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
