary and benefits
Employment documentation
Payroll timing
Classification requirements
Transition responsibilities

About Smart Outsourcing Solution

Smart Outsourcing Solution is a Philippines-based Employer of Record and offshore workforce partner for international businesses.

SOS began operations in 2017, and its Philippine legal entity, Global BPO Solution Philippines Inc., was incorporated in 2022.

The company has supported more than 250 international businesses and more than 1,000 employees through Philippines-focused workforce solutions.

About the Author

Martin English is Co-founder of Smart Outsourcing Solution. He focuses on Philippines-based employment, Employer of Record arrangements, offshore hiring, and the practical requirements involved in building remote teams.

His work helps international businesses understand how to hire and manage Filipino professionals while coordinating employment administration, payroll, statutory obligations, and workforce operations through a Philippines EOR.

Frequently Asked Questions

Can a startup hire in the Philippines without setting up a company?

Yes. An EOR can act as the local legal employer while your startup manages the employee’s daily work.

How much does SOS charge for EOR services?

The standard EOR management fee is US$190 per employee per month. Salary, statutory contributions, 13th-month pay, benefits, allowances, equipment, and other employee-specific costs are separate.

Is recruitment included in the EOR fee?

Yes. Recruitment and candidate selection are included in the standard EOR management fee.

What roles can a startup hire in the Philippines?

Startups can hire customer support, operations, administrative, sales, marketing, finance, quality assurance, data, and technology professionals.

How quickly can an existing employee be onboarded?

An existing employee may be onboarded in as little as five business days after the service agreement, employee information, required documentation, advance payroll funding and the refundable security deposit are complete. This is a possible timeline, not a guaranteed deadline.

Who manages the employee day to day?

Your startup manages the employee’s daily work, priorities, schedule, tools, and performance. SOS manages formal employment administration and HR support.

Is an EOR better than hiring a freelancer?

It depends on the working relationship. An EOR is generally more suitable for a dedicated employee working under your startup’s direction. Freelancing may be suitable for genuinely independent, project-based work.

Can I start with one employee and scale later?

Yes. You can begin with one employee or a small team and add roles as your startup’s operational requirements develop.

For additional buyer considerations, review the Philippines EOR master buyer FAQ.

Hire Offshore Talent in the Philippines

Tell us which roles you need, how many employees you plan to hire, and whether you are starting a new team, expanding an existing team, or transitioning a current contractor or employee into an EOR arrangement.

Speak with a Philippines EOR specialist