What is an Employer of Record and how does it work?

An Employer of Record (EOR) is a third-party provider—like Smart Outsourcing Solution (SOS)—that legally hires staff on your behalf. You manage daily work; we handle employment contracts, taxes, payroll, and compliance. It’s ideal for fast, risk-free global hiring without opening a local entity. Learn more about EORs from G-P.

How can I hire staff in the Philippines without opening a local entity?

Use an Employer of Record (EOR) like SOS. We legally employ your hires, issue contracts, and manage payroll. You gain full operational control—without the cost, delay, or risk of setting up a local company. Onboarding can start in 5–10 days with full compliance from day one.

Is hiring through an EOR legal and compliant in the Philippines?

Yes. SOS is registered with DOLE, PEZA, and BIR. We file all tax and benefit contributions (SSS, PhilHealth, Pag-IBIG) and issue local-compliant payslips. Your team is fully compliant under Philippine labour law. See compliance rules from DOLE and BIR.

What’s the difference between a PEO and an EOR?

A PEO co-employs your staff within your home country. An EOR—like SOS—legally employs workers abroad under its own local entity. This means you don’t need to register a company in the Philippines or worry about local tax exposure. EOR = no local entity needed. PEO = requires co-employment under your legal entity.

How much does an Employer of Record cost and what fees will I pay?

Our Philippine EOR model starts at $190/month per employee. Additional costs depend on salary, benefits, and any requested add-ons (like bonuses, equipment, or stipends). Use our Cost Savings Calculator to estimate total spend and savings.

What risks or disadvantages come with the EOR model?

While EORs simplify global hiring, risks include vendor lock-in, limited control over local processes, or misalignment with country-specific benefits if not carefully managed. Choose an EOR with legal and cultural expertise in your target market.

Will using an EOR trigger permanent-establishment (PE) risk?

No. EOR structures are specifically designed to avoid PE risk. SOS ensures your team is legally employed under our entity, without exposing your business to corporate tax liability in the Philippines. PE risk remains low if you avoid direct revenue-generating activity locally.

How long does it take to hire through an EOR?

SOS can legally onboard your hires within 5–10 business days. We handle all documentation, background checks, payroll setup, and benefits enrolment. Ideal for urgent hiring or project-based staffing.

What happens if I need to terminate an employee hired via EOR?

SOS handles the termination process in line with Philippine labour laws—including notice, final pay, and compliance documentation—so your company avoids liability or disputes. We also provide offboarding support and replacement options.

What mandatory benefits do employees receive in the Philippines?

Employees are legally entitled to SSS (social security), PhilHealth (health insurance), Pag-IBIG (housing fund), 13th-month pay, and statutory leave. SOS administers all these benefits on your behalf. See DOLE’s guide to benefits.

EOR in the Philippines: Neutral Comparison (Compliance, Speed, Pricing, Support)

This page compares Employer of Record (EOR) providers that operate in the Philippines using publicly available information. We focus on PH-specific compliance (SSS, PhilHealth, Pag-IBIG, 13th-month), onboarding speed, public pricing disclosure, payslip transparency, and support SLAs. Always verify details with each provider.

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How we compare (methodology)

ZScope: PH compliance, onboarding timeline, public per-employee fees, payslip visibility, support/SLA, exit/FX fees

ZSources: Providers’ own pages (linked in the “Source links” column and footnotes).

ZTone: Neutral, factual; no rankings.

ZPH note: Statutory contributions are remitted on monthly agency schedules; keep receipts for audit.

Side-by-side overview

Tip: Keep each cell short, then cite the provider’s page in “Source links.” Replace “As per provider page” with a factual fragment once you add the link (e.g., “Lists USD tiers,” “PH page confirms 13th-month,” etc.).

Criteria	What to check (objective)	Smart Outsourcing Solution (PH-native)	Deel (global)	Remote (global)	Remofirst (global)	Source links
PH compliance scope	Explicit handling of SSS, PhilHealth, Pag-IBIG, 13th-month	PH compliance listed on EOR pages	As per provider page	As per provider page	As per provider page	[SOS EOR] · [Deel PH/EOR] · [Remote PH/EOR] · [Remofirst PH/EOR]
Onboarding speed	Published timeline in business days	3 business days (offer → payslip)	As per provider page	As per provider page	As per provider page	[SOS timeline] · [Deel] · [Remote] · [Remofirst]
Public pricing disclosure	Per-employee monthly fee or tiers stated	$190/mo per employee (flat)	Pricing page	Pricing page	Pricing page	[SOS pricing] · [Deel pricing] · [Remote pricing] · [Remofirst pricing]
Payslip transparency	Sample DOLE-compliant payslip / screenshots	Sample shown on Platform Tour	As per provider docs	As per provider docs	As per provider docs	[SOS payslip] · [Deel sample] · [Remote sample] · [Remofirst sample]
Support & SLA	Response SLA and PH contact channel	<15-min first response (PHT) + PH phone	As per provider page	As per provider page	As per provider page	[SOS support] · [Deel support] · [Remote support] · [Remofirst support]
Exit / FX fees	Any FX spread, setup, or exit fees disclosed	No FX, setup, or exit fees	As per provider terms	As per provider terms	As per provider terms	[SOS terms] · [Deel terms] · [Remote terms] · [Remofirst terms]

Legend: “As per provider page/docs” = a short factual note based on the linked source you add.
Disclaimer: Figures come from provider pages; verify before purchase. Updated Aug 2025.

How to interpret the table

Transparent budgeting: Prefer providers that publish a clear monthly per-employee fee with inclusions/exclusions.
Speed-critical hires: Look for a published onboarding timeline with steps (offer → contract → KYC → first payroll).
Audit-readiness: Favor providers that show a sample PH payslip and explain SSS/PhilHealth/Pag-IBIG remittances.
Hands-on support: Check response SLAs (minutes or hours) and PHT coverage.

Reference (bullet points instead of check):

FAQs (neutral, PH-specific)

How should we evaluate EOR providers for the Philippines?

Focus on PH-specific compliance (SSS, PhilHealth, Pag-IBIG, 13th-month), a published onboarding timeline, transparent pricing (monthly fee per employee and inclusions), payslip transparency (sample format), and support SLAs with PHT coverage. Ask for artifacts—e.g., a redacted payslip and sample remittance evidence—so claims can be verified beyond marketing statements.

Do public EOR prices include salary and taxes?

No. Public prices typically represent the platform/EOR fee only. Employee salary and employer statutory contributions are pass-through items billed at cost. When comparing offers, request a line-item estimate with salaries, employer statutory, EOR fee, and any optional benefits (e.g., HMO). This makes total cost-of-employment comparable across providers.

What is a realistic onboarding timeline in the Philippines?

Expect 3–7 business days from contract sign-off to first payroll cut-off, assuming KYC and bank/tax details are complete. Timelines vary based on document turnaround and any special approvals. Ask providers to share the exact step sequence (offer → contract → KYC → payroll setup) and who approves each step to minimize delays.

How do we verify local compliance and payslip formats?

Look for explicit mention of SSS, PhilHealth, Pag-IBIG, and 13th-month on provider pages, plus a sample PH payslip that itemizes statutory shares and net pay. Request confirmation of monthly remittance schedules and evidence (files/receipts). Providers should explain how contributions appear on payslips and how remittance reports reconcile with payroll registers.

What should we ask about support and SLAs?

Confirm response time (minutes or hours), PHT coverage, escalation paths, and whether you get a named account manager. Ask where tickets live (system vs. email) and whether approval and payroll changes are logged in an audit trail. If you operate across time zones, verify availability for AU/US hours and how urgent payroll issues are prioritized.