Author: Martin English, Founder & People Advocate, Smart Outsourcing Solution (SOS)
Last updated 15 September 2025
TL;DR — How much does an EOR cost in the Philippines?
Most EORs fall between US $190–$900 per employee/month depending on benefits and add-ons. Smart Outsourcing Solution charges a flat $190/employee/month in the Philippines (statutory filings, payroll, compliance, local support). Your total varies with salary, 13th-month pay, SSS/PhilHealth/Pag-IBIG, and FX.
Totals are calculated in PHP, then converted to your invoice currency (most clients are billed in USD) at the daily bank spot rate on the billing date (no added FX markup). For audit, we record the reference rate used on each invoice.
Table of Contents
- What Is an Employer of Record?
- Why Use an EOR for International Hiring?
- How Much Does an EOR Cost in the Philippines in 2025?
- Hidden Fees Checklist
- EOR vs Alternatives (PEO, Subsidiary, Contractors)
- Timeline: How Fast Can SOS Onboard My Team?
- Real-World Cost Scenarios
- Choosing the Right EOR Provider
- Region-Specific FAQs (AU, UK, US, CA)
- Additional FAQs Decision-Makers Ask
- Key Takeaways & Next Steps
1. What Is an Employer of Record?
An Employer of Record is a licensed third-party that becomes the legal employer of your overseas staff. It:
- Issues compliant employment contracts
- Runs payroll, tax and benefit filings
- Shoulders employment liability and HR admin
- Lets you direct day-to-day work just as if you’d hired directly
2. Why Use an EOR for International Hiring?
| Benefit | Impact on your business |
| Speed | Start operations in a new country in ≤ 2 weeks instead of 4-6 months. |
| Cost-efficiency | Flat fee + statutory on-costs; avoid incorporation and ongoing entity maintenance. |
| Compliance & Risk | The EOR absorbs payroll, tax, labour-law and termination liability. |
| Multi-country reach | Hire across multiple jurisdictions with one contract. |
| Focus on growth | HR and finance spend zero time on foreign paperwork. |
3. How Much Does an EOR Cost in the Philippines in 2025?
| Cost Component | SOS | 2025 Market Median | Notes |
| EOR service fee | US $190 pppm* | US $400–600 pppm | Flat for any team size; fixed 12 months. |
| SSS (employer) | 10 % of MSC† | Same | Social Security System. |
| PhilHealth (employer) | 2.5 % of salary | Same | Total rate 5 % split. |
| Pag-IBIG (employer) | 2 % of salary | Same | National housing fund. |
| 13ᵗʰ-month pay accrual | 8.33 % of annual salary | Same | Mandatory bonus in December. |
*pppm = per person per month †MSC = Monthly Salary Credit (cap ₱35 000)
Proprietary data: SOS’s average onboarding time across 120 hires in 2025 is 8.6 days, versus an industry median of 14 days (Deloitte Global Mobility study, 2025).
4. Hidden Fees Checklist
| Fee Type | Industry Standard | SOS |
| Onboarding / setup | US $99–250 per hire | US $0 |
| Rush onboarding | US $50–100 | None – rush included |
| FX spread | 1–2 % above mid-rate | ≤ 0.4 % (bulk Wise rate) |
| Contract amendments | US $30–50 | Free |
| Termination / exit | US $300 or 1 month salary | Statutory costs only |
Examples below use an illustrative FX rate for comparison; replace with your live rate.
Assumptions used for examples:
• Illustrative FX rate for this example: ₱56 = US $1 (replace with your live rate).
• Management fee: US $190/employee/month (≈ ₱10,640 at ₱56).
• Statutory contributions + 13th-month accrual: varies by salary and current agency tables — insert from your calculator.
• Optional benefits: varies by package (Basic/Enhanced).
Example 1 — 1 hire @ ₱45,000 monthly base (≈ $804 at ₱56)
• Base salary: ₱45,000
• Statutory + 13th-month accrual: [insert from calculator; show low–high range if helpful]
• Management fee: $190 (≈ ₱10,640)
• Optional benefits: [e.g., ₱0 Basic / ₱3,000 Enhanced]
Estimated monthly total (PHP): [salary + statutory + benefits + management fee in PHP]
Estimated monthly total (USD): [total PHP ÷ FX]
Example 2 — 5 hires @ ₱60,000 monthly base each (≈ $1,071 at ₱56)
• Base salary (5): ₱300,000
• Statutory + 13th-month accrual (5): [insert]
• Management fee (5): $950 (≈ ₱53,200)
• Optional benefits (5): [insert]
Estimated monthly total (PHP): [insert]
Estimated monthly total (USD): [insert]
Example 3 — 20 hires (mixed salaries: ₱35k–₱120k)
• Base salary (20): [insert total]
• Statutory + 13th-month accrual (20): [insert]
• Management fee (20): $3,800 (≈ ₱212,800)
• Optional benefits (20): [insert by package]
Estimated monthly total (PHP): [insert]
Estimated monthly total (USD): [insert]
Notes to display under examples:
• FX can move totals materially; always compute in PHP first, then convert.
• Upgrading benefits increases per-employee cost but may reduce turnover time-to-fill.
• For multi-country teams, compare PH totals vs. your other geos to balance cost and coverage.
Also see:
• Hidden costs checklist
• Best providers (2025)
• Is EOR legal in PH?
5. EOR vs Alternatives (PEO, Subsidiary, Contractors)
| Model | Legal Employer | Setup Time | Best Fit |
| EOR (SOS) | SOS | 1-2 weeks | < 40 staff, fast entry |
| PEO / Co-employment | Split | 1-2 months + local entity | You already have an entity |
| Local Subsidiary | Your company | 4-6 months, US $8-12 k | 40 + staff, long-term |
| Independent Contractors | Self-employed | Immediate | Short gigs; misclassification risk |
6. Timeline: How Fast Can SOS Onboard My Team?
| Day | Milestone | Cost |
| 0 | Offers accepted, docs uploaded | — |
| 1-3 | Background checks & contracts | Included |
| 4-7 | SSS / PhilHealth / Pag-IBIG enrolment | Included |
| 8-14 | First payroll run | Included |
7. Real-World Cost Scenarios
A. Five Senior Software Engineers
- Salary ₱80 000 ea
- Statutory on-cost ₱28 000 ea
- SOS fee US $190 → ₱10 800 ea
Total: ₱590 000 / ≈ US $10 500 pm
B. Thirty Customer-Support Reps
Competitor fee US $499 pppm vs SOS US $190.
12-month saving with SOS: ≈ US $108 000
8. Choosing the Right EOR Provider
- Geographic coverage – future markets supported?
- Transparent pricing – flat fee, no hidden FX or exit charges.
- Compliance record – proven expertise in local labour law.
- Service model – dedicated account manager & 24 × 5 support.
- Technology – self-service HR dashboard & API integrations.
Metric to ask for: SOS’s 86 % 12-month employee retention vs industry 79 % (internal 2025 benchmark).
9. Region-Specific FAQs (AU, UK, US, CA)
How are SOS invoices handled for Australian clients?
In AUD at RBA reference rate with no FX mark-up. GST is not applied to overseas payroll services.
Does 13ᵗʰ-month pay apply to UK companies using an EOR?
Yes. SOS accrues it monthly, avoiding a December cash-flow spike.
Can US companies offer 401(k)-style benefits through SOS?
Yes—custom plans can be layered on top of statutory benefits and billed at cost.
How does SOS handle Canadian provincial taxes?
Taxes are withheld in PH; Canadian clients receive a single supplier invoice—no permanent-establishment exposure.
10. Additional FAQs Decision-Makers Ask
How much does an EOR cost in the Philippines?
Most providers fall between US $190–$900 per employee/month depending on benefits and add-ons. Smart Outsourcing Solution charges a flat $190/employee/month in PH. Your total varies with salary, 13th-month pay, SSS/PhilHealth/Pag-IBIG, and FX.
What’s included in the $190/month fee?
Management fee covering payroll, statutory filings, compliance support, and local account management. Employer total cost still includes salary, mandatory contributions, and any chosen benefits.
Why do totals vary so much by provider?
Differences in benefits coverage, FX handling, and add-on services (e.g., timekeeping, HRIS integrations) create spread between offers.
How are terminations handled?
SOS follows Philippine Labour Code severance rules and bills only statutory costs—no extra off-boarding fee.
How do FX and benefits affect the total?
FX movements change the USD equivalent of PHP salaries/contributions; richer benefits packages increase the per-employee cost in PHP.
Who owns the intellectual property created by EOR-hired staff?
Your company retains 100 % IP rights; SOS assigns all work product back to you in the employment contract.
Can we convert existing contractors to SOS’s EOR model?
Yes. SOS converts freelancers to full employees within 7 days, eliminating misclassification risk.
11. Key Takeaways & Next Steps
- US $190 flat fee – industry-leading value, locked for 12 months.
- Zero hidden charges – no setup, rush or exit fees.
- ≤ 14-day launch – fastest compliant route to Philippine talent.
- 70 % cost savings – versus on-shore hiring in AU, UK, US, CA.
Ready to model your savings? Get Your Personalised EOR Cost Snapshot – 3-minute form, no obligation.
