HR, PEO & Employer of Record (EOR) Services in Philippines

Introduction

The Philippines is one of Southeast Asia’s fastest-growing economies, offering a young, highly skilled, and English-speaking workforce that makes it a prime destination for global business expansion. Its strategic location, strong ties to international markets, and government support for foreign investment create a competitive edge across industries. With rising opportunities in IT-BPM, manufacturing, renewable energy, and e-commerce, the Philippines presents a dynamic gateway for companies seeking sustainable growth in the Asia-Pacific region.

EOR & PEO Solutions in Philippines

If you’re looking to hire employees in Philippines without setting up a legal entity, using an Employer of Record (EOR) like Empleyo is the simplest and most compliant path forward. An EOR in Philippines acts as the official legal employer on your behalf, managing everything from payroll and HR administration to employment contracts and statutory employee benefits.

This model allows you to expand into Philippines quickly, while remaining fully compliant with local labor laws without the complexity or cost of registering a local entity.

What Is an Employer of Record in Philippines?

An Employer of Record Philippines (also known as an EOR provider) enables businesses to hire and onboard Philippines employees without having to incorporate in-country. The EOR manages:

You continue to oversee your team’s day-to-day tasks, while the EOR service handles legal obligations as the official employer on paper.

What’s the Difference Between EOR and PEO?

A Professional Employer Organization (PEO) typically supports businesses that already have a registered entity in Philippines, offering co-employment solutions for HR, payroll, and benefits. An EOR, however, is ideal when you don’t have a legal presence in Philippines but still want to hire full-time staff.

Whether you choose an EOR or PEO depends on your Philippines hiring strategy, budget, and long-term plans for the market.

Benefits of Using an EOR Service in Philippines

By using an EOR solution, companies can confidently build their team in Philippines, access top talent in Philippines, and stay focused on business growth — without getting tangled in bureaucracy.

Hiring in Philippines

Philippines is a thriving market with a growing pool of skilled professionals, making it an ideal destination for businesses looking to expand globally. But to hire in Philippines successfully, it’s important to understand your options especially when you don’t have a legal entity in Philippines.

That’s where using an Employer of Record in Philippines makes all the difference.

Your Hiring Options in Philippines

Businesses have two main paths to hire employees in Philippines:

The second option is faster, lower-risk, and ideal for companies that want to test the Filipino market, launch quickly, or hire remote employees without permanent infrastructure.

Why Use an EOR to Hire in Philippines?

This approach is especially useful for startups, global teams, and growing businesses that need to hire quickly and remain fully compliant.

Employment in Philippines

Understanding how employment in Philippines works is key to managing your team successfully and staying compliant. Whether you’re hiring directly or using an Employer of Record (EOR), companies must follow Filipino labor laws closely especially when it comes to employment contracts, payroll, and employee benefits.

That’s why many growing businesses choose to use an EOR in Philippines to handle these responsibilities with confidence.

Employment Contracts in Philippines

All employees in Philippines must be hired under a written employment contract, clearly outlining the job role, salary, benefits, working hours, and duration of employment. Contracts must comply with the Labor Code of Philippines, and are usually signed before or on the first day of work.

By working with a Philippines employer of record, you can ensure that all employment contracts in Philippines are properly structured, compliant, and aligned with local requirements without having to hire a full in-house HR team.

Payroll & Employer Contributions

Payroll in Philippines involves more than just paying a monthly salary. Employers are required to withhold income tax and make contributions to:

While SSS does offer an “unemployment benefit” for involuntarily separated members, it is not a separate contribution from the main SSS premium. These deductions and employer contributions are calculated based on the employee’s gross monthly salary, and must be submitted on time to remain compliant. An EOR in Philippines handles this for you, managing all payroll, tax filings, and reporting on your behalf.

Employee Benefits and Leave

Filipino labor law mandates several employee benefits, including:

Using an employer of record service ensures your team in Philippines receives all required benefits and that your business remains fully compliant with Filipino employment law.

Termination & Notice Periods

Ending an employment contract in the Philippines requires adherence to the Labor Code and applicable regulations, which outline valid grounds for termination and mandated notice periods. Employers must provide written notice of at least 30 days for ordinary termination due to just or authorized causes, ensuring due process and compliance with employee rights.

An Employer of Record manages these obligations on behalf of the client company, handling legal, administrative, and severance requirements efficiently while minimizing compliance risks.

Visas & Permits in Philippines

If you’re planning to hire employees in Philippines or bring in foreign talent, understanding Philippines’s visa and permit requirements is critical. Navigating these processes can be complex, but working with a trusted Employer of Record (EOR) in Philippines makes it much easier.

An experienced EOR provider will ensure all permits are handled legally, so you can focus on building your team in Philippines with confidence.

Work Permits for Foreign Employees in Philippines

Foreign nationals who plan to work in the Philippines must secure the appropriate work visa, such as the 9(g) Pre-Arranged Employment Visa, which requires sponsorship by a local employer. Compliance with immigration regulations, labor laws, and tax obligations is mandatory to ensure legal employment.

Partnering with an Employer of Record simplifies this process by managing visa applications, government filings, and ongoing compliance, enabling businesses to onboard global talent quickly and securely.

Types of Visas for Foreign Talent

There are several types of visas used to work or do business in Philippines, including:

Each visa type has specific use cases, duration limits, and documentation requirements. If you’re looking to hire in Philippines or send international staff temporarily, an EOR Philippines solution helps you identify the right visa and manage the application process end-to-end.

Business Permits for Foreign Companies

To operate directly in Philippines, foreign companies typically need to register a legal entity in Philippines and apply for a business license. This can be a time-consuming process that includes office registration, investment approvals, and compliance with Filipino labor laws.

Alternatively, you can use an EOR in Philippines to bypass the need for a local entity. The Philippines employer of record is already registered and authorized to employ staff and manage payroll, contracts, and local compliance making it easier and faster to hire employees in Philippines.

Why Visas & Permits Matter for Global Hiring

If you’re hiring foreign employees in Philippines, or placing international staff in-country, it’s essential to stay compliant with immigration laws. The right employer of record service helps you:

Common Questions on EOR in Philippines

Is an EOR legal in the Philippines?

Yes, EOR services are fully legal in the Philippines when operating in compliance with the Labor Code, immigration rules, and tax regulations. A licensed EOR ensures proper contracts, payroll, social security contributions, and statutory benefits while minimizing legal risk for foreign companies.

Who is the legal employer under an EOR arrangement in the Philippines?

The EOR acts as the legal employer of record, handling all HR, payroll, and statutory obligations, while the client company retains control over the employee’s day-to-day tasks and business direction.

How does an EOR assist with work permits and visas for foreign employees?

The EOR takes on the responsibility of processing work permits and visas for foreign employees. They handle the Alien Employment Permit (AEP) application with the Department of Labor and Employment (DOLE) and the 9(g) working visa application with the Bureau of Immigration.

What protections do employees have under an EOR?

Employees hired through an EOR retain full labor rights, including statutory leave, social security benefits, health coverage, and protections under the Labor Code, regardless of the EOR arrangement.

How quickly can an EOR onboard employees in the Philippines?

Onboarding through an EOR is typically faster than setting up a local entity, often completed within days for local hires and a few weeks for foreign nationals requiring visa processing, allowing companies to scale rapidly.