Employing in Philippines

Access and hire global talent & deploy them anywhere in the world. Enter the Philippines market without the requirement of opening a local entity.

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Expanding into Philippines

The Philippines is a services-led Southeast Asian economy of about 115 million people, a global hub for BPO/IT-BPM services and a major source of overseas worker remittances.

01

Get the support you need

The legwork and red tape can be navigated more efficiently with a Professional Employer Organisation such as Bradford Jacobs, primarily through our Employer of Record framework.

02

EOR framework

Best utilised when businesses are just beginning their expansion and require more information before incorporating an entity and fully establishing themselves in the market.

03

Dedicated 24/7 support

Bradford Jacobs is dedicated to offering you round-the-clock support throughout your entire Philippines expansion journey from day one to full market establishment.

Hiring staff in Philippines: quick links

Everything you need to know about employing in Philippines, from EOR services to tax laws, employment contracts, and work culture.

EOR & PEO services

Employ in Philippines without opening a local entity. Fully compliant EOR and PEO solutions for international teams.

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Payroll services

Compliant Philippines payroll processing with full tax and social security management for local and global teams.

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Employment contracts

Indefinite and fixed-term contracts, compliant with Philippines employment law and adapted to local requirements.

Visas & tax laws

Work permits, Philippines tax law guidance and local setup considerations for foreign companies entering the market.

The Philippines economy: key facts

The Philippines is a services-led Southeast Asian economy of about 115 million people, a global hub for BPO/IT-BPM services and a major source of overseas worker remittances.
GDP (current prices) about USD 512.2 billion (IMF
GDP (current prices) about USD 512.2 billion (IMF DataMapper).
Real GDP growth around 4-5 percent in 2024 (IMF, F
Real GDP growth around 4-5 percent in 2024 (IMF, Focus Economics).
IT-BPO exports about 8 percent of GDP in 2024 (OEC
IT-BPO exports about 8 percent of GDP in 2024 (OECD).
BPO sector employed around 1.82 million people, US
BPO sector employed around 1.82 million people, USD 38 billion in export revenue 2024.

Main sectors of the Philippines economy

Philippines’s economy is anchored by five key sectors with significant international impact and strong investment potential.

IT-BPM and business process outsourcing
The Philippine IT-BPM industry generated approximately USD 35.4 billion in revenue in 2023, employing around 1.7 million full-time workers per IBPAP data. The country remains a global leader in voice-based services and is expanding into health information management, animation, and software development.
  • ~USD 35.4bn revenue (IBPAP 2023)
  • ~1.7 million FTE workforce
  • Global leader in voice BPO
Electronics and semiconductor assembly
Electronics accounted for roughly 53% of total Philippine merchandise exports in 2023, valued at around USD 39 billion per PSA and SEIPI. The country specialises in semiconductor assembly, testing, and packaging (ATP), with major facilities in Laguna, Cavite, and Cebu.
  • ~53% of merchandise exports
  • ~USD 39bn exports 2023
  • Assembly, testing, packaging focus
Tourism and hospitality
Tourism contributed approximately 8.6% of Philippine GDP in 2023 per the Philippine Statistics Authority, with international visitor arrivals exceeding 5.4 million. The Department of Tourism targets 7.7 million arrivals in 2024, supported by key destinations including Boracay, Cebu, Palawan, and Bohol.
  • ~8.6% of GDP (PSA 2023)
  • 5.4m+ international arrivals 2023
  • Boracay, Palawan, Cebu hubs
Agriculture and food processing
Agriculture employs around 24% of the Philippine labour force and contributes roughly 8.9% of GDP, per the PSA. The country is among the world's top producers of coconut products, bananas, and pineapples, with food processing as the largest manufacturing sub-sector.
  • ~24% of total employment
  • Top global coconut, banana exporter
  • Largest manufacturing sub-sector
Construction and real estate
Construction contributed approximately 6.4% of Philippine GDP in 2023 per PSA data, supported by the government's Build Better More infrastructure programme worth around PHP 9 trillion through 2028. Real estate activity is concentrated in Metro Manila, Cebu, and Davao, with continued demand from residential and BPO-driven office segments.
  • ~6.4% of GDP (PSA 2023)
  • PHP 9tn Build Better More pipeline
  • Metro Manila, Cebu, Davao focus

Commercial laws in Philippines

Understanding Philippines’s legal and tax framework is essential for compliant operations. Here’s what every employer must know.

Contracts law in Philippines

Labor Code of the Philippines governs employment. Probationary employment under Article 296 cannot exceed 6 months; regular employees enjoy strong security of tenure and termination only for just or authorized causes with due process.

Tax, payroll & compliance

Employers withhold personal income tax (progressive up to 35 percent) and contribute to SSS, PhilHealth and Pag-IBIG. 13th-month pay is mandatory for rank-and-file employees with at least one month of service (DOLE).

Philippines commerce statistics

Key statistics and commercial data for businesses planning to operate in Philippines.

Currency & VAT

Philippine Peso (PHP); freely floating with BSP oversight.

Workforce potential

Labour force around 50 million; high English proficiency, large young workforce, strong OFW culture.

Logistics & market access

World Bank LPI 2023 around 3.3; key ports include Manila, Subic, Cebu and Batangas. Archipelagic geography raises inter-island shipping costs.

Business expansion readiness

High - the Philippines is one of Asia's most mature EOR markets, with established outsourcing infrastructure, English-language workforce and clear (if employee-protective) labour rules.

Frequently Asked Questions About EOR in Philippines

Answers to common questions about using an Employer of Record to expand into new markets, based on our experience with businesses across 75 countries.

An Employer of Record (EOR) is a third-party organisation that legally employs your international workforce on your behalf. The EOR handles payroll, tax compliance, employment contracts, and benefits administration in the local country. Your company retains full control over day-to-day work direction and management which means the EOR absorbs the legal employer responsibility so you can expand without setting up your own entity.

Bradford Jacobs partners with vetted, in-country legal and compliance experts in each jurisdiction. Every employment contract is drafted to local labour law standards, payroll is processed according to local tax schedules, and any regulatory changes are monitored continuously. We do not cut corners on compliance because it is the foundation of our service.

Your company retains the right to direct the employee’s work, assign tasks, and manage performance. The EOR handles statutory obligations: registering the employee with local authorities, withholding and remitting income tax and social security contributions, providing mandated benefits, and managing termination or severance in compliance with local labour law.

Typical EOR setup takes 1 to 3 business days once the engagement letter is signed and worker details are provided. In many countries, the first employee can be onboarded within the same week. Complex jurisdictions may take slightly longer for local authority registration, but the EOR team manages that process end-to-end.

EOR is suitable for both short-term and long-term employment. Many businesses use EOR as a permanent solution in countries where entity setup is not justified. Others start with EOR to validate a market and transition to their own entity later. There is no standard time limit on EOR arrangements in most countries.

The EOR provider monitors local regulatory changes and updates employment contracts, payroll calculations, and compliance procedures accordingly. Your company is notified of material changes that affect cost or obligations, but the compliance burden sits with the EOR. This is one of the key advantages of the model so you stay insulated from local regulatory churn.

Mandatory benefits (social security, health insurance, pension contributions) are handled by the EOR according to local law. Discretionary benefits such as private health cover, additional leave, or bonus structures can be arranged on top, with the cost either included in the EOR fee or billed separately. Your company decides the package; the EOR delivers it locally.

Yes. The EOR arrangement includes a structured offboarding process that transfers employment contracts and payroll history to your local entity when you are ready. This is a well-established transition, and Bradford Jacobs can support entity formation services to make the handover seamless. Most clients use EOR for 12-24 months before transitioning.

Ready to employ in Philippines?

Download our complete Philippines EOR Guide or contact Bradford Jacobs to start your expansion today, without the complexity.

Tax and labour data sourced from PwC, ILO, World Bank. Last verified May 2026.