What Does It Really Cost to Hire in the Philippines?
Get clarity on the true cost before you hire
Salaries are just the starting point. Between statutory contributions, benefits, and employer obligations, the real cost of hiring in the Philippines is often more than expected. Use our calculator to see the full picture, and learn how an Employer of Record makes it simple.
What to Know Before Hiring Directly in the Philippines
Hiring directly is possible, but it comes with a few things worth understanding first. From payroll obligations to employment law, here is what Australian employers typically navigate, and how an Employer of Record can simplify the process.
Common Challenges
How EOR Helps
Misclassification Risk
Many companies attempt to hire Filipino staff as independent contractors. If the working relationship functions like employment, this can create legal and compliance issues.
Fully Compliant Employment
Team Up Now acts as the legal employer in the Philippines, ensuring employment contracts, payroll, and statutory contributions are handled correctly.
No Local Employer Structure
Without a Philippine entity, it can be difficult to structure employment contracts, payroll compliance, and statutory contributions correctly.
Hire Without a Local Entity
Instead of spending months establishing local infrastructure, companies can hire in days through a compliant EOR structure.
Payroll and Compliance Complexity
Employers must handle contributions such as SSS, PhilHealth, Pag-IBIG, 13th month pay, and statutory leave entitlements. Errors can lead to compliance exposure or disputes.
Simplified Payroll and HR
We manage payroll, statutory contributions, employment documentation, and HR administration so your team can stay focused on operations.
Termination and HR Risk
Philippine labor law is employee-protective. Managing performance issues, documentation, and termination incorrectly can create legal complications.
Local HR and Legal Expertise
Our local expertise ensures Philippine employment regulations are followed correctly from onboarding through ongoing employment, including performance management and termination.
Hidden Administrative Costs
Direct hiring often shifts payroll management, HR administration, and compliance monitoring onto internal teams, creating time and operational overhead.
You Manage the Work, We Manage the Rest
Your company directs the employee's work, responsibilities, and performance while we handle the employment framework, payroll, and administration.
A Simpler Way to Build Your Philippines Team
For many businesses, the real challenge is not finding great talent. It is setting up the employment structure around them, payroll, contracts, contributions, and local compliance.
An Employer of Record handles all of that, so you can focus on building your team with confidence. Use our calculator below to see what it would cost.
See the True Cost of Hiring in the Philippines
Enter a salary and see the full employer cost, including statutory contributions, benefits, and EOR fees.
Enter values in
Converted to PHP at 40 PHP/AUD for statutory calculations
Services included: payroll processing, statutory contributions, employment contracts, and HR admin. No setup fees.
Calculation assumptions
- EOR service fee is fixed at A$300 per employee per month.
- Recruitment fee is an optional one-off A$2,000 per placement. This covers sourcing, vetting, and shortlisting candidates.
- The AUD to PHP exchange rate is user-adjustable under Advanced options.
- SSS is calculated using the official bracket-based contribution structure and capped at the current maximum Monthly Salary Credit of ₱35,000 (max employer SSS = ₱3,530 including EC).
- PhilHealth uses a 5% premium rate with a salary floor of ₱10,000 and ceiling of ₱100,000, split equally between employer and employee.
- Pag-IBIG uses a 2% employer contribution capped at a ₱10,000 salary base (max ₱200/month).
- Results are planning estimates only and may vary depending on benefits, structure, and specific arrangement.
Your Cost Estimate
Approximate Monthly Total
A$1,472.80
PHP: ₱58,911.82
Statutory Contributions
Exchange rate: 40 PHP per AUD
Talk to Us About Hiring in the Philippines
Share your details and our team will be in touch to discuss your hiring plan, answer questions about EOR, and help you get started.
Why Australian Companies Choose EOR
No Philippine Entity Required
Hire legally in the Philippines without registering a local company, opening bank accounts, or managing local compliance.
Faster Hiring and Onboarding
Start hiring in days, not months. Skip the 6 to 12 month process of setting up a foreign entity in the Philippines.
Reduced Compliance Risk
Employment contracts, statutory contributions, tax obligations, and termination processes handled by your EOR provider.
Predictable Monthly Costs
One monthly invoice covering salary, contributions, and management fees. No hidden costs, no currency surprises.
Why Team Up Now
Ethical Outsourcing Approach
Every team member is properly employed with above-market pay, benefits, and fair working conditions. We do not cut corners on people.
About Team Up Now →Local Expertise in the Philippines
Team Up Now operates its own registered Philippine entity — not a third-party intermediary. We handle payroll, compliance, and employment law directly under our Philippine registration, because we operate in the local landscape every day.
How we work →Built for Australian Businesses
Australian leadership based in South Melbourne. We understand Australian business culture, expectations, and communication standards.
See client results →Not sure if your current offshore arrangement is compliant? Recent Fair Work Commission rulings have created real legal exposure for Australian businesses. Read the compliance update →
Frequently Asked Questions
What is an Employer of Record?
An Employer of Record (EOR) is a company that legally employs staff on your behalf in another country. The EOR handles payroll, tax, statutory contributions, employment contracts, and compliance. You manage the employee's day-to-day work, but the EOR is the legal employer. This lets you hire in the Philippines without setting up your own company there.
Do we manage the employee directly?
Yes. You manage the employee's tasks, schedule, and performance directly. The EOR handles the legal and administrative side: employment contracts, payroll, contributions, leave management, and compliance. The employee works for your business in every practical sense.
Can we hire through EOR without setting up a company in the Philippines?
That is exactly what EOR is designed for. You do not need to register a Philippine entity, open local bank accounts, or deal with local tax registration. The EOR provider acts as the legal employer in the Philippines while you retain full operational control of the employee.
What is included in the monthly employment cost?
The monthly cost typically includes the employee's base salary, 13th month pay provision, employer SSS contributions, PhilHealth contributions, Pag-IBIG contributions, leave provisions, and any optional benefits like HMO coverage. The EOR fee covers employment administration, payroll processing, compliance management, and HR support.
Can we convert an EOR employee to direct hire later?
Yes. If you decide to set up your own Philippine entity in the future, most EOR arrangements allow you to transition employees to direct employment. This gives you flexibility to start with EOR for speed and simplicity, then move to a direct model when the scale justifies it.
How much does EOR cost with Team Up Now?
Our EOR service fee is a flat A$300 per employee per month. This covers payroll processing, statutory contributions, employment contracts, HR administration, and compliance management. There are no setup fees, no hidden margins, and no lock-in contracts. The employee's salary and statutory costs are separate and transparent.
Ready to Hire in the Philippines With Confidence?
Whether you are exploring EOR or ready to hire your first Philippine team member, we are here to help.