Running payroll in the Philippines involves more than issuing a paycheck. Employers must calculate and remit contributions to the Social Security System, PhilHealth, and Pag-IBIG. They must also withhold income tax correctly under Bureau of Internal Revenue rules. On top of that, they must administer thirteenth-month pay and leave entitlements exactly as the Labor Code requires. Miss a filing deadline or miscalculate a contribution, and the exposure falls on the employer, not a vendor. Payroll outsourcing in the Philippines means a provider runs these calculations, remittances and filings for you.

This is why payroll outsourcing in the Philippines (also called payroll management) has become the default choice for companies that want payroll handled correctly without building an internal payroll department from scratch.

This guide covers what Payroll Management actually includes, what it typically costs, how it compares to running payroll in-house, and how Asiacruit delivers it. To get a tailored quote, schedule a consultation here.

What Payroll Outsourcing in the Philippines Covers

Covers 01

Gross-to-Net Calculation

For every employee, every payroll cycle.

Covers 02

Statutory Withholding

SSS, PhilHealth, and Pag-IBIG contributions and remittance.

Covers 03

BIR Tax Withholding & Filing

Income tax withholding, calculated and filed correctly.

Covers 04

13th-Month Pay & Leave

Legally mandated benefits, administered on schedule.

Covers 05

Payslip Generation

Generated and distributed to every employee.

Covers 06

Compliance Monitoring

Tracks changing labor law and contribution rates.

Payroll Management means handing the calculation, compliance, and payment side of employment to a partner that specializes in it. In the Philippines, a proper Payroll Management engagement covers:

How Much Payroll Outsourcing Costs in the Philippines

Factor 01

Headcount

A single hire is priced differently than a full team on payroll.

Factor 02

Payroll Complexity

Allowances, shift differentials, and multiple pay bases add scope.

Factor 03

Scope

How much of the process is outsourced versus retained in-house.

Your Tailored Quote

Transparent, scope-based pricing with no hidden fees.

Cost depends primarily on headcount, payroll complexity, and how much of the process is being outsourced versus retained in-house. Providers typically price Payroll Management as a per-employee monthly fee, sometimes combined with a setup cost for the first onboarding cycle. Because pricing varies by scope, the most reliable way to get an accurate number is a direct quote rather than a published rate card.

Asiacruit provides transparent, scope-based pricing with no hidden fees. You can request a tailored quote through Let’s Talk, or estimate broader employment costs first using the Salary Calculator.

How Asiacruit Handles Payroll

Payroll Management Philippines — Asiacruit payroll compliance team
Payroll Management Philippines — Asiacruit payroll compliance team
Service 01

Employer of Record Service

Full payroll processing for employees hired under an EOR arrangement — tax calculations, statutory deductions, and multi-currency payment.

Payroll for EOR-hired employees
Service 02

Workforce Management Service

HR administration and payroll process optimization layered on top, reducing the manual work your internal team would otherwise carry every cycle.

Ongoing HR & process optimization

Asiacruit’s payroll capability runs through two connected services. The Employer of Record service covers full payroll processing for employees hired under an EOR arrangement, including tax calculations, statutory deductions, and multi-currency payment. The Workforce Management service layers on HR administration and payroll process optimization for ongoing operations, reducing the manual work your internal team would otherwise carry every cycle.

Payroll Management vs. In-House: A Quick Comparison

Payroll Management vs. In-House
Factor In-House Payroll Outsourced to Asiacruit
Compliance Responsibility Sits fully with your company Managed by Asiacruit’s compliance team
Setup Time Requires hiring or training payroll staff Operational within days to a few weeks
Statutory Filings Tracked and filed manually Handled and monitored on your behalf
Best Suited For Large, established local headcount Growing teams that want compliance certainty without building a payroll department

Why Companies Choose Asiacruit for Payroll in the Philippines

Payroll Management Philippines — Asiacruit payroll compliance team
Payroll Management Philippines — Asiacruit payroll compliance team

Reason 01

One Partner for Payroll & Employment

Payroll runs through the same relationship as your Employer of Record engagement, so there is no separate vendor to reconcile.

No separate vendor to reconcile

Reason 02

Local Compliance Expertise

Asiacruit operates its own registered entity in the Philippines, keeping contribution and tax filings aligned with current requirements.

Registered Philippine entity

Reason 03

Transparent Pricing

Costs are scoped and disclosed upfront, with no fees introduced later in the engagement.

No hidden fees, ever
  • Payroll and employment are handled by one partner. Payroll runs through the same relationship as your Employer of Record engagement, so there is no separate vendor to reconcile.
  • Local compliance expertise. Asiacruit operates its own registered entity in the Philippines, keeping contribution and tax filings aligned with current requirements.
  • Transparent pricing. Costs are scoped and disclosed upfront, with no fees introduced later in the engagement.

Already Have a Philippine Entity? Managed Payroll

If your business already has a registered Philippine entity, you are the legal employer. That means every payroll cycle, including SSS, PhilHealth, Pag-IBIG and BIR withholding, sits with your team. Contribution tables change, filing deadlines shift, and one missed remittance can trigger penalties that outweigh months of processing fees.

Managed Payroll is a targeted administrative service for exactly this situation. Asiacruit acts strictly as a processing vendor: we calculate gross-to-net salaries, prepare payslips, process statutory contributions, and file BIR withholding, remittances and 13th month pay on schedule. You stay the sole legal employer and keep ownership of your entity. We do not co-employ or employ your staff at any point, and Managed Payroll does not touch your contracts, hiring decisions or relationship with your team.

How it differs from a PEO: a PEO operates on co-employment, becoming an administrative employer alongside you and typically bundling pooled benefits. Managed Payroll never shares employer status with you, and Asiacruit does not offer PEO services.

Managed Payroll vs. Employer of Record
FactorManaged Payroll (you have an entity)Employer of Record (no entity)
Legal employerYouAsiacruit
Philippine entity neededYesNo
Contracts, hiring and terminationsStay with youHandled by Asiacruit
Payroll and statutory filingsHandled by AsiacruitHandled by Asiacruit

If you are still deciding whether to set up an entity at all, an Employer of Record is usually the better starting point, since it removes the need for one. For the numbers behind payroll, see our guides to the SSS, PhilHealth and Pag-IBIG contribution tables, 13th-month pay, and employment compliance.

FAQ

Frequently Asked Questions

Do I need a local entity to outsource payroll in the Philippines?

It depends on the service. If you use Asiacruit’s Employer of Record service, you do not need a local entity. If you use our Managed Payroll service, you must already have a registered Philippine entity.

Which statutory contributions are included?

SSS, PhilHealth, and Pag-IBIG contributions, along with BIR income tax withholding and thirteenth-month pay administration.

Can payroll be combined with hiring and IT setup?

Yes. Payroll, hiring, and workforce integration can be delivered as a single engagement rather than separate vendors.

Is Managed Payroll the same as a PEO?

No. A PEO shares employer status with you through co-employment. Asiacruit does not offer PEO services, and Managed Payroll never involves co-employment or shared employer status.

Does Asiacruit become my employees employer under Managed Payroll?

No. You remain the sole legal employer at all times. Asiacruit acts strictly as a processing vendor for payroll calculations and statutory filings.

Asiacruit · Payroll Management

Payroll compliance in the Philippines does not have to be built internally or pieced together across multiple vendors. One partner can handle it correctly from day one.