─ Employer of Record Philippines
Hire Employees in the Philippines Without Setting Up a Company
UPDATED: September 29, 2026
Yes, you can hire employees in the Philippines without establishing your own Philippine company. An Employer of Record lets you engage Philippines-based professionals as employees through a local employing entity while your business manages their daily work.
Smart Outsourcing Solution provides this service through Global BPO Solution Philippines Inc., the Philippine legal employer. The local entity manages employment contracts, payroll, statutory administration, employee records and formal employment processes.
─ In Brief
Key Takeaways
- Recruitment and candidate sourcing are included; your business selects its preferred candidate.
- Salary, statutory contributions, 13th-month pay, benefits, allowances, equipment, and other employee-specific costs are passed through separately at cost.
- No separate SOS setup, onboarding, exit or offboarding fee applies under standard pricing. Employee liabilities remain separate.
- A refundable employee-liability deposit is required at commencement and annually, each equivalent to one month’s base salary.
- You can hire employees in the Philippines without creating your own local entity.
- Global BPO Solution Philippines Inc. is the Philippine legal employer under the SOS EOR service.
- Your business continues to manage the employee’s daily work.
- The standard EOR management fee is US$190 per employee per month.
─ HIRING WITHOUT A LOCAL ENTITY
How Can You Hire in the Philippines Without a Local Company?
You do not need to incorporate your own Philippine subsidiary, register as a local employer or establish internal Philippine payroll merely to hire through an EOR.
Your business still signs an EOR services agreement and meets its contractual, funding, operational and data-protection responsibilities.
An EOR provides the local employment structure. To get started:
01 Define the role, working hours, location and proposed compensation.
02 Select a candidate or ask SOS to source and screen applicants.
03 Review the itemised cost model and sign the services agreement.
04 Complete employment documentation, onboarding information and advance funding.
05 Agree the start date, systems access and day-to-day reporting arrangements.
─ HIRING OPTIONS
Which Hiring Model Is Right for You?
| Hiring Model | Best Suited For | Main Consideration |
|---|---|---|
| Employer of Record | Hiring a named employee in the Philippines | A local EOR manages formal employment administration |
| Freelancer or Independent Contractor | Clearly independent project-based work | The relationship must genuinely operate as an independent contractor arrangement |
| BPO or Outsourced Service | Delegating a process or defined business function | The provider generally manages the delivery team and process |
| Philippine Entity | Building a larger long-term local operation | Your business takes responsibility for local entity, payroll, HR, and compliance administration |
An EOR is generally appropriate when you want to hire a specific person as an employee while retaining operational control over their daily work. For a detailed comparison, see EOR versus freelancer hiring in the Philippines.
─ EOR EXPLAINED
What Smart Outsourcing Solution Manages
SOS coordinates employment administration through Global BPO Solution Philippines Inc., the Philippine legal employer.
Services include contracts and onboarding; payroll, deductions and payslips; tax-withholding and BIR processes; SSS, PhilHealth and Pag-IBIG administration; 13th-month pay; employee records, HR support and benefits administration; and formal employment and offboarding processes.
The exact service scope remains subject to the applicable agreement and employment arrangement.
What Your Business Manages
Your business manages daily work, training, objectives and operational performance.
You define roles, interview and select candidates, set priorities, provide systems and tools, establish working schedules and direct daily activities.
Formal warnings, disciplinary action, suspension, changes to employment terms and termination must be coordinated with SOS and handled through the appropriate Philippine employment process.
─ EOR COST
Philippines EOR Pricing
US$190
| Cost Item | Standard Treatment |
|---|---|
| EOR Management Fee | US$190per employee per month |
| Recruitment and Candidate Sourcing | Included in the standard EOR management fee |
| Final Candidate Selection | Managed by the client |
| Employee Salary | Passed through at cost |
| Employer Statutory Contributions | Passed through at cost |
| 13th-Month Pay | Passed through at cost |
| Benefits and Allowances | Passed through at cost where applicable |
| Equipment | Passed through at cost |
| Other Employee-Specific Costs | Passed through at cost |
| Setup and Onboarding Fees | No separate SOS fee |
| Exit and Offboarding Fees | No separate SOS fee |
| Foreign Exchange Markup | No additional FX markup under standard pricing |
| Refundable Employee-Liability Deposit | One month’s base salary at commencement and annually; salary-related adjustments apply |
SOS charges no separate provider termination or exit fee. Final salary, unused leave, statutory separation pay, notice obligations and other employee-related liabilities remain payable where applicable.
The employee-liability deposit secures potential termination or redundancy costs. It is separate from the fee, accumulates through annual invoicing and adjusts for salary increases. Any remaining balance is refundable subject to settlement of obligations and the agreement.
You can review the full Philippines EOR pricing structure.
─ EOR EXPLAINED
Is Recruitment Included?
Yes. Recruitment and candidate sourcing are included in the standard EOR management fee. SOS supports sourcing and screening; your business interviews and selects its preferred candidate.
Recruitment timing depends on the role, candidate availability, interviews, checks and approvals. Confirm a realistic start date before making commitments.
How Quickly Can You Start?
Recruitment can extend the timeline. Where the individual is already employed by another provider, the existing employment relationship and transition process must first be addressed.
─ FEE STRUCTURE
How Is the Total Cost Calculated?
A general cost calculation is:
The applicable agreement and cost model must confirm invoice cut-offs, funding dates and payroll treatment. SOS is not required to advance payroll where cleared customer funds have not been received.
─ EOR EXPLAINED
Benefits and Healthcare
Eligible rank-and-file employees are generally entitled to statutory 13th-month pay. SOS accrues and administers it pro rata as an employee-related cost separate from the management fee. The general calculation is one-twelfth of basic salary earned during the calendar year, under Presidential Decree No. 851 and its implementing rules.
Private HMO coverage is separate from statutory PhilHealth. It may be arranged on request and charged as an employee-related cost outside the management fee.
What Happens If You Already Have a Contractor?
An existing contractor may move into employment through an EOR. Review classification and the previous arrangement separately: conversion does not automatically remove historical liabilities.
Before the change, agree final contractor payments, notice requirements, salary and benefits, employment documentation, the start date and payroll funding. Compare contractor fees with employee take-home pay before finalising terms.
Read more about converting contractors to employees in the Philippines.
Intellectual Property and Work Product
─ Questions
Frequently Asked Questions
Yes. The SOS EOR service supports individual hires and teams. Global BPO Solution Philippines Inc. is the Philippine legal employer; your business directs daily work, training and operational performance. Formal employment decisions must be coordinated with SOS.
The standard fee covers EOR administration, recruitment and candidate sourcing. Your business selects the candidate. Salary, statutory contributions, 13th-month pay, benefits and approved employee-specific costs are separate. Request an itemised quote before agreeing terms.
Yes. The standard agreement invoices one month’s base salary at commencement and annually, with salary-related adjustments. The deposit secures employment liabilities; the remaining balance is refundable subject to settlement and the agreement.
A selected candidate or existing contractor may start in as little as five business days after agreements, documents, employment information and advance funding are complete. Recruitment can take longer. A move from another EOR requires review of the existing employment, notice, final pay, benefits and new start date; continuity is not automatic.
Alternative schedules are possible, subject to Philippine working-hour and rest requirements. Applicable holiday pay, overtime and night differential are additional employee costs. Confirm eligibility, schedules and payroll treatment under the Philippine Labor Code before work starts.
Neither is automatically included in the management fee. Agree who supplies and maintains equipment, grants system access and manages returns. Private HMO coverage can be requested separately and is distinct from statutory PhilHealth.
Standard pricing has no separate SOS setup, onboarding, exit or offboarding fee and no long-term lock-in. The service may end on 30 days’ written notice, subject to the agreement. Final pay, applicable unused leave, separation pay, notice obligations and approved third-party costs remain payable. Ending the service does not automatically end employment.
Yes. After the agreement ends or expires, SOS charges no employee-transfer fee if outstanding obligations are paid and the employment transition is properly managed. Direct hiring during the agreement requires prior written consent.
─ SCHEDULE A CALL
Hire in the Philippines Without Setting Up a Company
Tell us the role, headcount, preferred working hours and whether you have selected candidates, existing contractors or employees with another provider. SOS can assess the arrangement and prepare an itemised cost model and onboarding plan.
