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Employer of Record Philippines

Our Employer of Record in the Philippines service enables clients to hire employees without the need to operate a local legal entity there.

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About EOR Philippines

It makes a big difference to develop a new market with your own personnel on the ground. Particularly for functions related to sales & marketing, business development, distributor management, and service & maintenance, our customers are very satisfied using our Philippines Employer of Record Service. 

Our customers and their local teams can be free of the distractions of administrative tasks and complex local requirements. So you can fully focus on the development of your core business.

If your local business grows large enough, you can easily transfer the employees to your own subsidiary. It also provides a quick exit strategy if necessary. In addition to the Philippines, we offer Employer of Record services in several other countries

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Alp Atasoy

Alp Atasoy

Sales and Business Development Consultant

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Employer of Record Philippines - FMC Group's Approach

  • We offer:
  • Quick, flexible, and easy entry into Philippines in compliance with local employment laws
  • Complete control over business development with your own team
  • Good option for building up, managing, and supporting your distributors and key accounts by directly observing local developments and adjusting the strategy whenever necessary
  • Using our comprehensive recruitment experience for international clients, we can form a local team that fits your corporate culture.
  • Focusing on your core business instead of dealing with the time-consuming and complex local administrative tasks
  • Allowing for easy market exit if necessary
  • Integrating your employees into our team through motivational events and special meetings

EOR Philippines Management & Reporting Flow

Approach for Nearshoring by Employee Leasing

Hiring an Employee

  • Employment in the Philippines involves complying with the Labor Code, issuing a formal employment agreement, and enrolling employees with government institutions like SSS, PhilHealth, Pag-IBIG, and the BIR. Filipino workplace culture is collaborative and relationship-driven, with growing attention to professional growth, work-life balance, and employee engagement.

Employment Contract – indefinite vs. fixed term

  • In the Philippines, written employment contracts are a standard and mandatory practice. Employers are required to provide a comprehensive written contract in the Filipino language, which outlines key details such as the employee’s duties, salary, benefits, and the procedures for termination. This ensures transparency and protects both parties’ rights throughout the employment relationship.

    Additionally, employers must provide a formal letter of offer when hiring new employees. The letter should clearly specify the employee’s salary and compensation, with all figures stated in Philippine Pesos (PHP), to avoid any ambiguity.

Probation Period

  • Under Article 281 of the Philippine Labor Code, the maximum duration of a probationary period for an employee is six months.

Work Week, Overtime & Maximum Working Hours

  • In the Philippines, the standard workday is typically eight hours, and employees are not allowed to work more than 10 hours per day or exceed 48 hours per week during a regular workweek.

Income Tax

  • Individuals are considered tax residents of the Philippines if they stay in the country for more than 180 days within a calendar year. Non-resident taxpayers are only required to pay income tax on income sourced within the Philippines.

    Filipino tax residents, on the other hand, are obligated to pay income tax on their global income, meaning income earned both within and outside the country.

    As of January 1, 2023, the Philippine income tax rates are structured as follows:
  • Up to PHP 250,000: 0%
  • From PHP 250,000 to PHP 400,000: 15%
  • From PHP 400,000 to PHP 800,000: 20%
  • From PHP 800,000 to PHP 2,000,000: 25%
  • From PHP 2,000,000 to PHP 8,000,000: 30%
  • Above PHP 8,000,000: 35%

Typical Benefits

  • The Labor Code of the Philippines, regulated by the Department of Labor and Employment (DOLE), establishes the minimum labor standards for the country’s workforce. Statutory employee benefits mandated by the Code include:
  • Retirement payments (either through a monthly pension or a lump sum)
  • Healthcare benefits
  • Sick leave
  • Disability benefits
  • Maternity leave
  • Vacation entitlements
  • Unemployment insurance
  • Public holidays (such as New Year’s Day and National Heroes Day)
  • 13th-month pay
  • Additionally, the Philippines has the Pag-IBIG Fund, a government initiative that offers housing loans and financial assistance to Filipino citizens seeking affordable housing

Visa for the Employees

  • Several visas are available for international workers seeking employment in the Philippines, with the Pre-arranged Employment Visa (9G) being the most common. To apply for a 9G visa, employees must first secure an Alien Employment Permit (AEP), which is required before submitting a 9G application. Applicants must also have a job with a Philippine-based company.

    AEP Required Documents:
  • Completed application form
  • Employment contract and related documents
  • A copy of the employee’s passport with a valid visa
  • A copy of the business permit (Mayor’s Permit)
  • The visa process begins with applying for a Visitor Visa (9A) at the Philippine consulate in the applicant’s home country. Both the Visitor Visa (9A) and AEP applications can be submitted by the employer or employee. The 9G visa application, sponsored by the employer, must be filed with the Bureau of Immigration. The entire process can take up to 7 months, including 2-3 weeks for the AEP, so applicants should plan ahead.

Time off Policies

  • Regular Holidays
  • New Year’s Day
  • Maundy Thursday
  • Good Friday
  • Araw ng Kagitingan
  • Eid’l Fitr (Feast of Ramadhan)
  • Labor Day
  • Independence Day
  • Eid’l Adha (Feast of Sacrifice
  • National Heroes Day
  • Bonifacio Day
  • Christmas Day
  • Rizal Day
  • Special (Non-Working) Holidays
  • Ninoy Aquino Day
  • All Saints’ Day
  • Feast of the Immaculate Conception of Mary
  • Last Day of the Year
  • Additional Special (Non-Working) Day:
  • Chinese New Year – Additional Special (Non-Working) Day
  • Black Saturday – Additional Special (Non-Working) Day
  • All Souls’ Day – Additional Special (Non-Working) Day
  • Christmas Eve – Additional Special (Non-Working) Day

Annual Leave

  • Employees are granted 20 paid public holidays and five days of paid Service Incentive Leave (SIL). Additionally, many employers, particularly for professional roles, provide at least 15 days of paid leave annually.

Sick Leave

  • Employers are required to provide a minimum of 5 days of sick leave per year. However, it is common practice to offer 15 sick days annually.

Other Leave Types

  • Maternity Leave: Expectant mothers are entitled to 105 days of maternity leave. Single mothers are granted an additional 15 days, and they may also take up to 30 additional days of unpaid leave. In cases of miscarriage, female employees are entitled to 60 days of leave.
  • Paternity Leave: Fathers are entitled to 7 days of paternity leave with full pay.

Terminating an Employee

  • Employees may be dismissed for just cause or other valid reasons, and they must receive written notice, which allows them to challenge the decision at a hearing if they choose to appeal. Pregnant and postpartum employees are afforded special protection and cannot be dismissed during this time.

    Employees terminated due to authorized causes (such as economic factors) are entitled to severance pay. This pay is either one month’s salary or half a month’s salary for each year of service, depending on which amount is higher.

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We are looking forward to hearing from you