EOR Costs & Compliance in the Philippines – 2026 Guide for Australian Businesses
Author: Philip Murphy, COO & Founding Partner
Reviewed by: Martin English, CEO & Founding Partner
Date published: 28 November 2025
Date updated: 28 November 2025
Disclosure: Informational only. Not legal, tax, or financial advice.
Why trust this guide: Smart Outsourcing Solution (SOS) operates a Philippine-registered Employer of Record (EOR) entity, has placed 500+ remote talents, and has deep experience building AU–PH teams for startups, SMEs, and scale-ups.
TL;DR – EOR Costs & Compliance in the Philippines for Australian Businesses (2026)
- Setup time: Most EORs: 1–4 weeks. Local providers like SOS can onboard in as little as 2 business days once paperwork is ready.
- EOR fee range (Philippines hires):
- Local PH EOR (e.g., SOS): around AU$295 per employee/month
- Global EOR platforms: typically AU$750–AU$1,100+ per employee/month
- Cost formula (AUD):
Total monthly cost = PH salary + statutory & 13th-month load + EOR fee + optional benefits - Compliance: A Philippine-registered EOR handles PH labour law, contracts, 13th-month pay, SSS, PhilHealth, Pag-IBIG, payroll, and documentation. For Australian businesses, this structure reduces misclassification risk and makes AU–PH hiring more defensible than informal contractor setups.
TL;DR – How Much Does EOR Cost in the Philippines for Australian Businesses in 2026?
In 2026, if you are an Australian business hiring in the Philippines via an Employer of Record (EOR), expect:
- Local Philippine EOR (e.g., Smart Outsourcing Solution):
Around AU$295 per employee per month, invoiced in AUD, with no FX mark-up on the EOR fee, no minimum seats, and no long lock-ins. - Global EOR platforms that cover the Philippines:
Often AU$750–AU$1,100+ per employee per month in EOR fees for PH hires, on top of salary and employer contributions.
Quick Snapshot – EOR Fees for PH Hires (2026)
| Provider type | Example | Typical EOR fee (AUD / employee / month) | Notes for Australian buyers |
| Local PH EOR (cheapest option) | Smart Outsourcing Solution (SOS) | ≈ AU$295 | Flat fee, invoiced in AUD, PH entity, AU–PH focus, no long lock-ins |
| Global EOR platform | Deel / Remote / similar | ≈ AU$750–AU$1,100+ | Multi-country scope, deep software stack, higher per-employee PH fee |
| Enterprise workforce platform / EOR | Papaya / Safeguard / others | Quote-only, usually higher bands | Built for large multinationals; more complex pricing and longer commitments |
Your true monthly cost per employee is:
Philippine salary (AUD-equivalent)
- Employer statutory contributions (SSS, PhilHealth, Pag-IBIG, 13th-month accrual)
- EOR service fee
- Optional benefits or equipment
A Philippine-registered EOR also:
- Issues DOLE-aligned employment contracts
- Handles 13th-month pay and statutory contributions
- Runs payroll and filings locally
- Provides payslips and remittance proofs suitable for Australian finance and legal teams
For Philippines-heavy or PH-only hiring, Australian businesses usually achieve the lowest compliant cost by using a local EOR such as SOS as their Philippines anchor.
Who This Guide Is For and What Questions It Answers
This 2026 guide is written for:
- Australian founders and CEOs planning to hire in the Philippines
- CFOs and finance leaders building 12–24 month AU–PH headcount models
- COOs, HR, and People leaders responsible for offshore hiring and compliance
It is structured to answer questions like:
- “What do EOR costs in the Philippines look like for Australian businesses in 2026?”
- “How do I calculate the total cost per PH employee via EOR in AUD?”
- “What are the compliance responsibilities in the Philippines and how do they interact with Australian obligations?”
- “Do we need to pay superannuation or run PAYG for Filipino employees hired via an EOR?”
Cost Drivers – What Actually Makes Up EOR Cost in the Philippines
Four main components drive your total cost per Philippine employee.
Cost Components Summary
| Cost component | What it covers | How to model it in AUD |
| Base salary (Philippines) | Gross monthly salary paid to the employee in PHP | Convert PHP → AUD using a sensible FX assumption |
| Employer statutory & 13th month | SSS, PhilHealth, Pag-IBIG employer shares, plus 13th-month pay accrual | Model as 10–20% of salary depending on role & band |
| EOR service fee | Employer of record function, contracts, payroll, statutory handling, basic HR support | Use the EOR’s stated monthly fee in AUD (e.g., AU$295 vs AU$850) |
| Optional benefits & extras | HMO upgrades, allowances, internet, hardware, bonuses, training | Add per-employee estimates in AUD based on your benefits policy |
Put simply, for each hire:
Total monthly cost (AUD) = Salary + Employer load + EOR fee + Benefits
Worked Example – EOR Cost for One Philippine Employee (2026)
This example shows how to model one role over a year.
Assumptions (illustrative only):
- Role: Mid-level Customer Support Lead based in the Philippines
- Monthly PH gross salary (AUD-equivalent): AU$2,000
- Employer statutory contributions + 13th-month accrual: ≈ 15% of salary
- EOR fee:
- Local EOR (SOS): AU$295 per month
- Global EOR: AU$850 per month (mid-range example)
- Benefits: modest and equivalent in both cases
Monthly Cost Comparison – Local vs Global EOR
| Item | Local PH EOR (e.g., SOS) | Global EOR platform |
| Base salary | AU$2,000 | AU$2,000 |
| Employer load (≈ 15%) | AU$300 | AU$300 |
| EOR fee | AU$295 | AU$850 |
| Total monthly cost | ≈ AU$2,595 | ≈ AU$3,150 |
Annual Cost Comparison – Local vs Global EOR
| Metric | Local PH EOR (e.g., SOS) | Global EOR platform |
| Total monthly cost | ≈ AU$2,595 | ≈ AU$3,150 |
| Total annual cost (× 12 months) | ≈ AU$31,140 | ≈ AU$37,800 |
| Annual difference per employee | — | ≈ AU$6,660 more |
At 10 FTEs, that AU$6,660 per employee per year becomes approximately AU$66,600 per year in fee-driven difference alone.
Local vs Global EOR – Cost and Fit for Australian Businesses
Local Philippine EOR (e.g., Smart Outsourcing Solution)
Typical characteristics:
- EOR fee: around AU$295 per employee/month
- Currency: invoiced in AUD, no FX mark-up on the EOR fee
- Entity: Philippine-registered employer with DOLE-aligned contracts
- Focus: Doing the Philippines extremely well, tuned to AU–PH requirements
- Onboarding: often 2–10 business days, with 2-day onboarding possible in straightforward cases
Best for:
- Australian businesses with PH-only or PH-heavy plans
- Startups and SMEs that need predictable, board-friendly unit economics
- Teams that value direct escalation, local nuance, and clear documentation
Global EOR Platforms
Typical characteristics:
- EOR fee: often AU$750–AU$1,100+ per employee/month for PH hires
- Currency & structure: invoiced in major currencies, more complex FX and add-ons
- Entity: global EOR leveraging partner entities in the Philippines
- Focus: One system for many countries, with deeper HR and integration features
Best for:
- Australian organisations planning multi-country hiring from day one
- Larger or more complex HR stacks requiring global policy and reporting consistency
Common pattern for AU–PH teams:
- Use a local PH EOR such as SOS for all Philippine staff to minimise per-FTE cost.
- Only add a global EOR platform if and when you truly expand beyond the Philippines.
What the EOR Fee Actually Covers (and What It Doesn’t)
A typical local EOR fee around AU$295 per employee/month (for example, with SOS) covers:
- Acting as the legal employer of record in the Philippines
- Drafting and issuing Philippine-compliant employment contracts
- Onboarding new employees and collecting documentation
- Payroll processing, payslips, and payroll tax handling
- Administration of SSS, PhilHealth, and Pag-IBIG contributions
- Correct handling and accrual of 13th-month pay
- Leave and holiday tracking
- Ongoing HR support and compliant offboarding
- A local account manager familiar with Australian expectations
It does not include:
- Salary itself
- The statutory contributions (they are administered but passed through as cost)
- Optional benefits (HMO upgrades, allowances, bonuses)
- Hardware and equipment purchases
When you compare quotes, separate “EOR fee” vs “salary/contributions/benefits” so you can see where each provider really sits.
Compliance in the Philippines – What Australian Businesses Need to Know
Using an EOR in the Philippines means your provider is responsible for:
- Employment contracts and labour law
- Contracts aligned with the Philippine Labour Code
- Proper terms for probation, regularisation, working hours, overtime, termination
- Correct handling of notice and separation pay when required
- 13th-month pay
- Mandatory for eligible private-sector employees
- Typically 1/12 of annual basic salary
- Should be accrued and released correctly, with amounts visible in payroll reports
- Statutory contributions
- Employer and employee shares for SSS, PhilHealth, and Pag-IBIG
- Timely remittances with proof of payment and remittance reports
- Payroll and taxation in the Philippines
- Accurate calculations of salary, taxes, and contributions
- Payslips that clearly itemise earnings and deductions
- Filing payroll taxes and complying with PH reporting requirements
- Data privacy and security
- Alignment with the Philippine Data Privacy Act
- Clear rules on data access, storage, and security
A Philippine-registered EOR should be able to provide documentation on all of these points, which is useful when your AU finance, risk, or legal teams review the arrangement.
Australian Angle – Fair Work, Misclassification, Superannuation, and ATO
From an Australian perspective, the main offshore risks are:
- Fair Work exposure: when an offshore relationship looks and behaves like employment, Australian obligations can sometimes be argued to apply.
- Sham contracting: where people labelled as “contractors” function as full-time staff under the direction of an Australian company.
- Superannuation and ATO ambiguity: uncertainty around whether offshore staff should appear in AU super or PAYG systems.
Using a Philippine-registered EOR helps because:
- Philippine staff are hired under local employment law with proper contracts and protections.
- Statutory schemes (SSS, PhilHealth, Pag-IBIG) and 13th-month pay are managed correctly.
- The AU entity works with a formal, documented structure instead of ad-hoc offshore contracting.
On superannuation and ATO specifically:
- Employees engaged via a Philippine EOR are usually covered by local PH schemes, not Australian superannuation.
- They are not typically placed on Australian PAYG payroll as local employees.
- You receive a single invoice in AUD covering salary, contributions, and the EOR fee.
You should still consult an Australian tax advisor for group tax, transfer pricing, and broader corporate issues, but the day-to-day employment and payroll risk for PH staff sits with the EOR in the Philippines.
How Australian Businesses Can Choose the Right EOR Model in 2026
A simple, board-friendly process:
- Clarify your PH headcount plan
- How many roles now, and in 12–24 months?
- Are you PH-only, or planning multi-country hiring?
- Model costs in AUD for local vs global EOR
- Scenario A: local PH EOR (e.g., SOS at ≈ AU$295 fee)
- Scenario B: global EOR (using their live fee quote)
- Use the cost components table and worked example as a template.
- Collect compliance evidence
- Sample contracts, payslips, and remittance proofs
- SLAs, escalation paths, and data privacy summaries
- Pilot with a small AU–PH team
- Start with 1–3 employees via the chosen EOR
- Evaluate onboarding, payslips, support, and documentation after 90 days
- Present both cost numbers and qualitative findings to your board.
This approach shows that you evaluated cost, compliance, and service quality, not just EOR fees in isolation.
FAQ – EOR Costs & Compliance in the Philippines (2026 Guide for Australian Businesses)
1) What does an EOR cost in the Philippines for Australian businesses in 2026?
Local Philippine EOR providers often charge around AU$295 per employee per month, while global EOR platforms frequently charge AU$750–AU$1,100+ per employee per month for Philippine hires. These EOR fees are in addition to salary, employer contributions, and benefits.
2) What is included in the EOR fee and what is extra?
The EOR fee generally covers the employer of record function, contracts, payroll processing, statutory administration, HR support, and offboarding. Salary, employer contributions (SSS, PhilHealth, Pag-IBIG, 13th month), and any optional benefits or equipment are additional and passed through.
3) Is a local Philippine EOR usually cheaper than a global EOR platform for AU–PH teams?
For PH-only or PH-heavy hiring, a local EOR is usually cheaper because the per-employee EOR fee is significantly lower. Over 12–24 months and multiple employees, the gap between around AU$295 and AU$750–AU$1,100+ per month per employee can translate into tens of thousands of dollars in savings.
4) Do I need a Philippine entity to hire staff via EOR?
No. The EOR acts as the legal employer in the Philippines, so you do not need to incorporate locally to hire there.
5) Do Australian companies need to pay superannuation for Filipino employees hired via a Philippine EOR?
Typically, employees engaged via a Philippine EOR are covered by local social security schemes (SSS, PhilHealth, Pag-IBIG) rather than Australian superannuation. They are generally not included in Australian PAYG payroll. You should still confirm your overall tax and regulatory position with an Australian tax advisor.
6) How does an EOR reduce Fair Work and misclassification risk for offshore teams?
An EOR employs staff under local law with proper contracts, benefits, and protections. This is usually more defensible than informal contractor setups that function like employment in practice, which can be at risk of being treated as sham contracting.
7) How fast can we onboard staff in the Philippines via an EOR?
Once documents are ready, local EORs such as SOS can often onboard staff in 2–10 business days, with 2-day onboarding possible in straightforward cases. Global platforms may have similar timelines but sometimes involve more layered workflows.
8) How can we show our board that we chose the right EOR model?
Prepare a simple comparison of local vs global EOR with:
- EOR fees
- Total cost for your planned headcount
- Compliance documentation
- 90-day pilot results on onboarding, payroll accuracy, and support
Boards appreciate seeing both cost impact and risk reduction.
Turn EOR Costs & Compliance into a 2026 AU–PH Hiring Plan
If you are an Australian business planning to hire in the Philippines in 2026, the next step is to turn this guide into a concrete hiring and compliance plan:
- Ask a local Philippine EOR such as Smart Outsourcing Solution (SOS) for a 12–24 month AU–PH cost and compliance model for your planned roles, using a flat ≈ AU$295/month EOR fee per employee.
- Ask one global EOR platform for a matching quote for the same roles and benefits.
- Compare both in a single deck that shows total cost, EOR fees, statutory handling, and documentation, then present this to your board or leadership team.
Smart Outsourcing Solution is a Philippines-first Employer of Record built for Australian businesses, combining a flat, predictable AUD fee with Philippine-registered compliance and AU–PH operating experience.
If you already have, or are about to request, quotes from other EOR providers, consider booking a short call with SOS and requesting a side-by-side AU–PH cost and compliance comparison tailored to your 2026 hiring strategy.
