Employer of Record in the Philippines (EOR in Philippines)

Hire Globally, Pay Locally, Expand Effortlessly

We act as your Employer of Record in the Philippines. This country, with a robust economy and skilled workforce, offers significant opportunities for international businesses. However, the Philippines’ complex regulatory landscape can be a serious hurdle for those unfamiliar with local market requirements or best practices. That’s why it can a big advantage to have an Employer of Record (EOR) in the Philippines like INS Global to act as your local partner, ensuring a smooth market entry and ongoing compliance with all necessary regulations.

Want to have a Team in the Philippines TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

Want to Have a Team in the Philippines TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

How an Employer of Record in the Philippines Operates in 3 Easy Steps

Step 1: Detailed Planning & Needs Assessment

Your engagement with an Employer of Record in the Philippines starts with a comprehensive consultation to understand your business goals. This includes discussing the number of employees, their roles, and your timeline. This initial phase ensures that an Employer of Record like INS Global can tailor their services to align with your objectives, helping your employees to quickly integrate into the Philippines’ unique tax system and labor laws.

Step 2: Streamlined Setup, Recruitment & Onboarding

Whether you are forming a new team in the Philippines or transferring existing employees, the Employer of Record handles all legal processes associated with legal local employment. This includes managing visas and work permits to ensure complete and consistent compliance with Filipino regulations. By acting as your workers’ employer in the Philippines from the outset, an Employer of Record removes the need for you to establish a local entity, saving you valuable time and resources.

Step 3: Ongoing Management & Compliance Assurance

Once your employees are on board, the Employer of Record oversees ongoing HR and payroll functions in the Philippines. This includes processing salaries, managing employee benefits, and ensuring compliance with Social Security System (SSS) contributions. An Employer of Record like INS Global thus serves as the HR interface between you and your Filipino team, managing administrative tasks and addressing employee concerns, allowing you to focus on business expansion with confidence.

The Advantages of a Philippine EOR

Efficient Setup

Avoid the complexities of navigating the Philippines’ tax system and labor laws. An Employer of Record simplifies the setup process, ensuring compliance from the start.

Expert Compliance Management

Regulations can be complex or varied according to your industry and location in the Philippines. Employer of Records like INS Global have the expertise to keep your business compliant with local tax laws, labor regulations, and social security contributions.

Minimized Risk and Liability

Acting as your legal employer in the Philippines, an EOR reduces the risks associated with employment regulations and ensures compliance.

Focus on Core Business Objectives

Delegate HR tasks like recruitment, payroll processing, and tax management to your EOR, freeing up your time to focus on core business activities.

Cost Efficiency

EOR services can be more economical than establishing a local subsidiary, particularly for smaller teams or projects with scaling or temporary needs, by avoiding initial incorporation costs and ongoing administrative burdens.

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

 5/5

Choosing Between an Employer of Record and Company Incorporation in the Philippines

While setting up a subsidiary in the Philippines provides more control, opting for an Employer of Record like INS Global as your expert local partner offers several comparative advantages, such as:

Speed – The business setup process is expedited with an Employer of Record in the Philippines, enabling you to start operations and hire staff much faster. Company incorporation can take several months of planning and documentation, whereas an Employer of Record can make your team operational within weeks.
Compliance – Both Employer of Records and subsidiaries must comply with the Philippines’ tax laws and labor regulations but Employer of Records have the specialized knowledge to handle these complexities and ensure continuous compliance without the need for in-house experts.
Cost – For large companies, small teams, or temporary expansions, an Employer of Record helps you avoid upfront incorporation expenses and administrative costs associated with long-term overheads.
Control – While incorporation offers extensive control over HR, finances, and operations, Employer of Records can provide the same level of control over your workforce while still reducing your administrative responsibilities.

Philippines Labor Law Overview

The Philippines’ business environment is attractive, but its labor laws can be complex, such as:

Employment Contracts – Contracts must be in English or Filipino and outline employment terms, including salary, benefits, working hours, termination clauses, and minimum wage requirements. An Employer of Record in the Philippines ensures your contracts comply with Filipino law and protect your interests.
Probationary Periods – Probation periods in the Philippines typically last up to 6 months. An Employer of Record in the Philippines can help set up probation periods that comply with local laws while allowing you to assess new employees.
Working Hours – Standard work hours in the Philippines are usually 48 hours per week, with limits on overtime. Local Filipino Employer of Records assist in tracking work hours and ensuring compliance with overtime regulations to prevent penalties.
Paid Leave – Employees are entitled to various types of paid leave, including public holidays, annual leave, sick leave, and maternity leave in the Philippines. Employer of Record service providers manage leave requests and ensures proper compensation according to Filipino labor laws.
Social Security System (SSS) – Both employers and employees contribute to the SSS, a mandatory social security scheme. Your Employer of Record handles these contributions as part of the payroll process.
Severance Pay – Severance pay is legally required in certain situations, such as termination without cause. An Employer of Record guides you through severance pay practices and calculations to ensure compliance with local laws.

Navigating these complexities in-house can be challenging and time-consuming. Partnering with an Employer of Record in the Philippines ensures your business remains compliant with labor laws, protecting you from potential risks and allowing you to focus on growth.

5 Essential Factors for Selecting the Best Employer of Record in the Philippines

Experience and Track Record – Seek an Employer of Record with proven experience in the Philippines and a strong industry reputation like INS Global. Look for client testimonials and industry accolades as indicators of reliability.
Comprehensive Service Offerings – Ensure the Employer of Record you choose provides all necessary services or can customize its offerings to suit your needs. This may include visa and work permit support, payroll processing, tax compliance, and navigating the Philippines’ tax and labor regulations.
Scalability – Opt for an Employer of Record that can scale its services as your business grows in the Philippines. They should be capable of managing an increasing workforce and evolving business requirements.
Clear Communication and Transparency – Choose an Employer of Record in the Philippines or global provider known for clear and consistent communication. They should keep you informed about regulatory updates, impending deadlines, and potential issues. Look for a dedicated point of contact and online tools for easy access to essential information.
Transparent Cost Structure – Compare the pricing models of different Employer of Record providers in the Philippines. Ensure their fees are transparent and competitive, with no hidden costs. Third-party advice can help you get the best value for your investment.

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FAQs

How does an Employer of Record facilitate market entry into the Philippines?

An Employer of Record manages all legal, HR, and compliance tasks, allowing businesses to enter the Philippine market quickly without needing to establish a local entity.

What are the cost advantages of using an Employer of Record in the Philippines?

Using an Employer of Record can be more cost-effective than setting up a subsidiary, as it eliminates initial incorporation costs and reduces ongoing administrative expenses. Instead, the Employer of Record provider in the Philippines will provide everything you need for compliant employment based on a percentage of your employee’s pay.

Can an Employer of Record handle visa and work permit processes in the Philippines?

Yes, an Employer of Record manages the entire visa and work permit application process, ensuring compliance with local immigration laws and regulations.

Which types of businesses benefit most from Employer of Record services in the Philippines?

Employer of Record services are beneficial for businesses of all sizes, especially those seeking rapid market entry, cost savings, and reduced administrative burdens.

How does an Employer of Record ensure compliance with Filipino labor laws?

Employer of Records have local experts who stay updated on regulatory changes and manage all compliance aspects, ensuring your business adheres to Filipino labor laws.

What control do I retain over my employees when using an Employer of Record in the Philippines?

While the Employer of Record is the legal employer, you retain significant control over day-to-day management and operational decisions regarding your employees.