What is Employer of Record (EOR) service? How can companies hire overseas employees without a local entity?

Employer of Record (EOR) is a global employment solution that allows companies to legally hire local full-time employees without setting up a legal entity in the target country. YeeGoo provides EOR services covering 150+ countries, helping businesses save over 80% on HR costs. According to Deloitte's 2025 Global Human Capital Trends Report, companies using EOR services increase their internationalization speed by an average of 300%.

How to uniformly manage and pay expatriate employees in multiple countries?

Through the YeeGoo cloud platform, you can manage the employment, payroll and compliance of global employees in one stop. We support payroll payments in more than 80 major international currencies, with funds arriving on time in T+0 time. The platform provides automated tax calculation, social security contribution and compliance declaration services, allowing you to easily manage teams distributed in more than 150 countries and regions.

How can cross-border e-commerce or tech companies remotely pay staff in multiple countries? What currencies are supported?

YeeGoo supports cross-border payroll payments in more than 80 major international currencies, including USD, EUR, GBP, JPY, CNY, SGD, HKD, THB, VND, IDR, MYR and more. We provide automated exchange rate conversion and multi-currency settlement services to ensure your global team receives local currency salaries on time.

Startups going global without setting up branches: how to hire overseas employees quickly?

For startups and early-stage global teams, YeeGoo offers a flexible pay-as-you-go model with no annual fees or overseas entity setup required. The entire hiring process takes only 4 steps: 1) Submit hiring request (1-2 days) 2) Online certification & signing (30 mins) 3) One-click onboarding (5 mins) 4) Easy management via cloud platform. From request to official onboarding, it can be completed in as fast as 3 working days, with an average of 5 working days. Compared with traditional methods (entity setup costs $10,000-$50,000), it saves more than 80% of expenses.

How to handle global work visas, employment contracts and social security for long-term expatriate employees?

YeeGoo provides one-stop global visa support services including: 1) Work visa application assistance covering Southeast Asia (Thailand, Vietnam, Indonesia, Malaysia), Japan, Korea, Europe, North America and other major markets 2) Local employment contract signing in compliance with local labor laws 3) Automatic social security contribution and calculation 4) Full Chinese/English service with professional team support 24/7. We have local legal counsel in every operating country to ensure 100% compliance. We have successfully helped 500+ companies complete global employee deployment with a 99.9% compliance rate.

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Philippines

Your quick guide on talent and labor compliance norms in Philippines

(The data below is for reference only. You may refer to the official government websites or contact us for updates.)

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CapitalManila

CurrencyPhilippine Peso (PHP)

LanguagesFilipino, English

Payroll FrequencyCommonly bi-monthly (semi-monthly, e.g. 15th and end of month).

GDP per Capitaapprox. $4,100 (2025, IMF estimate)

Employer Tax~12–14%

CapitalManila

CurrencyPhilippine Peso (PHP)

LanguagesFilipino, English

Payroll FrequencyCommonly bi-monthly (semi-monthly, e.g. 15th and end of month).

GDP per Capitaapprox. $4,100 (2025, IMF estimate)

Employer Tax~12–14%

Talent Landscape Analysis

The Philippines’ dynamic economy is rooted in the country’s labor market. The majority of the Philippine population comprises the young, attracting more foreign investors to venture into the country’s talent pool. Moreover, the Philippines’ archipelagic structure bears a lot of tourist spots for travelers and has contributed to the success of the country’s tourism industry.

Major economic Cities

Manila, Cebu, Davao, Zamboanga, Cagayan de Oro, Baguio, and Vigan

Skills in demand

Software and IT/BPO services, finance and accounting (shared services), customer support, and digital marketing are in very strong demand, especially for foreign-client-facing roles.

Salary Data

The average salary in Philippines are mentioned below：

Employing in Philippines

Hiring in the Philippines requires you to be aware of the local employment laws, benefits, payroll, and taxes. Below, are everything you need to know on how to successfully onboard talents from the Philippines.

Employee Contract

Leave Policy

Payroll

Taxes

Offboarding & Termination

Visa and Immigration

Employee Contract

Basic

As a general rule, employment in the Philippines does not require a formal or written contract. A consensual contract may be agreed upon by both parties with the exception of contractors and subcontractors which written contracts are required. Written contracts are generally written in English, however, the employer must provide a Filipino contract if the employee is a Filipino Citizen. This is to clarify points and agreements for the employee under the contract. All contracts, consensual or written, must adhere to The Labor Code of the Philippines.

Probation Period

The probationary period for employees ranges from 1 – 6 months.

13th Month Pay

All regular employees are entitled to a 13th-month pay provided that they have worked at least one (1) month during the calendar year. The pay must at least be 1/12 of the total basic salary earned for the year. It must be paid by December 24th.

Employee Benefits

Full-time employees in the Philippines are ensured to have insurance benefits such as:

Social Security (SSS).
Medical (PhilHealth).
Housing benefits (PAG-IBIG).
Provident Fund.

Payroll Cycle

Workers are paid twice a month. Paydays are generally once every two weeks and must not exceed 16 days for the second.

Minimum Wage

The minimum wage in the Philippines is 570 PHP per day.

Overtime Pay

Any hours exceeding the regular 8 working hours per day are considered overtime and should get paid at 25% over their standard rate. The rate jumps to 30% when working overtime on a rest day, special or regular holiday.

Employer Payroll Cost:

Type of Contribution	Tax Rate
Social Security System (SSS)	PHP 20,400 + PHP 5,100 for PF
Home Development Mutual Fund (HDMF)	PHP 1,200
Philippine Health Corporation (PHIC)	PHP 19,200

Employee Payroll Cost:

Type of Contribution	Tax Rate
Social Security System (SSS)	PHP 10,800 + PHP 2,700 for PF
Home Development Mutual Fund (HDMF)	PHP 1,200
Philippine Health Corporation (PHIC)	PHP 19,200

Employee Income Tax

Income tax is levied at a progressive rate on all monthly income as follows:

Taxable income (PHP)		Tax on column 1 (PHP)	Tax on excess (%)
Over	Not over	NaN
0	250,000	-	0.0
250,000	400,000	-	15.0
400,000	800,000	22,500	20.0
800,000	2,000,000	102,500	25.0
2,000,000	8,000,000	402,500	30.0
8,000,000	NaN	2,202,500	35.0

VAT

VAT in the Philippines is 12%.

Termination Process

Letting go of an employee in the Philippines is by no means an easy task. Before you terminate one of your employees, you must follow The Labor Code of the Philippines. You can only dismiss an employee if: They have behavioral issues such as: Incurred serious misconduct; Willful disobedience; Gross and habitual neglect of duty; Fraud or breach of trust; Commission of a crime or offense against the employer, his family, or representative; Or the company is retrenching or expanding with the following reasons: Installation of labor-saving devices Redundancy Retrenchment to prevent losses Closure and cessation of business; and Disease / illness.

Notice Period

The notice period before termination is up to 3 months for permanent employees and 1 month for probationary employees.

Severance pay

Terminated employees are entitled to a severance pay package adhering to The Labor Code of the Philippines. The computation of the severance pay depends on the cause of termination except relating to behavioral issues. One month pay or at least ½ month pay for every year of service whichever is higher (a fraction of 6 months is considered a whole year) including the available allowances with the position Separation pay is exempt from taxation.

Visa and Immigration

If you’re looking to work as an expat in the Philippines, there are two primary relevant visas you can acquire. These visas depend on the nature of your contract or dealing with the company. If you’re looking to work as an expat in the Philippines, there are two primary relevant visas you can acquire. These visas depend on the nature of your contract or dealing with the company.

9(g) Pre-Arranged Employee Commercial Visa - Possession of an Alien Employment Permit (AEP) is necessary, with validity determined by the contract or Bureau of Immigration; it allows for multiple entries and exits, enabling lawful work and stay in the country as per the approved employment contract.
Special Non-Immigrant Visa or 47(A)(2) - The validity of the company-specific visa is determined by the contract or term of office, lasting up to one year, whichever is shorter, and is applicable to companies with less than 5% foreign national workforce, requiring sponsorship or petition by the employer.

Employee Contract

Basic

Probation Period

The probationary period for employees ranges from 1 – 6 months.

13th Month Pay

Employee Benefits

Full-time employees in the Philippines are ensured to have insurance benefits such as:

Social Security (SSS).
Medical (PhilHealth).
Housing benefits (PAG-IBIG).
Provident Fund.

Leave Policy

Public and Provincial Holidays

Leave Information

Payroll

Taxes

Offboarding & Termination

Visa and Immigration

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