As companies grow globally, securing talented employees from abroad becomes crucial. Many businesses rely on a specific organization called an Employer of Record (EOR) to legally hire and oversee international employees while maintaining complete adherence to the labor laws of every country. An EOR takes on all local employer obligations, enabling you to rapidly onboard international talent without needing to establish a foreign entity
The Philippines has become a top choice for outsourcing and remote recruitment, drawing in international employers. This article investigates the strategic reasons for choosing an employer of record in the Philippines, analyzing the legal, operational, and financial benefits
An EOR (Employer of Record) is a firm that handles the recruitment and management of employees for another company. Consider it your designated employer for legal and HR issues, however, you continue collaborating with the team or company that hired you.
Rather than establishing a company abroad, businesses can collaborate with an EOR to legally recruit talent and manage payroll, benefits, and taxes — all while ensuring compliance with local regulations.
It’s an intelligent and quick method for expanding companies to enter global markets or create remote teams without the hassle of paperwork.
Whether you’re a startup recruiting internationally or a company seeking new markets, an EOR facilitates your progress effortlessly
Hiring directly and hiring an employer of record service come with different benefits. Below is a direct comparison between the two:
Employer of Record | Direct Hiring |
No entity setup required | Register a local corporation, invest capital |
Payroll, taxes, and benefits are handled for you | Your HR team manages all filings |
EOR absorbs all penalties | You shoulder fine and audits |
Best for testing or scaling quickly | Best for long-term, large-scale ops |
Setup time is between 5-10 business days | Establishing an entity takes 3-6 months. |
An EOR can be a game-changer for many businesses, particularly those that aim to expand their services globally. Here are some of the benefits of having EOR:
Forming your legal entity in the Philippines is costly. Fully foreign-owned corporations often need up to $200,000 in paid-in capital, plus ongoing legal, staffing, and administrative overhead. An Employer of Record (EOR) sidesteps those expenses: you can hire Filipino talent right away and pay a single, predictable monthly fee instead of sinking cash into setup and maintenance.
An EOR’s ready-made infrastructure lets you onboard employees within days, rather than the months it takes to establish your local entity. Because the provider already maintains in-country HR systems and a vetted talent pool, you can scale your team quickly while staying focused on core operations.
Hiring abroad means mastering a new set of labor rules—miss a single requirement and hefty fines can follow. Partnering with an Employer of Record (EOR) eliminates that risk.
In the Philippines, an EOR acts as your local, legal employer. It guarantees every Filipino hire is fully compliant—from statutory benefits and government contributions (SSS, PhilHealth, Pag-IBIG) to tax withholdings and payroll filings—so you can scale your team with confidence instead of red tape.
Your EOR partner handles every HR and payroll task in the Philippines—processing salaries in pesos, withholding and filing taxes, issuing digital payslips, administering statutory benefits and allowances, and answering employee questions about pay or perks.
They also create and store compliant contracts and employment records on your behalf. Because all of this runs on their own HR infrastructure, you can build a Philippine team without adding extra HR or accounting staff.
Choosing an Employer of Record is a strategic decision—your partner must fit your operations, budget, and growth plans. There’s no universal “best” provider, only the best match for your business. As you evaluate options, keep these key criteria in mind:
A good EOR should have in-depth knowledge of Philippine employment law and practices and be up to date on the latest regulations. Given the constantly evolving rules (from new social mandates to tax updates), you want an EOR that proactively manages compliance, for instance, implementing any new leave laws or remote work regulations that the government introduces.
Select a provider that discloses all expenses. The majority adhere to one of two frameworks: (1) a fixed monthly charge for each employee or (2) a percentage based on the employee’s total salary. Avoid suppliers that add hidden fees for off-boarding, bonus payments, or other “extras.” The cleaner and more predictable the pricing, the easier it is to budget.
Once you’ve narrowed your list, line up each quote side-by-side. Comparing all-in pricing against service scope lets you secure the compliance coverage you need, without overshooting your budget.
Treat your EOR partner as a seamless extension of your in-house team. They ought to be accessible, prompt in their replies, and prepared to intervene when problems arise urgently. Since the Philippines is in a different time zone, ensure you have a dedicated point of contact who can synchronize their availability with your business hours or establish specific times for immediate assistance
Pick an EOR partner that can keep pace with your plans. If you need to onboard ten Filipino professionals at the same time, confirm they can handle the entire batch in one go. Also, clarify their exit process—both for standard off-boarding and for transferring employees to your own local entity when you’re ready.
Selecting an employer of record in the Philippines can be a pivotal choice at multiple stages of a company’s growth trajectory. Whether you’re entering a new market, growing quickly, or looking to reduce compliance risks, collaborating with an EOR streamlines operations, accelerates processes, and ensures legal security
Many companies are reluctant to invest heavily in establishing a legal entity for short-term projects. Whether it’s a 6-month software deployment, a temporary customer support team, or a seasonal marketing initiative, an Employer of Record (EOR) offers a practical alternative. It allows businesses to hire and compensate local talent legally, without the cost, complexity, or commitment of setting up permanent infrastructure.
In fast-moving industries, timing is everything. With an Employer of Record, you can establish operations in the Philippines within days—not months—so you’re ready to meet a new client mandate, roll out a product ahead of competitors, or capture sudden market demand.
The Philippines is a top outsourcing location, providing talented, English-proficient experts. Collaborating with an Employer of Record allows international companies to access this varied talent pool efficiently
Entering a new market without a firm grasp of local employment law is risky. Incorrectly classifying workers, violating labor regulations, or establishing a permanent presence may lead to substantial penalties and legal consequences
An Employer of Record (EOR) secures your company from these dangers by assuming all local employer duties and guaranteeing full adherence to regulations. This assistance is particularly crucial in the Philippines, where strong labor laws and stringent governmental supervision allow minimal margin for mistakes
The Philippines consistently ranks among the world’s premier outsourcing hubs, home to 1.5 million+ professionals driving its IT-BPM industry. This deep talent pool gives you unrivaled access to specialists who can fast-track your growth. Here’s why the Philippines should be at the top of your list when selecting an Employer of Record (EOR) partner:
The Philippines offers one of the region’s deepest talent pools: adult literacy tops 98% and the nation’s universities produce an estimated 600,000–700,000 new graduates every year—many in high-demand fields such as IT, engineering, healthcare, finance, and business administration.
English is one of the Philippines’ two official languages and is integral to education, business, and daily life. More than 60 % of Filipinos speak it fluently, and millions more have professional working proficiency, placing the country consistently near the top of global English proficiency rankings. The result? Clear, reliable communication with your Philippine remote team, paving the way for seamless collaboration.
Hiring Filipino talent lets you slash labor costs without sacrificing quality. Because the cost of living in the Philippines is lower than in North America or Europe, salaries for highly skilled professionals can run 50–70 % less. Those savings free up capital you can reinvest in growth, R&D, or more competitive pricing for customers.
Situated in the UTC + 8 time zone—eight hours ahead of GMT—the Philippines offers convenient overlap with North American, European, and Asia-Pacific schedules. Hiring a Philippine team lets you keep critical functions online while your headquarters is offline, enabling true 24/7 operations.
Collaborating with an Employer of Record (EOR) in the Philippines is not merely a shortcut; it’s a tactical benefit. It provides businesses with instant access to a top-tier workforce, guarantees complete legal adherence, reduces expenses, and speeds up growth
Whether you’re testing the waters or scaling fast, an EOR lets you tap into the Philippines’ rich talent pool without the delays and costs of entity setup. For any business looking to hire abroad with speed, safety, and confidence, the right EOR in the Philippines can make all the difference.
At Skyline, you may onboard top Filipino talent in three simple steps, starting at only $150 monthly. No legal roadblocks. No entity setup. Just fast, compliant hiring tailored to your needs. With flexible EOR packages, you get exactly what fits—nothing more, nothing less.
Questions? Message us on WhatsApp and let’s get your team growing.
