The Philippines has become one of the most sought-after destinations for global companies. Many organisations see the country as the ideal place to build remote teams. Yet, hiring in the Philippines isn’t as simple as posting a job and signing a contract. Businesses, especially foreign ones, face complicated legal, tax, and payroll requirements before they can legally employ someone. For companies without a local entity, this becomes even harder.
That’s where Employer of Record Philippines services step in. An EOR takes on the responsibility of being the legal employer on your behalf. This means companies can hire talent quickly and compliantly, without having to go through the long and expensive process of setting up a local subsidiary.
Key Takeaways:
- The Philippines is an attractive hub for building remote teams, but hiring locally involves strict labour laws, tax requirements, and complex payroll systems.
- Foreign companies cannot directly employ in the Philippines without a registered legal entity, which is costly and time-consuming.
- Employer of Record (EOR) services act as the legal employer, handling contracts, payroll, compliance, and benefits on behalf of businesses.
- Top EOR providers in the Philippines include Multiplier, Deel, Remote, Papaya Global, and Velocity Global.
- Among the available options, Multiplier stands out for its strong local expertise and easy-to-use digital platform.
Hiring Complexities in the Philippines
The Philippines has strict rules designed to protect workers, and while these are important, they can be challenging for new entrants. Some of the most common hurdles include:
- Labour law compliance: Employers must follow the Philippine Labour Code, which sets out minimum wage rules, mandatory benefits, 13th-month pay, leave entitlements, and severance pay. Even a small mistake can result in penalties.
- Tax and payroll obligations: Companies need to calculate and remit income tax, social security contributions (SSS), PhilHealth, and Pag-IBIG Fund deductions. Keeping track of deadlines and rates is a full-time task.
- Entity setup for foreign firms: International companies cannot directly employ workers in the Philippines without registering a legal entity. This process can take months and involves high costs.
- Administrative load: Beyond hiring, tasks like onboarding, contract management, and benefits administration take up most of the significant resources.
For businesses that want to test the market or hire quickly, these challenges can be discouraging. Partnering with an Employer of Record is a way to deal with most of these roadblocks.
Top Employer of Record Companies in the Philippines
Several global and regional players offer Employer of Record Philippines services. These providers act as the legal employer, while the client company manages the day-to-day tasks of the employee. Below are some of the most trusted names in the market:
1. Multiplier
Multiplier is a leading global EOR platform with strong coverage in the Philippines. It allows businesses to hire and onboard employees quickly without setting up a local entity. Multiplier manages everything from compliant contracts and payroll to benefits and government contributions, all through a simple digital platform. Its localised expertise and easy-to-use system make it one of the most reliable choices for businesses of all sizes.
2. Deel
Deel is one of the biggest names in global employment, supporting companies in over 150 countries. In the Philippines, Deel ensures compliance by handling contracts, payroll, and statutory benefits like SSS, PhilHealth, and Pag-IBIG. It also offers employee self-service portals and integration with popular HR tools, which simplifies team management across borders. For companies scaling remote teams in multiple locations, Deel’s automation and wide coverage make it a dependable partner.
3. Remote
Remote specialises in helping companies expand internationally without legal or compliance risks. In the Philippines, it provides fully compliant contracts, payroll, benefits, and tax support. The platform also offers equity management options, enabling startups to extend stock options to Filipino employees seamlessly. With strong data security and transparent pricing, Remote appeals to businesses seeking a straightforward and trustworthy way to build global teams.
4. Papaya Global
Papaya Global delivers a full workforce management solution that goes beyond traditional EOR. In the Philippines, it manages payroll, compliance, and contractor services while offering detailed analytics to monitor workforce costs. Its cloud-based system provides real-time insights and a smooth experience for both employers and employees. With its emphasis on automation and scalability, Papaya Global is a strong choice for businesses looking to streamline HR operations as they grow.
5. Velocity Global
Velocity Global is known for its flexible EOR services that allow fast market entry into the Philippines. It manages everything from employee onboarding to payroll, benefits, and compliance with local labour regulations. The platform also provides support for different types of employment arrangements, making it attractive to enterprises that want agility while scaling operations. With its global reach and local expertise, Velocity Global reduces the complexity of hiring in new markets.
How an EOR Simplifies Hiring in the Philippines
Working with an Employer of Record transforms the hiring process for foreign businesses. Instead of waiting months to set up a local entity, companies can start hiring in weeks. Some of the main ways an EOR simplifies hiring include:
- Faster market entry: No need to go through the paperwork and approvals for a local entity.
- Compliance guaranteed: EORs ensure all contracts, payroll, and benefits align with Philippine laws.
- Payroll and benefits handled: Employees get paid accurately and on time, with all government deductions made properly.
- Seamless onboarding: The EOR manages employment contracts and required documents so employees can start smoothly.
- Reduced risk: By acting as the legal employer, the EOR takes on much of the compliance responsibility, protecting the client from penalties.
- Focus on growth: With admin and legal tasks handled, companies can focus on managing and scaling their teams
Conclusion
The Philippines is full of opportunities for global companies, but hiring directly comes with legal and administrative challenges. Employer of Record services provide the bridge, making it easier, faster, and safer to build a team in the country.
Among the many providers available: Deel, Remote, Papaya Global, Velocity Global, and Globalisation Partners, Multiplier stands out as the best choice for Employer of Record Philippines. Its strong local expertise, smooth digital platform, and reliable compliance support make it the most efficient partner for businesses of all sizes.
If you’re planning to expand your workforce in the Philippines, choose Multiplier today and streamline your hiring process with confidence.
FAQs
- Can a foreign company legally hire employees in the Philippines without an EOR?
No. Foreign companies must register a local entity before directly employing workers in the Philippines. - What compliance responsibilities does an EOR handle in the Philippines?
An EOR manages all mandatory requirements such as employment contracts, payroll processing, income tax withholding, Social Security System (SSS) contributions, PhilHealth, and Pag-IBIG deductions. - How fast can I start hiring through an Employer of Record in the Philippines?
Unlike entity setup, which may take several months, an EOR can help you hire within weeks. - Who manages the employee’s day-to-day work if they are hired through an EOR?
The EOR only handles legal, payroll, and compliance aspects, while the employee works under the client’s direction. - Is an EOR suitable only for large companies, or can startups use it too?
EOR services are suitable for businesses of all sizes. Startups use them to test new markets affordably, while larger enterprises rely on them for faster scaling across borders.
