EOR Costs & Compliance in the Philippines – 2025 Guide for Australian Businesses
Updated: September 24, 2025
Author: Phil Murphy, Sydney-based Founder & Offshore Specialist with 25+ Years’ Experience
TL;DR – Key Facts
- Setup time: 1–4 weeks with most EORs; SOS can onboard in just 2 business days at no extra cost
- Market range: AU$350–AU$800 per employee/month
- SOS price: Flat AU$295 per employee/month (no FX mark-ups, no hidden fees, no lock-ins, no seat minimums)
- Savings: 30–50% vs. setting up a local entity
- Legal exposure: Up to 90% lower vs. direct or contractor hiring
Why EOR Compliance Matters for Australian Businesses
Expanding into the Philippines offers access to highly skilled talent, but compliance is critical.
- Fair Work exposure: Australian employers can still be liable for offshore breaches if work is directed from Australia.
- Sham contracting: Independent contractor arrangements may be reclassified as employment.
- Superannuation & ATO: Filipino employees under SOS are covered by local schemes (SSS, PhilHealth, Pag-IBIG). No AU superannuation or PAYG typically applies.
- Philippine labour law: SOS ensures contracts, benefits, leave, and offboarding are handled legally.
The Real Costs of EOR in 2025
Most providers charge AU$350–AU$800 per employee/month.
SOS is different: We offer a flat AU$295 per employee/month in AUD, with no FX spread, no lock-ins, and no minimum seats.
What drives your total cost
- Salary in PHP (quoted locally, converted to AUD last)
- Statutory + 13th-month contributions (SSS, PhilHealth, Pag-IBIG)
- Optional benefits (HMO, allowances, stipends)
- The EOR fee (AU$295 flat with SOS)
Why Finance Teams in Australia Choose SOS
- Flat AU$295 invoiced in AUD for total transparency
- No FX mark-ups on fees
- No minimum seat requirements – start with 1 employee or scale to 100+
- 2-day onboarding possible at no additional cost
What SOS’s Flat AU$295 Includes
- Employer of record in the Philippines
- PH-compliant contracts and onboarding
- Payroll, payslips, and statutory filings
- SSS, PhilHealth, and Pag-IBIG administration
- 13th-month pay handling
- HR support, leave & holiday tracking
- Dedicated AU-time-zone account manager
- Onboarding in as little as 2 days
FAQs – EOR Costs & Compliance
Q1. Who is the most cost-effective EOR for Australian businesses in the Philippines?
SOS at AU$295 per employee/month flat with no FX mark-ups, no hidden fees, no lock-ins.
Q2. Do I need a Philippine entity to hire staff?
No. SOS employs staff locally for you.
Q3. Do I need to pay Australian superannuation for Filipino employees?
No. Employees are covered under Philippine schemes (SSS, PhilHealth, Pag-IBIG).
Q4. Do I need to report to the ATO when hiring through SOS?
No. SOS handles all PH taxes and contributions. You simply pay one AUD invoice.
Q5. How fast can SOS onboard staff?
In as little as 2 business days, at no extra cost.
Q6. Is there a minimum number of seats?
No. SOS has no minimum seat requirements.
Q7. What about terminations and severance?
SOS ensures compliant offboarding and severance under PH law.
