BPO Recursos Humanos en Filipinas

Working with a reliable PEO in the Philippines to manage all important HR responsibilities, such as payroll, contract administration, and assuring tax compliance, comes at a low cost that is calculated as a monthly charge based on the earnings of the co-employed personnel. 

Working with an EOR will allow you to transfer staff to the Philippines securely, efficiently, and legally. This form of outsourcing can be used either temporarily or permanently and offers total compliance assurance as part of the service. 

When an employee’s HR needs are managed by a PEO, they have access to several benefits, such as full legal protection, local understanding of all employer responsibilities, timely and accurate payment, improved employee perks, and more. 

By maintaining complete control over their work process, contractors who interact with clients through a PEO have access to all the same perks and protections as regular employees. 

Indeed, a PEO takes into account any differences in local or regional employment regulations while offering you protection no matter where you are. 

In addition to wages and any payments made to recruiting agencies or experts, indirect expenditures such as social insurance contributions, bonuses, or incentives must be included in payroll expenses. 

Also, even though signing bonuses are optional, they should be considered when determining recruiting expenditures as they could make you stand out to potential new hires. 

With certain PEO organizations, there may be a minimum or maximum number of employees you may hire at one time. Nonetheless, with INS Global you are free to co-employ as many or as few employees as your development strategy requires. 

Like many other countries, the Philippines has effectively adapted to the possibility of employee remote work since the COVID-19 outbreak. Companies being opened in the Philippines require proof of address. Employees of a firm with its headquarters in the Philippines should also still have the option between a physical workspace and a home office for fair employment practices and as a competitive incentive. 

To assist you in finding the ideal new team member in the Philippines, members of our recruitment team have access to professional networks, knowledge of offline and online business resources, familiarity with local best practices, and more. 

INS Global can use our recruitment services to assist you in locating the best talent among both Filipino citizens and foreign residents. 

Companies of all sizes, from SMEs to multinational businesses, who are searching for a quick, easy, and secure approach to joining the Philippine market should use a PEO to streamline their expansion strategy. 

With our legal experience being ideal for anybody who either lacks their own internal structures or wants to reduce company bloat while expanding, INS Global offers high-quality PEO services to businesses in a wide range of sectors. 

Philippine direct hiring of independent contractors is an option, as well as hiring them through an intermediary like a staffing agency or an umbrella company. Via networking, job boards, social media, trade associations, and other means, you can connect with a vast array of contractors. 

The majority of the time, an independent contractor can work as a self-employed freelancer or through their own limited liability company or sole proprietorship, through which they can issue bills to clients. 

Contractor work agreements should be carefully worded to avoid any kind of misclassification. 

Employees are typically paid monthly, with tax and social security deductions being made by employers at the source. The country has a mandatory requirement for companies to make a 13th–month payment at the end of every year.  

The minimum wage in the Philippines is determined by each region individually. A list of the minimum wage per region can be found here. 

All workers moving to the Philippines or living in the Philippines for purposes of employment must apply for a work permit and an Alien Employment Permit (AEP). These can be applied for after the worker has entered the country on a tourist visa.  

Along with individual income taxes, employee payroll in the Philippines includes several deductions for social security, health insurance, and the Home Development mutual fund. These contributions are shared between the employee and employer, with the employer expected to match the employee’s contributions up to a maximum of  PHP 35,400 per year.  

Additionally, employers must make contributions to the Employee’s Compensation Fund each month. 

Employees in the Philippines are entitled to a range of benefits, including healthcare, unemployment insurance, and several forms of paid leave, all of which are paid for by social security contributions. 

Although verbal agreements are permitted in the Philippines, employers cannot modify an employment contract without the employee’s approval. It’s considered best practice to have this approval in writing. Changes in this situation must nonetheless abide by the minimum requirements of the law. 

The Philippine national health service (PhilHealth) provides free healthcare to all employees (whether local or foreign) who are enrolled in the national health insurance program. Companies and employees may also choose to seek private healthcare through private health insurance available throughout the country. 

Severance pay, called separation pay in the Philippines, should be provided in a limited number of circumstances (typically where termination occurs through no fault of the employee. This pay amounts to one month’s pay per year of service. 

The Department of Labor and Employment (DOLE) serves as the main administrative body for labor and employment regulations. It is primarily responsible for improving worker welfare, and fostering stable working relationships. 

There are 10 fully-paid annual national public holidays in the Philippines plus a variable number of special non-working days where payment is not expected.