PEO Cost Philippines: 2026 Pricing Benchmark & TCO Guide
Author: Martin English, CEO & Founding Partner
Updated: June 01, 2026
Disclosure: This guide is for informational purposes only and does not constitute legal, tax, payroll, or HR advice. Pricing, statutory requirements, benefits, and payroll costs can change. Always confirm live figures before signing.
A PEO in the Philippines helps companies that already have a Philippine entity manage payroll, HR administration, statutory workflows, benefits coordination, and employment records.
That is different from an Employer of Record.
A PEO supports your existing Philippine entity.
An EOR employs workers on your behalf when you do not have a Philippine entity.
This guide explains PEO cost in the Philippines, how to calculate total cost of ownership, what hidden fees to watch for, how PEO pricing compares with EOR pricing, and when Smart Outsourcing Solution’s flat US$99 per employee/month PEO model fits best.
If you do not have a Philippine entity yet, this is not a PEO use case. Read
EOR Pricing Philippines
TL;DR: How much does a PEO cost in the Philippines?
A PEO in the Philippines typically charges a monthly per-employee fee for payroll, HR admin, statutory coordination, benefits support, and employment-record workflows.
SOS’s PEO pricing is:
US$99 per employee per month
A simple PEO total-cost formula is:
PEO total monthly cost =
employee salary
+ employer statutory costs
+ 13th month accrual
+ benefits / HMO
+ allowances
+ PEO admin fee
+ approved add-ons
For SOS:
PEO total monthly cost =
salary
+ employer statutory costs
+ 13th month
+ selected benefits / allowances
+ US$99
Use PEO when you already have a Philippine entity.
Use EOR when you want to hire in the Philippines without opening an entity.
Who this guide is for
This guide is for:
- companies with an existing Philippine entity
- CFOs comparing payroll and HR admin providers
- HR teams needing local payroll support
- founders deciding between PEO and EOR
- businesses moving from manual payroll to outsourced HR administration
- companies comparing PEO, EOR, payroll-only, and staff leasing models
- teams asking how much EOR costs in the Philippines as an alternative
It answers:
- What does a PEO cost in the Philippines?
- What is included in PEO pricing?
- How do you calculate PEO total cost of ownership?
- Is PEO cheaper than EOR?
- What is the difference between PEO and EOR in the Philippines?
- How much does an EOR cost in the Philippines?
- What are typical EOR fees in the Philippines?
- What is included in Philippines EOR pricing?
PEO vs EOR in the Philippines
The most important distinction is entity ownership.
| Model | Who legally employs the worker? | Best for |
| PEO | Your Philippine entity | Companies that already have a local entity but want payroll/HR admin support |
| EOR | The EOR provider | Companies that want to hire in the Philippines without opening a local entity |
A PEO does not replace your legal employer responsibility. It supports your entity with HR, payroll, benefits, records, and statutory administration.
An EOR becomes the local legal employer and handles employment setup for companies without a Philippine entity.
For the EOR cost model, read:
EOR Pricing Philippines
What is included in PEO pricing?
A strong PEO base fee should usually include:
| Cost element | Usually included |
| Payroll processing | Monthly or agreed payroll calendar processing |
| Payslips | Payslip preparation and payroll records |
| Statutory coordination | SSS, PhilHealth, Pag-IBIG, and payroll-related workflows |
| HR records | Employee files, employment records, and payroll documents |
| Benefits admin | HMO eligibility, enrolment, updates, and exits |
| 13th month support | Accrual and payroll treatment support |
| Evidence pack | Payroll summaries, approvals, remittance records, variance logs |
| Account support | Payroll and HR admin support |
| Standard onboarding | Employee data intake and payroll setup |
| Standard offboarding | Final payroll and HR admin coordination |
Some items may be billed separately depending on provider and complexity.
What may cost extra?
Ask every PEO provider whether these are included or charged separately.
| Possible extra | Why it matters |
| Off-cycle payroll runs | Extra runs can increase monthly cost |
| Weekly or non-standard payroll | More frequent payroll may require extra processing |
| Custom bank file formats | Bespoke mapping may create setup cost |
| HRIS or accounting integrations | Custom exports or API work may be billed separately |
| Frequent salary changes | High change volume can create ticketed fees |
| Multi-wallet payments | Split disbursement can increase admin work |
| Benefits changes | HMO enrolments, exits, and dependent updates may vary |
| Custom audit reports | Non-standard evidence packs may cost extra |
| Legal review | Non-standard legal or policy work may be quoted separately |
A low PEO base fee can become expensive if routine payroll and HR admin tasks are charged separately.
PEO cost formula
Use this formula when comparing PEO quotes:
PEO TCO per employee =
salary
+ employer statutory costs
+ 13th month accrual
+ benefits / HMO
+ allowances
+ PEO admin fee
+ pay-run fees
+ change-control fees
+ integration costs
+ reporting / evidence fees
For a clean, steady-state setup, the effective monthly cost should stay close to:
salary
+ employer costs
+ 13th month
+ benefits
+ US$99 SOS PEO fee
SOS PEO fee positioning
SOS PEO pricing is designed for companies with an existing Philippine entity that want predictable payroll and HR administration support.
| Item | SOS PEO position |
| PEO admin fee | US$99 per employee/month |
| Best fit | Companies with a Philippine entity |
| Pricing model | Flat monthly fee |
| Main scope | Payroll, HR admin, statutory workflows, benefits coordination, records |
| Strongest use case | Entity-backed teams that want local payroll and HR support |
| Alternative if no entity | SOS EOR at US$190 per employee/month |
This distinction is important:
- US$99/month PEO = for companies with a Philippine entity.
- US$190/month EOR = for companies without a Philippine entity.
PEO vs EOR cost comparison
| Item | PEO | EOR |
| SOS admin fee | US$99/employee/month | US$190/employee/month |
| Requires your own PH entity | Yes | No |
| Legal employer | Your company | EOR provider |
| Payroll support | Yes | Yes |
| Statutory admin | Yes | Yes |
| Benefits support | Yes | Yes |
| Employment contracts | Under your entity | Under EOR structure |
| Best for | Existing PH entity | Hiring without PH entity |
| Setup complexity | Lower if your entity is ready | Lower if you have no entity |
| Local compliance responsibility | Shared/admin-supported but your entity remains employer | EOR handles legal employment structure |
PEO is usually cheaper than EOR because the provider is not acting as legal employer. But PEO only works if your company already has a local Philippine entity.
What are typical EOR fees in the Philippines?
For companies without a Philippine entity, EOR is the relevant model.
Typical EOR pricing in the Philippines includes:
salary
+ employer statutory costs
+ 13th month
+ benefits / HMO
+ allowances
+ EOR admin fee
SOS’s EOR fee is:
US$190 per employee per month
Typical provider positioning:
| Provider type | Typical pricing style | Best for |
| Local Philippines EOR | Lower flat monthly fee | Philippines-only or Philippines-heavy hiring |
| Global EOR platform | Higher monthly platform fee | Multi-country hiring |
| Percentage-based EOR | Percentage of salary | Lower-salary roles if percentage remains low |
| BPO / staff leasing | Bundled seat or service fee | Provider-managed teams |
For the full EOR pricing guide, read:
EOR Pricing Philippines
Salary and total-cost planning table
Use this table for early planning. Final cost depends on actual salary, benefits, statutory contribution calculations, allowances, and provider scope.
| Role type | Salary range/month | PEO monthly admin fee | EOR monthly admin fee |
| Virtual assistant | US$700–US$1,400 | US$99 | US$190 |
| Customer support agent | US$800–US$1,500 | US$99 | US$190 |
| Executive assistant | US$1,200–US$2,200 | US$99 | US$190 |
| Bookkeeper | US$1,000–US$2,000 | US$99 | US$190 |
| SDR / sales support | US$1,200–US$2,500 | US$99 | US$190 |
| Data analyst | US$1,500–US$4,500 | US$99 | US$190 |
| Developer / technical role | US$1,800–US$5,500+ | US$99 | US$190 |
The admin fee is only one part of the total cost. Salary, statutory employer costs, 13th month, benefits, and allowances drive most of the total monthly invoice.
Example PEO cost breakdown
Use this as a planning example only.
Example: Customer support employee under your Philippine entity
| Cost item | Example |
| Gross salary | US$1,200 |
| 13th month accrual | US$100 |
| Employer statutory costs | Calculated using current contribution rules |
| HMO / benefits | Optional or package-specific |
| Allowances | If applicable |
| SOS PEO admin fee | US$99 |
| Estimated monthly total | Salary + employer costs + benefits + US$99 |
Same role under EOR
| Cost item | Example |
| Gross salary | US$1,200 |
| 13th month accrual | US$100 |
| Employer statutory costs | Calculated using current contribution rules |
| HMO / benefits | Optional or package-specific |
| Allowances | If applicable |
| SOS EOR admin fee | US$190 |
| Estimated monthly total | Salary + employer costs + benefits + US$190 |
PEO is cheaper at the admin-fee level, but only if you already have the Philippine entity needed to employ the worker.
Competitor comparison: how to compare PEO quotes
PEO quotes can look cheaper than they really are if key services are excluded.
| Provider model | Pricing pattern | What to check |
| Transparent flat-fee PEO | One admin fee per employee | Confirm included payroll, statutory, HR records, benefits, evidence |
| Payroll-only provider | Low base payroll fee | HR admin, benefits, evidence, and offboarding may be extra |
| Global HR platform | Higher platform cost | May include features not needed for PH-only payroll |
| Staff leasing provider | Bundled salary + admin margin | Less transparent split between salary, margin, and employment costs |
| EOR provider | Higher than PEO | Relevant only if you do not have a Philippine entity |
The best comparison is not the cheapest headline price. It is the effective monthly cost after payroll runs, statutory handling, benefits admin, reporting, integrations, and change-control fees.
TCO checklist: make every PEO quote comparable
Before choosing a PEO provider, ask for each of these items in writing.
| TCO item | Included or extra? |
| Base fee per employee | |
| Payroll runs | |
| Payslips | |
| Statutory contribution workflows | |
| BIR/payroll tax coordination | |
| SSS, PhilHealth, Pag-IBIG support | |
| 13th month handling | |
| HMO / benefits administration | |
| Employee onboarding | |
| Employee offboarding | |
| HR records | |
| Evidence pack | |
| Salary changes | |
| Allowance changes | |
| Off-cycle payroll | |
| Custom reports | |
| HRIS/accounting integrations | |
| Bank file mapping | |
| Support model | |
| Contract term | |
| Exit fees |
Then compare:
Effective monthly cost =
base fee
+ recurring extras
+ amortised setup/integration costs
+ expected change-control fees
Hidden-fee checklist
Ask every PEO provider:
- Is the price per employee per month?
- Are payroll runs included?
- How many pay cycles are included?
- Are off-cycle runs charged?
- Are statutory workflows included?
- Is 13th month handling included?
- Is HMO administration included?
- Are payslips included?
- Are HR records included?
- Are evidence packs included?
- Are BIR-related payroll workflows included?
- Are bank file formats included?
- Are custom reports charged?
- Are integrations charged?
- Are salary changes charged?
- Are allowances and adjustments charged?
- Are onboarding and offboarding included?
- Are there minimum headcount requirements?
- Are there setup or exit fees?
When PEO is the right model
Use PEO when:
- you already have a Philippine entity
- you want payroll and HR admin support
- you want help with statutory workflows
- you want better employment records
- your finance team needs payroll evidence packs
- your HR team needs benefits admin support
- you want to reduce internal admin without changing legal employer structure
- your local entity remains the employer of record
PEO is not the right model if you do not have a Philippine entity.
When EOR is the right model
Use EOR when:
- you do not have a Philippine entity
- you want to hire in the Philippines quickly
- you want the provider to act as legal employer
- you want payroll, payslips, statutory support, benefits, and HR records
- you are converting contractors into employees
- you want to test the Philippines before opening an entity
For EOR pricing, read:
EOR Pricing Philippines
Consolidation and cannibalisation guidance
This page should not try to rank as another EOR pricing page.
Its job is to own:
- PEO cost Philippines
- PEO pricing benchmark
- PEO total cost of ownership
- PEO vs EOR cost difference
- PEO for companies with a Philippine entity
Why companies choose SOS for PEO pricing
Smart Outsourcing Solution helps companies with Philippine entities simplify payroll, statutory coordination, benefits administration, HR records, and payroll evidence.
SOS PEO is built for:
- companies with existing Philippine entities
- teams that want predictable per-employee pricing
- finance teams that need payroll evidence
- HR teams that need local admin support
- companies that want to reduce internal payroll workload
- employers that need SSS, PhilHealth, Pag-IBIG, BIR payroll workflows, 13th month, and benefits coordination support
SOS PEO pricing:
US$99 per employee per month
If you do not have a Philippine entity, use SOS EOR instead:
US$190 per employee per month
For EOR pricing, read:
EOR Pricing Philippines
Final takeaway
PEO cost in the Philippines should be measured by total cost of ownership, not headline admin fee.
A clean PEO quote should show:
salary
+ employer statutory costs
+ 13th month
+ benefits
+ allowances
+ PEO admin fee
+ approved extras
For companies with a Philippine entity, SOS PEO pricing is:
US$99 per employee per month
For companies without a Philippine entity, SOS EOR pricing is:
US$190 per employee per month
Use PEO if your company already employs workers through a Philippine entity.
Use EOR if you want to hire in the Philippines without opening one.
Next step:
If you already have a Philippine entity, speak with SOS about a PEO TCO quote.
If you do not have a Philippine entity, read:
EOR Pricing Philippines
FAQs
How much does a PEO cost in the Philippines?
PEO cost depends on payroll scope, headcount, pay cycle, benefits administration, reporting, and integrations. SOS PEO pricing is US$99 per employee per month for companies that already have a Philippine entity.
What is included in PEO pricing?
PEO pricing should usually include payroll processing, payslips, statutory workflows, HR records, benefits administration, 13th month handling, onboarding, offboarding, and payroll evidence.
Is PEO cheaper than EOR in the Philippines?
Yes, PEO is usually cheaper at the admin-fee level because the provider is not acting as legal employer. SOS PEO is US$99 per employee/month, while SOS EOR is US$190 per employee/month. PEO only works if you already have a Philippine entity.
What is the difference between PEO and EOR in the Philippines?
A PEO supports your existing Philippine entity with payroll and HR administration. An EOR legally employs workers on your behalf when you do not have a Philippine entity.
How much does an EOR cost in the Philippines?
SOS EOR pricing is US$190 per employee per month, plus salary, statutory costs, 13th month, benefits, allowances, and approved pass-throughs.
What are typical EOR fees in the Philippines?
Typical EOR fees vary by provider. Local Philippines EOR providers are usually cheaper than global EOR platforms. SOS charges US$190 per employee/month for EOR.
What is included in Philippines EOR pricing?
Philippines EOR pricing should usually include employment setup, employment contracts, payroll processing, payslips, statutory contribution administration, 13th month handling, HR records, onboarding, offboarding, and employee support.
What hidden PEO costs should I check?
Check off-cycle payroll fees, statutory filing fees, benefits administration charges, HRIS integrations, custom reports, bank-file mapping, salary-change fees, onboarding fees, offboarding fees, and evidence-pack costs.
When should we use PEO instead of payroll-only support?
Use PEO when you need broader HR admin, benefits coordination, statutory workflows, employee records, and payroll evidence. Payroll-only support may be cheaper but often excludes key HR and compliance support.
When should we use EOR instead of PEO?
Use EOR when you do not have a Philippine entity and need a provider to legally employ workers in the Philippines on your behalf.
Recommended Reads
- EOR Pricing Philippines
- Employer of Record Philippines
- PEO vs EOR in the Philippines
- Cheapest EOR Provider in the Philippines
- Cost to Hire Employees in the Philippines
- Full Cost of Hiring in the Philippines with an EOR
- How Much Does Outsourcing Cost in the Philippines?
- Convert Contractors to Employees Philippines
