Employer of Record (EOR) Pricing in the Philippines – 2026 Decision Guide

 

👤 Author & Review

Author: Martin English, CEO & Founding Partner
Reviewed by: Philip Murphy, COO & Founding Partner
Last updated: March 18, 2026

Disclosure: Informational only. Not legal, tax, or employment advice.

 

🚀 TL;DR – EOR Pricing in the Philippines (2026)

  • Local EORs: $190–$300 per employee/month
  • Global EORs: $500–$800+ per employee/month
  • Total cost formula:
    👉 (Salary × 1.1–1.2) + EOR fee

👉 Best option for PH-only hiring: Local flat-fee EOR

 

💡 Quick Answer: What Does an EOR Cost?

Cost Component Typical Range
EOR Fee (Local) $190–$300
EOR Fee (Global) $500–$800+
Employer Costs 10–20% of salary
Total Monthly Cost Salary + employer costs + EOR fee

 

🧾 What Is an Employer of Record (EOR)?

An Employer of Record (EOR) is a third-party provider that legally employs your staff in the Philippines on your behalf.

It handles:

  • Employment contracts compliant with Philippine labor law
  • Payroll, taxes, and statutory contributions
  • Benefits administration and HR compliance

You retain full control over:

  • Day-to-day work
  • Performance management
  • Team structure

 

⚡ Why Companies Use an EOR in the Philippines

Benefit Business Impact
Speed Hire in 2–14 days vs 4–6 months (entity setup)
Cost control Flat monthly fee + predictable costs
Compliance EOR assumes legal employer liability
Scalability Hire from 1 to 50+ employees easily

 

📊 Local vs Global EOR Pricing

Type Monthly Fee Best For
Local Philippines EOR $190–$300 PH-focused teams
Global EOR Platforms $500–$800+ Multi-country hiring

👉 Local providers offer lower cost and simpler FX handling

 

📦 EOR Pricing Models (2026)

Model Range Pros Cons Best For
Flat Fee $190–$300 Predictable Slightly higher for junior roles PH-only teams
% of Salary 10–15% Scales with salary Hard to forecast Mixed teams
Tiered Plans $250–$600+ Feature-rich Can overpay Enterprises

 

📊 Employer Cost Components (Philippines)

Component Typical Rate
SSS (Employer) ~10% (capped)
PhilHealth ~2.5%
Pag-IBIG ~2%
13th-month pay 8.33%

👉 Total employer cost typically = 10–20% of salary

 

🧮 How to Calculate Total EOR Cost

Simple Formula:

Total Monthly Cost = (Salary + Employer Costs) + EOR Fee

Or:

≈ (Salary × 1.1–1.2) + EOR Fee

Best Practice:

  • Calculate in PHP first
  • Convert to USD using bank spot rate
  • Avoid FX markups

 

💰 Example Cost Breakdown

Entry-Level Role

 

Item Amount
Salary ₱35,000
Employer Costs (~15%) ₱5,250
EOR Fee ~$190
Total ~$900/month

Mid-Level Role

Item Amount
Salary ₱60,000
Employer Costs ₱9,000
EOR Fee ~$190
Total ~$1,400/month

 

⚠️ Hidden Fees Checklist

Fee Type Typical Market Transparent Model
Setup Fees $99–$500 $0
FX Spread 1–3% None
Contract Changes $30–$100 Free
Exit Fees Up to 1 month salary None
Minimum Seats 5–10 None

👉 Always request a sample invoice

 

🌍 FX & Currency Handling

  • Salaries and statutory costs = calculated in PHP
  • Converted using daily bank FX rate
  • EOR fee = usually billed in USD

👉 Hidden FX spreads can add 2–5% to total cost

 

⏱️ How Fast Can You Hire via EOR?

Timeline Step
Day 0 Offer accepted
Day 1–3 Contracts + checks
Day 4–7 Government registrations
Day 8–14 First payroll

👉 Teams are operational in under 2 weeks

 

⚖️ EOR vs Other Hiring Options

Option Monthly Cost Risk Setup Time
Local EOR Medium Low 2–14 days
Global EOR High Low–Medium 7–21 days
Own Entity Medium High 2–6 months
Contractors Low High Immediate

 

🧠 Which Pricing Model Should You Choose?

Scenario Best Option
Philippines-only hiring Local EOR
Multi-country hiring Global EOR
Predictable budgeting Flat fee
Fast scaling Local EOR

 

💰 Real-World Savings Example

Scenario Cost
Global EOR (30 staff @ $499) $14,970/month
Local EOR (30 staff @ $190) $5,700/month
Savings $9,270/month

👉 Annual savings: $110K+

 

🧠 How to Choose the Right EOR Provider

Focus on:

  • Transparent pricing (no hidden fees or FX spreads)
  • Strong local compliance expertise
  • Fast onboarding (under 2 weeks)
  • Dedicated support
  • Payroll visibility and reporting

 

❓ FAQs – EOR Pricing Philippines

What is the typical EOR fee?
$190–$300 (local), $500–$800+ (global)

What’s included in the EOR fee?
Payroll, compliance, statutory filings, and HR support

Does pricing include salary?
No — salary and benefits are separate

Are there hidden fees?
Often yes — check FX, setup, and exit fees

How are terminations handled?
According to Philippine labor law; transparent providers charge only statutory costs

Can contractors be converted to employees?
Yes, typically within 1–2 weeks

Who owns employee IP?
Your company retains full ownership via contract

 

📊 Build Your Exact Cost Model

Get a role-by-role breakdown including:

  • Salary
  • Employer costs
  • EOR fees

👉 Book a free consultation

 

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