Cheapest Professional Employer Organization (PEO) Options in the Philippines for U.S. Companies (2025 Guide)
Author: Martin English, Founder – Smart Outsourcing Solution (SOS)
Date Published: 7 October 2025
Date Updated: 7 October 2025
Page intent: Market benchmarking for U.S. teams comparing a PH-native PEO vs U.S. PEO price bands.
Not a definition guide, not a TCO calculator, and not an ops playbook.
TL;DR — Answer First
If your U.S. company already owns a Philippine legal entity, a local flat-fee PEO is typically the lowest predictable run-rate. As an orientation anchor, SOS publicly lists PEO at a flat rate of $99 per employee/month (entity required) and is locally registered in the Philippines. If you don’t have a PH entity, that’s an EOR scenario (covered on a separate page).
What U.S. decision-makers actually ask
What is a PEO in the Philippines — and when should a U.S. company use one?
A PEO is co-employment for companies with a PH entity: you remain the legal employer while the provider runs payroll, benefits administration, and statutory remittances (SSS, PhilHealth, Pag-IBIG). No entity? That’s EOR, not PEO.
How do Philippines PEO prices compare with U.S. PEOs?
Use the PH flat-fee anchor as your baseline. U.S. PEOs often publish higher bands due to broader benefits pooling and tooling; treat those numbers as contextual ceilings, not substitutes for PH execution.
What statutory costs still apply in the Philippines?
Outside provider fees, budget for SSS, PhilHealth, Pag-IBIG, and 13th-month pay. A PEO administers these; your entity funds them.
PEO Providers — Directional Benchmarks for U.S. Buyers
Indicative, public/market-reported ranges. Always request apples-to-apples quotes (headcount, pay cycles, benefits admin, SLAs).
| # | Provider | Region Focus | Indicative Pricing | Pricing Model | PH Relevance | Headline Inclusions |
| 1 | Local PH PEO (e.g., SOS) | Philippines (locally registered) | Flat-fee anchor ($99) | Flat PEPM | Native PH processing; PH entity required | PH payroll & filings (SSS/PhilHealth/Pag-IBIG), HR admin, local compliance guidance |
| 2 | Justworks (PEO) | U.S. | Published tiered PEPM | Flat PEPM tiers | U.S. benchmark/ceiling; not PH | U.S. payroll, HR/compliance tools, benefits access |
| 3 | TriNet (PEO) | U.S. | Variable PEPM | Flat PEPM + per-check elements | U.S. benchmark; not PH | Industry-tailored HR; benefits purchasing |
| 4 | Insperity (PEO) | U.S. | Upper mid-to-premium PEPM | Flat/custom | U.S. premium benchmark | Strategic HR, on-site support, benefits pooling |
| 5 | ADP TotalSource (PEO) | U.S. | Often % of payroll | % payroll / PEPM | U.S. premium benchmark | Enterprise HR suite, compliance, HRBP |
| 6 | Paychex PEO | U.S. | Custom | Custom | U.S. upper-mid benchmark | Payroll tooling + benefits integration |
How to read this: For U.S. companies already holding a PH entity, a local flat-fee PEO typically undercuts %-of-payroll structures and broader U.S. bundles while meeting local compliance. Use U.S. bands as scope/price context, not replacements for PH payroll/filings.
What a PH PEO typically covers (scope checklist)
- Payroll calculations & disbursement
- Statutory remittances: SSS, PhilHealth, Pag-IBIG; BIR workflows
- HR administration: contracts, onboarding/offboarding, standard letters
- Evidence for Finance/Audit: approvals, variance logs, statutory receipts
Methodology & disclaimers
Benchmarks are directional from public/vendor pages and reputable market summaries. Actual pricing varies by headcount, scope, benefits, pay frequency, and SLAs. Normalize all quotes to an effective monthly cost and request a single inclusions sheet.
FAQ — For U.S. Buyers
1) Is a PEO legal and common for U.S. firms operating in the Philippines?
Yes—once you own a PH entity. The PEO runs payroll/HR/compliance while you remain the employer. Confirm the provider truly processes PH payroll and statutory filings.
2) Flat fee vs % of payroll — which is steadier long-term?
Flat PEPM is predictable as salaries rise; %-of-payroll scales with compensation and bonuses. Model 12-month TCO including employer contributions and 13th-month.
3) Which costs sit outside PEO admin fees?
Employer contributions to SSS, PhilHealth, Pag-IBIG, and 13th-month pay. The PEO administers; your entity funds them.
4) How should U.S. teams compare quotes fairly?
Normalize inputs (headcount, salary bands, pay frequency, start dates). Ask vendors to break out PEPM vs per-check fees, onboarding/offboarding, FX, and benefits admin. Compare effective monthly cost and time-to-operate.
5) Can a U.S. PEO replace a PH PEO?
Not directly. U.S. PEOs focus on U.S. payroll/benefits. For PH payroll/filings you need PH-native processing—and a PH entity for PEO.
6) What’s a practical hiring path?
Many U.S. teams start with EOR (no entity) for speed, then switch to PEO after incorporation to lower steady-state run-rate. This page focuses on PEO economics for already-incorporated teams.
Cross-Navigation
- Definition: What is a PEO in the Philippines?
- Decision: PEO vs EOR in the Philippines
- Provider Selection: PEO Providers in the Philippines: How to Choose the Right Partner
Why SOS
Locally registered in the Philippines, with a published flat fee, inclusions spelled out, and evidence-first delivery each pay period.
Request an apples-to-apples PH PEO quote — get a one-page inclusions sheet and a normalized effective-monthly view for easy vendor comparison.
Credible Sources (official only)
- DOLE (PH): https://www.dole.gov.ph/
- BIR (Withholding Tax): https://www.bir.gov.ph/index.php/tax-information/withholding-tax.html
- SSS: https://www.sss.gov.ph/
- PhilHealth: https://www.philhealth.gov.ph/
- Pag-IBIG: https://www.pagibigfund.gov.ph/
