Employer of Record in the Philippines: what one employee really costs
Philippines, Asia. One software engineer at $20,000 gross per year, priced through 12 providers with a published fee, on the ECB reference rates of 30 Oct 2026. Change the salary and headcount below.
- Employer on-cost
- +14.2%
- statutory charges on top of gross
- All-in per month
- $2,102 – $2,602
- salary + charges + published fee, cheapest to dearest listed provider
Hiring one software engineer in the Philippines at $20,000 gross a year costs about $236 a month in statutory employer charges (+14.2%), plus an EOR fee of $199 to $699 per month depending on the provider: $2,102 to $2,602 all-in, before deposits, FX margins and add-ons. Prices checked 2 Oct–3 Nov 2026.
Disclosure Some provider links on this page are affiliate links: if you become a customer after clicking, the provider may pay us a referral fee. It never changes the price you pay, and it never changes the numbers on this page, which come from official sources and are dated. How we are paid
Cost engine · preset to the Philippines
Price your own hire, line by line.
≈ PHP 1,273,595 gross / year · PHP at ECB reference rate, 30 Oct 2026
| Per employee | Rate | Per month |
|---|---|---|
| Gross salary | $1,667 | |
| Social Security System (SSS), employer share capped | 10% | $55 |
| PhilHealth premium, employer share capped | 2.50% | $39 |
| Pag-IBIG Fund (HDMF), employer counterpart capped | 2% | $3 |
| 13th-month pay (Presidential Decree 851) | flat | $139 |
| Employer on-cost | +14.2% | $236 |
| Cost of employment, before EOR fee | $1,903 |
$2,102/ month · 1 employee
- Fee / mo
- from $199
- Per year
- $25,223
- Fee share
- 9.5%
Checked 3 Nov 2026
Get a RemoFirst quote$2,402/ month · 1 employee
- Fee / mo
- from $499
- Per year
- $28,823
- Fee share
- 20.8%
Checked 3 Nov 2026
Get a Papaya quote$2,502/ month · 1 employee
- Fee / mo
- from $599
- Per year
- $30,023
- Fee share
- 23.9%
Checked 3 Nov 2026
Get a Deel quoteEmployer charges from official sources; provider fees are list prices on the dates shown; deposits, FX margins and add-ons are not included. Not legal or tax advice. Methodology
14 providers, one scenario, all-in totals.
| Provider | EOR fee / employee / mo | All-in / mo, 1 hire | Countries | Checked | Quote |
|---|---|---|---|---|---|
| RemoFirst | from $199 | $2,102 | 185+ | 3 Nov 2026 | Get a quote from RemoFirst· $2,102/mo |
| Rivermate | from $349 | $2,252 | 180+ | 3 Nov 2026 | Get a quote from Rivermate· $2,252/mo |
| Pebl | from $399 | $2,302 | 185+ | 3 Nov 2026 | Get a quote from Pebl· $2,302/mo |
| Playroll | from $399 | $2,302 | 180+ | 3 Nov 2026 | Get a quote from Playroll· $2,302/mo |
| Multiplier | from $499 $459 billed annually | $2,402 | 150+ | 3 Nov 2026 | Get a quote from Multiplier· $2,402/mo |
| Papaya Global | from $499 | $2,402 | 160+ | 3 Nov 2026 | Get a quote from Papaya Global· $2,402/mo |
| Borderless AI | $579 | $2,482 | — | 3 Nov 2026 | Get a quote from Borderless AI· $2,482/mo |
| Atlas HXM | from $599 | $2,502 | 160+ | 3 Nov 2026 | Get a quote from Atlas HXM· $2,502/mo |
| Deel | from $599 | $2,502 | 130+ | 3 Nov 2026 | Get a quote from Deel· $2,502/mo |
| G-P | from $599 | $2,502 | 180+ | 3 Nov 2026 | Get a quote from G-P· $2,502/mo |
| Remote | from $599 | $2,502 | 90+ | 3 Nov 2026 | Get a quote from Remote· $2,502/mo |
| Oyster | $699 | $2,602 | 120+ | 3 Nov 2026 | Get a quote from Oyster· $2,602/mo |
| Rippling | Quote only | — | — | 3 Nov 2026 | Get a quote from Rippling |
| Safeguard Global | Quote only | — | 187+ | 3 Nov 2026 | Get a quote from Safeguard Global |
Deposit, FX and contract terms: open a provider's name for its file, or see every provider's terms side by side.
Same salary and statutory charges in every row; only the fee segment changes.
What the Philippines adds on top of the salary, and where each rate comes from.
Rates apply to the base named in each line; capped lines stop growing above the ceiling. Engine assumptions: Employee is rank-and-file (13th-month pay applies) = 1.
| Line | Employer rate | Base & ceiling | Source |
|---|---|---|---|
| Social Security System (SSS), employer shareAll private-sector employees; computed on the Monthly Salary Credit (MSC) between PHP 5,000 and PHP 35,000 | 10% | Gross salary , capped at PHP 420,000 / yr, floor PHP 60,000 / yr 15% of the MSC from 2025 onward: 10% employer, 5% employee. The MSC stops at PHP 35,000 a month (PHP 420,000 a year), so the employer share peaks at PHP 3,500 a month; MSC above PHP 20,000 funds the mandatory provident fund. SSS rounds pay into PHP 500 brackets, which this engine ignores (difference under PHP 50 a month). | Republic Act No. 11199 (Social Security Act of 2018), section 4 contribution schedule: 2025, 15%, employer 10%, employee 5%, MSC PHP 5,000-35,0002026-09-05 |
| PhilHealth premium, employer shareAll employed members; premium of 5% of monthly basic salary between the PHP 10,000 floor and the PHP 100,000 ceiling, shared equally | 2.50% | Gross salary , capped at PHP 1,200,000 / yr, floor PHP 120,000 / yr 2026 rate confirmed at 5% under the Universal Health Care Act schedule: employer 2.5%, employee 2.5%. The employer share peaks at PHP 2,500 a month once basic pay reaches PHP 100,000. | Philippine Information Agency2026-09-05 |
| Pag-IBIG Fund (HDMF), employer counterpartAll employees; 2% of the monthly fund salary up to the PHP 10,000 maximum fund salary | 2% | Gross salary , capped at PHP 120,000 / yr Since February 2024 (Pag-IBIG Circular No. 460) the maximum fund salary is PHP 10,000, so the employer counterpart is PHP 200 a month for anyone earning above that. The employee pays 2% as well (1% below PHP 1,500). | Department of Budget and Management2026-09-05 |
| 13th-month pay (Presidential Decree 851) | 1 month | Added to the annual costOne twelfth of the basic salary earned in the calendar year, due on or before 24 December to every rank-and-file employee with at least one month of service; prorated for partial years. Paid on top of the 12 monthly salaries, so it adds 8.33% to the annual cost. | DOLE2026-09-05 |
| Employees' Compensation (EC) contribution, PHP 30 a month not in total | — | Employer-only work-injury insurance collected with SSS: PHP 30 a month for a monthly salary credit of PHP 15,000 and above, PHP 10 below that. PHP 360 a year, under half a US dollar a month, so it is listed here rather than as a ledger line. | SSS2026-09-05 |
| Service incentive leave (5 days) not in total | — | Statutory minimum of five paid leave days a year after one year of service (Labor Code art. 95). Paid time inside the salary, not an extra contribution; ask the provider whether its standard contract offers more vacation and sick leave. | DOLE2026-09-05 |
| Employer on-cost at $20,000 | +14.2% | $2,835 a year, $236 a month |
EOR or your own entity
Fees scale with headcount. An entity does not.
A Philippine subsidiary means SEC incorporation, then BIR, SSS, PhilHealth, Pag-IBIG and DOLE registrations, a regional minimum wage set by the region where the entity sits, and bi-monthly payroll. Statutory employer charges are low and capped, so the entity question is about time and compliance rather than contributions: providers can onboard in days, and some add a liability or administration percentage on top of the fee (Deel lists 0.60%). Beyond roughly ten hires, or when the team needs PEZA incentives, a local entity starts to pay off.
Fees grow with every hire; the charges line is owed under an entity too.
| Headcount | RemoFirst fees / yr | Borderless AI fees / yr | Statutory charges / yr |
|---|---|---|---|
| 1 | $2,388 | $6,948 | $2,835 |
| 3 | $7,164 | $20,844 | $8,505 |
| 5 | $11,940 | $34,740 | $14,175 |
| 10 | $23,880 | $69,480 | $28,350 |
| 20 | $47,760 | $138,960 | $56,700 |
Statutory charges are owed either way; the provider fee is the only line an entity removes, against the cost of incorporating and running local payroll.
Employment terms that move the cost
- Paid leave
- 5 days
- Public holidays
- 10
- 13th month
- Mandatory
- Probation
- up to 6 months
- Notice
- Dismissal for authorized causes (redundancy, retrenchment, closure) needs one month's written notice to the employee and to DOLE plus separation pay of at least one month's pay per year of service for redundancy, or half a month per year for retrenchment; just-cause dismissal needs due process but no separation pay; an employee resigns on one month's notice.
- Reviewed
- 2026-09-05
Get a quote for the Philippines.
The lowest published total here, next to the two providers searched for most often (the rule). Totals for 1 hire at $20,000. Ask each provider about deposits, FX margins and mandatory add-ons for the Philippines: those are the lines that move.
Disclosure Some provider links are affiliate links; they never change the numbers on this page. Details
Questions people ask before booking a demo
- How much do statutory employer contributions add to a salary in the Philippines?
- Much less than in Germany (22.3%) or France (48.2%), because every line is capped. At this page's example of US$20,000, about PHP 106,000 a month, the employer pays the SSS maximum of PHP 3,500, EC of PHP 30, the PhilHealth maximum of PHP 2,500 and Pag-IBIG of PHP 200: PHP 6,230 a month including the PHP 30 EC premium, about 6% of pay. The mandatory 13th-month pay adds another 8.33%, so the total employer on-cost is about 14%.
- Is the 13th-month pay an extra cost on top of the annual salary?
- Yes. Presidential Decree 851 requires every rank-and-file employee with at least one month of service to receive one twelfth of the basic salary earned in the year, on or before 24 December, prorated for partial years. Providers quote Philippine salaries as 12 monthly payments and add the 13th month as a separate line, which is how this engine treats it.
- Why does the employer rate fall as the salary rises?
- Three ceilings. SSS contributions stop at a monthly salary credit of PHP 35,000, PhilHealth premiums stop at PHP 100,000 of monthly basic pay, and the Pag-IBIG counterpart is computed on at most PHP 10,000. Above PHP 100,000 a month the four statutory lines are a flat PHP 6,230 a month whatever the salary, so a senior engineer at PHP 200,000 a month carries a 3% statutory on-cost plus the 13th month.
- What paid time off must the employer fund in the Philippines?
- The statutory floor is five days of service incentive leave after one year of service, plus 10 regular holidays in 2026, which are paid days off, and 8 special non-working days that follow a no-work-no-pay rule unless the employee works them at a premium. Most providers' standard contracts add vacation and sick leave above the five-day floor; ask for the leave schedule with the quote.