The Philippines has the largest English-speaking professional workforce in Asia after India. Filipino professionals routinely work remotely for companies in the US, UK, and Australia, and have been doing so for two decades. Full timezone overlap with East Asia and Australia. Morning overlap with the EU. Late evening overlap with the US West Coast.
What you are hiring is not primarily a cost saving. You are hiring people with real experience serving international teams to the standards those teams expect. The savings are real, but they are the byproduct.
Hiring & Search
How to hire your first person in the Philippines
In short
To hire your first person in the Philippines: scope the role, benchmark the pay against the local market, decide who will legally employ them, run an expert-led search, interview your shortlist, and onboard with a structured plan. You do not need a local entity to do any of this.
Most companies that end up hiring in the Philippines start the same way. Someone on the team looks up 'hire in Philippines' at 11pm the night before payroll processes, realizes there is a whole compliance layer they did not know about, and closes the tab. This is the guide we wish that person had.
Why the Philippines
Two paths, one goal
There are two legal ways to employ someone in the Philippines: through your own legal entity, or through employer of record infrastructure.
Setting up your own entity takes up to 5 months, requires around USD 200,000 in paid-up capital under the Foreign Investments Act, reducible to USD 100,000 only for advanced technology certified by the Department of Science and Technology or where the business directly employs at least 50 Filipino workers, and gives you a Philippine legal presence with all the compliance obligations that come with it. Makes sense once you are hiring more than fifteen people, want a physical office, or have strategic reasons to be locally incorporated.
Employer of record infrastructure takes days to activate, no capital requirement, and you employ your person through licensed local partners. You direct the work, they employ the person. Makes sense for one to fifteen people, when speed matters, or when you do not want the overhead of running a foreign subsidiary.
Most first Philippine hires happen through the second path. Most companies stay there for their first ten to fifteen hires. Some graduate to their own entity later. Many stay on employer of record permanently.
Setting up your own entity takes up to 5 months, requires around USD 200,000 in paid-up capital under the Foreign Investments Act, reducible to USD 100,000 only for advanced technology certified by the Department of Science and Technology or where the business directly employs at least 50 Filipino workers, and gives you a Philippine legal presence with all the compliance obligations that come with it. Makes sense once you are hiring more than fifteen people, want a physical office, or have strategic reasons to be locally incorporated.
Employer of record infrastructure takes days to activate, no capital requirement, and you employ your person through licensed local partners. You direct the work, they employ the person. Makes sense for one to fifteen people, when speed matters, or when you do not want the overhead of running a foreign subsidiary.
Most first Philippine hires happen through the second path. Most companies stay there for their first ten to fifteen hires. Some graduate to their own entity later. Many stay on employer of record permanently.
What role to hire first
Common first hires: senior individual contributors who can work independently and set standards. Senior Engineer, Senior Product Manager, Senior Operations Lead.
Avoid junior first hires. Junior first hires need onboarding infrastructure that a first hire is by definition not there to build.
Also avoid mission-critical single points of failure. Do not put your entire billing system on one person you have never worked with before, sitting in a market you do not know.
Cybersecurity companies often start with a Senior Security Engineer. SaaS companies often start with a Senior Product or Engineering hire. Services companies often start with a senior Customer Success or Operations hire. The pattern is: someone experienced enough to work autonomously, and who can shape how future Philippine hires are set up.
Avoid junior first hires. Junior first hires need onboarding infrastructure that a first hire is by definition not there to build.
Also avoid mission-critical single points of failure. Do not put your entire billing system on one person you have never worked with before, sitting in a market you do not know.
Cybersecurity companies often start with a Senior Security Engineer. SaaS companies often start with a Senior Product or Engineering hire. Services companies often start with a senior Customer Success or Operations hire. The pattern is: someone experienced enough to work autonomously, and who can shape how future Philippine hires are set up.
The realistic timeline
For a well-scoped role, with employment infrastructure already in place:
Week 0: Kickoff, role scoping, compensation benchmarking.
Week 1 to 2: Sourcing, screening, shortlist delivered.
Week 2 to 3: Interview process.
Week 3 to 4: Offer and acceptance.
Week 4 to 8: Notice period at their current employer, varies by seniority.
Week 6 to 8: First day at work.
Senior roles typically land at six to eight weeks. Mid-level at four to six. If you are setting up your own entity from scratch, add up to 5 months to the front.
Week 0: Kickoff, role scoping, compensation benchmarking.
Week 1 to 2: Sourcing, screening, shortlist delivered.
Week 2 to 3: Interview process.
Week 3 to 4: Offer and acceptance.
Week 4 to 8: Notice period at their current employer, varies by seniority.
Week 6 to 8: First day at work.
Senior roles typically land at six to eight weeks. Mid-level at four to six. If you are setting up your own entity from scratch, add up to 5 months to the front.
Common mistakes
Setting up your own entity for your first hire. Two hundred thousand USD tied up before anyone works a day.
Hiring junior because it costs less. Higher failure rate, higher turnover, higher long-run cost.
Skipping compensation benchmarking. Underpaying by twenty percent produces predictable churn.
Contractor arrangements to avoid employment law. Illegal, and it exposes you to real financial and legal risk.
Not planning for thirteenth-month pay in your budget. Mandatory bonus equal to one twelfth of annual salary.
Micromanaging across timezones. If you cannot trust the person to work independently, you hired wrong.
Hiring junior because it costs less. Higher failure rate, higher turnover, higher long-run cost.
Skipping compensation benchmarking. Underpaying by twenty percent produces predictable churn.
Contractor arrangements to avoid employment law. Illegal, and it exposes you to real financial and legal risk.
Not planning for thirteenth-month pay in your budget. Mandatory bonus equal to one twelfth of annual salary.
Micromanaging across timezones. If you cannot trust the person to work independently, you hired wrong.
Hiring in the Philippines?
Book a 30-minute call. We scope your role, share market context, and confirm a realistic timeline. No pitch, no pressure.
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