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Salary Calculator

Know your true hiring cost before your first hire.

I am
Pay period
Base salary
₱
Your estimate
Base salary₱30,000
Statutory contributions₱2,350
13th month (monthly equiv.)₱2,500
Total employer cost₱34,850

Your estimate is ready

See the full breakdown on our calculator View full results
Free · No sign-up required

Try our Salary Calculator

Salary Calculator

Know your true hiring cost before your first hire.

I am
Pay period
Base salary
₱
Your estimate
Base salary₱30,000
Statutory contributions₱2,350
13th month (monthly equiv.)₱2,500
Total employer cost₱34,850

Your estimate is ready

See the full breakdown on our calculator View full results
Free · No sign-up required

Try our Salary Calculator

Employer of Record · Philippines

Employer of Record in the Philippines: Hire Without Setting Up an Entity

Asiacruit becomes your legal employer in the Philippines. We handle contracts, payroll, SSS, PhilHealth and Pag-IBIG so you can hire without the cost and delay of setting up a local company.

Talk to our team
See how it works
  • No local entity required
  • Our own registered Philippine entity
  • ISO 27001:2022 certified
  • Most hires onboarded within 72 hours

3

Government agencies

SSS, PhilHealth, Pag-IBIG

Dec 24

13th month pay deadline

1/12 of annual basic salary

6 months

Maximum probation

then a regular employee

72 hours

Typical onboarding

from submitted details

Asiacruit’s Employer of Record Services in the Philippines Starts at $199 per employee per month.

Schedule a call with us
Market overview

Why foreign companies hire in the Philippines

The Philippines is one of the most established offshore talent markets in the world, with deep experience in customer support, finance and accounting, technology and creative services.

English is widely used in professional work, and Filipino teams are used to working with distributed international companies.

Established talent pool

Decades of experience through the country’s BPO sector across support, finance, IT and creative roles.

Business-ready English

English is an official language and the standard in professional settings, which reduces onboarding friction.

Time zone fit

Works well for Australia, Singapore and Hong Kong, with workable overlap for the US and Europe.

Pricing

What an Employer of Record costs in the Philippines

Employer of Record services in the Philippines start at $199 per employee per month. On top of salary, budget for employer contributions to SSS, PhilHealth and Pag-IBIG, which typically add roughly 10-14% of base salary, plus 13th-month pay, accrued at one-twelfth of annual basic salary and paid by December 24. Provider fees usually fall per employee once a team passes about 8-10 seats. See the full breakdown in our cost of hiring in the Philippines guide.

Our services in the Philippines

Employer of Record services in the Philippines

Employer of Record

Hire without forming a local corporation. Asiacruit is the legal employer.

  • No local entity required
  • SSS, PhilHealth and Pag-IBIG handled
  • 13th month pay calculated and paid
  • Compliant employment contracts

Managed Payroll

Already have a Philippine entity? We process payroll and filings while you stay the employer.

  • Gross-to-net in PHP
  • BIR withholding and filings
  • Contribution remittance
  • Payslips and 13th month pay

Talent Solutions

Need candidates first? Our team sources and shortlists talent.

  • Sourcing through Asiacruit Talent Solutions
  • Shortlists of pre-vetted candidates
  • Pairs with EOR for one-stop hiring
Quick reference

Philippines employment snapshot

The essentials of employing people in the Philippines, on one page.

Topic
What applies
Currency
Philippine peso (PHP)
Working hours
8 hours a day. The Labor Code allows up to 48 hours a week, and many offices run 40 hours over five days.
Probation
Maximum 6 months. Standards for regularization must be communicated at the start. After 6 months the worker is a regular employee.
Contract types
Regular, probationary, project-based, seasonal, fixed-term and casual
Minimum wage
Set by region. See our minimum wage guide for current Metro Manila and regional rates.
13th month pay
1/12 of basic salary earned in the calendar year, payable on or before December 24
Service incentive leave
5 days a year after one year of service. Many employers offer more.
Maternity leave
105 days fully paid (RA 11210)
Paternity leave
7 days fully paid for married male employees
SSS
15% of the monthly salary credit: employer 10% and employee 5%, with a maximum monthly salary credit of PHP 35,000
PhilHealth
5% of basic salary, split equally between employer and employee, within a salary floor and ceiling
Pag-IBIG
Employer 2% and employee 2%, on a base capped at PHP 10,000
Separation pay
Authorized causes only. 1 month per year of service (redundancy, labor-saving devices) or 1/2 month per year (retrenchment, closure not due to serious losses, disease), minimum 1 month. None for just cause.
Notice and final pay
30 days written notice to the employee and DOLE for authorized causes. Final pay within 30 days of separation.
Hiring options

Employer of Record vs setting up an entity: how foreign companies hire in the Philippines

Foreign companies have three main routes to hire in the Philippines.
Employer of Record (Asiacruit)
Own Philippine entity
Independent contractor
Time to first hire
As little as 72 hours
Months of SEC and BIR registration
Immediate
Setup cost
None
Legal fees, minimum capital and registration costs
None
Compliance
Handled by Asiacruit
Your responsibility, or outsourced
The contractor's, with misclassification risk
SSS, PhilHealth, Pag-IBIG
Registered and remitted for you
Your responsibility
Not applicable if truly independent
13th month pay
Calculated and paid
Your responsibility
Not applicable, but a risk if reclassified
Best for
First hires, small teams, market testing
Large teams and a permanent presence
Genuine project work only

Contractor misclassification is actively enforced. If the worker follows your schedule, uses your tools or works only for you, the arrangement is likely to be treated as employment, with back contributions, 13th month pay and penalties.

How it works

From signed agreement to first payroll with an Employer of Record

1

Agree on role and compensation

Define the job, the salary in Philippine pesos, the benefits package and the start date. We can advise on market rates.

2

Choose your candidate

Recruit through your own channels or use our Talent Solutions team. We step in once an offer is ready.

3

Issue a compliant contract

We draft a Philippine-compliant employment contract. You review the commercial terms and we make sure the legal structure is correct.

4

Register with government agencies

We register the hire with SSS, PhilHealth and Pag-IBIG. First-time workers need member IDs, which adds a few days.

5

Set up payroll

The employee is added to our Philippine payroll, with the pay cycle and bank details confirmed.

6

First payroll and ongoing compliance

We run payroll on schedule, remit contributions, file BIR withholding and calculate 13th month pay. You get one consolidated monthly invoice.

Employer costs

What it costs to employ someone in the Philippines

An illustrative monthly cost for a mid-level role in Metro Manila at PHP 35,000 gross salary.

Component
Monthly (PHP)
Basis
Gross monthly salary
35,000
Agreed salary
SSS (employer share)
3,530
10% of salary credit plus PHP 30 EC, credit capped at PHP 35,000
PhilHealth (employer share)
875
2.5% of basic salary
Pag-IBIG (employer share)
200
2%, capped at PHP 10,000 base
13th month pay (monthly accrual)
2,917
1/12 of annual basic salary
Total employer cost (before EOR fee)
42,522
about 121% of gross

Illustrative only. Excludes the Asiacruit EOR fee, which is a flat monthly fee per employee quoted upfront and optional benefits such as private health insurance. Contribution rates change, so check the current agency schedules.

Employment law

Key rules every employer should know

Every employee must be registered with all three agencies, and employers remit contributions every month. Rates and salary ceilings are updated periodically.

Rank-and-file employees are entitled to 1/12 of the basic salary earned in the calendar year. It is a legal entitlement, not a bonus, and must be paid on or before December 24.

Probation is capped at 6 months. After that the employee becomes regular and gains security of tenure. Standards for regularization must be made known at the start.

Regular employees get at least 5 days of service incentive leave a year after one year of service, plus premium pay on regular holidays and special days. Maternity leave is 105 days and paternity leave is 7 days.

Termination needs a just cause with due process (two notices and a chance to respond) or an authorized cause with 30 days notice to the employee and DOLE, plus separation pay. Skipping due process can make a valid termination illegal.

Foreign nationals need an Alien Employment Permit from DOLE and a work visa. Processing time varies, so plan well ahead of the start date.

Why Asiacruit

Philippine hiring, handled by a team that owns the compliance

  • Our own registered entity in the Philippines, so no third-party handoff
  • ISO 27001:2022 certified for information security
  • Recognised as a Great Place to Work for 2025 to 2026
  • A dedicated account manager for every client
  • In-house legal and HR specialists, not a support queue

Our offices

Makati
27F, PBCom Tower, 6795 Ayala Ave., cor. V.A. Rufino St., Makati City 1226

Clark
5th Floor, Clark Center 07, Jose Abad Santos Avenue, Clark Freeport Zone, Pampanga 2023

Philippines hiring guides

Costs and pay

Contributions

Compliance

Services and results

FAQ

Frequently asked questions

Yes. Through an Employer of Record, Asiacruit is the legal employer and handles contracts, SSS, PhilHealth and Pag-IBIG registration, payroll, 13th month pay and tax withholding. You manage the day-to-day work.

Most new hires are onboarded within 72 hours of submitting their details. The exact timeline depends on the country and the speed of document submission.

Our Employer of Record services start at $199 per employee per month, layered on top of the employee’s gross salary and statutory contributions. We confirm the final fee upfront with no hidden fees, so you know the full cost before you commit. Talk to our team for a quote.

It is a mandatory benefit equal to 1/12 of the basic salary earned in the calendar year, payable on or before December 24. It is not a discretionary bonus.

Yes. Regular employees get at least 5 days of service incentive leave a year after one year of service, plus premium pay on regular holidays and special days. Many employers offer more.

For first hires and small teams an Employer of Record is usually faster and lower risk, because you do not need to register an entity or set up agency and BIR compliance yourself. A local entity tends to make sense once you have a larger, permanent team.

Ready to build your team in the Philippines?

Book a free consultation to get a clear quote and see how quickly your first hire could start.

Talk to our team

Prefer to talk? +1 279 895-6524 · +1 279 895-6577