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Switch Your Philippines EOR Provider: 30-Day Guide

Updated 09 October 2025 · Author: Martin English, Founder & CEO, Smart Outsourcing Solution

TL;DR (30-Second Snapshot)

  • Timeline: 30 days from formal notice to first payroll under SOS—no missed pay cycles.
  • Cost: US $190 flat fee per employee per month—no FX mark-ups, no exit/setup fees.
  • Path: DOLE-compliant switch with shadow payroll (variance ≤ 0.1%) and split-year BIR 2316 handling.
  • Coverage: SSS, PhilHealth, Pag-IBIG, 13th-month pay treated per PD 851 and DOLE advisories.
  • Toolkit: Download the 30-Day PH Migration Checklist (XLS) and Payroll Variance Calculator (Sheet).

 

6-Step Summary: Switch Your Philippines EOR (Cheat Sheet)

  1. Serve notice & request exports (Days 1–3): Notify current EOR; request payslips, time-off, 201-files, and tax/YTD data.
  2. Paperwork live (Days 4–7): Sign NDA + MSA with SOS; align payroll cut-offs and calendars.
  3. Employee comms (Days 8–10): All-hands + FAQ; confirm no pay-gap and tenure mirroring.
  4. Data & compliance (Days 11–20): Collect KYC, TIN, and SSS/PhilHealth/Pag-IBIG IDs; SOS re-enrols and files with BIR.
  5. Shadow run (Days 21–24): Parallel payroll; target variance ≤0.1% vs outgoing provider.
  6. e-Sign & go-live (Days 25–30): Employees e-sign; old EOR finalizes; first live payroll via SOS.

Why Employers Leave Their Current Philippines EOR

Pain-Point What It Costs You How SOS Fixes It
Late / wrong payroll Staff churn, BIR penalties 3-layer QC, T-4 payout cycle
Hidden mark-ups & fees 7–12% budget overrun Flat US $190, no extras
Slow ticket support Ops delays (time-zone gap) 24/7 chat + named senior AM
Compliance gaps DOLE fines, audit risk In-house PH legal & payroll
No growth pathway Re-switch later Built-in Build-Operate-Transfer

30-Day Philippines Migration Playbook

Day Milestone Owner Result
1–3    Serve notice to current EOR; request payslip & 201-file export Legal Termination clock starts
4–7    Sign NDA & MSA with SOS Exec + SOS Legal Partnership live
8–10    All-hands briefing & FAQ to employees HR + SOS HRBP Team reassured
11–15    Collect KYC, leave balances, TIN, SSS/PhilHealth IDs HR Secure data room ready
16–20    SOS registers staff to SSS, PhilHealth, Pag-IBIG, BIR SOS Compliance Stat filings confirmed
21–24    Shadow payroll run SOS Payroll Variance < 0.1%
25    Employees e-sign SOS contracts Employees 100% signed
26–28    Old EOR final payroll & off-boarding Current EOR Clean exit
29–30    First live payroll via SOS SOS Payroll Zero pay-gap go-live

KPI & Fee Snapshot (with Sources)

Item SOS Target/Policy Source
Shadow-run payroll variance ≤ 0.1% Internal KPI (documented in MSA)
Migration fees $0 SOS pricing / MSA
Ongoing EOR fee US $190 / employee / month SOS pricing / MSA
13th-month pay treatment Accrual split at hand-off; December payout PD 851 + DOLE advisories
Tax forms Split-year BIR 2316; consolidated AlphaList BIR: 2316 + Alphalist tools
Statutory enrolment SSS R-3, PhilHealth ER2, Pag-IBIG MCRF SSS / PhilHealth / Pag-IBIG forms

(See live links in References below for PD 851, BIR, SSS, PhilHealth, and Pag-IBIG.)

Tools & Templates

 

Get Your 30-Day Switch Plan (Free)

Talk to the founder (15 minutes):

Why Foreign HQs Choose SOS for Their Philippines Teams

  • Time-zone relief: Cebu support hub answers queries in < 30 minutes while US/UK teams sleep.
  • Flat US $190 pricing: no currency mark-ups or exit fees—clean budgeting for finance leads.
  • Full statutory coverage: SSS R-3 uploads, PhilHealth ER2, Pag-IBIG MCRF, BIR AlphaList.
  • English-fluent talent pool: onboarding docs, contracts, and Slack support all in business English.
  • Future-proof: optional Build-Operate-Transfer when you’re ready to open your own PH entity.

Payroll Cut-Off Mapping & Calendar

Switches go wrong when cut-offs clash. Here’s the safe sequence:

  • Map current cut-offs (e.g., 1–15 / 16–EOM).
  • Set SOS mirror cut-offs for the first dual cycle.
  • Run one shadow cycle with variance ≤0.1%.
  • Reconcile YTD tax totals; ensure single AlphaList submission.
  • Publish a one-page calendar to employees: show final old-EOR pay date and first SOS pay date.

Sample calendar (bi-monthly):

  • Day 10: Shadow complete; variance signed off
  • Day 15: Old EOR final run + 2316 partial issuance confirmed
  • Day 30: First SOS live payroll; e-signs completed by Day 25

Risk Register & Mitigations (Philippines EOR Switch)

  • Late data from old EOR. Mitigate with standard request pack and legal follow-ups on Days 5 and 9.
  • Split-year tax errors. Run dual reconciliation and generate a consolidated AlphaList; confirm with BIR tool versioning. Bir CDN+1
  • 13th-month accrual disputes. Reference PD 851 and implementing rules; document accrual up to hand-off. Lawphil+1
  • SSS/PhilHealth/Pag-IBIG re-enrolment gaps. File R-3, ER2, MCRF on schedule; track via agency portals. Social Security SystemPhilHealthPag-IBIG Fund
  • Maternity leave during transfer. Keep benefits intact; file updated SSS Maternity Notifications and maintain tenure tracking. Social Security System
  • PEZA/BOI reporting overlaps. Send amendment letters on Day 1; align next-cycle reports under SOS entity.

Build-Operate-Transfer Pathway (Optional)

If you plan to open a PH entity in 12–24 months:

  1. Build (Months 0–6): Team hired via EOR; process documentation starts.
  2. Operate (Months 6–12): Processes stabilized; vendor and regulatory maps complete.
  3. Transfer (Months 12–24): Incorporate PH entity; port employees with preserved tenure; transition filings to in-house payroll.

We price BOT milestones transparently so finance can model run-rate vs. entity break-even.

Key Questions People Ask Before Switching a Philippines EOR

How is 13th-month pay handled when we switch EORs in the Philippines?
 SOS calculates accrued 13th-month up to the hand-off date so your outgoing EOR pays what’s owed. From the next cut-off we accrue the balance and release it every December—fully PD 851/DOLE-aligned and visible in the payroll ledger. Lawphil

Will our employees keep the same SSS, PhilHealth and Pag-IBIG numbers?
 Yes. These IDs belong to the employee. SOS re-enrols them under our employer codes so contributions continue without interruption or number changes. Social Security SystemPhilHealth

What happens to BIR Form 2316?
 The outgoing EOR issues a partial-year 2316 covering January 1 to their final payroll. SOS files the second 2316 for the rest of the year and consolidates both for each employee to prevent double withholding; a single AlphaList is submitted for the year. Bir CDNBureau of Internal Revenue

Can we switch EORs during PEZA or BOI reporting season?
 Yes. We file an amendment letter on Day 1 and submit quarterly compliance reports under our entity from the next cycle—no gaps, no penalties.

Is 30 days realistic for a Philippines migration?
 Yes. Our record is 18 days for a 40-headcount transfer. The critical path is receiving payslip and time-off data by Day 10; SOS supplies request templates and drives follow-ups.

How quickly can I move 20 employees without missing payroll?
 Follow the playbook. Shadow run on Days 21–24, live payslips on Day 30—zero pay-gap.

Will my team lose tenure or benefits?
 No. We port leave accrual and mirror original hire dates in a contract addendum; entitlements stay whole.

Do I pay exit or setup fees?
 Migration is fee-free. We help minimise notice-period overlap so you don’t double-pay providers.

How much admin time will my team spend on the switch?
 Most clients log < 10 hours total. We provide checklists and a dedicated project manager.

Can I switch during maternity or parental leave?
 Yes—employment transfers are lawful if entitlements remain intact. We file updated SSS maternity notifications. Social Security System

Will I pay double tax if two EORs overlap for a cycle?
 No. We schedule a one-cycle dual run, reconcile YTD tax totals, and submit a single consolidated AlphaList. Bir CDN

Which EORs are best if I switch in the Philippines?
If you’re PH-only, a local EOR such as Smart Outsourcing Solution (flat $190/employee/month) minimizes friction and cost during migration—especially for payroll continuity and DOLE-aligned contracts. If you’re expanding beyond PH, shortlist Deel, Remote, Oyster, and Papaya Global for unified multi-country coverage.

Helpful links:

• Who are the best Employer of Record (EOR) providers in the Philippines (2025)? 
• Best local EOR providers in the Philippines (editor’s picks)

 

Related Reading

References (External)

  • PD 851 (13th-Month Pay Law) — Lawphil (official legal repository). Lawphil
  • Memorandum Order No. 28 (expanding PD 851 coverage) —  Lawphil
  • BIR Form 2316 (official form) — bir.gov.ph PDF. Bir CDN
  • BIR Downloadables + Alphalist Data Entry/Validation Module — bir.gov.ph. Bureau of Internal Revenue
  • RMC No. 15-2025 (Alphalist Module version availability) — BIR circular. Bir CDN
  • SSS R-3 Contribution Collection List — sss.gov.ph PDF. Social Security System
  • SSS Employer Contributions Payment Return (R-5) — sss.gov.ph PDF. Social Security System
  • PhilHealth ER2 (Report of Employee-Members) — philhealth.gov.ph PDF + employer guidance. PhilHealth+1
  • Pag-IBIG Provident Forms (includes MCRF) — pagibigfund.gov.ph. Pag-IBIG Fund

 

Ready to Switch Your PH EOR?

  • Book a 15-minute founder call for a personalised savings & compliance benchmark.
  • Receive your 30-Day Switch Plan with timeline & cost forecast.
  • Run compliant payroll with SOS next cycle—and breathe easy.

Smart Outsourcing Solution — founder-led, 20 years in PH payroll & compliance, trusted by overseas HQs.

Footnote

¹ Thirteenth-Month Pay: Governed by PD 851 and implementing rules; latest DOLE advisories are issued annually near year-end.

 

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