Cost of Building an Offshore Team in the Philippines
Building an offshore team in the Philippines involves more than comparing salaries. Your total cost may include employee compensation, employer statutory contributions, 13th-month pay, benefits, allowances, equipment, and employment administration.
For companies hiring dedicated employees in the Philippines through an Employer of Record, the standard Smart Outsourcing Solution management fee is:
This is the standard EOR management fee. It is not a starting price or a price range.
Request a quote for your team →per employee / month
Key Takeaways
- The standard SOS EOR management fee is USD $190 per employee per month.
- Recruitment and candidate selection are included in the standard EOR management fee.
- Employee salaries and employee-specific costs are passed through separately at cost.
- Salary, statutory contributions, 13th-month pay, benefits, allowances, equipment, and other approved costs are not included in the USD $190 fee.
- There are no separate SOS setup, onboarding, exit, or offboarding fees under the standard pricing structure.
- There is no additional FX markup under the standard pricing structure.
- Your business manages the team's daily work while SOS manages formal employment administration in the Philippines.
- Existing employees may be onboarded in as little as five business days once the required agreement, documentation, employee information, and funding are complete.
For a practical overview of how to build an offshore team, review your required roles, workflows, management structure, and working hours before requesting a quote.
What Is an Offshore Team?
An offshore team is a group of professionals located in another country who support your business operations remotely.
A Philippines-based offshore team may include:
- Customer support professionals
- Administrative assistants
- Operations staff
- Developers and technical specialists
- Sales development representatives
- Marketing assistants
- Finance and accounts support
- Quality assurance specialists
- Team leaders and managers
The team may operate as a small dedicated unit, a functional department, or a larger multi-role operation.
The right structure depends on your business objectives, required roles, working hours, systems, reporting lines, and management capacity. See our guide to offshore team structures for planning considerations.
What Does It Cost to Build an Offshore Team?
The total monthly cost of an offshore team is generally calculated as:
Total monthly team cost = employee salaries + employer statutory contributions + 13th-month pay allocation + benefits and allowances + equipment and software + EOR management fees
For an EOR arrangement:
EOR management fees = number of employees × USD $190
The final cost depends on the number of employees, their compensation packages, benefits, working arrangements, equipment requirements, and other approved employee-specific costs.
### EOR Management Fee Examples
The following table shows the fixed EOR management fee only.
| Team size | Monthly EOR management fee |
|---|---|
| 1 employee | USD $190 |
| 3 employees | USD $570 |
| 5 employees | USD $950 |
| 10 employees | USD $1,900 |
| 20 employees | USD $3,800 |
These amounts do not include employee salaries, statutory contributions, 13th-month pay, benefits, allowances, equipment, or other employee-specific costs.
### Illustrative Offshore Team Cost Example
The following example is for planning only. The salary figures are illustrative and are not a formal salary survey or guaranteed rate card.
Assume a three-person team with the following monthly salaries:
| Role | Illustrative monthly salary |
|---|---|
| Customer support specialist | USD $1,500 |
| Operations coordinator | USD $1,800 |
| Technical specialist | USD $2,200 |
| Combined salaries | USD $5,500 |
| EOR management fee for three employees | USD $570 |
| Base cost before variable employee costs | USD $6,070 |
The final monthly cost may also include employer statutory contributions, 13th-month pay, benefits, allowances, equipment, software, and other employee-specific costs.
A formal quote should be based on the actual roles, compensation packages, employment terms, and start dates.
What Does the USD $190 EOR Fee Include?
The standard EOR management fee covers employment administration and related support, including:
- Employment contract administration
- Employee onboarding administration
- Payroll processing
- Salary disbursement coordination
- Employee records
- Statutory administration support
- SSS, PhilHealth, and Pag-IBIG administration
- 13th-month pay administration
- HR administration and employee support
- Benefits administration where applicable
- Employment documentation
- Offboarding administration
- Philippine employment compliance support
Recruitment and candidate selection are included in the standard EOR management fee.
The fee does not include employee salary or other employee-specific costs.
See the Philippines EOR pricing guide for additional pricing details.
What Costs Are Passed Through Separately?
The following costs are separate from the EOR management fee and are passed through at cost where applicable:
Employee salaries Salary depends on the role, experience, responsibilities, working hours, and candidate profile.
Employer statutory contributions Employer contributions are calculated based on the employee's compensation and applicable Philippine requirements.
13th-month pay Eligible employees may be entitled to 13th-month pay under applicable Philippine employment rules. This is separate from the EOR management fee.
Benefits and allowances The employment package may include:
- HMO or private healthcare
- Internet allowance
- Communication allowance
- Transport allowance
- Meal allowance
- Other agreed benefits
Private HMO or healthcare coverage is not automatically included in the standard EOR management fee.
Equipment and software Computers, software licences, connectivity, security tools, and other role-specific requirements may be charged separately.
These are employee-related pass-through costs and are not an additional SOS margin.
Is Recruitment Included?
Yes. Recruitment and candidate selection are included in the standard EOR management fee of USD $190 per employee per month.
The recruitment timeline may vary based on:
- Role requirements
- Experience and qualifications
- 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.
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
Salary, statutory costs, benefits, allowances, equipment, and other approved employee-specific costs remain separate.
A refundable security deposit equal to one month of the employee's base wage may also be required under the standard EOR agreement.
What Roles Can You Include in an Offshore Team?
Depending on your requirements, a Philippines-based team may include:
Customer support
- Customer Support Representative
- Technical Support Specialist
- Customer Success Assistant
- Helpdesk Representative
- Quality Assurance Specialist
- Customer Support Team Lead
See the guide to customer support teams in the Philippines.
Operations and administration
- Operations Coordinator
- Administrative Assistant
- Executive Assistant
- Data Entry Specialist
- Project Administrator
- Workforce Coordinator
Technology
- Junior Developer
- Software Developer
- Technical Support Specialist
- QA Tester
- Systems Administrator
You can learn more about hiring developers in the Philippines.
Sales, marketing, and virtual support
- Sales Development Representative
- Lead Generation Specialist
- Marketing Assistant
- Content Assistant
- Social Media Coordinator
- Virtual Assistant
For administrative and remote support roles, see virtual assistant services in the Philippines.
Does an Offshore Team Require a Philippine Company?
Not necessarily.
An Employer of Record can employ workers in the Philippines on your behalf while your business manages their daily work.
This allows you to test a team structure, hire a specific employee, or begin operations without immediately establishing your own Philippine entity.
EOR or BPO for an Offshore Team?
An EOR may be suitable when you want to hire specific employees and retain control over their daily work.
A BPO or managed-service arrangement may be more suitable when you want to outsource a defined business process or outcome to a provider.
| Consideration | EOR arrangement | BPO or managed service |
|---|---|---|
| Employee selection | Your business selects the employee | The provider may select and manage the team |
| Daily work direction | Your business manages daily work | The provider generally manages delivery |
| Employment administration | EOR manages local employment | Provider manages its staffing model |
| Pricing | Salary and employee costs plus USD $190 per employee | Usually bundled or service-based |
| Best suited for | Dedicated employees | Defined processes or outsourced outcomes |
Before comparing prices, confirm whether a BPO quote includes recruitment, supervision, equipment, technology, replacement coverage, reporting, and service-level commitments.
Can an Offshore Team Provide 24/7 Coverage?
A Philippines-based team may support different operating hours and time zones, including:
- Philippine business hours
- Asia-Pacific coverage
- United Kingdom and European coverage
- North American coverage
- Extended weekday coverage
- Weekend coverage
- Dedicated night shifts
- Follow-the-sun coverage
A 24/7 model requires appropriate staffing, shift planning, rest periods, handovers, supervision, training, and documented procedures.
24/7 coverage is not automatically included in the standard EOR management fee. The required staffing model and employment terms should be agreed before onboarding.
Who Manages the Offshore Team?
Your business manages the team's daily operations, including:
- Tasks and priorities
- Workflows
- Working schedules
- Tools and systems
- Training
- Quality standards
- Performance expectations
- Team communication
- Reporting requirements
SOS manages the formal employment relationship and Philippine employment administration.
Formal disciplinary, suspension, or termination actions should be coordinated with SOS so the appropriate employment process can be followed.
How Quickly Can You Build an Offshore Team?
For an existing employee who is ready to join the EOR arrangement, onboarding may be completed in as little as five business days after the required agreement, documentation, employee information, and funding are complete.
For a new team, the timeline depends on:
- Role definition
- Recruitment
- Candidate availability
- Interviews
- Background checks
- Customer approvals
- Employment documentation
- Training and systems access
- Required start dates
A larger team may be onboarded in stages rather than all at once.
Moving Contractors to an Offshore Team
If you already work with contractors in the Philippines, you may be able to transition them into an employee arrangement through an EOR.
Before making the change, review:
- Existing contractor terms
- Proposed employment start date
- Salary and benefits
- Final contractor payment
- Employment documentation
- Payroll timing
- Classification requirements
- Transition responsibilities
Read more about converting contractors to employees.
Frequently Asked Questions
How much does it cost to build an offshore team in the Philippines?
The total cost depends on salaries, employer statutory contributions, 13th-month pay, benefits, allowances, equipment, software, and EOR fees. The standard EOR management fee is USD $190 per employee per month.
Is recruitment included in the EOR management fee?
Yes. Recruitment and candidate selection are included in the standard EOR management fee.
Does the USD $190 fee include employee salaries?
No. Salary and other employee-specific costs are passed through separately at cost.
Are there setup or onboarding fees?
There are no separate SOS setup or onboarding fees under the standard pricing structure.
Do I need to establish a Philippine company?
No. An EOR can employ workers in the Philippines on your behalf while your business manages their daily work.
Can an offshore team work across different time zones?
Yes. Working hours and coverage should be defined based on customer locations, operating requirements, staffing capacity, and employment terms.
Is private HMO included?
Private HMO or healthcare coverage is not automatically included. It may be available upon request and treated as an employee-related pass-through cost.
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 operational requirements develop.
For additional buyer considerations, review the Philippines EOR master buyer FAQ.
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