Employer of Record Philippines – Hire Legally Without a Local Entity (2025 Guide)

Date updated: October 16, 2025

Need to hire employees in the Philippines without a local entity? SOS is the EOR Philippines founders trust to hire Philippine talent remotely with compliance, speed and predictable costs.

Best providers (2025)

Short answer: For Philippines-only teams, a local EOR such as Smart Outsourcing Solution offers a flat $190/employee/month and faster onboarding with DOLE-aligned contracts and statutory benefits (SSS, PhilHealth, Pag-IBIG, 13th-month). For multi-country teams, shortlist Deel, Remote, Oyster, and Papaya Global for unified coverage and integrations.

Deep-dive comparisons:

• Who are the best Employer of Record (EOR) providers in the Philippines (2025)? 
• Best local EOR providers in the Philippines (editor’s picks)

Also see:
• How much does an EOR cost in the Philippines?
• Remote hiring in the Philippines, done right

How to Hire Employees in the Philippines Legally – EOR vs DIY

Business need	How an EOR solves it
Speed‑to‑hire	Signed contract & first payroll in < 48 h
Compliance	Statutory contributions calculated and remitted on time
Cost certainty	One all‑in monthly invoice in your currency; no hidden HR, legal or audit fees
Legal risk	SOS is the legal employer; you avoid permanent‑establishment exposure

 

2025 Cost Snapshot – Mid‑Level React Developer (USD)

 

Before diving into the numbers, remember that Philippine payroll outsourcing through an EOR folds every statutory line into a single invoice.

SSS and Pag‑IBIG amounts are subject to annual ceilings; figures reflect 2025 limits using ₱56.65 ≈ $1 mid‑market rate (26 Jun 2025).

 

End‑to‑End Process

 

1. Day 0 – Role briefing – salary band, tool access, scope
2. Day 1 – Contract issuance – SOS issues Philippines‑compliant employment contract
3. Day 2 – On payroll – employee added to weekly or fortnightly run
4. Ongoing – HR & compliance – performance coaching, statutory updates, exit management

 

Common EOR Misconceptions & Facts

 

• “EOR = staffing agency” – No. Staffing agencies simply lease labour; an EOR is the legal employer.
• “I’ll lose my IP” – SOS assigns all deliverables to you under the contract.
• “Long lock‑in” – Engagement is month‑by‑month with a 30‑day exit.
• “Is this just a PEO Philippines service?” – A true EOR keeps 100 % employment risk on SOS, not split with you.

 

Understanding Local Benefits & 13th‑Month Pay

 

Term	What it is	Why it matters to you
SSS	Social Security System – retirement, disability & sickness cover	Mandatory employer contributions prove full legal compliance
PhilHealth	National Health Insurance	Guarantees employees basic medical cover; rates adjust annually
Pag‑IBIG	Government housing savings & loan fund	Minimal employer top‑up; omission triggers fines
13th‑Month Pay	Statutory extra month’s salary paid every December	SOS calculates, pays and includes the cost in your December invoice

Mini‑FAQ

Q1. What is an EOR vs PEO?
A PEO co‑employs staff when you already have a local entity; an EOR removes the need for one entirely.

Q2. Can I transfer existing contractors to EOR employment?
Yes. SOS novates contracts and completes all enrolments in roughly five working days.

Q3. Who handles the 13th‑month bonus?
SOS computes and pays the statutory 13th‑month salary each December, then details it on your invoice.

Q4. What does it cost to set up an entity in the Philippines?
Setting up a corporation typically takes 8–12 weeks and USD 8 000–12 000 in legal, capitalisation and licensing fees—an EOR avoids this start‑up cost.

Q5. Who are the best EOR providers in the Philippines (2025)?
PH-only: Smart Outsourcing Solution (flat $190/employee/month). Multi-country: shortlist Deel, Remote, Oyster, and Papaya Global. Pick local for cost and depth in PH; pick global for one contract across countries.

 

 

Next Steps

Run the EOR Cost Calculator now and see your total hiring cost in 60 seconds or book a consultation with us.

 

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