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The Philippines has become one of Southeast Asia’s most attractive destinations for global hiring. With a highly educated workforce, strong English proficiency, and a thriving digital services sector, companies around the world increasingly rely on Filipino professionals to build remote teams.
However, hiring employees in the Philippines involves navigating local labor laws, payroll regulations, and statutory benefits. For companies without a registered entity in the country, this can be complex and time-consuming.
An Employer of Record (EOR) offers a practical solution. It allows companies to legally hire employees in the Philippines without establishing a local entity while ensuring full compliance with employment regulations.
An Employer of Record (EOR) in the Philippines is a third party organization that legally employs workers on behalf of another company. While your company manages the employee’s daily work and responsibilities, the EOR becomes the official employer for legal, payroll, and compliance purposes.
This means the EOR is responsible for ensuring the employment relationship complies with key Philippine regulations, including the Labor Code of the Philippines, tax reporting with the Bureau of Internal Revenue (BIR), and mandatory government contributions such as Social Security System (SSS), PhilHealth, and the Pag IBIG Fund.
Using an Employer of Record (EOR) in the Philippines is legal when the employment structure complies with the country’s labor and tax regulations. Many international companies rely on this model to hire Filipino employees without establishing a local entity, provided that employment obligations under Philippine law are properly fulfilled.
Employment relationships in the Philippines are primarily governed by the Labor Code of the Philippines, which sets rules for wages, working hours, employee protections, termination procedures, and mandatory benefits. Any organization employing workers in the country must comply with these requirements.
Below are some of the key employment regulations employers must follow:
Employment in the Philippines is primarily governed by the Labor Code of the Philippines, which establishes the legal framework for working hours, employee rights, termination procedures, benefits, and workplace standards. The law is enforced by the Department of Labor and Employment (DOLE).
The standard work schedule in the Philippines is eight hours per day or 40 hours per week. Employees who work beyond the standard hours are entitled to overtime pay, typically calculated at 125 percent of the regular hourly rate. Work performed during rest days, holidays, or night shifts may also require additional pay premiums.
Minimum wage levels are determined by Regional Tripartite Wages and Productivity Boards (RTWPB) and vary depending on the region. For example, wages in Metro Manila are generally higher than those in other regions due to cost of living differences.
Employers must register employees with several statutory benefit programs and make regular contributions on their behalf. These include:
Both employers and employees contribute to these programs through payroll deductions.
Philippine labor law requires employers to provide 13 months’ pay to eligible employees. This benefit is equivalent to one twelfth of an employee’s total basic annual salary and must be paid no later than December 24 each year.
Employees who have completed at least one year of service are entitled to Service Incentive Leave (SIL) of at least five days per year. This policy forms part of the broader framework governing employee leave in the Philippines, which outlines minimum leave entitlements for workers.
Many employers also provide additional leave benefits such as vacation leave or sick leave as part of their compensation packages.
Termination of employment in the Philippines must follow due process and just or authorized causes as defined by labor law. Employers are required to provide written notice and comply with procedural requirements. Failure to follow the correct process may result in labor disputes or penalties.
Hiring in the Philippines offers access to one of Southeast Asia’s most skilled and globally connected talent pools. However, managing employment compliance, payroll taxes, and statutory benefits can quickly become complex.
An Employer of Record simplifies the process by acting as the legal employer while you focus on building and managing your team.
By working with the best EOR companies in the Philippines like Glints TalentHub, businesses can hire Filipino professionals quickly, stay compliant with local labor regulations, and scale their operations without the administrative burden of setting up a local entity.
This article is brought to you by Glints TalentHub. Leading companies are actively building their borderless teams in Southeast Asia, Taiwan, and beyond. However, the prospect of going borderless can be daunting due to complex regulations and cultural ambiguities. With Glints TalentHub, you’ll have a dedicated team of in-market legal, HR, and talent experts by your side at every step of the way.
Glints TalentHub offers an end-to-end, tech-enabled talent solution that encompasses talent acquisition, EOR, and talent development. We empower businesses to leverage the strengths of regional talent efficiently to build high-performing, cost-efficient teams.
Schedule a no-obligation consultation with our experts to receive a tailored proposal today!
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