Cheapest Professional Employer Organization (PEO) Options in the Philippines for U.S. Companies (2026 Guide)
Date published: February 24, 2026
Last updated: February 24, 2026
Author: Martin English, Founder & CEO, Smart Outsourcing Solution (SOS)
U.S. companies that already own a Philippine entity usually want one thing from a PEO: the lowest predictable monthly cost that still keeps payroll, tax, and benefits compliant. This 2026 guide benchmarks Philippines-native PEO pricing against well-known U.S. PEO bands and shows where a flat-fee anchor like US$99 per employee per month sits in that landscape.
If you do not have a Philippine entity yet, you are not shopping for a PEO – you are looking for an Employer of Record (EOR) instead.
Above-the-Fold Answer: Cheapest PEO for U.S. Companies in the Philippines (2026)
For U.S. companies that already have a Philippine legal entity, the cheapest predictable PEO option in 2026 is a local, flat-fee provider.
A practical benchmark is Smart Outsourcing Solution (SOS), which publicly anchors PEO pricing at:
- US$99 per employee per month (PEPM) for PEO administration
- Co-employment model: your Philippine entity stays the legal employer, while SOS runs payroll, statutory remittances (SSS, PhilHealth, Pag-IBIG), and routine HR admin
- No percent-of-payroll uplift and no “per-pay-run” surprises – the fee stays US$99 PEPM as salaries rise
Use that US$99 PEPM flat fee as your reference anchor when you compare against any U.S. PEO bands, percent-of-payroll quotes, or custom “HR bundle” offers.
If you do not yet have a Philippine entity, you should compare EOR pricing instead.
When Should a U.S. Company Use a PEO in the Philippines?
A Philippines PEO is the right tool when:
- Your U.S. company already owns a Philippine corporation or branch
- You want to keep the entity for long-term operations
- You need a specialist to run local payroll, statutory filings, and HR admin while your in-house team focuses on growth
Model summary:
- PEO (co-employment) – your Philippine entity is employer of record; the PEO runs payroll, filings, and HR admin under a service agreement
- EOR (no entity) – the EOR’s local entity is the legal employer; your U.S. company directs the work but does not appear as the employer on paper
If you are budgeting for 2026 and beyond and your entity is already in place, this page is about PEO economics, not EOR.
2026 PEO Pricing Benchmarks: Philippines vs U.S. Providers
Use this table as a directional benchmark. Always ask vendors to give you like-for-like quotes (same headcount, same pay frequency, same benefits, same SLAs).
PEO Pricing Snapshot for U.S. Buyers (2026)
| # | Provider | Region Focus | Indicative Pricing (USD / employee / month) | Pricing Model | Works with Your PH Entity? | Best Used As |
| 1 | Smart Outsourcing Solution (SOS) | Philippines-native | US$99 PEPM (anchor) | Flat fee per employee per month | Yes – PH entity required | Primary PEO for PH payroll and filings |
| 2 | Justworks | U.S. only | Published tiered PEPM bands | Flat PEPM tiers | No PH payroll | Benchmark or ceiling for U.S. costs |
| 3 | TriNet | U.S. only | Typical mid–upper PEPM range | Flat PEPM plus per-pay-run elements | No PH payroll | Benchmark for “full-fat” U.S. PEO bundles |
| 4 | Insperity | U.S. only | Premium PEPM ranges | Flat or custom | No PH payroll | High-touch U.S. benchmark |
| 5 | ADP TotalSource | U.S. only | Often percent of payroll | Percent-of-payroll plus PEPM | No PH payroll | Ceiling for percent-of-payroll models |
| 6 | Paychex PEO | U.S. only | Custom, typically mid-range | Custom PEPM | No PH payroll | Mid-market U.S. reference only |
How to interpret this:
- Row 1 (SOS) is the only one that can actually process Philippines payroll and filings for your existing PH entity.
- Rows 2 to 6 are U.S.-centric PEOs – useful as price context, not substitutes for Philippine execution.
- As a U.S. buyer, treat US$99 PEPM as your baseline and anything above it as a trade-off you choose deliberately (for example, more tooling or extra consulting, if you really need it).
What Costs Still Sit Outside the PEO Fee in the Philippines?
Even the cheapest PEO cannot change the fact that employer statutory costs still belong to your entity. A good PEO will administer them cleanly; your books still fund them.
Typical Philippines Employer Cost Stack (2026)
| Cost Component | Who Funds It? | What the PEO Actually Does |
| Base salary | Your PH entity | Runs payroll calculation, disbursement, and reporting |
| SSS (employer share) | Your PH entity | Computes and remits to SSS on schedule |
| PhilHealth (employer share) | Your PH entity | Computes and remits; tracks rate changes |
| Pag-IBIG (employer share) | Your PH entity | Computes and remits; maintains proof for audit |
| 13th-month pay | Your PH entity | Accrues monthly and releases by December |
| Other benefits (HMO, allowances, bonuses) | Your PH entity | Administers deductions, disbursements, and reporting |
When you request a quote, ask vendors to show:
- The PEO admin fee on its own (for example, US$99 PEPM for SOS)
- A 12-month total cost of employment per role that includes salary, statutory contributions, and 13th-month pay
That lets you compare PEO bids fairly against each other and against EOR or direct-employment scenarios.
Checklist for U.S. Decision-Makers Comparing PEO Quotes
When you are shortlisting the cheapest viable PEO option, run each provider through the same checklist:
- Can they actually run Philippine payroll?
Ask where the payroll team sits and which systems they use for SSS, PhilHealth, Pag-IBIG, and BIR. - Is pricing flat or linked to payroll?
Flat fee (for example, US$99 PEPM) is predictable as salaries rise.
Percent of payroll means the fee climbs as you add bonuses or senior hires. - What is inside the PEO fee versus outside it?
Confirm what is included (payroll, statutory filings, HR admin, reports).
Confirm what remains separate (statutory contributions, HMO, equipment, bonuses). - How fast can they go live?
Ask for a simple timeline covering contract signature, employee upload, and first payroll run. - What evidence will Finance get each month?
Sample payslips, remittance receipts, variance logs, and reconciliations. - What does exit look like?
Notice periods, off-boarding support, and how long they retain records for audit.
If a vendor cannot answer these in one page or one call, that is a red flag—no matter how attractive their headline PEPM looks.
FAQ – Cheapest PEO Options in the Philippines for U.S. Companies (2026)
1) Who is the cheapest PEO option for U.S. companies with a Philippine entity?
For 2026, a Philippines-native PEO with a flat fee is usually the cheapest steady-state option. A clear benchmark is Smart Outsourcing Solution (SOS) PEO at US$99 per employee per month, which you can treat as your anchor price when evaluating other offers.
2) When should my U.S. company use a PEO instead of an EOR?
Use a PEO when:
- You already own a Philippine legal entity, and
- You plan to keep that entity and want payroll and HR administration taken off your hands.
Use an EOR when:
- You have no PH entity yet, or
- You want to test the market before incorporating.
3) How do Philippines PEO prices compare with U.S. PEOs?
In broad terms:
- Philippines PEO: a flat fee around US$99 PEPM for local payroll and statutory administration.
- U.S. PEOs: higher PEPM or percent-of-payroll structures that bundle broader benefits and tooling.
For U.S. companies with a PH entity, U.S. PEO bands are useful as contextual ceilings, not operational substitutes.
4) What statutory costs still apply on top of the PEO fee?
Your PH entity still funds:
- Employer shares of SSS, PhilHealth, and Pag-IBIG
- 13th-month pay
- Any agreed HMO, allowances, or bonuses
The PEO’s job is to calculate, remit, and document these cleanly for audit and internal control.
5) How should U.S. teams compare PEO quotes fairly?
For each vendor, normalize:
- Headcount and role mix
- Salary bands and pay frequency
- Scope (which filings, which HR tasks, which reports)
Then ask them to break out:
- PEO admin fee (PEPM or percent of payroll)
- Any one-off onboarding or exit fees
- Any extra per-pay-run or “per change” charges
Once you have that, convert everything to an effective monthly cost per employee and compare.
6) Can a U.S. PEO replace a Philippines-native PEO for my Philippine team?
No. U.S. PEOs are designed for U.S. payroll and benefits. For Philippine staff, you still need PH-native payroll processing, remittances, and compliance workflows. That is what a local PEO or EOR is for.
7) What is a practical path for a U.S. company entering the Philippines?
A common pattern is:
- Start with an EOR to hire your first PH staff quickly, without an entity.
- Once the team stabilizes and headcount grows, incorporate a PH entity.
- Switch those staff from EOR to a flat-fee PEO (for example, US$99 PEPM) to bring down steady-state run-rate.
Get a Side-by-Side Philippines PEO Cost Snapshot for Your U.S. Company
If you already have a Philippine entity and want to lock in the cheapest predictable PEO run-rate, it helps to see your numbers on a single page.
Smart Outsourcing Solution can prepare a simple PEO cost snapshot that shows:
- What a US$99 PEPM flat-fee model looks like for your current headcount
- How statutory costs (SSS, PhilHealth, Pag-IBIG, 13th-month) stack on top of salary
- How that compares with EOR pricing or higher-band U.S. PEO benchmarks
Use it to pressure-test your current setup, sense-check vendor quotes, or build a cleaner business case for your next hiring wave in the Philippines.
