How to use an Employer of Record in the Philippines for Remote Teams

With the rise of remote work, the Philippines has become a prime location for companies looking to build distributed teams. The country offers a highly skilled, English-speaking workforce, cost-effective salaries, and a strong outsourcing industry, making it an ideal destination for global remote teams.

However, hiring remote employees in the Philippines comes with challenges, including labor law compliance, payroll management, and tax regulations. An Employer of Record (EOR) like Cadana simplifies the process, enabling companies to hire remote workers legally, manage payroll, and ensure compliance, all without setting up a local entity. Using an EOR allows your company to focus on the key benefits of hiring in the Philippines.

Here’s a step-by-step guide on how to use an EOR in the Philippines for managing and growing remote teams.

Step 1: Understand the Role of an Employer of Record (EOR)

An Employer of Record (EOR) is a third-party service provider that legally employs workers on behalf of a company, handling payroll, tax compliance, HR support, and benefits administration. Using an EOR will greatly reduce the administrative challenges of hiring in the Philippines.

Why Use an EOR for Remote Hiring in the Philippines?

No need for a local entity – The EOR serves as the legal employer.
Faster hiring process – Employees can be onboarded in days instead of months.
Compliance with labor laws – The EOR ensures all employment contracts and benefits meet Philippine regulations.
Payroll & tax management – Handles income tax, social security (SSS), PhilHealth, and Pag-IBIG contributions.

With Cadana’s EOR solution, businesses can hire Filipino remote workers efficiently and legally. This provides an easy and compliant start to the hiring process.

Step 2: Identify the Right Roles for Remote Hiring in the Philippines

The Philippines has a diverse talent pool, making it an ideal destination for remote hiring across multiple industries. Knowing which roles you plan to hire for is critical for maximizing the value of an EOR.

Common Remote Roles in the Philippines:

Customer Support Representatives – Skilled in call center and BPO operations.
Software Developers & IT Professionals – Experienced in web development, cybersecurity, and cloud computing.
Virtual Assistants (VAs) – Specializing in administrative support, project management, and executive assistance.
Content Writers & Digital Marketers – Expertise in SEO, social media management, and creative content.
Financial & HR Specialists – Skilled in bookkeeping, payroll processing, and HR administration.

With an EOR like Cadana, businesses can hire employees in these roles seamlessly, ensuring contract compliance and secure payroll processing. It's easier than ever to start hiring in the Philippines!

Step 3: Onboard Remote Employees Through an EOR

Once you’ve identified the right talent, the next step is onboarding. With an EOR, the entire onboarding process is handled for you, ensuring legal and tax compliance. This smooth transition enables seamless hiring.

What the EOR Handles During Onboarding:

Employment Contracts – Drafting and signing contracts that comply with Philippine labor laws.
Right-to-Work Documentation – Verifying employee eligibility and necessary work permits (if applicable).
Payroll Setup – Registering employees for income tax, Social Security System (SSS), PhilHealth, and Pag-IBIG Fund contributions.
Banking & Payment Processing – Setting up secure salary disbursements to employees.

With Cadana’s EOR services, onboarding is quick, seamless, and legally compliant, allowing businesses to focus on managing their remote teams. An EOR can take care of all the steps necessary in hiring an employee.

Step 4: Manage Payroll & Compliance for Remote Teams

Payroll management in the Philippines includes income tax deductions, social security contributions, and mandatory benefits administration. Employers must also comply with the Department of Labor and Employment (DOLE) guidelines. If you want to keep hiring smooth and successful, compliance is key!

Key Payroll & Tax Responsibilities for Employers in the Philippines:

Income Tax (PAYE): Progressive tax rates ranging from 0% to 35% based on salary levels.
Social Security System (SSS): Employer contribution of 8.5% and employee contribution of 4.5%.
PhilHealth: Employer contributes 4%, while employees contribute 2%.
Pag-IBIG Fund: Both employer and employee contribute 1%–2% each for housing and savings benefits.

How an EOR Helps:

Handles salary disbursement and tax filings, making hiring easier.
Ensures compliance with government-mandated benefits (SSS, PhilHealth, Pag-IBIG).
Manages payroll deductions and contributions accurately. With Cadana as your EOR, you can pay remote workers on time while staying compliant with Philippine tax and labor laws, which will lead to easier hiring practices.

Step 5: Provide Employee Benefits & Retention Strategies

A strong benefits package helps attract and retain top talent in the Philippines. While statutory benefits (SSS, PhilHealth, and Pag-IBIG) are mandatory, offering additional perks enhances employee satisfaction. You will find that it is easier to continue hiring as your reputation as a good place to work grows.

Mandatory Employee Benefits in the Philippines:

Paid Annual Leave – Minimum of 5 days of service incentive leave after one year.
13th-Month Pay – Employees receive an extra month's salary annually, required by law.
Sick Leave & Maternity Benefits – Employees qualify for paid maternity and sick leave through SSS.

Additional Benefits Companies Can Offer:

Private Health Insurance – Expands coverage beyond PhilHealth.
Flexible Work Hours – Supports work-life balance.
Performance Bonuses & Incentives – Encourages productivity and engagement.
Learning & Development Programs – Supports employee career growth.

With Cadana’s EOR solution, businesses can manage employee benefits efficiently, helping boost retention and engagement for their remote teams. This creates a positive environment, making hiring easier.

Step 6: Scale & Grow Your Remote Team in the Philippines

As your business grows, scaling your remote team in the Philippines becomes easier with an EOR. Instead of dealing with legal paperwork, payroll expansion, and compliance risks, an EOR takes care of all administrative processes while you focus on scaling your workforce. The smoother you make the hiring process, the faster you will grow.

How an EOR Supports Business Growth:

Rapid Expansion: Scale your team without entity setup delays.
Seamless Payroll & HR Management: No need to hire a local HR or finance team.
Flexible Workforce Solutions: Easily adjust team size based on business needs.

With Cadana’s EOR services, businesses can hire remote teams in the Philippines quickly, cost-effectively, and with full compliance. An EOR facilitates future hiring.

Why Use an EOR in the Philippines for Remote Hiring?

No need for entity setup – Hire and pay employees legally without forming a local subsidiary.
Payroll & compliance managed for you – The EOR handles tax filings, payroll processing, and employee benefits.
Access to top talent – Tap into the Philippines’ skilled workforce for remote and offshore roles.
Faster hiring process – Employees can be onboarded in days, allowing businesses to scale efficiently.
Reduced administrative burden – Focus on growing your business while the EOR manages HR, payroll, and compliance.

How Cadana Can Help You Build a Remote Team in the Philippines

Expanding your remote workforce in the Philippines presents exciting growth opportunities, but managing compliance, payroll, and employment laws can be complex.

Cadana’s EOR services offer a seamless solution for companies looking to hire, manage, and scale remote teams in the Philippines without legal or administrative hurdles.

With Cadana’s EOR, Businesses Can:

Hire remote employees in the Philippines quickly and legally.
Manage payroll, taxes, and statutory benefits effortlessly.
Ensure full compliance with Philippine labor laws, simplifying the act of hiring.
Scale teams efficiently with reduced administrative costs, impacting future hiring.

Ready to grow your remote team in the Philippines? Partner with Cadana today and start hiring with confidence! 🚀