Philippines EOR at a glance

An Employer of Record is the legal employer of your Philippine staff. Employees work within your operations while the provider administers their local employment.

Buyer question	Answer
Do you need your own Philippine employing entity?	No. Staff are employed through SOS’s Philippine legal employer.
Who directs the employee’s work?	Your business manages responsibilities, priorities, training and performance.
Is recruitment included?	Yes. Recruitment and candidate selection carry no separate recruitment fee.
What costs remain separate?	Salary, statutory contributions, 13th-month pay and other applicable employee costs.
How quickly can existing employees onboard?	In as little as five business days after the agreement, information, documentation and funding are complete.

How does an Employer of Record work?

Under the SOS EOR arrangement, Global BPO Solution Philippines Inc. is the Philippine legal employer. Employees work with your managers, use your systems and contribute to your business operations.

The arrangement separates formal employment administration from daily supervision.

Responsibility	SOS	Your business
Recruitment	Sources and screens candidates	Defines requirements, interviews and approves candidates
Employment contracts	Prepares and administers local documentation	Provides role information and approves proposed terms
Payroll and statutory administration	Processes payroll and required contributions	Supplies accurate inputs, approvals and funding
Daily management	Provides employment-related guidance	Assigns tasks, sets goals and manages performance
Training and systems	Coordinates employment onboarding	Provides job training, equipment and system access
Benefits	Administers agreed enrolments	Selects and funds applicable benefits
Discipline and termination	Provides written advice, approval and formal administration	Raises concerns and coordinates with SOS before acting

Formal disciplinary, suspension and termination actions require SOS’s prior written advice and approval before they are communicated or implemented.

What does the SOS EOR service include?

The standard service supports recruitment and the ongoing employment relationship:

• Recruitment and candidate selection.
• Local employment contracts and employee records.
• Onboarding and payroll setup.
• Payroll and payslip administration.
• Statutory contribution administration.
• 13th-month pay calculation and administration.
• HR guidance and employment-related support.
• Benefits enrolment coordination where applicable.
• Offboarding administration and final-pay coordination.

Your managers remain responsible for the employee’s operational work, technical training and performance expectations.

How much does SOS EOR cost?

SOS charges a fixed management fee of US$190 per employee per month. Recruitment and candidate selection are included.

There are no separate standard SOS onboarding, provider termination or exit fees, and no FX markup.

Budget for the management fee, employee costs and required funding separately:

Cost category	What it covers
EOR management fee	Standard recruitment and employment administration
Employee costs	Salary, employer statutory contributions, 13th-month pay, selected benefits, allowances, equipment and other applicable costs
Payroll funding	Funds required to meet payroll and employment obligations
Security deposit	The deposit required under the service agreement

The standard agreement requires a security deposit equal to one month of the employee’s base wage at commencement and annually. Salary increases can require adjustments to the accumulated deposit. Any remaining balance is refundable subject to the agreement’s settlement conditions.

Employee final pay and applicable statutory termination costs remain payable even though SOS does not charge a separate provider exit fee.

Review the SOS EOR pricing and inclusions when preparing your budget.

Which roles can you hire in the Philippines?

SOS supports dedicated employees across customer service, technology, finance and business support.

Function	Example roles
Customer service	Customer support specialists, customer-success coordinators
Software and technology	Developers, QA testers, technical support specialists
Finance and accounting	Bookkeepers, accounts support staff, finance administrators
Operations and administration	Operations coordinators, executive assistants, project administrators
Sales and marketing	Sales development representatives, marketing assistants, CRM administrators
Data and reporting	Reporting analysts, research assistants, data support staff

Define responsibilities, experience, working hours and systems access before recruitment begins. These requirements shape candidate selection and the employment budget.

Explore hiring customer support teams or developers in the Philippines for role-specific guidance.

How quickly can your employees start?

Existing employees may onboard in as little as five business days once the agreement, employee information, required documentation and funding are complete.

Recruiting a new hire takes additional time. Candidate availability, interviews, notice periods and approvals affect the start date.

The process follows five steps:

1. Define the role. Confirm responsibilities, salary, working hours, benefits and reporting lines.
2. Confirm the candidate. Recruit a new employee or review an existing team member’s proposed transition.
3. Complete employment requirements. Finalise documentation, approvals, payroll information and funding.
4. Prepare for day one. Arrange equipment, system access, training and manager introductions.
5. Begin ongoing support. SOS administers employment processes while your managers lead daily work.

If you already work with Philippine contractors, review the contractor-to-employee conversion guide before planning the transition.

What does an existing-team transition look like?

SOS’s published Webjet Business Travel case study describes 12 Philippine team members moving onto formal employment contracts through SOS’s local entity.

The example illustrates how EOR can support an established team: retain the people already familiar with your business while changing the employment structure around them.

Read the Webjet Business Travel workforce transition case study for the engagement details.

What benefits can employees receive?

Employee packages combine applicable statutory entitlements with additional benefits agreed for the role.

SOS administers requirements such as SSS, PhilHealth, Pag-IBIG and 13th-month pay. Private health coverage through an HMO can form part of the selected package, with its cost charged separately.

Before making an offer, confirm the insurer, coverage limits, eligibility, enrolment date and dependent options. PhilHealth and private HMO coverage are different benefits.

When is EOR the right hiring model?

EOR can suit businesses that want dedicated Philippine employees and direct operational management without establishing their own Philippine employing entity.

Model	Who directs daily work?	When to consider it
Employer of Record	Your business	You want integrated employees with local employment administration provided externally
Managed outsourcing or BPO	The provider generally manages delivery	You want a provider to deliver a defined process or service
Your own Philippine entity	Your business	You are prepared to establish and maintain a local organisation and its employment responsibilities

Compare the actual contracts and operating arrangements. Service labels alone do not establish responsibility for employment, supervision or delivery.

What should you check before signing?

Confirm the practical and contractual details that affect your employees and budget:

• Legal employer and contracting entities.
• Complete costs, deposit requirements and payroll funding.
• Payroll deadlines, approval responsibilities and escalation contacts.
• Employment terms, benefits and working schedules.
• Confidentiality and intellectual property provisions.
• Data access, system permissions and security responsibilities.
• Procedures for performance concerns, termination and employee transfers.

Ask for supporting documentation for security or certification claims. Your own access controls, training and offboarding procedures also matter.

Use the EOR Master Buyer FAQ for a detailed provider review.

Why work with Smart Outsourcing Solution?

SOS is a Philippines-focused employment and workforce partner. Since 2017, we have supported more than 250 businesses and more than 1,000 employees through our workforce solutions. See our company background and leadership information.

Our approach combines Philippine employment expertise, included recruitment, a fixed management fee and human support throughout the employment process.

Your managers lead the work. SOS supports the local employment requirements behind it.