What is an employer of record?
An employer of record (EOR) is a company that legally employs someone on your behalf in another country. The EOR holds the employment contract, runs payroll, pays taxes and government contributions, and makes sure the job follows local labor law. You decide who to hire and what they work on.
In the Philippines, that means you can build a full-time team without registering a company, getting local tax numbers, or learning the payroll rules yourself.
Remote Employee® is the legal employer of every person we hire for you. Your hire is actually employed, not a contractor or freelancer, and works from our offices in San Fernando, Pampanga.
What we handle, and what you keep
We handle
- Recruiting and screening candidates for your role
- Background and medical checks
- The employment contract, compliance, and BIR registration
- Payroll, income tax, and government contributions
- Medical benefits, perks, and events
- A workstation, equipment, and office space
- IT support, HR admin, and HR software
You keep
- Choosing who to hire: you interview every candidate
- Their day-to-day work, priorities, and feedback
- Working hours that fit your time zone
- Your own tools, systems, and workflow
EOR, your own entity, contractors, or a staffing partner?
There are four main ways to hire in the Philippines: international contractors, an employer of record, your own local entity, or an offshore staffing partner. Here’s how they compare.
| Option | Who employs them | Who finds the person | Usually a fit when |
|---|---|---|---|
| Independent contractor | No one. They work for themselves | You | You need short, project-based work |
| Employer of record | The EOR | [Usually you] | You’ve found someone and need them employed properly |
| Your own entity | Your Philippine company | You | You’re building a large, long-term operation and can run local payroll and compliance |
| Offshore staffing partner | The partner (with us, Remote Employee®) | The partner recruits, you choose | You want recruiting, employment, office, and equipment from one partner |
Most companies that come to us want more than an EOR. Instead of stitching together recruiters, an employer of record (EOR), payroll, HR, and IT, you get one partner and one monthly invoice.
What a Philippine employer has to do
Every employer in the Philippines takes on the same legal obligations. When Remote Employee® is the employer, they’re ours to handle. The main ones:
- Social Security System (SSS): register each employee and pay contributions every month. Since January 2025 the rate is 15% of the monthly salary credit: 10% from the employer and 5% from the employee.
- PhilHealth: national health insurance. The premium is 5% of monthly basic salary, shared equally by employer and employee.
- Pag-IBIG Fund: the home development fund. Employer and employee each contribute 2% of monthly pay, up to a ₱10,000 maximum fund salary.
- Income tax: withhold tax from each salary, pay it to the Bureau of Internal Revenue (BIR), and give every employee a BIR Form 2316 by January 31 of the next year.
- 13th month pay: rank-and-file employees get at least one-twelfth of their basic salary for the year, paid by December 24.
- Labor standards: contracts, working hours, leave, and ending employment all follow the Philippine Labor Code.
How hiring through Remote Employee® works
- Tell us who you needShare the role, skills, and hours. No job description? Answer a few questions and the RE Portal drafts it.
- We recruit and screenOur recruiters search and screen for you, and send you the strongest candidates.
- You interview and chooseYou meet the candidates and decide who to hire.
- We employ and onboardWe hire them, handle the contract and payroll, and set them up in our office. You can hire in as little as 14 days.
See how it works, step by step
What it costs
You pay a one-time setup fee per seat, which covers your hire’s workstation and equipment, and one monthly fee per employee. One price covers your hire’s wages, recruiting, payroll, benefits, office space, internet, HR, and ongoing support.
Plans start from $125 a week, part-time or full-time, and there’s no placement fee. Companies save up to 70% on labor costs. See pricing.
Is an employer of record right for you?
An EOR, or a staffing partner that’s also the legal employer, is usually a good fit when:
- You want full-time people in the Philippines but don’t have a company there
- You want them properly employed, with benefits, rather than freelancing
- You’d rather not run Philippine payroll, taxes, and contributions yourself
- You want to start in weeks, not months
If you only need a short project, a contractor may be simpler. If you’re planning a large operation and want full control of the legal setup, your own entity may make sense later. [Joy/Mark: OK to say this?]
Sources
We checked the Philippine rules on this page against these official sources. Rates and rules change, so check the latest before you act on them.
























