Some EORs employ your hire through an entity they own and operate in the Philippines. Others sub-contract to a local partner they do not own. Both are legal. Both work. But they behave differently under stress.
Owned entities mean the EOR takes the compliance risk directly. When something goes wrong (a payroll error, a tax audit, a labor dispute), one team handles it end to end. Response time is faster. Accountability is cleaner.
Partner networks mean the EOR is a coordinator. Your problem gets handed to a local firm you did not choose and cannot contact directly. Response time is longer. Accountability lives at the seam between two companies.
Ask the provider: do you own the entity that employs my hire in the Philippines? A yes is stronger than a no.
Employment & Compliance
How to choose an employer of record partner in the Philippines
In short
Choose an employer of record in the Philippines on compliance track record, transparent per-seat pricing, real local presence, and the quality of day-to-day support, not on headline price alone. The lowest-priced platform often costs more once statutory compliance and support gaps show up.
The employer of record market has real range. Some providers own their own Philippine entity, some rely on partners. Some price flat, some by percentage. Some give you a real person, some give you a dashboard. Here is how to actually evaluate them.
Owned entity vs partner network
Flat fee vs percentage of salary
Some EORs price a flat per-seat monthly fee, typically USD 200 to 700 per person per month depending on provider. Some price a percentage of gross salary.
Flat is predictable. Every hire costs the same to employ, regardless of what you pay them. Percentage means every raise you give the hire also raises what you pay the EOR. Over three to five years, that compounds into real money.
Ask the provider: is the fee a flat per-seat rate, or a percentage of salary? Flat is better for planning.
Flat is predictable. Every hire costs the same to employ, regardless of what you pay them. Percentage means every raise you give the hire also raises what you pay the EOR. Over three to five years, that compounds into real money.
Ask the provider: is the fee a flat per-seat rate, or a percentage of salary? Flat is better for planning.
Compliance depth in the Philippines
The Philippines has its own labor law, statutory contributions (SSS, PhilHealth, Pag-IBIG), mandatory bonus (13th-month pay), and specific rules around exits. A generalist global platform may operate in 180 countries, but that does not mean they operate in each one deeply.
Ask the provider: who on your team is the Philippine expert I would talk to if a real question came up? A named person is stronger than a generic support desk.
Ask the provider: who on your team is the Philippine expert I would talk to if a real question came up? A named person is stronger than a generic support desk.
Support model
Some EORs are self-serve. You log into a dashboard, click through workflows, and file a ticket if you get stuck. That works for teams with internal HR who know what they are doing.
Others provide a managed relationship. A named account manager owns your engagement. Questions get answered by a person, not routed through a queue.
Ask the provider: what does support look like on a Tuesday, three months in? The answer tells you if you are getting a product or a service.
Others provide a managed relationship. A named account manager owns your engagement. Questions get answered by a person, not routed through a queue.
Ask the provider: what does support look like on a Tuesday, three months in? The answer tells you if you are getting a product or a service.
Client protection
In a good EOR agreement, there is a non-solicitation and non-circumvention clause: the EOR promises not to go direct to your clients, and to protect the client relationships you bring in. That protects you from the EOR competing with you for the same business.
In a bad EOR agreement, this clause is missing, or watered down with carve-outs like ‘unless we already serve a related department.’
Ask the provider: show me the client protection clauses in your standard MSA. Read them carefully. Silence on this topic is a red flag.
In a bad EOR agreement, this clause is missing, or watered down with carve-outs like ‘unless we already serve a related department.’
Ask the provider: show me the client protection clauses in your standard MSA. Read them carefully. Silence on this topic is a red flag.
The five questions to ask every EOR
1. Do you own the entity that employs my hire in the Philippines, or do you use a local partner?
2. Is your fee flat per seat, or a percentage of salary? What happens when I give my hire a raise?
3. Who on your team is the Philippine expert I would talk to if a real question came up?
4. What does support look like on a Tuesday, three months in? Named account manager, or ticketing?
5. Show me the client protection clauses in your standard MSA. What happens if my client and your platform end up in the same conversation?
How they answer tells you the shape of the relationship you are about to buy.
2. Is your fee flat per seat, or a percentage of salary? What happens when I give my hire a raise?
3. Who on your team is the Philippine expert I would talk to if a real question came up?
4. What does support look like on a Tuesday, three months in? Named account manager, or ticketing?
5. Show me the client protection clauses in your standard MSA. What happens if my client and your platform end up in the same conversation?
How they answer tells you the shape of the relationship you are about to buy.
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