Before your first hire in the Philippines receives a single peso, you need either a registered local entity or an Employer of Record (EOR) in place. There is no middle ground. An EOR lets you skip the entity setup and start hiring quickly, which matters in a labour market of more than 52 million workers with an unemployment rate sitting at just 2.2%.
The numbers that shape your budget most directly are the employer social security contribution of 14.5% of gross salary, a mandatory 13th-month salary paid every December, and a statutory work week of 48 hours. Payroll runs on a semi-monthly cycle, so your payroll processes need to match that cadence from day one.
