Employer of record in the Philippines: costs and rules for 2026

By the HRPricing editorial teamReviewed October 17, 2026How we research and score

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A Philippine employee on PHP 210,000 a month (USD 40,000 a year) costs the employer 11.3% above basic pay under SSS, PhilHealth, Pag-IBIG and PD 851 rules (checked October 2026), of which the mandatory 13th month pay is 8.33 points and SSS, at 10% of a salary credit capped at PHP 35,000, is the largest contribution; published EOR list prices add $199 (Payoneer WFM, formerly Skuad) to $699 (Oyster) a month, per pricing pages read in October 2026. The rule US companies most often get wrong is treating the 13th month as an optional holiday bonus: under Presidential Decree 851 it is owed to every rank-and-file employee with at least a month of service and must be paid by December 24.

In the Philippines, an employer of record is a local company registered with SSS, PhilHealth and Pag-IBIG that hires your worker under the Labor Code, pays them twice a month and remits the employer shares, while you set the tasks and schedule.

Employer cost on a sample salary
11.3%on top of gross pay
Minimum annual leave
5 days of paid service…
Public holidays
18 declared for 2026: 10…
Currency
PHP
See Multiplier pricing on Multiplier’s siteSee Oyster pricing on Oyster’s site
On this page
  1. What sets the Philippines apart
  2. Employment costs and rules in Philippines
  3. What an EOR charges to employ someone in Philippines
  4. Worked example: one hire at PHP 210,000 a month
  5. What a layoff costs in the Philippines
  6. Hiring a Filipino contractor instead
  7. EOR or a Philippine entity
  8. Best EOR for the Philippines

What sets the Philippines apart

Contribution rates here look high, but each one stops at a low cap, so the real burden depends almost entirely on salary.

  • Three agencies, three caps. SSS takes 15% (10% employer, 5% employee) of a monthly salary credit between PHP 5,000 and PHP 35,000. PhilHealth is 5% split equally, on income from PHP 10,000 to PHP 100,000. Pag-IBIG is 2% from the employer on up to PHP 10,000, so at most PHP 200. The employer also pays Employees' Compensation of PHP 10 or PHP 30.
  • 13th month pay is at least 1/12 of the basic salary earned in the calendar year. Basic salary generally leaves out overtime, premium pay and COLA.
  • Payday comes twice a month. The Labor Code requires pay at least every two weeks, or twice a month at intervals of no more than 16 days.
  • Leave and holidays. Five days of paid service incentive leave after one year. The 2026 calendar has 18 declared holidays (10 regular, 8 special non-working) under Proclamation 1006, plus Eid al-Fitr and Eid al-Adha.
  • Minimum wage is regional. Metro Manila's is PHP 755 a day for non-agriculture work under Wage Order NCR-28, effective September 26, 2026.
  • Termination for authorized causes (redundancy, retrenchment, closure) needs written notice to the worker and to DOLE at least one month ahead.

We have not confirmed the maximum probation period or the employee resignation notice from an official page yet. Ask the EOR to cite the Labor Code article it relies on.

Employment costs and rules in Philippines

Employing someone in Philippines: the rules and costs
ItemPhilippines
Employer social contributionsAbout 3.0% of salary for a mid-level salary (SSS 10% to the PHP 35,000 salary credit cap, PhilHealth 2.5% to the PHP 100,000 ceiling, Pag-IBIG 2% to PHP 10,000, EC PHP 30 a month); 11.3% with the mandatory 13th month pay. At PHP 15,000 to PHP 35,000 a month the statutory share is 13.2% to 14.0% (14.6% at PHP 10,000)
What the employer paysSSS 10% employer (5% employee) of the monthly salary credit, MSC min PHP 5,000 and max PHP 35,000 (from January 2025); Employees' Compensation PHP 10 a month if MSC below PHP 14,500, PHP 30 if PHP 15,000 and up (employer only); PhilHealth 5% premium shared equally, employer 2.5%, income floor PHP 10,000 and ceiling PHP 100,000 a month; Pag-IBIG (HDMF) employer 2% of monthly fund salary up to PHP 10,000 (max PHP 200)
Caps and ceilingsSSS MSC cap PHP 35,000 (final RA 11199 step, January 2025; no newer 2026 schedule found). PhilHealth 2026 = carryover of the CY 2025 schedule (5%, PHP 10,000 to 100,000); no 2026-specific advisory found (unconfirmed). Pag-IBIG max fund salary PHP 10,000 since February 2024 (HDMF Circular 460, confirmed via DBM). The SSS split between regular SS and MPF inside the PHP 35,000 cap was not confirmed
Employee contributionsSSS 5% of MSC (max PHP 1,750 a month); PhilHealth 2.5% (max PHP 2,500); Pag-IBIG 1% at fund salary PHP 1,500 and below, 2% above (max PHP 200); about 2.1% at the sample salary; plus withholding tax
Minimum wageNCR (Metro Manila): PHP 755 per day non-agriculture and PHP 718 per day agriculture, Wage Order NCR-28 effective Sept 26 2026 (NWPC NCR page). Rates differ by region; earlier 2026 NCR rates not confirmed today
Mandatory bonuses13th month pay of at least 1/12 of total basic salary earned in the calendar year for rank-and-file employees who worked at least one month, due by Dec 24 (PD 851). Basic salary generally excludes overtime, premium pay and COLA
Annual leave5 days of paid service incentive leave a year after at least one year of service (Labor Code art. 95)
Public holidays18 declared for 2026: 10 regular holidays and 8 special non-working days (Proclamation No. 1006, Sept 3 2025), plus Eid al-Fitr and Eid al-Adha declared by separate proclamations
Notice periodAuthorized-cause termination (closure, redundancy, retrenchment, labor-saving devices): written notice to the worker and to DOLE at least one month before the intended date (Labor Code art. 283, now art. 298, as quoted by the Supreme Court). Employee resignation notice: unconfirmed (see notes)
SeveranceRedundancy or labor-saving devices: at least one month's pay or one month's pay per year of service, whichever is higher. Retrenchment or closure not due to serious losses: one month's pay or at least half a month's pay per year of service, whichever is higher (Labor Code art. 283, now art. 298). No separation pay for just-cause dismissal
Payroll frequencyTwice a month (semi-monthly) is the norm; wages must be paid at least once every two weeks or twice a month at intervals not over 16 days (Labor Code art. 103)
Standard work week8 hours a day (Labor Code art. 83); no statutory weekly standard on the page read; 40 to 48 hours (5 or 6 days) is common
Sample salary usedPHP 2,520,000 per year basic (PHP 210,000 per month x 12, 13th month on top; USD 40,000 at 62.97 PHP per USD, ECB cross rate Oct 16 2026: PHP 70.858 and USD 1.1253 per EUR)
Employer cost on that salary11.3%

Checked October 17, 2026. Source type: mixed: official (SSS, ECC, PhilHealth, DBM, DOLE CAR, NWPC, Supreme Court e-Library, PTV state news for Proclamation 1006, ECB); secondary (Labor Code arts. 83, 95 and 103: lawphil.net, because dole.gov.ph, bwc.dole.gov.ph and officialgazette.gov.ph returned fetch errors today). Sources are listed at the end of this page.

What an EOR charges to employ someone in Philippines

What EOR providers charge (published list prices)
ProviderEOR fee per employee per monthDepositEntity model (provider claim)
Payoneer Workforce Managementfrom $199None listedClaims owned entities across APAC, MEA, Europe and the Americas
Pebl$399Not listedAbout 90% of employees on Pebl-owned entities
Playrollfrom $399One month's salary per employee, refundableNo clear owned-entity claim
Rivermate$319 to $639Not statedClaims 38 owned entities
Multiplier$459 (annual) or $499 (monthly)Sized from costs, fees and notice period (method published, no fixed amount)Claims owned entities in 160+ countries
Rippling EORQuote only (third-party reference: $499)Not listedClaims Rippling entities; no partner mention
Deel$599Not stated by DeelClaims owned entities in 130+ countries
Remotefrom $599Waived for startups; otherwise not statedClaims 100% owned entities in 90+ countries
Atlasfrom $599Not publishedClaims owned entities in 160+ countries
Papaya Globalfrom $650Refundable deposit, amount not statedUses in-country partners
Oyster$699At least one month of total service cost, refundable (per its terms)Owned entities and partners
Globalization Partners (G-P)Quote onlyNot statedInformation page claims 100+ wholly owned entities

Source: each provider’s pricing page, checked October 16, 2026. Fees are the provider’s charge on top of salary and the employer contributions above. Some providers adjust prices by country.

Worked example: one hire at PHP 210,000 a month

This is a senior hire on about USD 40,000. Every contribution has already hit its cap, so the statutory share is only 2.97% (PHP 74,760). The 13th month is the real cost.

One employee in the Philippines on PHP 210,000 a month basic, 2026
ItemWorkingPHP a yearUSD a year
Basic salary210,000 x 122,520,00040,019.06
SSS, employer10% x PHP 35,000 salary credit cap = 3,500 a month42,000666.98
Employees' CompensationPHP 30 a month (salary credit PHP 15,000 and up)3605.72
PhilHealth, employer half2.5% x PHP 100,000 ceiling = 2,500 a month30,000476.42
Pag-IBIG, employer2% x PHP 10,000 cap = 200 a month2,40038.11
13th month pay1/12 of basic pay earned in the year210,0003,334.92
Employer cost above basic pay74,760 statutory + 210,000 13th month = 11.30%284,7604,522.15
EOR fee$599 x 12 at 62.97 PHP per USD452,628.367,188.00
Total cost to youSalary + statutory + 13th month + fee3,257,388.3651,729.21
Per month (12 billing months)Total / 12271,449.034,310.77

Rates: SSS contribution table (effective January 2025), ECC, PhilHealth advisory PA2025-0002, HDMF Circular 460 via DBM, PD 851 via DOLE. Pesos converted at 62.97 per dollar (ECB cross rate, October 16, 2026); the fee row is the $599 Deel and Remote price in October 2026.

The percentage climbs fast at lower pay. On PHP 50,000 a month, SSS is still PHP 42,000 a year because of the cap, with PhilHealth at PHP 15,000 (2.5% of 50,000 x 12), Pag-IBIG at PHP 2,400 and EC at PHP 360: statutory costs of 9.96%, or 18.29% with the 13th month. Between PHP 15,000 and PHP 35,000 a month, statutory costs alone run 13.2% to 14.0% (14.6% at PHP 10,000).

PhilHealth's latest official schedule is for 2025 (5%, PHP 10,000 to PHP 100,000). We found no 2026 advisory, so this page treats 2025 rates as still in force.

For other salaries, use the cost calculator for overseas hires; the EOR cost index compares the Philippines with India and other markets.

What a layoff costs in the Philippines

Separation pay depends on the reason. For redundancy or labor-saving devices it is at least one month's pay, or one month's pay per year of service if higher. For retrenchment or closure not caused by serious losses, it is one month's pay or half a month per year, whichever is higher. Dismissal for just cause carries no separation pay. On the sample salary, a redundancy after 3 years costs PHP 630,000 (3 x 210,000), and the worker and DOLE must get written notice at least one month ahead.

Hiring a Filipino contractor instead

The risk with a Filipino contractor shows up when the "contractor" works a fixed shift on your tools for years: a later finding of employment brings back 13th month pay, SSS, PhilHealth and Pag-IBIG for that period, plus separation pay rights. For a project-based freelancer, contractor management tools cost far less than $599 a month; a contractor of record sits in between.

EOR or a Philippine entity

Your own corporation saves the EOR fee, PHP 452,628.36 ($7,188) a year per hire at $599 a month, but you then register with SSS, PhilHealth and Pag-IBIG, run semi-monthly payroll and handle DOLE notices yourself. Read when an entity beats an EOR and the permanent establishment primer before you incorporate.

Best EOR for the Philippines

Ranked by our scoring criteria, Multiplier (79/100) and Oyster (64/100) come out ahead; the full EOR comparison lists every provider.

  • Multiplier: $459 a month annual or $499 monthly, and says it uses mid-market FX with no markup, which matters when you fund PHP payroll twice a month.
  • Oyster: $699, no setup or offboarding fee. See the Oyster review for reported pay delays.
  • Remote: its Philippines page leaves out the SSS salary credit cap, the PhilHealth ceiling, the Pag-IBIG cap and EC, so its cost table will not match the math above. More in the Remote review and the Deel review.
  • Playroll wants one month's salary up front as a deposit, PHP 210,000 at this salary.

Ask whether the provider accrues the 13th month monthly on your invoice or bills it in December, and which region's minimum wage it applies.

See Multiplier pricing on Multiplier’s siteSee Oyster pricing on Oyster’s site

Frequently asked questions

How much is an employer of record in the Philippines?
Published EOR list prices run from $199 a month (Payoneer WFM, formerly Skuad) to $699 (Oyster); Pebl and Playroll list $399 and Deel and Remote $599 (October 2026). A PHP 210,000-a-month hire, once SSS, PhilHealth, Pag-IBIG, EC, 13th month pay and a $599 fee are added, costs PHP 3,257,388.36 a year in total (USD 51,729.21).
How do I hire someone in the Philippines from the US?
Without a Philippine company, you have two options: pay them as an independent contractor, or hire them through an employer of record that is registered with SSS, PhilHealth and Pag-IBIG and pays them twice a month as the Labor Code requires. Opening your own corporation is the third route and removes the EOR fee of $199 to $699 a month.
Is 13th month pay mandatory in the Philippines?
Yes. Presidential Decree 851 requires at least 1/12 of the basic salary earned in the calendar year for rank-and-file employees who worked at least one month, and DOLE says it must be paid by December 24. On PHP 210,000 a month it is PHP 210,000 a year.
What are the SSS contribution rates in 2026?
The latest SSS table, effective January 2025 (no newer schedule was found for 2026), sets 15% of the monthly salary credit: 10% from the employer and 5% from the employee, with the credit between PHP 5,000 and PHP 35,000. The employer maximum is PHP 3,500 a month, plus PHP 30 for Employees' Compensation.
What is the minimum wage in Metro Manila?
PHP 755 a day for non-agriculture workers and PHP 718 for agriculture, under Wage Order NCR-28 effective September 26, 2026, according to the NWPC. Other regions set their own rates through regional wage boards.
Sources (19)
  1. Pebl: Pebl EOR pricing (checked Oct 16, 2026)
  2. Playroll: Playroll pricing (checked Oct 16, 2026)
  3. Multiplier: Multiplier pricing (checked Oct 16, 2026)
  4. Deel: Deel pricing (checked Oct 16, 2026)
  5. Remote: Remote pricing (checked Oct 16, 2026)
  6. Oyster: Oyster pricing (checked Oct 16, 2026)
  7. Remote: Remote country explorer: Philippines (checked Oct 16, 2026)
  8. sss.gov.ph/wp-content/uploads/2022/04/IRR-RA11199-SS-Act-of-2018_2.pdf (checked October 17, 2026)
  9. sss.gov.ph/sss-contribution-table (checked October 17, 2026)
  10. ecc.gov.ph/no-increase-in-ec-contribution-despite-sss-contribution-... (checked October 17, 2026)
  11. philhealth.gov.ph/advisories/2025/PA2025-0002.pdf (checked October 17, 2026)
  12. philhealth.gov.ph/about_us/UHC-IRR_Signed.pdf (checked October 17, 2026)
  13. dbm.gov.ph/wp-content/uploads/Issuances/2024/Circular-Letter/CIRCUL... (checked October 17, 2026)
  14. car.dole.gov.ph/news/dole-to-private-establishments-give-13th-month... (checked October 17, 2026)
  15. nwpc.dole.gov.ph/ncr (checked October 17, 2026)
  16. ptvnews.ph/palace-releases-official-list-of-2026-holidays (checked October 17, 2026)
  17. elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/46224 (checked October 17, 2026)
  18. lawphil.net/statutes/presdecs/pd1974/pd_442_1974.html (checked October 17, 2026)
  19. ecb.europa.eu/stats/policy_and_exchange_rates/euro_reference_exchan... (checked October 17, 2026)

This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.

Checked Oct 17See Multiplier pricing on Multiplier’s site