20 Best Employer of Record in the Philippines: Reviewed in 2024
10 Best Filipino Employer of Record Services Shortlist
Here's my pick of the 10 best software from the 20 tools reviewed.
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Are you looking to tap into the Philippines’ vibrant talent pool but feeling overwhelmed by the legal requirements? Instead of navigating the complexities of registering a local entity with multiple government agencies, I recommend using an Employer of Record (EOR) service in the Philippines. An EOR can handle all the employment regulations for you, simplifying the process of hiring, managing, and paying employees in the country.
With a Philippines-based EOR service, you can legally employ local talent without the need to establish a legal entity yourself. The EOR ensures compliance with the country’s labor laws, including registration with essential bodies like the Bureau of Internal Revenue (BIR) and social welfare agencies. Your employees will have local support, and your operations will remain in full compliance with the Department of Labor and Employment (DOLE) at all times.
Sounds ideal, right? But with so many EOR providers to choose from, which one is the best fit for your business needs? To help you decide, I’ve compiled a list of the top Employer of Record services for hiring in the Philippines. Keep reading to find out how an EOR service can streamline your market entry and help you build a successful team in the Philippines.
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Market Details for Hiring in the Philippines
- Capital City: Manila
- Currency: Philippine Peso (PHP)
- Payroll Frequency: Bi-monthly
- Official Language: Filipino & English
- Approx. Population: 115 Million
- Public Holidays: 18 days (with regional variations)
Why Hire Employees in the Philippines?
Hiring employees based in the Philippines offers several advantages, including lower salary costs, coupled with strong English proficiency and a high level of education. Filipino workers are also known for their strong work ethic, commitment to excellence, and adaptability, which contributes to their success in remote roles.
The Philippines is viewed globally as a leader in the business process outsourcing (BPO) and information technology outsourcing (ITO) industries, offering deep talent pools in customer service, virtual assistance, IT services, and software development.
In addition, the country’s cultural compatibility with Western business practices makes it an attractive market for companies looking to hire remote workers for specialized roles.
What is an Employer of Record in the Philippines?
An Employer of Record (EOR) in the Philippines is a third-party provider that legally employs workers on behalf of your company. While your organization retains direct control over the employees' daily responsibilities and tasks, the EOR assumes all legal obligations as the formal employer. This includes overseeing payroll, deducting taxes, managing compliance with local labor laws, administering employee benefits, and handling any other employment-related requirements specific to the Philippines.
Partnering with an EOR is a smart solution for companies looking to hire skilled talent in the Philippines or expand into the region. By working with an EOR, you can offload the complexities of navigating Philippine labor laws, allowing your HR team to focus on core operations while ensuring that all local employment practices remain compliant. This approach provides peace of mind and simplifies the process of global expansion.
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Best Employer of Record in the Philippines: Pricing Comparison Chart
This comparison chart summarizes pricing details for my top Employer of Record selections for hiring staff in the Philippines to help you find the best EOR service for your budget and business needs.
| Tools | Price | |
|---|---|---|
| Deel | Flat rate user pricing, with a free version for businesses with up to 200 people | Website |
| Omnipresent | From $100/employee/month | Website |
| RemoFirst | From $25/user/month | Website |
| Atlas HXM | From $595/employee/month or $49/contractor/month | Website |
| Skuad | From $199/month | Website |
| Horizons | Pricing upon request | Website |
| Links International | From $300/employee/month | Website |
| Velocity Global | Pricing upon request | Website |
| Globalization Partners | Pricing upon request | Website |
| AYP Group | From $300/employee/month | Website |
Compare Software Specs Side by Side
Use our comparison chart to review and evaluate software specs side-by-side.
Compare SoftwareHow to Choose an Employer of Record in the Philippines
An EOR service can simplify the process of hiring and managing staff in the Philippines, including all compliance-related requirements. To help you choose the best EOR service for your business needs, keep the following points in mind:
- What talent management problems are you trying to solve? Identifying your current challenges will help you narrow your search on an EOR provider in the Philippines that can address them on your behalf. These challenges may include sourcing staff in the Philippines who speak English or have specific skills, managing compliance with the Philippines' employment laws and tax regulations, paying employees in Philippine Pesos (PHP), or offering local health benefits to your Filipino.
- What outcomes are important and how will you measure success? Proactively determine how you will measure the success of your new EOR relationship. For example, are you hoping to tap into a new customer base abroad, or reduce the amount of time you spend on global payroll-related issues? Being clear on your desired outcomes upfront is crucial to avoid wasting valuable time.
- Who will benefit from the service? Who will be your in-house contact person for the new EOR relationship? Do they have specific needs from the EOR provider that would improve their day-to-day work tasks?
- What is your budget? To evaluate cost, estimate how many employees you anticipate hiring in the Philippines. Since EOR providers typically charge a monthly fee for each new hire, this will help you anticipate your monthly costs.
- Would the EOR platform work with your technical requirements? Consider how the service provider's software ecosystem would work alongside your existing workflows and systems. Would their software framework integrate with your existing HR software, or would you face data management roadblocks?
Remember, every business is different — don’t assume that a Philippines employer of record service will work for your organization just because it's popular. Instead, focus on sourcing a provider that offers the best fit for your active needs and challenges.
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Deel
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Rippling
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Willo
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8
Reviews of the Best Employer of Record Services in the Philippines
Below are my detailed reviews of the best EOR services in the Philippines for hiring and managing talent compliantly. I’ve highlighted each provider’s key services and explained why I included them in this list, to give you insight into my selection process. Plus, there are several additional bonus options below if you’d like a few more options to consider!
Deel
Best for offering local health benefits to Filipino EOR employees
Deel stands out as a reputable employer of record platform that facilitates swift talent acquisition in over 150 countries, including the Philippines.
In the Philippines, Deel operates through a local entity staffed with legal professionals who monitor regulatory changes and ensure full compliance with local laws on behalf of their clients. To hire an employee in the Philippines with Deel, the average onboarding time frame is 2 days.
Why I picked Deel: Deel excels as an EOR service provider in the Philippines by offering streamlined contract management services that adhere strictly to Filipino employment laws and regulations. Deel also helps organizations offer localized employee benefits for Filipino staff, including private health insurance, a pension fund, life insurance, and social security.
Over the past year, Deel has expanded its service offerings to include global payroll solutions, support for global mobility, integrated tools for Slack, and advanced integration capabilities. These enhancements collectively facilitate efficient and compliant hiring processes tailored to the Filipino talent market.
Deel Key Services:
Deel offers comprehensive management services for employees based in the Philippines, covering everything from recruitment and onboarding to eventual termination. Their user-friendly web application offers a range of crucial features to help businesses manage their remote teams effectively, including contract management and expense tracking.
The platform's integrated contract management function supports advanced customization options like allowances, signing bonuses, and stock options. Deel also provides visa and immigration support for organizations relocating employees to the Philippines, managing the entire visa process internally.
Deel offers around-the-clock customer support through 24/7 live chat and is recognized for its prompt customer assistance.
Pros and cons
Pros:
- Extensive employee benefit offerings
- Expertise in local compliance
- Rapid onboarding process
Cons:
- Initial complexity for new users
- Limited customization flexibility
Omnipresent is a global employment platform that helps businesses hire, onboard, and manage employees and contractors worldwide. It enables companies to employ talent in countries where they don't have a legal entity, ensuring compliance with local labor laws and regulations.
Why I picked Omnipresent: Omnipresent's EOR services are particularly beneficial for hiring in the Philippines. They provide expert legal support to navigate the complexities of local employment laws, ensuring your business remains compliant. This is crucial in the Philippines, where labor regulations can be intricate and subject to change. By managing these legal intricacies, Omnipresent allows you to focus on your core business activities.
Additionally, Omnipresent offers comprehensive payroll services in over 150 countries, including the Philippines. Their platform ensures that your employees are paid accurately and on time, adhering to local tax laws and payroll practices.
Omnipresent Key Services:
Omnipresent provides dedicated onboarding support to help integrate your new hires smoothly into your company culture, assistance in designing compliant benefits packages tailored to the needs of your Filipino employees.
They also have an easy-to-use platform where you can manage all aspects of your global team’s employment, from onboarding and contracts to payroll.
Pros and cons
Pros:
- Strong local expertise in employment regulations
- Handles tax compliance across multiple countries
- Easy to manage payroll for global teams in one platform
Cons:
- Limited flexibility in customizing certain benefits packages
- Support in certain regions can vary
RemoFirst is a global EOR service that helps businesses hire and manage employees in over 180 countries without the need to establish local entities. By handling employment responsibilities such as payroll, benefits, and compliance, RemoFirst enables budget-conscious companies to focus on their core operations while expanding their international workforce.
Why I picked RemoFirst: RemoFirst stands out with its comprehensive understanding of local labor laws and regulations. They ensure that your hiring practices are fully compliant with Filipino employment standards, mitigating risks associated with non-compliance. Additionally, RemoFirst manages payroll processing in the Philippines, handling local tax withholdings and contributions to government-mandated benefits, ensuring your employees are paid accurately and on time.
Another key advantage is RemoFirst's ability to provide benefits administration tailored to the Philippine market. They offer health insurance and other employee benefits that align with local expectations, helping you attract and retain top talent.
RemoFirst Key Services:
Other services include assistance with obtaining work visas and permits for foreign employees in the Philippines, facilitating smooth onboarding processes. They also offer background checks to ensure potential hires meet your standards and comply with local regulations.
Additionally, RemoFirst provides an employee self-service portal, allowing your team members to access their payroll information, benefits, and personal details conveniently. Their customer support team is also available 24/7 for additional help.
Pros and cons
Pros:
- Comprehensive compliance management
- Ability to provide locally relevant employee benefits
- Robust employee support
Cons:
- No mobile app available
- Service availability may vary by region
Atlas HXM equips innovative businesses with the tools to thrive in the global marketplace. As one of the largest direct EOR providers, Atlas HXM empowers companies to hire talent wherever it’s located, including in the Philippines.
Why I picked Atlas HXM: Atlas HXM is highly regarded across diverse sectors, such as non-profits, financial services, oil & gas, energy, life sciences, pharmaceuticals, technology, and government. Their service offerings are adaptable to businesses of all sizes—whether you’re a startup, an SME, or an enterprise organization.
Committed to expanding entrepreneurship and employment opportunities, Atlas HXM’s approach enables startups and SMBs to compete on a global scale, fostering economic growth in local markets and creating job opportunities in regions like the Philippines.
Atlas HXM Key Services:
Atlas HXM provides EOR services specifically for the Philippines, including compliance monitoring, employee engagement, productivity tracking, and guidance on safety programs to help minimize operational risks.
Their platform, supported by international experts, offers flexible solutions for companies expanding across borders into Southeast Asia. Their services support onboarding, compliance management, and payroll processing for global workforces without needing a local entity or multiple vendors.
Pros and cons
Pros:
- Intuitive platform with local support
- Comprehensive, tailored onboarding process
- Strong expertise in local compliance
Cons:
- Initial setup may require significant time investment
- Limited flexibility for specific HR policy customizations
Skuad offers a digital HR platform that helps global employers hire, pay, and manage employees in over 160 countries, including the Philippines. As your EOR partner in the Philippines, Skuad takes on the entire hiring process, from creating employment agreements to managing essential legal documentation.
Why I picked Skuad: Skuad’s EOR service includes intellectual property (IP) and invention rights protection for all work conducted by your Filipino employees. This coverage extends to copyrights, trademarks, and other sensitive IP projects related to your business.
Skuad Key Services:
Skuad offers a comprehensive suite of EOR services, including remote employee onboarding, benefits administration, time-off tracking, and tax compliance management. As part of their global hiring solutions, they manage all necessary documentation, including work permits and visas for employees and their dependents.
In addition to core services, Skuad assists with distributing equipment to new hires and tracking company assets, such as phones and other IT devices, to support smooth onboarding.
Pros and cons
Pros:
- Intuitive, user-friendly platform
- Wide-ranging HR support services
- Strong compliance and regulatory management
Cons:
- Occasional delays in customer support response
- Limited options for customization
Horizons provides streamlined global HR solutions, including EOR and PEO services, international payroll, recruitment, and support for global mobility and immigration.
Why I picked Horizons: Horizons is featured here for its cost-effective EOR services and flexible contract terms, which allow businesses to end their EOR arrangement without costly termination fees or penalties.
Their EOR services for the Philippines are handled by local experts familiar with Filipino employment laws and statutory benefits, such as vacation, maternity, and paternity leave. Their onboarding process for new employees in the Philippines is also very quick, with a minimum onboarding time of 12 hours.
Horizons Key Services:
Beyond standard EOR services, Horizons offers specialized resources, including business tips for operating in the Philippines, expansion guides, support for mergers and acquisitions, and insights into emerging markets.
They also provide cultural training and support to help employees adapt smoothly to their work environment. This focus on cultural integration promotes employee satisfaction and retention by fostering an inclusive workplace culture.
Pros and cons
Pros:
- Emphasis on cultural integration
- Strong compliance support
- In-depth expertise in Philippine labor regulations
Cons:
- Service offerings may differ by region
- Reliance on local partners for certain services
Links International is a reputable EOR provider delivering HR outsourcing solutions across various Asian countries, including the Philippines.
Why I picked Links International: Links International offers comprehensive support for onboarding and offboarding, facilitating smooth employee transitions. Their services encompass document preparation, orientations, and exit interviews, which help enhance the employee experience and maintain operational efficiency.
In addition, their rapid onboarding capabilities mean that businesses can hire employees in the Philippines within as little as 48 hours.
Links International Key Services:
Links International offers a range of services, including payroll processing, compliance management, and benefits administration, all designed to address the specific needs of companies in the Philippines. Known for their in-depth local knowledge and commitment to personalized service, Links International ensures streamlined HR processes for businesses expanding into the Filipino market.
Their extensive network of benefits providers allows companies to build competitive benefits packages, helping attract and retain skilled talent in the Philippines.
Pros and cons
Pros:
- Personalized and responsive customer service
- Wide network of employee benefits providers
- Strong expertise in the Filipino market
Cons:
- Smaller operational scale may impact scalability for very large enterprises
- Primarily focused on the Asian region
Velocity Global is a recognized provider of employer of record (EOR) and professional employer organization (PEO) services, facilitating global hiring through a vast network of in-country experts across more than 185 countries, including the Philippines.
Why I picked Velocity Global: Velocity Global earned a place in this list due to its strong reputation for EOR services and proven expertise in managing complex regulatory requirements. Their skill in navigating challenging regulatory landscapes helps companies expand internationally without encountering legal obstacles.
Velocity Global Key Services:
Velocity Global provides end-to-end support for EOR clients, covering everything from onboarding to ongoing HR management, backed by comprehensive knowledge of Filipino labor laws. Key offerings include payroll, compliance, benefits administration, employee training, and risk management for businesses operating in the Philippines.
Beyond EOR services, Velocity Global assists with broader global expansion strategies and offers immigration support if you need to relocate international employees.
Pros and cons
Pros:
- In-depth knowledge of the Philippine regulatory landscape
- Localized payroll management
- Streamlined, efficient onboarding
Cons:
- Pricing details are not transparent
- Limited customization options
Globalization Partners (or G-P) is a top EOR provider supporting companies that want to hire and manage employees in the Philippines. Their global HR platform simplifies international hiring, compliance, payroll, and benefits administration, ensuring a smooth onboarding process for Filipino employees.
Why I picked Globalization Partners: G-P’s advanced global EOR platform is built to manage complex regulatory landscapes, enabling companies to hire and oversee employees across multiple countries, including the Philippines.
G-P allows new hires to be onboarded within days, providing locally compliant contracts based on Philippine labor laws. With G-P, businesses can also pay EOR employees in over 180 currencies, including cryptocurrencies, through options like Venmo and bank transfers.
Globalization Partners Key Services:
G-P provides automated onboarding, real-time expense reporting, and a dedicated support team, which has cemented its reputation as a top choice for EOR services in the Philippines.
Their team includes local HR experts who are well-versed in Filipino labor laws and cultural dynamics. Additionally, G-P can support companies in their global expansion efforts and assist with cross-border transactions as needed.
Pros and cons
Pros:
- Efficient international hiring and onboarding
- Strong focus on compliance and risk management
- Comprehensive global employment platform
Cons:
- Heavy reliance on the platform for all HR functions
- Limited flexibility for customization
AYP Group is a prominent EOR service provider in the Philippines, known for supporting businesses in managing HR tasks smoothly and in full compliance with local regulations. They offer services tailored to the Filipino market, including payroll processing, benefits management, and regulatory compliance. With AYP’s deep local knowledge, businesses can confidently navigate the complexities of employment laws in the Philippines.
Why I picked AYP Group: AYP Group stands out by providing each client with a dedicated support team, delivering personalized guidance and prompt solutions for HR concerns. Their strong grasp of local compliance enables companies to focus on growth without the worry of regulatory challenges, ensuring effective workforce management through attentive service.
AYP Group Key Services:
AYP’s intuitive platform and hands-on customer support simplify the process of managing international employees. Their expertise in complex HR functions and commitment to personalized service make them an excellent choice for businesses hiring in the Philippines.
In addition to core HR support, AYP offers extensive benefits administration, giving companies access to a range of competitive employee benefits, including health insurance and retirement plans, which can help attract and retain top talent.
Pros and cons
Pros:
- Strong benefits management offerings
- Dedicated account managers for customized support
- In-depth knowledge of Filipino labor regulations
Cons:
- Reliance on AYP’s platform for HR management
- Limited international reach compared to larger EOR providers
Other EOR Services in the Philippines
Here are some other EOR service providers in the Philippines that didn’t make it into my top 10 shortlist, but are still worth considering:
- Remote
For competitive and cost-effective benefits packages
- Multiplier
EOR provider for tech-enabled compliance
- Papaya Global
For an AI-based payroll engine
- Rivermate
EOR service for managing the local social security system
- TopSource Worldwide
For in-depth local expertise with a personal touch
- Sky Executive
For corporate expansion across Southeast Asia
- Gibson Watts Global
EOR service for risk management expertise
- Safeguard Global
EOR service for NGOs and non-profit organizations
- Mercans
For flexible payment systems, including cryptocurrency
- Global Expansion
Country-specific HR support in the Philippines
Related HR Software Reviews
If you still haven’t found what you’re looking for here, check out these other tools that are related to HR software, that we’ve tested and evaluated:
Hiring in the Philippines: Important Details
Here are some key details to note if this is your first time hiring staff in the Philippines. Your EOR provider will manage these compliance details on your behalf. However, proactively informing yourself of these details is always recommended before you invest your resources into sourcing staff based in the Philippines.
In the Philippines:
- Employment laws in the Philippines are set by the Department of Labor and Employment (DOLE). This includes labor standards, rights, and occupational safety, under the guidance of the Labor Code of the Philippines and other labor-related legislation.
- You can hire employees (full-time, part-time, casual, fixed-term, project-based, or seasonal) or contractors. Your Filipino EOR provider can help you determine the best hiring option for your needs while also avoiding potential employee misclassification errors.
- The Philippines has both mandatory payroll deductions and social security contributions that must be collected, including the following:
- Social Security System (SSS) for pensions and disability
- PhilHealth for healthcare, and
- Pag-IBIG Fund for housing loans and savings.
- The Philippines has two official languages: Filipino and English. Most international business is conducted in English. Other languages that are widely spoken include Cebuano, Hiligaynon, Ilocano, and other regional dialects.
- The standard working week in the Philippines is 48 hours per week for a 6-day work week. The maximum number of consecutive working days per week is 6 days.
- Overtime is allowed under the Labor Code and is calculated at 125% of the regular hourly rate for any hours worked above the standard 8-hours per day.
- In the Philippines, a 13th-month payment is paid to employees in December. It amounts to 1/12th of an employee’s annual pay.
- Paid vacation in the Philippines starts at 5 days of incentive leave per year, for employees who have worked at least one year.
- There are 18 national public holidays in the Philippines that employees are paid for. Understanding and complying with employment norms and legal requirements surrounding Filipino public holidays is one area where your EOR service will shine, managing these occurrences hassle-free on your behalf.
- National public holidays in the Philippines include:
- New Year's Day (January 1)
- Chinese New Year
- Maundy Thursday
- Good Friday
- Day of Valor
- Eidul Fitr
- Labor Day
- Independence Day
- Eidul Adha
- Ninoy Aquino Day
- National Heroes Day
- All Saints’ Day
- Bonifacio Day
- Immaculate Conception
- Christmas Holiday (December 24)
- Christmas Day (December 25)
- Rizal Day
- New Year’s Eve (December 31)
- The Philippines offers maternity leave and paternity leave.
- The maternity leave entitlement is 105 days of paid leave, plus 15 additional days for single parents, paid by the SSS.
- The paternity leave entitlement for fathers is 7 days of paid leave for the first-born child, paid by the employer.
- Paid sick leave is not nationally mandated in the Philippines. However, many employers offer at least 5 days of annual sick leave.
- The probationary period in the Philippines is 6-months.
- The termination terms in the Philippines are mandated by the Labor Code. The required notice period depends on the employee’s length of service and the reason for dismissal. This is another area where a local Filipino EOR can provide assistance to ensure the probation period and related severance are handled correctly.
- Severance pay is only provided if termination is due to authorized causes (i.e., redundancy of business closure), and is calculated at one month’s pay per year of service.
Selection Criteria for Employer of Record Philippines
Selecting the top EOR providers for this list required a thorough understanding of how these services address common hurdles, such as compliant employee hiring across borders, managing international payroll, adhering to local labor regulations, offering competitive employee benefits, and ensuring a seamless onboarding experience.
My approach to identifying the best EOR solutions involved in-depth research into recent EOR market data, alongside evaluating partnerships that would be most beneficial for organizations aiming to tap into global talent pools.
The following are the specific criteria I used to meticulously evaluate the service offerings from each provider on this list:
Core Employer of Record Services (25% of total score): For inclusion in this list, each EOR provider needed to deliver these essential services:
- A corporate structure enabling compliant, legal employee hiring across multiple countries without needing a local entity
- Multi-currency payroll and tax management that adheres to local regulations
- Support in creating competitive, locally compliant benefits packages
- Guidance on navigating visa and work permit processes for expatriate employees
- Strong data privacy and security practices that meet international standards
Additional Standout Services (25% of total score): To differentiate the top EOR services, I focused on any unique or advanced services offered, such as:
- Technology platforms that streamline payroll and HR processes with an intuitive design
- Specialized knowledge in hiring within specific countries or industries
- Services tailored to remote work compliance and global mobility
- Expert support for complex immigration cases
- Assistance with international IT needs, like managing equipment, software, and asset tracking
- Emphasis on sustainable, eco-friendly employment practices
Industry Experience (10% of total score): To evaluate the industry experience of each EOR service provider, I considered the following:
- Years of experience in the EOR field
- Recognitions or certifications in international HR and payroll
- Knowledge depth of local labor laws across different jurisdictions
- Competence in new markets, indicated by the number of countries with local expertise
- A proven record of supporting global expansions
- Team credentials and expertise, if available
Customer Onboarding (10% of total score): To get a sense of each provider's customer onboarding process, I considered the following factors:
- Availability of onboarding resources, such as fact sheets, guides, FAQs, and training materials
- Support for integrating the provider’s software with existing HR systems
- Direct access to onboarding specialists, support teams, or account managers
Customer Support (10% of total score): Since EOR providers act as legal employers for remote teams, timely, effective support is essential. To evaluate the level of customer support each company offered, I considered the following:
- Availability of multilingual support across various time zones
- Multiple support channels, such as phone, email, and live chat
- Responsiveness and effectiveness in issue resolution based on customer feedback
- Access to dedicated account managers for ongoing assistance
Value for Price (10% of total score): To gauge the overall value of each service, I considered the following factors:
- Transparent pricing models with no hidden fees
- Comparison of services provided against cost
- Flexible service packages suitable for various business sizes and needs
Keep in mind that EOR services are complicated, and because of that the price tag can sometimes be high. However, the prices for their services still offer a good ROI considering the complexity of the premium-grade services you're gaining.
Customer Reviews (10% of total score): Evaluating customer reviews is the final element of my selection process, which helps me understand how happy real users are with a service. To determine this, I considered the following factors:
- Consistently high ratings on review platforms
- Feedback regarding ease of use for EOR services
- Testimonials on excellent customer support and issue resolution
Using this assessment framework helped me identify the employer of record services that go beyond basic requirements to offer additional value through unique services, deep industry experience, smooth onboarding, effective support, and overall value for price.
Trends in Employer of Record Services
With increasing globalization, businesses are expanding their reach, intensifying the need for effective, compliant, and easy-to-use solutions for international hiring, payments, benefits, and onboarding. Employer of Record services are adapting to meet this demand by leveraging technology to offer flexible, comprehensive support and innovative features that simplify global operations.
Here are some key trends shaping the current EOR landscape and the HR software systems used to deliver these services:
- Immigration Support: Demand is rising for immigration services, such as visa and work permit sponsorships, which make it significantly easier for companies to acquire global talent.
- Specialized Services for Diverse Needs: More EOR providers now include services like intellectual property (IP) and invention rights protection, as well as equity planning, to address specific needs of diverse clients.
- Enhanced Employee Benefits Packages: EOR providers increasingly go beyond basic healthcare to offer comprehensive benefits packages, including enterprise-level health coverage, stock options, and relocation bonuses, highlighting a commitment to attracting and retaining global talent.
- AI-Backed Knowledge Bases: Some providers (such as Deel) now incorporate AI-backed knowledge bases that provide legally vetted answers to common questions, enabling clients to access information about specific country hiring requirements without needing direct support.
These trends indicate the direction of EOR services, making it easier for companies to navigate the complexities of global expansion. For detailed insights into EOR providers leading these trends, see our in-depth reviews of Oyster HR, Skuad, and Deel.
Key Employer of Record Services
Using an EOR service allows companies to handle international payments, comply with local labor laws, provide competitive benefits, and streamline the onboarding process for new hires. Here are some essential services to look for in an EOR provider:
- Global Payroll Management: Ensuring accurate, timely payment in local currencies is central to an EOR’s role, helping maintain employee satisfaction and financial stability across various locations.
- Tax Compliance and Withholding: EORs manage employee tax withholdings and employer obligations per local regulations, helping avoid legal issues and ensuring smooth operation across tax jurisdictions.
- Local Labor Law Compliance: With in-depth knowledge of country-specific labor laws, EOR providers protect businesses from legal disputes, monitor work hours, and manage timesheets and leave requests to maintain a lawful workplace.
- International Talent Acquisition & Background Checks: EORs support global hiring by sourcing talent and conducting background checks to verify credentials, ensuring that new hires meet the role's standards. They also handle country-specific employment contracts.
- Visa and Work Permit Sponsorship: EORs often assist with visas and work permits for expatriate employees, crucial for legally employing foreign talent and ensuring a smooth relocation process.
- Onboarding and Offboarding: EOR providers manage the onboarding of new hires and offboarding for departing employees, ensuring seamless transitions that comply with local labor laws.
- Benefits Administration: By leveraging economies of scale, EORs access competitive regional benefits packages, including health insurance, essential for attracting talent, improving satisfaction, and meeting welfare standards.
- HR Support and Consultation: EOR experts offer ongoing HR support, helping businesses navigate complex employment issues, manage grievances, and maintain positive employee relations.
- Risk Management and Insurance: EORs take on legal responsibility for foreign staff, managing employment-related risks, workers’ compensation, and necessary insurance, including professional indemnity and public liability.
- Multi-Language Support: Many EOR providers offer services in multiple languages, including document translation and localized support, to prevent misunderstandings and serve a diverse workforce effectively.
EOR providers deliver a comprehensive suite of services that simplifies international expansion, helping businesses operate globally without the challenges of navigating complex employment laws alone. Partnering with an EOR allows companies to focus on their core business goals while the EOR handles critical employment functions.
Benefits of an Employer of Record Service
For organizations looking to expand internationally, EOR services offer a smart solution to bypass the complexities of global employment laws and operational liabilities. Partnering with an EOR provides clarity, confidence, and compliance for companies exploring global expansion.
Here are several benefits you’ll gain by using an EOR service:
- Quick Market Entry: For companies seeking to test new markets or hire talent abroad without establishing a local entity, an EOR offers a rapid, efficient solution to start operations, saving valuable time and resources.
- Simplified Global Payroll: EORs simplify managing international payroll by handling tax deductions, withholdings, and currency conversions, ensuring employees are paid accurately across borders.
- Global Compliance & Risk Mitigation: EORs offer expertise in navigating complex employment laws, tax regulations, and insurance requirements across multiple jurisdictions, helping protect businesses from compliance risks.
- Enhanced Benefits Negotiation: Leveraging extensive networks, EORs can secure competitive international insurance rates and benefits packages on your behalf, improving your ability to attract and retain top talent globally.
- Improved Cost Effectiveness: Compared to the substantial costs of establishing a foreign entity—including legal fees, office infrastructure, and local benefits—an EOR is a cost-effective route for entering new markets.
Recognizing the advantages of an EOR service can be instrumental for strategic planning and operational efficiency. As businesses target international markets, an EOR partnership provides a streamlined, cost-effective, and compliant path to global growth.
If you’re making the case to upper management, emphasize the cost savings and simplicity of hiring international employees through an EOR. This approach may be just what you need to gain their support for an EOR partnership.
Costs & Pricing for Employer of Record Services
Typically, the cost of an EOR service follows a fee per-employee, per-month pricing model, which can vary widely depending on a range of factors. This model allows for scalability and predictability in budgeting for international expansion efforts.
In general, EOR services in the Philippines cost between $250 to $2,000 per employee, per month.
Key factors that can influence the pricing of an employer of record service include:
- Geographic Location: Costs can vary significantly based on the country or countries you're hiring in. This is due to local economic conditions, labor laws, and the complexity of compliance requirements.
- Employee Seniority and Role Complexity: The level and nature of the roles being filled can also impact the monthly cost. Senior positions or roles requiring special qualifications may increase the price due to higher benefits and compensation management costs.
- Number of Employees: The total number of employees being managed can also impact the cost. In some cases, higher volumes may lead to volume discounts, making per-employee costs more economical.
- Custom Requirements: Any specific needs beyond the standard service offering may also contribute to the monthly cost. This may include customized solutions for recruitment, specialized employee onboarding, or unique compliance requirements, all of which can affect pricing.
Some EORs also operate under different pricing models, including a percentage of employee salary model, a fixed pricing model, and custom pricing models. If you'd like to delve deeper into the different factors that influence prices, my article explaining the intricacies of different EOR fee structures is a natural next step.
When considering an EOR service, it is crucial to understand how these factors impact the overall cost to ensure that the service aligns with your business's needs and budget constraints. Anticipating the specific requirements of your international expansion strategy will help you choose the most cost-effective and efficient EOR solution for your needs.
FAQs About EOR Services in the Philippines
If you’ve got specific questions about the requirements to hire Filipino employees or how EOR services work, these answers to frequently asked questions are a good place to start:
What does an Employer of Record do?
An Employer of Record (EOR) service provider is a third-party entity that can help an organization hire a new employee in a country where it has no physical presence. It’s a useful service for businesses that are expanding internationally but don’t have physical offices established yet, or don’t ever plan to establish them. In these situations, the EOR provider becomes the legal employer of your remote staff on your behalf.
In this type of partnership, the EOR service provider deals with local employee-related matters such as managing payroll, deducting taxes, and administering the onboarding process for new employees. This allows organizations to access global talent while reducing their legal liabilities and compliance risks. This is because the EOR company assumes the legal responsibility for your international new hires on your behalf.
What are the minimum wage requirements in the Philippines?
In the Philippines, the minimum wage varies significantly by region and employment sector, as set by the Regional Tripartite Wages and Productivity Boards (RTWPBs). At the time of writing this article, the current minimum wages were the following:
- Metro Manila (NCR): The daily minimum wage for non-agricultural workers is PHP 645, while agricultural workers earn PHP 608 per day.
- Other Regions: Minimum wages are generally lower outside Metro Manila, reflecting regional economic differences. For example, non-agricultural workers in the Caraga region have a minimum wage of around PHP 385 per day.
For more detailed information, consult a Philippines EOR or refer to the DOLE’s website.
Do EOR providers offer other types of global HR services?
Yes, many EOR providers also offer professional employer organization services (also known as PEO services), as well as global payroll services.
PEO services are a way to outsource your HR functions to support your international teams. PEO service providers can help you with international compliance issues, benefits administration, workers’ compensation, and other HR administrative tasks.
Global payroll services allow you to easily pay remote employees or independent contractors within a unified payroll run. They manage in-country compliance requirements and juggle payments in multiple local currencies on your behalf.
To dive even deeper into this topic, read our article covering other types of global HR services to figure out the best fit for you.
What are some of the consequences of non-compliance?
As an organization, you never want to be deemed as non-compliant in the eyes of any government body. The exact rules and regulations will vary according to the jurisdiction you’re operating in, which is one of the main benefits of using an EOR service provider.
If you don’t use an EOR and you do hire international workers, you may quickly find yourself in non-compliance. The consequences of doing so will depend on the severity of the violation, but they could include all of the following:
- Fines and penalties
- Legal actions such as lawsuits or other litigation proceedings
- Corrective measures and compliance orders
- Revocation of business licenses or operating permits
- Reputational damage if the news becomes public (loss of public trust and loss of internal employee respect)
- Increased monitoring and additional government scrutiny
Companies who fail to follow international labor laws cannot simply say they were unaware of the legalities, and hence, didn’t follow them. That’s where an EOR service can really remove a lot of potential risk and liability from the international hiring process.
To brush up on your compliance best practices, have a quick read through our Comprehensive HR Compliance Report next.
Are there any risks to using an Employer of Record service?
While EOR services offer considerable benefits, it’s essential to recognize potential risks to ensure you select the right provider for your needs.
Financial risks:
- Hidden costs and service fees: Some EOR providers may include extra charges for specific services, like document processing, employee onboarding or offboarding, or additional HR consulting.
- Mandatory benefits: In countries requiring statutory benefits, EORs will charge for these benefits on top of the employee’s salary and their service fee, which can increase overall costs.
- Currency fluctuations: Payroll costs can be impacted by currency exchange rate changes, which may alter the expense of international transactions and payroll over time.
Operational risks:
- Data security: Since you’re entrusting your EOR with sensitive employee data, it’s crucial to evaluate their data protection protocols, including their security certifications, incident response planning, and any data management certifications like ISO 27001.
Strategic risks:
- Loss of control: With an EOR, you’ll give up some control over workforce management, which could influence your organization’s decision-making processes and flexibility.
- Brand reputation: An EOR’s actions or incidents involving their staff can impact your brand reputation. If issues aren’t managed well, they may affect the employee experience.
For a deeper dive into this topic, read our detailed breakdown of potential EOR risks, including strategies to mitigate each issue upfront.
What is a nearshore vs offshore employee?
A nearshore employee is based in a country closer to the company’s location, typically within the same or a nearby time zone, making collaboration and communication easier due to the smaller time difference.
For North American companies, nearshore remote workers may reside in Canada, the Caribbean, or Central or South America.
An offshore employee is located in a country far from the hiring company’s home base, often in a different time zone, to capitalize on cost savings and increase access to a broader talent pool.
For North American companies, offshore remote workers may reside in Asia, Africa, or Europe.
Access Top Talent Through an EOR in the Philippines
If you've read this far, you likely have a clearer picture of how an EOR can streamline hiring in the Philippines. EOR services are a valuable asset, whether you’re a large enterprise aiming to secure top Filipino talent or a smaller business entering the local market without setting up a formal entity.
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