Author: Martin English
Published: June 4, 2026
Australian financial services companies can hire dedicated employees in the Philippines without setting up a Philippine entity.
Smart Outsourcing Solution acts as the local Employer of Record. SOS employs the staff member in the Philippines and manages local employment administration, payroll, statutory requirements and HR support. Your company continues to manage the employee’s daily work, priorities, systems, supervision and performance.
This guide explains how the model works, what it costs, which responsibilities remain with the Australian company and what to review before hiring.
Quick answer
An EOR allows an Australian financial services company to employ staff in the Philippines without establishing a local entity.
With SOS:
- The EOR management fee is US$190 per employee per month.
- US$190 is the only SOS EOR management fee. It is not a starting rate, estimate or price range.
- Recruitment and candidate selection are included.
- There is no separate recruitment fee.
- There is no onboarding fee.
- There is no SOS provider termination or exit fee under standard EOR pricing.
- There is no FX markup.
- There are no hidden SOS provider charges.
- Human support is available throughout recruitment, onboarding, payroll, HR administration and offboarding.
- Hiring may be possible in as early as five business days once the role, candidate, documentation and funding are ready.
Salary, employer statutory contributions, 13th-month pay, benefits, allowances, equipment and other employee-specific costs remain separate where applicable.
For a general overview, see Employer of Record services in the Philippines.
What is an Employer of Record?
An Employer of Record is a local legal employer that employs staff on behalf of another company.
For an Australian financial services company, this means you can build a Philippines-based team without first registering and operating your own Philippine entity.
SOS manages the local employment administration, including:
- Employment agreements
- Payroll administration
- Statutory contributions
- Employee records
- Leave administration
- Routine HR support
- Employment documentation
- Offboarding administration
Your company remains responsible for the employee’s actual work, including daily direction, systems, access, training, quality and performance.
You can read more about hiring in the Philippines without setting up a company.
Why do Australian financial services companies use an EOR?
An EOR can help a business test, build or expand a Philippines-based team without committing immediately to its own local entity.
Common reasons include:
- Accessing Philippines-based finance and administration talent
- Building a dedicated offshore support team
- Reducing the time required to begin hiring
- Avoiding the administrative burden of local employment setup
- Creating a clear employment arrangement for ongoing roles
- Supporting payroll and statutory administration locally
- Maintaining direct control over the employee’s daily work
SOS has supported more than 1,000 employees across 250+ clients, including more than 30 Australian accounting and financial-services firms.
What should you check before choosing an EOR?
Australian financial services companies should assess the provider across the full employment lifecycle.
| Area to review | Questions to ask |
| Philippine legal employer | Which entity signs the employment agreement and employs the worker? |
| Recruitment | Is candidate sourcing and selection included in the rate? |
| Pricing | Is the monthly management fee fixed and clearly separated from employee costs? |
| Payroll | How are salary, statutory contributions and 13th-month pay administered? |
| Data access | How will access to customer, financial and business information be controlled? |
| Supervision | Which responsibilities remain with the Australian company? |
| Compliance support | How are employment and HR issues escalated and documented? |
| Offboarding | How are final pay, statutory entitlements and exit administration handled? |
| Human support | Is there a person available throughout the process? |
| Evidence | Can the provider explain its process, controls and employment documentation? |
For a more detailed review, see the AFSL compliance guide for Australian companies hiring in the Philippines.
How much does SOS charge?
SOS charges a fixed EOR management fee of:
US$190 per employee per month
This is the only SOS EOR management fee. It is not a starting price, minimum price, estimate or range.
| Cost | Treatment |
| SOS EOR management fee | US$190 per employee per month |
| Recruitment and candidate selection | Included |
| Onboarding fee | None |
| SOS provider termination or exit fee | None under standard EOR pricing |
| FX markup | None |
| Hidden SOS provider charges | None |
| Salary and wages | Separate employee cost |
| Employer statutory contributions | Separate employee cost |
| 13th-month pay | Separate employee cost |
| Benefits and allowances | Separate where applicable |
| Equipment | Separate where applicable |
| Approved third-party costs | Separate where applicable |
| Statutory final pay or other employment entitlements | Separate where applicable |
See the full EOR pricing guide for the Philippines for the cost structure.
What is included in the US$190 fee?
The SOS management fee includes:
- Recruitment coordination
- Candidate selection support
- Employment setup
- Payroll administration
- Statutory administration
- Employee record management
- Routine HR support
- Employment documentation
- Human assistance throughout the employment lifecycle
- Offboarding administration
The fee does not include employee-specific costs such as salary, statutory contributions, 13th-month pay, benefits, allowances, equipment or approved third-party charges.
For finance and accounting roles, see the cost of hiring finance and accounting staff in the Philippines.
How quickly can you hire?
Hiring may be possible in as early as five business days, depending on:
- Role requirements
- Candidate availability
- Interview and selection timing
- Completed employee information
- Signed agreements
- Required documentation
- Funding and payroll deadlines
The process usually involves:
- Confirming the role and employment requirements.
- Sourcing and presenting suitable candidates.
- Interviewing and selecting the preferred candidate.
- Preparing the employment documentation.
- Completing onboarding and confirming the start date.
The five-business-day timeline is an early target. Specialist, senior or highly regulated roles may require additional time.
Which roles can be hired through an EOR?
Common Philippines-based roles may include:
- Finance assistants
- Accounts payable and receivable staff
- Bookkeeping support
- Reconciliation staff
- Payroll administrators
- Financial planning administration staff
- Client services officers
- Compliance administration support
- Research and reporting support
- Customer support staff
- Marketing and operations support
The Australian company must decide whether a role involves regulated advice, financial product activity, client-facing authority or other responsibilities requiring additional supervision, approval or licensing.
Who manages the employee?
Your company manages:
- Daily work
- Priorities
- Systems and access
- Training
- Work quality
- Performance
- Team integration
- Role-specific procedures
SOS manages:
- Local employment administration
- Payroll
- Statutory administration
- Employee records
- Leave administration
- Routine HR support
- Employment documentation
- Offboarding administration
The EOR manages the employment administration. It does not take over your company’s operational, client, financial or regulatory decision-making.
What compliance issues should Australian financial services firms consider?
Before hiring, review:
- The employee’s responsibilities
- Access to customer and financial information
- Confidentiality requirements
- System permissions
- Supervision and quality controls
- Data handling and storage
- Incident escalation
- Vendor oversight
- Business continuity
- Employee screening
- Australian regulatory responsibilities
Read the guide to data security and employment compliance for Australian finance teams.
Businesses reviewing operational resilience and third-party arrangements can also read CPS 230 and offshore teams in the Philippines.
The Australian company remains responsible for determining which laws, regulatory obligations and internal controls apply to its business and the role being hired.
Is an EOR better than using contractors?
The right model depends on the role and working arrangement.
If a person works regular hours, follows company processes, uses company systems and performs an ongoing role as part of the team, an employment arrangement may be more appropriate than a contractor arrangement.
Read contractor versus EOR arrangements for Australian financial services firms and contractor misclassification in the Philippines.
If you already work with contractors, see how to convert contractors to employees in the Philippines.
| Model | Best suited to |
| EOR | Ongoing employees managed day to day by your company |
| Contractor | Genuine independent services with appropriate independence |
| BPO | Delegated processes managed by an external service provider |
| Philippine entity | Companies planning a longer-term local operation with their own entity |
When might an EOR not be the right fit?
An EOR may not be suitable if:
- You want a third party to manage the entire operation.
- The role is genuinely independent and project-based.
- You need your own Philippine entity for broader commercial activity.
- You require a regulated local operation that cannot be supported through an EOR.
- You are not prepared to manage the employee’s daily work and performance.
The right structure should be based on the role, level of control, risk profile and long-term business plans.
Frequently asked questions
What is the SOS EOR fee?
The fee is US$190 per employee per month. This is the only SOS EOR management fee.
Is US$190 a starting price?
No. US$190 is the fixed SOS EOR management fee per employee per month.
Is recruitment included?
Yes. Recruitment and candidate selection are included. There is no separate recruitment fee.
Are salaries included?
No. Salary and other employee-specific costs are separate from the US$190 management fee.
Are statutory contributions included?
Employer statutory contributions are separate employee costs and are charged as applicable.
Is 13th-month pay included?
13th-month pay is an employee-specific employment cost and is charged separately where applicable.
Is there an onboarding fee?
No. SOS does not charge a separate onboarding fee.
Is there a termination or exit fee?
There is no separate SOS provider termination or exit fee under standard EOR pricing. Statutory final pay, severance, accrued benefits and other required employment entitlements remain separate where applicable.
Is there an FX markup?
No. SOS does not add an FX markup to the EOR management fee.
How quickly can hiring begin?
Hiring may be possible in as early as five business days once the role, candidate, documentation, agreements and funding are ready.
Who manages the employee?
Your company manages the employee’s daily work and performance. SOS manages local employment administration, payroll, statutory administration and HR support.
Further reading
- EOR pricing for the Philippines
- Hiring in the Philippines without setting up a company
- AFSL compliance and Philippines teams
- Data security and employment compliance
- Finance and accounting hiring costs
- Offshore finance payroll and compliance
- Contractor versus EOR
- Contractor misclassification
- Convert contractors to employees
Speak with a Philippines EOR specialist
If you are comparing EOR options, reviewing contractors or preparing to hire financial services staff in the Philippines, speak with a Philippines EOR specialist.
SOS can help you review the employment arrangement, confirm the expected employee-specific costs and plan the next steps.
Disclaimer: This guide provides general operational information only. It is not legal, employment, payroll, tax, financial services or compliance advice. Australian financial services firms should obtain appropriate advice on employment, privacy, licensing, client-data and regulatory obligations before hiring offshore staff.
