How Much Does Outsourcing Cost in the Philippines?

A complete Philippines outsourcing budget may include:

1. Employee salary or service cost
2. Employer statutory contributions
3. 13th-month pay
4. Benefits and allowances
5. Equipment and software
6. Recruitment or candidate-selection costs
7. EOR, agency or other provider fees
8. Management and operational requirements

For SOS EOR services, the fixed provider fee is:

The final employment cost depends on the role and employee package.

The following figures are illustrative planning examples. They are not a fixed SOS rate card, guaranteed salary ranges or a formal market survey.

Actual compensation depends on experience, seniority, role complexity, technology or function, working hours, benefits and candidate availability.

Customer support and operations

Technical roles

Management roles

Use these figures for initial planning only. Confirm the proposed salary against the specific role, candidate profile and employment package before making an offer.

Fully loaded cost means the complete cost of employing or engaging a worker, rather than salary alone.

For an EOR employee, the calculation may include:

The general EOR cost formula is:

Example: customer-support employee

For an employee earning US$1,000 per month:

Example: operations employee

For an employee earning US$1,500 per month:

Example: developer

For an employee earning US$3,000 per month:

These examples are for planning only. The final total depends on the employee’s compensation package and applicable employment costs.

The standard US$190 SOS EOR management fee covers employment administration, including:

• Employment documentation
• Employee records
• Payroll administration
• Statutory administration
• 13th-month pay administration
• Benefits enrolment where applicable
• HR guidance
• Employment lifecycle support
• Human support throughout the engagement

Under the standard SOS structure, Global BPO Solution Philippines Inc. is the Philippine legal employer.

Your company manages:

• Daily work
• Team priorities
• Work allocation
• Schedules
• Tools and systems
• Workflows
• Performance expectations

The EOR fee does not include the employee’s salary or employee-specific costs.

Employer statutory contributions

Employer contributions and statutory costs are calculated according to the employee’s compensation and applicable Philippine requirements.

Useful references include:

• SSS contribution table
• PhilHealth employer information
• DOLE guidance on 13th-month pay
• BIR official website
• Pag-IBIG Fund official website

13th-month pay

Eligible employees in the Philippines may be entitled to 13th-month pay under applicable employment rules.

This is an employee-related cost and is separate from the EOR management fee.

Benefits and allowances

The employment package may include:

• HMO or health insurance
• Internet allowance
• Communication allowance
• Transport allowance
• Meal allowance
• Other agreed benefits

Equipment and software

Equipment, software licences, connectivity and other role-specific requirements may be charged separately.

Recruitment and candidate selection

Recruitment and candidate selection are separate from the standard EOR management service.

Confirm the recruitment scope, fees and timeline before beginning a search.

The standard SOS EOR pricing structure includes:

• One standard management fee of US$190 per employee per month
• No hidden SOS provider fees
• No FX markup
• No onboarding fee
• No SOS provider termination fee

Employee-specific costs remain separate and should be shown in the quote.

These may include:

• Salary
• Statutory contributions
• 13th-month pay
• Benefits
• Allowances
• Equipment
• Recruitment
• Legally required final-pay or termination obligations, where applicable

The applicable terms should be confirmed in the MSA, service schedule and employee-specific quote.

Different models have different pricing structures and responsibilities.

A Philippines-based team may have a different cost structure from an equivalent team hired in the United States, United Kingdom or Australia.

However, salary figures are not directly comparable on their own.

A complete comparison should include:

• Salary
• Employer statutory costs
• Benefits
• 13th-month pay
• Equipment
• Recruitment
• EOR or provider fees
• Management time
• Working hours
• Currency movement
• Replacement or turnover costs

These are broad planning examples, not a formal market study or guaranteed savings calculation.

1. Role complexity

Specialised, technical and leadership roles generally require different compensation from standard support or administrative roles.

2. Experience level

Junior, mid-level and senior employees have different salary expectations.

3. Working hours and shifts

Night work, weekend schedules, public-holiday work and extended coverage may affect the employee package and staffing requirements.

4. Team size

A larger team increases the number of salaries, employee-related costs and EOR management fees.

For EOR planning:

5. Benefits and allowances

The selected package may include HMO, allowances, equipment and other employee-specific costs.

6. Recruitment requirements

Candidate sourcing, assessments, interviews and selection may create separate recruitment costs and timelines.

7. Hiring model

EOR, agency, BPO, freelancer and direct-hiring arrangements allocate costs and responsibilities differently.

8. Management and systems

The cost model may also need to account for:

• Team leadership
• Software
• Devices
• Security tools
• Training
• Quality control
• Reporting
• Handover processes

Use the following process:

1. Define the roles and responsibilities.
2. Estimate salary requirements.
3. Confirm the number of employees.
4. Select the employment or delivery model.
5. Add statutory costs and 13th-month pay.
6. Add benefits, allowances and equipment.
7. Add recruitment costs, where applicable.
8. Add provider fees.
9. Review the total monthly and annual cost.
10. Confirm the assumptions in writing.

For EOR, calculate the fixed provider fee as:

This gives you a clearer planning baseline before requesting a formal quote.

Companies may consider a Philippines-based team when they have:

• High local hiring costs
• Difficulty finding specific talent
• Operational bottlenecks
• Delayed projects
• Increasing customer-support demand
• Repetitive administrative work
• Technical or development requirements
• A need to expand capacity
• A plan to convert contractors into employees
• A need to hire without establishing a local entity

Outsourcing or EOR should be evaluated as an operating decision, not only a salary decision.

Existing employees

Existing employees can generally be onboarded in as little as five business days once the following are complete:

• Signed MSA
• Complete employee information
• Required employment documents
• Agreed salary and benefits
• Payroll funding
• Required approvals

New candidates

If recruitment is required, the timeline depends on:

• Role requirements
• Candidate availability
• Seniority
• Interviews
• Assessments
• Reference checks
• Offer acceptance
• Notice period
• Required documents

Recruitment and candidate selection follow a separate timeline from EOR onboarding.

Read more about hiring without a company in the Philippines .

Before requesting a quote, prepare:

• The roles you need
• Expected team size
• Proposed salaries
• Working hours
• Benefits and allowances
• Equipment requirements
• Candidate details, if available
• Recruitment requirements
• Expected start date

The quote should show the following separately:

• Salary
• Employer statutory costs
• 13th-month pay
• Benefits and allowances
• Equipment
• Recruitment
• US$190 EOR management fee