How Startups Can Hire Offshore Talent in the Philippines
Startups evaluating offshore hiring in Southeast Asia can build a Philippines-based team without immediately establishing their own local company.
Through an Employer of Record arrangement, Global BPO Solution Philippines Inc. legally employs the worker in the Philippines. SOS manages the agreed employment administration, while your startup directs the employee’s daily work, priorities, performance, tools and team integration.
The Philippines can support startup roles across customer support, operations, sales, marketing, finance, administration, and technology.
Key Takeaways
- Startups can hire employees in the Philippines without immediately creating a local entity.
- Global BPO Solution Philippines Inc. is the Philippine legal employer under the EOR arrangement.
- Your startup manages the employee’s daily work and operational priorities.
- The standard EOR management fee is US$190 per employee per month.
- Recruitment and candidate selection are included in the standard EOR management fee.
- Salary, statutory contributions, 13th-month pay, benefits, allowances, equipment and other applicable employee-specific costs are separate.
- There are no separate SOS setup, onboarding, exit, or offboarding fees under the standard pricing structure.
- An existing employee may be onboarded in as little as five business days after the service agreement, employee information, required documentation, advance payroll funding and the refundable security deposit are complete. This is a possible timeline, not a guaranteed deadline.
Can a Startup Hire in the Philippines Without Setting Up a Company?
Yes. An Employer of Record allows a startup to hire a specific employee in the Philippines without immediately establishing its own local company.
Under the arrangement:
- Your startup defines the role and hiring requirements.
- You select a candidate, or SOS supports recruitment and candidate selection as part of the EOR service.
- SOS prepares the employment documentation.
- Global BPO Solution Philippines Inc. legally employs the worker in the Philippines.
- SOS manages payroll and employment administration.
- Your startup manages the employee’s daily work.
- SOS provides ongoing HR and statutory administration support.
Learn more about hiring employees in the Philippines without setting up a company.
Why Do Startups Consider the Philippines?
A Philippines-based team may help a startup add capacity without immediately building its own local employment and HR infrastructure.
Startups may consider the Philippines when they need:
- Customer support coverage
- Administrative and operations support
- Sales development capacity
- Marketing assistance
- Finance or bookkeeping support
- Software development
- Technical support
- Quality assurance
- Data and research assistance
- Dedicated remote team members
The right hiring decision depends on the role, working relationship, level of control, business requirements, and expected duration of the engagement.
What Roles Can a Startup Hire?
Customer support
Startups may hire customer support professionals for:
- Email support
- Live chat support
- Voice and phone support
- Helpdesk support
- Customer onboarding
- Customer success
- Technical support
- Order and account support
- Quality assurance
- Customer support team leadership
See customer support teams in the Philippines.
Operations and administration
Common roles include:
- Operations Coordinator
- Administrative Assistant
- Executive Assistant
- Project Administrator
- Data Entry Specialist
- Workforce Coordinator
- Document Controller
- Finance Administration Assistant
Sales and marketing
Startups may hire:
- Sales Development Representatives
- Lead Generation Specialists
- Marketing Assistants
- Content Assistants
- Social Media Coordinators
- Customer Research Assistants
Technology
Technology roles may include:
- Software Developers
- Technical Support Specialists
- QA Testers
- Systems Administrators
- Data Specialists
- Product Support Specialists
See how to hire developers in the Philippines.
Virtual and remote support
Startups may also build support capacity through:
- Virtual Assistants
- Executive Assistants
- Research Assistants
- Calendar and Scheduling Assistants
- Administrative Support Specialists
How Much Does It Cost to Hire Through an EOR?
The standard Smart Outsourcing Solution EOR management fee is:
US$190 per employee per month
This is the standard EOR administration fee. It is not a starting price or a price range.
The total employment cost may also include:
- Employee salary
- Employer statutory contributions
- 13th-month pay
- HMO or other agreed benefits
- Allowances
- Equipment
- Software and connectivity
- Other employee-specific costs
The general cost formula is:
Total monthly employment cost = employee salary + employer statutory contributions + 13th-month pay allocation + benefits and allowances + equipment or other employee-specific costs + US$190 EOR management fee
Review the Philippines EOR pricing guide.
Is Recruitment Included in the EOR Fee?
Yes. Recruitment and candidate selection are included in the standard EOR management fee of US$190 per employee per month.
The hiring timeline may vary based on:
- Role requirements
- Required experience
- Candidate availability
- Interview stages
- Background checks
- Documentation
- Customer approvals
- Funding and employment start date
The standard fee includes recruitment support, but it does not guarantee a specific hiring timeline or candidate outcome.
What Costs Are Passed Through Separately?
Salary and applicable employee-specific costs are billed separately.
These may include:
- Employee salary
- Employer statutory contributions
- 13th-month pay
- HMO or private healthcare
- Internet, communication, transport, or meal allowances
- Equipment and software
- Other agreed employee benefits
Private HMO or healthcare coverage is not automatically included in the standard EOR management fee.
A refundable security deposit equal to one month of the employee’s base salary is required before employment and renewed annually. Any remaining balance is returned after employment obligations are settled.
Are There Additional SOS Fees?
Under the standard pricing structure, there are no separate SOS fees for:
- Setup
- Employee onboarding
- Exit
- Offboarding
- Termination administration
- Foreign exchange markup
Approved third-party costs and employee-specific costs remain separate.
What Does SOS Manage?
As the Philippine legal employer, Global BPO Solution Philippines Inc. manages:
- Philippine employment contracts
- Employee onboarding administration
- Payroll processing
- Salary disbursement coordination
- Employee records
- Tax withholding administration
- SSS, PhilHealth, and Pag-IBIG administration
- 13th-month pay administration
- Benefits administration where applicable
- HR administration and employee support
- Employment documentation
- Offboarding administration
- Philippine employment compliance support
What Does the Startup Manage?
Your startup manages the employee’s daily work and operational direction, including:
- Responsibilities and priorities
- Training
- Working hours
- Performance
- Systems and tools
- Workflows
- Team communication
- Quality and output
- Business decisions affecting the role
Formal warnings, disciplinary action, suspension and termination must be coordinated with and executed through Global BPO Solution Philippines Inc., the legal employer.
How Quickly Can a Startup Onboard an Employee?
Existing employees may be onboarded in as little as five business days after the following are complete:
- Applicable agreement
- Employee information
- Required documentation
- Employment details
- Advance payroll funding and the refundable security deposit
For a new hire, the timeline may be longer because recruitment, interviews, background checks, approvals, and candidate availability must be considered.
How Does Payroll Work?
The standard payroll cycle includes:
- Work period from the 1st to the 15th of the month
- Work period from the 16th to the last day of the month
- Invoice issued by the fifth calendar day after each work period
- Customer funding cleared within eight calendar days of the invoice
- Salary paid on the 15th and 30th, or the next business day where applicable
EOR, Contractor, or BPO?
An EOR may be appropriate when the person will work as a dedicated employee under your startup’s direction.
A contractor may be appropriate for genuinely independent, project-based work where the individual controls how the services are delivered.
A BPO may be appropriate when you want an external provider to manage a defined service, process, or outcome.
The correct model depends on the actual working relationship, level of control, responsibilities, and business requirements.
How to Build a Startup Offshore Team
A startup can begin with one employee and expand as its operational requirements develop.
A practical process is:
- Define the business function.
- Document the role and responsibilities.
- Confirm working hours and reporting lines.
- Establish salary and employment requirements.
- Select the appropriate hiring model.
- Select a candidate or begin recruitment.
- Complete employment documentation.
- Provide systems, tools, and training.
- Set performance and reporting expectations.
- Review the team structure as the startup grows.
For planning guidance, see offshore team structures.
Converting an Existing Contractor to an Employee
If your startup already works with a contractor in the Philippines, that person may be able to transition into an employee arrangement through an EOR.
Before making the change, review:
- Existing contractor terms
- Final contractor payment
- Proposed employment start date
- Salary and benefits
- Employment documentation
- Payroll timing
- Classification requirements
- Transition responsibilities
Read more about converting contractors to employees in the Philippines.
About Smart Outsourcing Solution
Smart Outsourcing Solution is a Philippines-based Employer of Record and offshore workforce partner for international businesses.
SOS began operations in 2017, and its Philippine legal entity, Global BPO Solution Philippines Inc., was incorporated in 2022.
The company has supported more than 250 international businesses and more than 1,000 employees through Philippines-focused workforce solutions.
About the Author
Martin English is Co-founder of Smart Outsourcing Solution. He focuses on Philippines-based employment, Employer of Record arrangements, offshore hiring, and the practical requirements involved in building remote teams.
His work helps international businesses understand how to hire and manage Filipino professionals while coordinating employment administration, payroll, statutory obligations, and workforce operations through a Philippines EOR.
Frequently Asked Questions
Can a startup hire in the Philippines without setting up a company?
Yes. An EOR can act as the local legal employer while your startup manages the employee’s daily work.
How much does SOS charge for EOR services?
The standard EOR management fee is US$190 per employee per month. Salary, statutory contributions, 13th-month pay, benefits, allowances, equipment, and other employee-specific costs are separate.
Is recruitment included in the EOR fee?
Yes. Recruitment and candidate selection are included in the standard EOR management fee.
What roles can a startup hire in the Philippines?
Startups can hire customer support, operations, administrative, sales, marketing, finance, quality assurance, data, and technology professionals.
How quickly can an existing employee be onboarded?
An existing employee may be onboarded in as little as five business days after the service agreement, employee information, required documentation, advance payroll funding and the refundable security deposit are complete. This is a possible timeline, not a guaranteed deadline.
Who manages the employee day to day?
Your startup manages the employee’s daily work, priorities, schedule, tools, and performance. SOS manages formal employment administration and HR support.
Is an EOR better than hiring a freelancer?
It depends on the working relationship. An EOR is generally more suitable for a dedicated employee working under your startup’s direction. Freelancing may be suitable for genuinely independent, project-based work.
Can I start with one employee and scale later?
Yes. You can begin with one employee or a small team and add roles as your startup’s operational requirements develop.
For additional buyer considerations, review the Philippines EOR master buyer FAQ.
Hire Offshore Talent in the Philippines
Tell us which roles you need, how many employees you plan to hire, and whether you are starting a new team, expanding an existing team, or transitioning a current contractor or employee into an EOR arrangement.
