Why the Philippines is the Best Place to Expand Your Workforce: Employer of Record Benefits

Expanding into international markets is a strategic move for companies looking to scale their operations, increase efficiency, and tap into global talent. The Philippines stands out as one of the best destinations for workforce expansion, offering a highly skilled, English-speaking labor force, cost-effective hiring, and business-friendly regulations.

However, navigating employment laws, payroll compliance, and taxation can be challenging for foreign companies. This is where an Employer of Record (EOR) solution, like Cadana, simplifies the expansion process, allowing businesses to hire employees in the Philippines quickly and compliantly, without setting up a legal entity.

Here’s why the Philippines is an ideal location for workforce expansion and how an EOR can help businesses scale efficiently.

1. Access to a Skilled, English-Speaking Workforce

One of the biggest advantages of hiring in the Philippines is its highly educated and English-proficient workforce. The country ranks among the top English-speaking nations in Asia, making communication seamless for businesses looking to expand globally.

Workforce Highlights:

English Proficiency: Over 90% of Filipinos speak English fluently, reducing language barriers in global operations.
Strong Educational Background: The Philippines produces thousands of graduates in business, IT, healthcare, and customer service fields every year.
High Adaptability: Filipino professionals are known for their strong work ethic, cultural adaptability, and excellent customer service skills.

With an EOR in the Philippines, companies can hire top talent quickly and integrate them into global teams without legal and administrative hassles. As the job market tightens in the Philippines, benefits packages are playing an increasingly important role in recruitment and retention.

2. Cost-Effective Workforce Expansion

The cost of hiring employees in the Philippines is significantly lower than in Western countries, making it an attractive option for businesses looking to reduce operational costs without compromising on talent quality. The cost of living in the Philippines is considerably lower compared to other major global cities, often being about half of what it is in the United States.

Cost Advantages of Hiring in the Philippines:

Lower Labor Costs: Salaries in the Philippines are significantly lower than those in the U.S., Canada, and Europe.
Affordable Benefits & Payroll Taxes: The cost of statutory benefits (such as Social Security and healthcare contributions) is relatively low.
Cost-Effective Infrastructure: Companies can leverage remote work or business process outsourcing (BPO) hubs to further reduce expenses.

By partnering with an EOR like Cadana, businesses can save on hiring costs while ensuring compliance with local labor laws.

3. Business-Friendly Policies & Outsourcing Expertise

The Philippines has long been a top destination for outsourcing, with strong government support for foreign investments and business-friendly labor laws.

Why the Philippines is Ideal for Global Hiring:

Flexible Labor Laws: Foreign companies can easily hire full-time employees, contractors, or remote workers.
BPO & Remote Work Infrastructure: The country has a well-established outsourcing industry, making it easy for companies to hire remote employees or set up dedicated teams.
Special Economic Zones: The government offers tax incentives and reduced business costs for companies operating in special economic zones (SEZs).

An Employer of Record (EOR) in the Philippines ensures businesses stay compliant with local labor regulations, enabling smooth workforce expansion.

4. Hassle-Free Compliance & Payroll Management with an EOR

Navigating payroll, taxes, and employment regulations in the Philippines can be complex. Businesses must comply with:

Social Security System (SSS): Mandatory contributions for retirement and disability benefits.
Pag-IBIG Fund: A government-managed savings and housing fund.
PhilHealth: A state-run health insurance program.
Income Tax & Withholding Taxes: Employers must deduct and remit taxes on behalf of employees.

How an EOR Simplifies Compliance:

Handles Payroll Processing – Ensures accurate salary payments and tax deductions.
Manages Statutory Contributions – Remits SSS, Pag-IBIG, and PhilHealth payments on time.
Drafts Compliant Employment Contracts – Protects both businesses and employees from labor law risks.
Ensures Legal Compliance – Avoids fines, legal disputes, or misclassification issues.

By partnering with Cadana’s EOR solution, businesses can focus on growth while we handle all employment and payroll complexities.

5. Faster Market Entry & Scalability

Setting up a legal entity in the Philippines can take months and requires business registration, tax approvals, and compliance with local regulations. This slows down market entry and adds unnecessary costs.

How an EOR Speeds Up Expansion:

No Legal Entity Required: Businesses can hire in the Philippines immediately without forming a local company.
Quick Onboarding: Cadana handles employee contracts, payroll, and compliance—allowing businesses to start operations faster.
Scalability: Companies can expand or downsize teams flexibly without worrying about legal complexities.

An EOR removes administrative roadblocks, allowing businesses to enter the Philippine market efficiently and scale their workforce as needed.

To attract the highest calibre of candidates, you may consider providing the following additional benefits. In recent years, there has been a growing trend in the Philippines toward more employee-friendly leave policies such as Birthday leave, menstrual leave and family care leave.

Why Choose Cadana as Your Employer of Record in the Philippines?

Expanding into the Philippines offers immense opportunities, but navigating HR, payroll, and compliance challenges can be overwhelming.

Cadana’s EOR services help businesses:

Hire employees in the Philippines quickly and legally.
Manage payroll, taxes, and statutory benefits hassle-free.
Ensure full compliance with labor and tax regulations.
Reduce operational costs and administrative burden.

Ready to expand into the Philippines? Partner with Cadana today and start hiring with confidence! 🚀