Author: Martin English, CEO & Founding Partner
Reviewed by: Philip Murphy, COO & Founding Partner
Published: November 27, 2025
This guide is for general information only and does not constitute legal, tax, payroll or HR advice. Salary levels, statutory costs, benefits and currency exchange rates vary by provider and employment arrangement.
How much does an EOR cost in the Philippines?
The total cost of using an Employer of Record in the Philippines generally includes:
- Employee salary
- Employer statutory contributions
- 13th-month pay
- HMO or selected benefits
- Allowances
- Equipment or role-specific costs
- The EOR provider’s management fee
Each provider may structure its pricing differently. Some use a flat monthly fee, while others use a percentage of salary, tiered plans or additional service charges.
Example provider pricing
Smart Outsourcing Solution’s EOR management fee is:
US$190 per employee per month
This is the provider’s EOR management fee only. Employee salary, statutory contributions, 13th-month pay, benefits, allowances and other employee-specific costs are separate.
Recruitment should be confirmed separately and should not be presented as included in the standard EOR management fee.
For a role-specific estimate, use the Customer Support Cost Calculator.
Typical EOR cost structure
| Cost component | How it is usually treated |
| Employee salary | Based on the agreed role and employment contract |
| Employer statutory costs | Includes applicable SSS, PhilHealth and Pag-IBIG contributions |
| 13th-month pay | Mandatory employment cost calculated separately |
| HMO or benefits | Added where selected or applicable |
| Allowances | Added where agreed |
| EOR management fee | Charged by the provider |
| Security deposit | May apply under the provider’s agreement |
| Other costs | Equipment, bonuses, shift premiums or additional services |
A practical planning formula is:
Total monthly employment cost = salary + employer statutory costs + 13th-month pay + benefits or allowances + EOR management fee
For broader salary planning, see the Cost to Hire Employees in the Philippines guide and the Philippines Salary Guide for Remote Teams.
What does an EOR fee usually include?
An EOR provider may manage:
- Local employment contracts
- Employee records
- Payroll processing
- Payslips
- Statutory contribution administration
- 13th-month pay administration
- HR documentation
- Employee support
- Benefits or HMO enrolment where applicable
- Final pay
- Offboarding administration
- Local employment compliance support
The customer generally continues to manage the employee’s:
- Daily tasks
- KPIs
- Work schedule
- Team workflow
- Operational direction
- Performance expectations
The exact scope should be confirmed in the provider’s agreement.
Example: Customer support team cost model
For customer support roles, the total employment cost may include:
| Cost item | Example |
| Monthly salary | Base pay for the support employee |
| Employer statutory costs | SSS, PhilHealth, Pag-IBIG and related obligations |
| 13th-month accrual | Monthly salary divided by 12 |
| HMO or benefits | Selected health coverage or benefits |
| Allowances | Internet, work-from-home, equipment or transport |
| Shift premiums | Night shift, rest day or holiday work where applicable |
| EOR management fee | Provider-specific fee |
| Tools | Helpdesk, CRM, QA or communication software |
| Management cost | Team lead, training or escalation support |
All-in monthly support cost = salary + employer costs + 13th-month accrual + benefits/allowances + shift premiums + tools + EOR fee
Use the Customer Support Cost Calculator to model these components.
Example 1: Customer support agent
| Cost item | Example |
| Monthly salary | PHP 50,000 |
| 13th-month accrual | PHP 4,166.67 |
| Employer statutory costs | Calculate using current contribution tables |
| HMO or benefits | Depends on the selected package |
| Allowances | Added where applicable |
| EOR management fee | Provider-specific |
| Tools | Added where required |
| Total planning cost | Salary + employment costs + EOR fee |
For a three-person team:
| Team size | Salary example | 13th-month accrual |
| 1 agent | PHP 50,000 | PHP 4,166.67/month |
| 3 agents | PHP 150,000 total | PHP 12,500/month total |
| 5 agents | PHP 250,000 total | PHP 20,833.35/month total |
Example 2: Entry-level role
| Cost item | Example |
| Monthly salary | PHP 35,000 |
| Employer costs estimate | PHP 5,250 |
| 13th-month accrual | PHP 2,917 |
| EOR management fee | Provider-specific |
| Approximate total | Around US$900/month, depending on FX, benefits and other costs |
This is a planning example only. Actual costs vary by salary, contribution calculations, benefits and provider pricing.
Example 3: Mid-level role
| Cost item | Example |
| Monthly salary | PHP 60,000 |
| Employer costs estimate | PHP 9,000 |
| 13th-month accrual | PHP 5,000 |
| EOR management fee | Provider-specific |
| Approximate total | Around US$1,400/month, depending on FX, benefits and other costs |
Salary and fully loaded cost examples
| Role type | Salary range/month | Estimated fully loaded employment cost |
| Virtual assistant | US$700–US$1,400 | US$900–US$1,700 |
| Customer support agent | US$800–US$1,500 | US$1,000–US$1,900 |
| Executive assistant | US$1,200–US$2,200 | US$1,500–US$2,600 |
| Bookkeeper | US$1,000–US$2,000 | US$1,300–US$2,400 |
| SDR or sales support | US$1,200–US$2,500 | US$1,600–US$3,000 |
| Data analyst | US$1,500–US$4,500 | US$1,900–US$5,200 |
| Developer or technical role | US$1,800–US$5,500+ | US$2,300–US$6,500+ |
These are general planning ranges and should not be treated as provider quotes.
The SOS EOR management fee is US$190 per employee per month, added separately to employment costs.
Local versus global EOR pricing
A local Philippines EOR and a global EOR platform may serve different requirements.
| Factor | Local Philippines EOR | Global EOR platform |
| Geographic focus | Philippines-focused | Multiple countries |
| Support model | Local HR and payroll support | Centralised or platform-led support |
| Payroll approach | Country-specific | Standardised across markets |
| Integrations | May be more limited | May offer broader integrations |
| Suitable for | Philippines-only or PH-heavy teams | Multi-country hiring |
| Pricing | Verify provider-specific fee | Verify provider-specific fee |
The appropriate option depends on the number of countries, required integrations, support expectations and total cost.
Flat fee versus percentage-of-salary pricing
Flat monthly fee
A flat monthly fee remains the same regardless of the employee’s salary.
Example:
| Gross salary/month | 12% EOR fee | Flat US$190 fee |
| US$1,000 | US$120 | US$190 |
| US$2,000 | US$240 | US$190 |
| US$3,000 | US$360 | US$190 |
| US$5,000 | US$600 | US$190 |
This example illustrates how different pricing models can produce different results at different salary levels.
Percentage-of-salary pricing
Under a percentage model, the EOR fee increases as the employee’s salary increases. This may be suitable for some lower-salary roles, but the total cost should be compared over the expected salary range.
Tiered platform pricing
Some providers offer different plans based on:
- Number of countries
- HRIS features
- Integrations
- Support level
- Reporting requirements
- Enterprise procurement needs
Questions to ask about EOR fees
Before choosing a provider, ask about:
- Monthly EOR management fee
- Employee salary treatment
- Employer statutory contributions
- 13th-month pay
- HMO and benefits
- Allowances
- Recruitment fees
- Contractor-conversion fees
- FX policy
- Bank or wire fees
- Onboarding fees
- Offboarding fees
- Termination fees
- Deposit requirements
- Equipment costs
- Extra payroll runs
- Contract-change fees
- Minimum headcount
- Minimum contract term
- Sample invoice
For SOS, the standard pricing terms are:
- US$190 per employee per month
- No hidden provider costs
- No FX markup
- No onboarding fee
- No exit or termination fee
Employee salary and employment-related costs remain separate.
FX and currency handling
Philippine salaries and statutory costs are generally calculated in Philippine pesos. International customers may fund or receive invoices in US dollars or another agreed currency.
Ask the provider:
- What currency is used to calculate salary?
- What exchange rate is used?
- Is the EOR fee charged in US dollars?
- Is there an FX markup?
- Are bank fees passed through?
- Is the exchange rate shown on the invoice?
- Can the provider provide a sample invoice?
SOS’s pricing does not include an FX markup. Other providers should be checked individually.
What should an EOR invoice show?
| Invoice line | Purpose |
| Employee name or ID | Identifies the employee |
| Role or department | Supports cost allocation |
| Gross salary | Shows employee pay |
| Employer statutory costs | Shows employer obligations |
| 13th-month accrual | Tracks mandatory annual pay |
| Benefits or HMO | Shows selected benefits |
| Allowances | Shows approved additional costs |
| EOR management fee | Shows the provider charge |
| FX rate | Shows currency conversion basis |
| Deposit | Shows any separate deposit |
| Total monthly cost | Shows the complete budget |
Before approving an EOR quote
Compare the complete monthly cost, including:
- Employee salary
- Employer statutory contributions
- 13th-month pay
- HMO or selected benefits
- Allowances
- EOR management fee
- FX treatment
- Deposit requirements
- Any additional provider charges
For SOS, the EOR management fee is US$190 per employee per month. Salary, statutory costs, 13th-month pay, benefits and other employee-specific expenses are separate.
Confirm the final amounts and applicable employment requirements before hiring.
EOR pricing versus other hiring options
| Hiring option | Monthly cost | Setup speed | Compliance burden | Suitable for |
| Local EOR | Varies by provider | Varies | Lower for the customer | Hiring employees without a Philippine entity |
| Global EOR | Varies by provider and market coverage | Varies | Lower to medium | Multi-country hiring |
| Contractors | Varies by arrangement | Often faster | Higher if the relationship is employee-like | Short-term independent work |
| Own entity | Higher setup requirement | Usually slower | Higher | Larger long-term teams |
| BPO or outsourcing | Bundled pricing | Varies | Lower for the customer | Managed service delivery |
Switching from another EOR provider
Companies changing providers should review:
- Notice periods
- Exit or termination fees
- Deposit refunds
- Final payroll
- Employee records transfer
- Benefits transition
- Contract requirements
- Data handover
- Cooperation obligations
See How to Move Employees From Another EOR to SOS for an example transition process.
Outgoing-provider charges should not be assumed to apply to every EOR provider.
Contractor-to-employee conversion
Companies converting contractors into employees should plan for:
- Final contractor invoice
- Employment start date
- First employee payroll
- Salary and deductions
- Statutory registration
- 13th-month pay
- Benefits enrolment
- Employee communication
- Employment contracts
- Payroll cutover
See How SOS Converts Contractors to Employees in the Philippines for an example process.
What should be in a Philippines EOR quote?
| Quote item | What the quote should show |
| EOR management fee | US$190 per employee per month |
| Employee salary | Separate salary amount |
| Employer statutory costs | Separate contribution amounts |
| 13th-month pay | Separate treatment or accrual |
| HMO or benefits | Included only if selected |
| Allowances | Included only where applicable |
| FX policy | No SOS FX markup |
| Onboarding fee | None |
| Exit or termination fee | None |
| Deposit | Listed separately and subject to MSA terms |
| Payroll schedule | 15th and 30th or next Business Day |
| Support model | Human HR, payroll and compliance support |
| Recruitment | Confirmed separately |
How Smart Outsourcing Solution supports employers
Smart Outsourcing Solution helps international businesses employ and support teams in the Philippines through a local EOR model.
SOS supports:
- Philippine employment setup
- Employment contracts
- Employee records
- Payroll and payslip administration
- Statutory contribution coordination
- 13th-month pay administration
- Final-pay administration
- HMO or benefit enrolment where applicable
- HR guidance
- Labour-law compliance support
- Onboarding administration
- Offboarding administration
- Contractor-to-employee transition support
- Human employee support throughout the employment lifecycle
Frequently asked questions
What is the standard SOS EOR fee?
SOS’s standard EOR management fee is US$190 per employee per month.
Does the EOR fee include salary?
No. Salary is a separate employment cost.
Are statutory contributions included?
Statutory contributions are separate employment costs and should be shown separately in the quote or invoice.
Does the fee include recruitment?
Recruitment should be confirmed separately and should not be presented as included in the standard EOR management fee.
Does SOS apply an FX markup?
No. SOS does not apply an FX markup.
Are onboarding and termination fees charged?
SOS does not charge an onboarding fee or an exit or termination fee.
Who manages the employee’s daily work?
The customer generally manages the employee’s daily tasks, KPIs, schedule and workflow. The EOR manages the legal employment and administrative responsibilities.
How quickly can onboarding be completed?
The conditional five-day onboarding commitment applies when the MSA, employee information, required documentation and funding are complete. Recruitment and candidate selection may require a separate timeline.
Final takeaway
EOR pricing should be evaluated using the complete employment cost rather than the provider fee alone.
The total cost may include:
- Salary
- Employer statutory contributions
- 13th-month pay
- Benefits
- Allowances
- Equipment
- EOR management fee
- Deposits or other agreed costs
SOS provides one example of a flat-fee model at US$190 per employee per month. Other providers should be compared using current, verified pricing and the same cost categories.
Contact Smart Outsourcing Solution.
Recommended reads
- Cheapest EOR Provider in the Philippines
- Best Local EOR Providers in the Philippines
- Employer of Record Philippines
- Employer of Record Trends
- Cost to Hire Employees in the Philippines
- Cost to Hire Customer Support in the Philippines
- Convert Contractors to Employees in the Philippines
- EOR vs Freelancer Philippines
