Hiring in the Philippines through an EOR adds 14.6%. Most of it is the 13th month, and the contribution caps are low

Summary

Summary

A hire at ₱1,200,000 adds ₱174,761 to the salary: ₱100,000 of statutory thirteenth-month pay and ₱74,761 across four contributions. Every contribution is capped, SSS at ₱420,000 a year and Pag-IBIG at ₱120,000, so no peso of salary above those attracts anything more, and at ₱2,400,000 the share falls to 11.4%. That the thirteenth month is inside the contribution base is something this site settled on 2026-09-07 from the implementing rules of the Social Security Act. The fee sits on its own line in US dollars.

Inside the 14.6%

Employer cost ₱1,374,761, 14.6% above the salary; 11.4% at ₱2,400,000. All four lines are capped, with the SSS monthly salary credit topping out at ₱35,000 and Pag-IBIG at ₱10,000 a month. The Pag-IBIG employer share is at most ₱200 a month whatever the salary.

The thirteenth month is in the base. Until 2026-09-07 this site left it out for lack of a statutory source. Rule 12, Section 6 of the implementing rules of the Social Security Act was read; the only bonus it excludes is the discretionary Christmas bonus, which the labor department states is a different thing from mandatory thirteenth-month pay. Both salaries on this page sit above every cap, so neither figure moved; below the caps the calculator now charges contributions on the extra month too.

Not in this floor, or unconfirmed. PhilHealth's 5% is described by the government information agency as the final scheduled adjustment, and this site carries that year's rate. The SSS table is published as an image and no machine-readable primary copy was obtained, which this site lists as unconfirmed. Leave is five days of Service Incentive Leave after one year, with 12 regular holidays and special non-working days proclaimed each year.

Why the fee looks different here

This site publishes no exchange rate; the fee's share of salary is annual fee in dollars × pesos per dollar ÷ annual salary in pesos, at your rate. Of the 14.6% on ₱1,200,000, contributions are 6.2%. A flat dollar fee tends to loom large against a peso salary, which makes the Philippines one of the countries where the gap between $199 and $599 counts most.

The fee, in US dollars

Scroll sideways on a phone.

Provider terms that matter in the Philippines

• Billing the thirteenth month. It is due by 24 December under Presidential Decree 851. Some providers accrue a twelfth each month on the invoice; others bill it in December, which makes that month two months of cash.
• Days to start. Remote's published average is three working days "in most countries"; this site found no Philippines-specific figure.
• Remote's cutoff. The standard 11th.

Who can employ in the Philippines

This site did not retrieve the providers' Philippines pages for this article. Add "own entity or partner in the Philippines" to the questions for the quote.

Links on this page currently go directly to providers without affiliate tracking.

Sources

• https://seatbill.com/employer-of-record/c/ph
• https://seatbill.com/employer-of-record/changes
• https://support.remote.com/hc/en-us/articles/11109199121933 (as read for article-29))
• https://seatbill.com/employer-of-record/providers

Related on this site

• Employer cost of hiring in the Philippines in 2026 (c/ph)
• The thirteenth month, and the countries that require one
• Hiring in India through an EOR
• What changed (changes)

Related on this site

• Hiring in Canada through an EOR: 6.8% on C$95,000, and why it halves to 3.4% at C$190,000
• Hiring in the US through an EOR: 7.7% federal employer cost, and where the state part goes