2025 Guide: Salary, Benefits, and Compliance When Hiring in the Philippines Through an Employer of Record
Discover how using an Employer of Record – EOR in the Philippines in 2025 can streamline hiring, ensure compliance, and save your business up to 70%. Includes full salary cost breakdowns, statutory benefits, and legal essentials every company must know.
What Does It Actually Cost to Hire in the Philippines via an Employer of Record – EOR?
When evaluating an Employer of Record – EOR in the Philippines, it’s crucial to account for more than just base salary. Total employer cost includes mandatory contributions, statutory benefits like the 13th-month pay, and other obligations under Philippine labor law. Here are up-to-date figures for 2025, based on reliable benchmarks:
Base Salary Examples (Philippines, NCR)
| Role Level | Approximate Base Salary / Month |
|---|---|
| Entry / Junior Accountant | ₱25,000 – ₱35,000 |
| Mid-Level Software Developer | ₱50,000 – ₱70,000 |
| Senior Manager or Executive | ₱100,000+ |
Also, the minimum wage in the National Capital Region (as of July 18, 2025) is ₱695/day, which translates to roughly ₱15,247 to ₱18,216/month for full-time work.
Statutory & Mandatory Employer Costs
These are required by law and affect how you must budget. An EOR handles these so your business stays compliant.
- SSS (Social Security System): Employer share up to ~ ₱3,500/month (at capped percentage)
- PhilHealth: Approx 4.5% of salary; employer share is ~2.25%, with a cap around ₱2,500 in some cases.
- Pag-IBIG (HDMF): Standard employer share of ₱100/month.
- 13th-Month Pay: Equivalent to one full month’s base salary spread over 12 months (prorated if the employee hasn’t worked the entire calendar year).
Worked Examples: Total Monthly Cost to Employer
Here are sample total monthly costs for different salary levels after including statutory contributions + 13th-month pay allocations. These illustrate the “real cost” you’ll need to budget when using an EOR.
| Base Salary | SSS | PhilHealth | Pag-IBIG | 13th-Month Pay Allocation | Approx Total Cost / Month to Employer |
|---|---|---|---|---|---|
| ₱35,000 | ₱3,500 | ₱787.50 | ₱100 | ₱2,916.67 | ₱42,304.17 |
| ₱60,000 | ₱3,500 | ₱1,350 | ₱100 | ₱5,000 | ₱69,950 |
| ₱100,000 | ₱3,500 | ₱2,500 (cap) | ₱100 | ₱8,333.33 | ₱114,433.33 |
These figures highlight the real cost of hiring in the Philippines. An Employer of Record – EOR ensures all these contributions are managed properly, keeping your business compliant.
Why This Matters for Businesses
- Accurate Budgeting: Knowing these all-in costs helps you avoid surprises. When you only budget base salaries, employer contributions and statutory requirements can bump up your real costs significantly.
- Better Offers & Talent Attraction: Transparency about benefits (like 13th-month pay) and statutory compliance helps you make more competitive offers. People want assurance their pay, benefits, and rights are secure.
- Legal Compliance & Risk Mitigation: Labor laws in the Philippines include strict mandates for contributions, leave, overtime, etc. Missing these can lead to penalties and legal risk. A proper EOR ensures these are handled correctly.
Benefits of Using an Employer of Record – EOR in the Philippines
- Fast Market Entry: Hire in weeks, not months.
- Full Compliance: Avoid costly mistakes in payroll, contracts, or termination.
- Cost Transparency: Know the all-in cost of every hire.
- Better Talent Retention: Employees receive full legal benefits, creating loyalty and stability.
Employer of Record – EOR vs Other Hiring Options
| Model | Setup Time | Control | Compliance Risk | Best Use Case |
|---|---|---|---|---|
| EOR | 1–2 weeks | High | Low | Fast, flexible expansion |
| Outsourcing (BPO) | 1–3 months | Medium | Moderate | Large outsourced teams |
| Own Entity | 6–12 months | Full | High | Long-term investment |
Why Now Is the Best Time
Global hiring is no longer a “nice to have”—it’s a competitive edge. By working with an Employer of Record – EOR in the Philippines, you get access to a skilled, cost-efficient workforce, while ensuring your company is fully compliant with local laws.
The result? Lower risk, lower costs, and faster growth.
Final Thoughts
Hiring in the Philippines offers a powerful way to scale your business across industries—whether you’re in tech, finance, healthcare, hospitality, or retail. But compliance is non-negotiable.
With an Employer of Record, you don’t just hire talent—you gain a trusted partner to manage payroll, benefits, and labor law, while you focus on innovation and customers.
Ready to Build Your Team in the Philippines?
Let’s help you expand with confidence. With the right Employer of Record – EOR partner, you’ll enjoy:
- Seamless hiring in weeks
- Transparent salary & cost structures
- Guaranteed compliance and employee satisfaction
📩 Contact us today to explore how we can set up your team in the Philippines.
hr@escalatestrategies.ca / recruitment@escalatestrategies.ca / https://escalatestrategies.ca
