
Hiring in the Philippines: Cost, Compliance & EOR
A 2026 guide to hiring employees in the Philippines — real SSS, PhilHealth, and Pag-IBIG rates, EOR pricing, and the compliance steps you can't skip.
Editorial Team
Global HR Experts

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The Republic of the Philippines is the undisputed global capital of Business Process Outsourcing (BPO) and voice customer experience, generating over $35+ billion USD annually and employing over 1.7 million professionals across Metro Manila (BGC, Makati, Ortigas), Cebu City, and Clark. Combining near-native English fluency, deep cultural alignment with Western markets, high emotional intelligence, and rapidly maturing expertise in software development, cloud engineering, fintech, healthcare analytics, and animation, the Philippines is the world's premier destination for global support and technical nearshoring. However, hiring employees in the Philippines requires navigating the Philippine Labor Code (*Presidential Decree No. 442*), the mandatory **13th-Month Pay (Presidential Decree No. 851)** paid in December, the mandatory **Night Shift Differential (10% premium for work between 22:00 and 06:00)**, statutory contributions to the Social Security System (**SSS** at 9.5% employer / 4.5% employee), the Philippine Health Insurance Corporation (**PhilHealth** at 2.5% employer / 2.5% employee), the Home Development Mutual Fund (**Pag-IBIG**), and TRAIN Law personal income tax withholding with the Bureau of Internal Revenue (**BIR**). Setting up a local Domestic Corporation or Branch Office requires SEC registration, Barangay permits, Mayor's Permit, and bank capital requirements taking 6 to 12+ weeks. A Global Employer of Record (EOR) enables international companies to hire Filipino software engineers, virtual assistants, and BPO teams legally, quickly, and without establishing a local company. The EOR acts as the legal employer, managing Labor Code contracts, 13th-Month Pay calculations, SSS, PhilHealth, and Pag-IBIG remittances, BIR tax declarations, and compliant PHP/USD payroll.
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