Employer of Record in The Philippines: Hire Without Setting Up a Company

Introduction

A Philippines Employer of Record (EOR) lets foreign companies legally hire and pay employees in the Philippines without registering a local entity. The EOR becomes the legal employer on paper, handling contracts, payroll, statutory contributions, and compliance. In addition, you also retain full control of day-to-day work. It is the fastest, lowest-risk route into one of Southeast Asia’s most talent-rich markets.

The Philippines has become one of the most sought-after talent markets in Asia Pacific. With a workforce of over 77 million professionals, companies worldwide are eager to hire from this country. The professionals in the Philippines have near-universal English proficiency, a deeply embedded culture of service excellence, and strong expertise across technology, finance, and business process outsourcing. 

But for foreign businesses, hiring in the Philippines legally requires navigating a layer of employment regulations, statutory obligations, and corporate requirements that can slow expansion to a crawl. The easiest solution is to use a Philippines Employer of Record service.

What Is Employer of Record (EOR) and How Does It Work in The Philippines?

A Philippines Employer of Record is a third-party company that formally employs workers on behalf of a foreign business. Legally, the EOR is the employer. It means, their name appears on employment contracts. They process payroll, remit statutory contributions, and bear the compliance obligations. Operationally, the workers report to you: you assign tasks, manage performance, and set the strategic direction of the work.

This distinction matters because Philippine law requires that any entity employing workers in the country must be legally registered and compliant with the Labour Code of the Philippines. Without a registered entity, a foreign company cannot issue a lawful employment contract to a Filipino worker. An EOR solves this by acting as the legal bridge, enabling foreign companies to hire compliantly. Most importantly, they can hire without first having to establish their own corporate presence.

The typical EOR process in the Philippines unfolds in three phases. First, you identify the candidate you want to hire and share their details and agreed compensation with your EOR partner. Second, the EOR issues a compliant employment contract, handles onboarding documentation, and enrols the employee in mandatory government schemes. Third, you transfer payroll funds to the EOR, who disburses salaries on the correct local schedule and manages all statutory remittances on your behalf.

For a detailed understanding of EOR, read the Galaxy APAC guide to Employer of Record services across Asia Pacific

Statutory Obligations In The Philippine That Every EOR Must Handle

The local statutory requirements in the Philippines can get complex. This is the most important reason to use a Philippines Employer of Record. Filipino employees are entitled to several mandatory contributions and benefits that employers must remit accurately and on time. Missing a deadline or miscalculating a contribution can result in penalties, back payments, and damaged employee trust.

The key statutory obligations a Philippines EOR manages on your behalf include:

Beyond the statutory basics, the Labour Code also governs working hours, overtime pay, leave entitlements, termination procedures, and separation pay calculations. A reputable Philippines EOR provider will stay updated with regulatory changes and ensure your employment arrangements remain fully compliant as labour laws evolve.

Which Companies Benefit Most from a Philippines EOR?

While any foreign company hiring in the Philippines can benefit from EOR services, they are especially useful in the following situations:

• 1. Market entry and pilot programmes: Companies testing the Philippine market before committing to full incorporation can hire a small team quickly, and validate the opportunity. They can do this without any corporate setup costs.
• 2. Technology and BPO teams: The Philippines is globally recognised for its deep talent pools in software development, QA, data analytics, customer experience, and back-office operations. EOR lets companies tap into this talent immediately.
• 3. Remote-first businesses: Organisations building globally distributed teams use EOR providers to manage employment compliance in each market without maintaining legal entities everywhere. Especially the organisations where employees work remotely across multiple countries.
• 4. Project-based or fixed-term engagements: For work that has a defined timeline, an EOR offers the flexibility to engage a team for the duration of the project and wind down cleanly at its conclusion without the obligations of permanent entity ownership.
• 5. SMEs expanding internationally for the first time: Smaller businesses without dedicated global HR teams gain immediate access to in-country compliance expertise they would otherwise need years to build.

How Galaxy APAC Powers Philippines Hiring for Global Businesses

Galaxy APAC is a leading Employer of Record and workforce solutions provider with over 20 years of experience operating across the Asia-Pacific region. In the Philippines, Galaxy APAC acts as the legal employer for your workforce, managing employment contracts, payroll processing, statutory contributions (SSS, PhilHealth, Pag-IBIG, BIR), 13th month pay, DOLE compliance, and ongoing HR administration. We handle all this, so your business can focus on growth rather than paperwork.

Galaxy APAC has in-country teams that understand Philippine labour laws, cultural expectations, and local regulations. This expertise helps foreign businesses hire with confidence, whether they are hiring their first employee or scaling across multiple cities.

Galaxy APAC’s Philippines EOR services cover: Employment Contracts, Payroll Processing, PhilHealth, Tax Compliance, 13th Month Pay, DOLE Registration, Onboarding & Offboarding, and HR Administration

Beyond the Philippines, Galaxy APAC provides EOR and staffing services across Malaysia, Singapore, Thailand, Macau, China, and Vietnam, making them the ideal single partner for businesses building multi-country teams across the region.

FAQs

• Can I hire employees in the Philippines without a local entity?

Yes, using a Philippines Employer of Record allows you to hire and manage employees legally without setting up a local company.

• How long does it take to hire through an EOR in the Philippines?

Hiring through a Philippines EOR typically takes 5–7 days, depending on documentation and onboarding requirements.

• Is EOR better than setting up a company in the Philippines?

An EOR is ideal for quick market entry, smaller teams, or testing the market. Setting up a company is better for long-term, large-scale operations.

• Do I control employees hired through an EOR?

Yes, you manage day-to-day work and performance, while the EOR handles legal employment and compliance.

Final Thoughts

Hiring in the Philippines doesn’t have to be complex. Expanding into the Philippines is easier with the right partner that understands your business requirements clearly. With the right approach, you can access top talent quickly and stay fully compliant. Explore how Galaxy’s Philippines EOR can support your expansion.