The talent in the Philippines exists, but the thought of navigating the foreign labor laws and bureaucratic red tape can make your head spin. Trust me, you're not the only one hitting that wall.
Whether you're an HR director trying to scale your team, a founder looking to stretch your runway, or a People Ops manager drowning in compliance questions, global hiring shouldn't feel like you need a law degree to pull it off. But here's the good news: it's getting dramatically easier.
At Borderless AI, we're built on a simple truth: Great talent exists everywhere, but opportunity doesn't. We're changing that. Let''s explore how to tap into the Philippines' incredible talent pool without the traditional headaches, so you can build your dream team at startup speed while keeping your legal team happy.
Why Companies Hire Filipino Talent to Scale
The Philippines has become a global hub for customer service, IT, finance, creative, and operational roles. Here’s what makes Filipino talent a strategic asset for growing companies:
Exceptional English Proficiency: The Philippines ranks among the highest in Asia for English fluency. Communication is clear, fast, and culturally aligned with Western business practices.
Skilled and Educated Workforce: Over 96 percent literacy and a steady stream of university graduates in fields like IT, finance, design, and healthcare.
Strong Work Ethic & Reliability: Filipino professionals are known for loyalty, adaptability, and a commitment to long-term roles.
Business Value and Cost Efficiency: Average monthly salaries for skilled roles range from CAD $700 to $1,500, significantly lower than North America or Europe, without sacrificing quality. See how costs compare by region.
What this means for you: You can build resilient, high-performing teams in the Philippines, stretch your hiring budget, and support a globally diverse workforce, all while maintaining speed and quality.
The Fastest Path: AI-Powered EOR Solutions for Hiring in the Philippines
The old way of global hiring meant months of paperwork, setting up local entities, and constantly monitoring compliance risks. Today, AI-powered Employer of Record (EOR) platforms are changing the game:
Hire in Days, Not Months: Set up compliant employment in the Philippines in as little as 5-7 business days, no local entity required.
Automated Compliance: EOR platforms handle contracts, payroll, statutory contributions, and keep up with evolving regulations.
Seamless Onboarding: Generate compliant offers, collect documentation, and onboard talent with minimal manual effort.
Real-Time Guidance: Get instant answers to compliance questions so you can make decisions with confidence.
Example: A Canadian SaaS startup needed to hire 10 support agents in Manila. Using an AI-native EOR, they went from job offer to fully compliant onboarding in under a week, with zero legal headaches.
How to Hire Employees in the Philippines: Step-by-Step Checklist
Here’s what you need to know (and do) to hire employees in the Philippines, with each step designed for speed, compliance, and impact.
1. Choose Your Hiring Path: Local Entity or EOR
Set Up a Local Entity: For companies planning major physical presence or long-term investment. Requires business registration, permits, and ongoing local compliance, typically takes 3-6 months.
Use an Employer of Record (EOR): The fastest, most flexible way for most companies. The EOR becomes the legal employer, manages payroll, benefits, and compliance, and lets you hire in days.
2. Draft Compliant Employment Contracts
Must Include: Job description, salary and benefits, working hours, probationary period (usually up to 6 months), termination conditions, confidentiality, and statutory requirements.
Tip: EOR platforms generate local-compliant contracts instantly, no legal guesswork.
3. Register for Statutory Contributions
Mandatory Programs:
Social Security System (SSS): For pensions, sickness, and disability
PhilHealth: National health insurance
Pag-IBIG Fund: Savings and housing program
Process: Submit employee and company info, remit monthly contributions, and keep up with any changes. EORs automate this entire process.
4. Onboard and Train Your New Hires
Effective Onboarding: Virtual orientation, clear documentation, and regular check-ins set your team up for success.
Cultural Awareness: Filipino professionals value respect, teamwork, and clear communication. Invest in structured training and foster an inclusive environment for long-term retention.
Compensation and Benefits: What to Expect When You Hire Employees in the Philippines
Transparent compensation is key to attracting and retaining top talent. Here’s what HR and People Ops managers need to know:
Salary Ranges (Monthly)
Customer Service: PHP 20,000–35,000 (CAD $480–$840)
IT & Development: PHP 40,000–90,000 (CAD $960–$2,160)
Finance & Accounting: PHP 30,000–60,000 (CAD $720–$1,440)
Location Matters: Metro Manila offers higher salaries than provincial cities due to cost of living and talent demand.
Required Benefits
13th Month Pay: One-twelfth of total basic annual salary, paid in December, mandatory for all employees.
SSS, PhilHealth, Pag-IBIG: Employer contributions range from 2% to 13% of monthly salary, depending on the program.
Standard Workweek: 40–48 hours, with overtime paid at a premium.
Additional Perks to Stand Out
Private health insurance
Internet and equipment allowances
Paid training and upskilling
Flexible work arrangements
Get a detailed cost breakdown for hiring in the Philippines
Payroll and Payment Methods: How to Pay Your Philippine Team
Getting payroll right is non-negotiable. Here’s how to ensure your team is paid accurately and on time:
1. Traditional Bank Transfers
International wires to Philippine bank accounts
Processing time: 3–7 business days
Fees apply to both sender and recipient
2. Digital Payment Platforms
Options like PayPal, Payoneer, Wise, and local e-wallets
Faster, flexible, and often preferred by remote workers
Varying limits and fees, ideal for freelancers or variable payments
3. AI-Driven Payroll Systems
Automate salary calculations, deductions, and compliance
Reduce payroll cycles to 3–5 business days (versus up to 30 with manual systems)
Instantly update for regulatory changes and statutory contributions
Pro tip: EOR platforms bundle payroll, compliance, and payment processing, so you never miss a deadline or regulatory update.
Common Pitfalls When Hiring in the Philippines (And How to Avoid Them)
Scaling globally is exciting, but compliance missteps can be costly. Watch out for these risks:
1. Misclassification of Contractors vs. Employees
Employees work under your direction and schedule; contractors control how and when work gets done.
Misclassification leads to fines, back pay, and mandatory enrollment in government programs.
2. Permanent Establishment Risk
Direct hiring or leasing office space may create a local tax presence.
Avoid by using an EOR and not assigning contract negotiation powers to local staff.
3. Incorrect Statutory Remittances
Missing or late social benefit contributions can result in penalties.
Stay current with SSS, PhilHealth, Pag-IBIG, and always keep up-to-date records.
Top Roles to Hire in the Philippines (And How They Drive Your Business Forward)
Filipino talent delivers value across a range of in-demand roles:
Customer Service & Support
Call center agents, chat support, technical support
High English fluency and customer-first mindset
Strengthens your global support coverage and customer experience
IT & Software Development
Frontend/backend devs, QA, DevOps, IT support
Skilled in JavaScript, Python, PHP, React, Laravel, and more
Accelerate product development and technical operations
Virtual Assistants & Admin Support
Calendar management, data entry, project coordination
Free up your core team to focus on strategic initiatives
Digital Marketing & Content Creation
SEO, social media, design, copywriting, video editing
Expand your brand reach with global market expertise
How Technology Accelerates and Simplifies Global Hiring
Modern businesses don’t have months to navigate international labor laws. AI-powered EOR solutions enable you to:
Generate Contracts in Minutes: Instantly create compliant employment agreements
Automate Payroll and Benefits: Real-time calculations and contributions for every employee
Track Regulatory Changes: Stay ahead of new laws, automatically
Reduce Onboarding Time: Move from offer to first day in a matter of days, not weeks
When you hire employees in the Philippines with Borderless AI, you’re not just filling roles — you’re unlocking new markets, supporting diverse talent, and empowering your team to operate without borders.
Book a demo to see Borderless AI in action
Frequently Asked Questions: Hire Employees in Philippines
What is the minimum wage in the Philippines?
It varies by region. Metro Manila offers the highest at about PHP 610 per day (around CAD $14). Most skilled roles pay above this, following market rates.
Is 13th month pay mandatory?
Yes, for all employees. It’s equal to one-twelfth of the basic annual salary, typically paid in December.
What’s the standard notice period for terminations?
Just cause: No advance notice (due process required). Without just cause: 30 days’ written notice or pay in lieu. Separation pay depends on tenure and termination reason.
Can I hire Filipino workers as independent contractors?
Yes, if they control their schedules, use their own tools, and are paid per project. Misclassification risks fines and required back benefits.
How fast can I hire employees in the Philippines with an EOR?
Typically 5–7 business days from contract to onboarding.
Ready to Build Your Global Team?
We’re here to help you hire employees in the Philippines — quickly, compliantly, and with total confidence. Let’s unlock new opportunities, support global talent, and shape the future of work together.
