Author: Martin English
Published: May 27, 2026
Australian finance teams hiring in the Philippines need to manage two sides of the arrangement:
- Philippine employment and payroll requirements
- Australian privacy, security, operational and governance responsibilities
The risks increase when offshore employees access customer information, accounting systems, payroll platforms, CRM records or compliance-related workflows.
An Employer of Record can support local employment administration and payroll, but it does not transfer the Australian company’s own regulatory, privacy, security or operational responsibilities.
This guide provides general information only. It is not legal, tax, privacy or regulatory advice. Requirements depend on the business, role, data access and operating model. Obtain professional advice for your specific arrangement.
Quick answer
Before hiring finance staff in the Philippines, Australian companies should:
- Confirm whether the role should be structured as employment or contracting.
- Verify the EOR provider and its Philippine legal entity.
- Use a written employment contract.
- Confirm SSS, PhilHealth, Pag-IBIG and BIR processes.
- Review Australian Privacy Principle 8 obligations.
- Assess the type of data and systems the employee will access.
- Apply role-based access and security controls.
- Document supervision, reporting, audit and escalation procedures.
- Confirm which responsibilities belong to the Australian company and which belong to the EOR.
- Prepare an offboarding and access-removal process.
Companies that want to hire in the Philippines without setting up a local entity can read our guide to hiring employees in the Philippines without a company.
SOS EOR pricing and support
Smart Outsourcing Solution charges one EOR management fee:
US$190 per employee per month
This is the only SOS EOR rate. It is not a starting price, estimate or price range.
Recruitment and candidate selection are included in the fee. There is no separate recruitment fee.
Salary, employer statutory contributions, 13th-month pay, benefits, allowances, equipment and other employee-specific costs are separate where applicable.
Under the standard EOR structure, there are:
- No hidden SOS provider costs
- No FX markup
- No onboarding fee
- No SOS provider termination or exit fee
A real person remains involved throughout recruitment, onboarding, payroll, HR support, compliance and offboarding.
For more information, see Philippines EOR pricing.
Why data security matters
Finance employees may access:
- Customer financial information
- Payroll data
- Accounting platforms
- CRM systems
- Mortgage-processing systems
- Personally identifiable information
- Transaction records
- Compliance and reporting information
The required controls depend on the role. An employee processing invoices may need less access than an employee handling customer identification documents, payment information or AML-related records.
Security controls should be based on the sensitivity of the work and reviewed as the employee’s responsibilities change.
1. Review the employment structure
The first step is to determine whether the worker should be an employee or an independent contractor.
A role may have characteristics of employment where the company:
- Sets regular working hours
- Directs how the work is performed
- Provides ongoing supervision
- Assigns recurring operational duties
- Integrates the worker into internal workflows
- Requires the use of company systems
- Expects a long-term working relationship
The written agreement is only one part of the assessment. The actual working relationship and level of control should also be considered.
An EOR can support a formal employment structure, but it does not replace a case-specific classification review.
Businesses moving an existing contractor into employment can read the contractor-to-EOR conversion guide.
2. Verify the EOR provider
Before appointing an EOR, confirm:
- The provider’s Philippine legal entity
- Corporate registration details
- Employment contract process
- Payroll procedures
- SSS, PhilHealth and Pag-IBIG remittance process
- BIR withholding and reporting process
- Employee recordkeeping procedures
- Benefits administration
- Onboarding and offboarding procedures
- HR support and escalation process
- Data security controls
- Confidentiality procedures
- Audit and reporting capability
- Treatment of employee-specific costs
- Responsibilities when employment ends
Ask the provider to identify what is included in the EOR management fee and what is charged separately.
3. Review the employment contract
The employee should receive a written employment contract that clearly sets out the employment terms.
Review whether the contract covers:
- Position title
- Duties and responsibilities
- Salary and pay schedule
- Working hours
- Work location
- Probationary period
- Leave entitlements
- Benefits and allowances
- Confidentiality
- Data privacy
- Intellectual property
- Company systems and access
- Notice and termination provisions
- Statutory contributions
- 13th-month pay
- Employee policies
- Dispute and escalation procedures
For finance roles, the contract should address confidentiality, client information, system access and appropriate use of company data.
4. Confirm payroll and statutory administration
The EOR should explain how it manages:
- Salary payments
- Payroll cut-off dates
- Payslips
- SSS contributions
- PhilHealth contributions
- Pag-IBIG contributions
- BIR withholding
- Employee tax documentation
- 13th-month pay
- Leave records
- Benefits enrolment
- Final pay
Employer statutory contributions and other employee-related costs are separate from the US$190 SOS EOR management fee.
Under the standard SOS EOR structure, employee wages and mandatory government contributions are passed through at cost. 13th-month pay is an employee-related cost and may be invoiced monthly at 1/12 of the employee’s monthly base wage.
Contribution rates and payroll requirements may change. Confirm current requirements before approving a quote.
5. Review Australian privacy obligations
Australian Privacy Principle 8 may apply when an Australian business discloses personal information to an overseas employee or service provider.
Before providing access to offshore staff, review:
- What information will be accessed
- Where the information will be stored
- Whether information will leave Australia
- Which systems the employee can access
- Who approves access
- How access will be reviewed
- How incidents will be reported
- How information will be returned or deleted
- Whether a Data Processing Agreement is required
- Whether confidentiality obligations are documented
A Data Processing Agreement is generally recommended and may be required depending on the information, parties and arrangement involved.
The Australian company should also assess whether its privacy policy, customer notices, contracts or internal procedures need to address offshore access.
6. Apply practical security controls
Before the employee starts, define:
- Minimum access required for the role
- Role-based permissions
- Multi-factor authentication
- Password requirements
- Device and software controls
- Secure remote access
- Encryption requirements
- Download and printing restrictions
- Email and file-sharing rules
- Audit logging
- Security training
- Incident-reporting procedures
- Access-review frequency
- Offboarding and access-removal steps
Use the least-privilege principle. Employees should receive only the access required to perform their assigned duties.
| Control | Finance administration | Financial reporting | AML or compliance |
| Multi-factor authentication | Required | Required | Required |
| Least-privilege access | Required | Required | Required |
| Confidentiality agreement | Required | Required | Required |
| Audit logging | Recommended | Required | Required |
| Secure remote access | Recommended | Required | Required |
| Background screening | Recommended | Required | Required |
| Data Processing Agreement | Review applicability | Review applicability | Review applicability |
The right controls depend on the role, systems, information and risk profile.
7. Assess ASIC, AFSL and operational-risk requirements
Australian financial services companies should assess whether the offshore role supports:
- A material business function
- A critical operation
- A regulated activity
- Customer-facing work
- Financial reporting
- Compliance monitoring
- Mortgage processing
- Paraplanning
- AML support
- Operational finance
Consider:
- The nature of the work
- The information and systems involved
- The effect of provider failure
- Business continuity requirements
- Concentration risk
- Supervision and quality controls
- Audit rights
- Incident reporting
- Service monitoring
- Exit and transition planning
AFSL holders should determine whether the arrangement needs to be recorded in an outsourcing, risk or governance register. Confirm the applicable requirements with legal, risk or compliance advisers.
APRA-regulated organisations should review the CPS 230 and offshore teams guide before finalising a material offshore arrangement.
8. Define responsibilities between the company and EOR
| Area | Australian company | SOS EOR |
| Daily work and priorities | Manages | Supports the employment relationship |
| Performance expectations | Sets and manages | Provides HR support where required |
| Employment contract | Provides role and package requirements | Administers local employment documentation |
| Salary and benefits | Approves the package | Processes according to agreed terms |
| Payroll | Reviews and funds payroll | Administers payroll |
| Statutory contributions | Funds applicable costs | Administers and remits applicable contributions |
| Recruitment | Approves role and candidate requirements | Recruitment and candidate selection included |
| System access | Approves and reviews business access | Supports agreed employment processes |
| Privacy and security | Controls business data and access | Supports agreed employment processes |
| HR support | Manages business-related matters | Provides employment and HR support |
| Offboarding | Confirms business decision and handover | Manages employment administration and final-pay process |
These responsibilities should be reflected in the EOR agreement, service schedule and employee-specific terms.
9. Prepare audit-ready records
Keep evidence of:
- Worker-classification assessment
- EOR due diligence
- Provider registration checks
- Signed employment contract
- Employee identity and employment documents
- Statutory registrations
- Payroll records
- Remittance confirmations
- 13th-month pay calculations
- Benefits records
- Data Processing Agreement, where applicable
- Confidentiality agreement
- Access approvals
- Security training
- Incident reports
- Governance reviews
- Performance and supervision records
- Offboarding confirmation
The exact records required will depend on the company’s structure, systems, industry and regulatory obligations.
10. Plan onboarding and offboarding
Existing employees can generally be onboarded as early as five business days once the following are complete:
- Signed agreement
- Complete employee information
- Required employment documents
- Agreed salary and benefits
- Required approvals
- Payroll funding
For new candidates, recruitment is included in the EOR fee. The hiring timeline may vary depending on the role, candidate availability, interviews, assessments, reference checks, offer acceptance, notice period and required documents.
Before the employee starts, prepare:
- System-access approvals
- Security training
- Confidentiality documents
- Payroll information
- Reporting lines
- Escalation contacts
- Review schedule
- Offboarding process
When employment ends, review:
- Notice requirements
- Final-pay calculations
- Accrued leave
- Statutory obligations
- Benefits termination
- Return of equipment
- Data return or deletion
- System-access removal
- Client communication
- Handover responsibilities
There is no SOS provider termination or exit fee under the standard EOR structure. Legally required final pay, severance, accrued benefits or other employee-related obligations may still apply.
Frequently Asked Questions
Can Australian finance companies hire employees in the Philippines without setting up a local company?
Yes. An EOR can employ the worker locally in the Philippines while the Australian company manages the employee’s daily work.
The Australian company must still review its own privacy, security, operational and regulatory responsibilities.
Is recruitment included in the SOS EOR fee?
Yes. Recruitment and candidate selection are included in the US$190 SOS EOR management fee. There is no separate recruitment fee.
What is the SOS EOR fee?
The SOS EOR management fee is US$190 per employee per month. This is the only SOS EOR rate.
Are salary and statutory contributions included?
No. Salary, employer statutory contributions, 13th-month pay, benefits, allowances, equipment and other employee-specific costs are separate where applicable.
Are there hidden SOS provider fees?
No. The standard SOS EOR structure has no hidden provider costs, FX markups, onboarding fees or provider termination or exit fees.
Does APP 8 apply to offshore finance teams?
APP 8 may apply when an Australian company discloses personal information to an overseas recipient. The specific obligations depend on the information and arrangement.
What security controls should offshore finance staff have?
Common controls include multi-factor authentication, least-privilege access, confidentiality agreements, secure remote access, audit logging, security training and documented offboarding.
The required controls should match the sensitivity of the employee’s role and system access.
How quickly can an existing employee be onboarded?
Existing employees can generally be onboarded as early as five business days once the agreement, employee information, required documents and funding are complete.
Does SOS take responsibility for the Australian company’s compliance?
No. SOS manages the local employment relationship and related employment administration. The Australian company remains responsible for its business operations, supervision, system access, data handling and applicable Australian obligations.
Final checklist
Before giving a Philippines-based finance employee access to company systems, confirm that you have:
- Completed a worker-classification review
- Verified the EOR provider
- Reviewed the employment contract
- Confirmed the US$190 EOR management fee
- Confirmed that recruitment is included
- Separated employee salary and other employee-specific costs
- Reviewed statutory contribution processes
- Assessed APP 8 and other privacy requirements
- Completed a data-access review
- Applied role-based access controls
- Enabled multi-factor authentication
- Documented confidentiality obligations
- Defined incident-reporting procedures
- Assessed ASIC, AFSL or APRA requirements where applicable
- Agreed reporting and audit procedures
- Prepared an offboarding and access-removal process
- Documented the arrangement in writing
Speak with a Philippines EOR specialist
Smart Outsourcing Solution can help Australian businesses review:
- Philippines employment requirements
- EOR suitability
- Recruitment and candidate selection
- Salary and employment-cost planning
- Payroll and statutory administration
- Contractor-to-EOR transitions
- Privacy and data-handling considerations
- Offshore governance procedures
- Existing-employee onboarding
- Offboarding and employee transfers
The SOS EOR management fee is US$190 per employee per month. Recruitment and candidate selection are included, while salary and other employee-specific costs are shown separately.
