Overview: Foreign companies can hire employees in the Philippines by establishing an appropriate local employing entity or, depending on their circumstances, using an Employer of Record (EOR) that employs workers locally on their behalf. However, successful hiring involves more than finding candidates. Companies also need to consider sourcing, screening, employment contracts, payroll, statutory contributions, benefits, HR administration, and Philippine labor requirements. HireManila.com supports foreign businesses through Recruitment-as-a-Service, Remote Team Hiring, Executive Search, EOR Services, Total HR, and Talent Stack, helping companies choose support based on their hiring stage and needs.
How can a foreign company hire employees in the Philippines?
The Philippines offers foreign companies access to a large talent pool across technology, customer service, finance, marketing, operations, administration, and many other professional fields.
However, knowing how to hire employees in the Philippines requires more than posting a job advertisement.
First, you need to identify the right candidates. Next, you need an appropriate employment structure. Then, you need processes for contracts, payroll, statutory contributions, HR administration, and ongoing employee management.
Generally, a foreign business exploring how to hire Filipino employees should consider two questions:
- How will we find the right people?
- Who will legally employ and administer those people in the Philippines?
Answering these questions early can prevent confusion later.
Step 1: Define exactly who you need to hire
Before starting recruitment, clearly define the role.
A broad job description such as “marketing specialist” or “virtual assistant” may generate applications. However, it may not attract the specific talent your business needs.
Instead, clarify:
- Job responsibilities
- Required skills
- Experience level
- Working hours
- Reporting structure
- Remote or onsite setup
- Salary range
- Required technology
- Performance expectations
- Start date
For example, a US SaaS company hiring a customer success specialist may require someone who can work overlapping US hours, communicate with international customers, and understand subscription software.
Therefore, the recruitment strategy should reflect those requirements from the beginning.
Step 2: Build a sourcing strategy for Filipino talent
Once the role is clear, you need to reach suitable candidates.
Foreign companies can source candidates through job platforms, professional networks, referrals, recruitment firms, social media, and direct outreach.
However, sourcing becomes more difficult when you’re hiring specialized or senior-level employees.
A strong process should consider:
- Candidate availability
- Required experience
- Salary expectations
- Industry background
- Communication skills
- Technical skills
- Work arrangement
- Notice periods
This is where Recruitment-as-a-Service (RaaS) can be useful.
HireManila.com’s RaaS provides end-to-end recruitment and staffing support, including candidate sourcing, screening, and hiring assistance.
For companies that don’t have an established recruitment team in the Philippines, this can provide local recruitment capacity without requiring them to build the entire process internally.
Step 3: Screen candidates carefully
Finding applicants is only the first stage.
Next, you need to determine whether candidates actually match the position.
Depending on the role, screening can involve:
- CV review
- Initial interviews
- Skills assessments
- Technical interviews
- Reference checks
- Background checks when appropriate
- Final management interviews
For example, a candidate may have the correct job title but lack experience working with international teams.
Alternatively, someone may have excellent technical skills but not be comfortable with the schedule required by an overseas employer.
Therefore, screening should assess both technical qualifications and practical job requirements.
Step 4: Choose the appropriate employment structure
One of the biggest questions foreign businesses face is: Can a foreign company hire employees in the Philippines without setting up a local company?
The answer depends on the employment structure.
A foreign company that establishes an appropriate Philippine entity can employ workers locally and take responsibility for Philippine employment administration.
Alternatively, an EOR can provide a local employment structure for companies that don’t yet have their own employing entity.
Under an EOR arrangement, the EOR becomes the local legal employer, while the foreign client generally manages the employee’s day-to-day responsibilities.
Therefore, businesses researching how to hire Filipino employees from overseas should determine early whether they plan to establish their own entity or use an EOR arrangement.
Scenario: A US company hiring its first Filipino employee
Imagine a US software company that wants to hire one customer support specialist in the Philippines.
The company isn’t ready to establish a Philippine entity solely for one employee.
In this situation, an EOR may be worth considering.
HireManila.com’s EOR Services can support foreign companies that want to hire and pay employees in the Philippines without first establishing their own local employing entity.
Depending on the arrangement, EOR support can cover employment administration, payroll, statutory contributions, and related HR processes.
However, companies should still assess any separate corporate, tax, licensing, or regulatory implications created by their Philippine activities. An EOR primarily addresses the employment relationship; it doesn’t automatically eliminate every other Philippine legal consideration.
Step 5: Understand Philippine employment requirements
Foreign employers should become familiar with Philippine labor requirements before hiring.
Important areas can include:
- Employment classification
- Wages and compensation
- Working hours
- Rest days
- Holiday pay
- Overtime
- Leave entitlements
- 13th-month pay
- Statutory contributions
- Termination procedures
- Employment records
For example, Philippine private-sector rank-and-file employees who meet the applicable requirements are entitled to 13th-month pay.
Furthermore, employers have obligations concerning statutory programs such as SSS and PhilHealth, while other mandatory government contributions may also apply.
Consequently, payroll shouldn’t be treated simply as transferring an agreed salary to an employee’s bank account.
Step 6: Prepare an appropriate employment contract
Another common question is: What should be included in a Philippine employment contract?
The appropriate terms depend on the position and employment arrangement. However, a written agreement will typically address important matters such as:
- Job title
- Duties and responsibilities
- Compensation
- Benefits
- Work location
- Working schedule
- Employment status
- Probationary terms when applicable
- Company policies
- Confidentiality requirements
- Termination provisions
- Other applicable conditions
The contract should reflect Philippine employment requirements rather than simply reusing a contract designed for employees in another country.
Additionally, the employer should make sure that the actual working arrangement is consistent with the contract.
Step 7: Set up payroll and statutory contributions
Payroll in the Philippines involves more than gross salary.
Depending on the employee and applicable requirements, payroll administration can involve salary calculations, withholding, statutory contributions, benefits, deductions, and payroll records.
Employers also have reporting and remittance responsibilities for applicable programs.
For example, SSS requires covered employers to report employees and deduct and remit applicable employee contributions together with the employer share. PhilHealth similarly requires employers to deduct the employee share and remit it together with the employer’s share.
Therefore, companies should establish a reliable payroll process from the first employee onward.
Step 8: Build a remote team that can scale
Many foreign companies aren’t hiring only one person.
Instead, they want to know how to build a remote team in the Philippines.
For example, a startup might initially hire:
- Customer support specialist
- Digital marketer
- Software developer
- Finance assistant
As the business grows, it might add team leaders, operations managers, recruiters, or additional specialists.
HireManila.com’s Hiring Remote Teams service focuses on sourcing and hiring Filipino professionals and helping foreign companies assemble and scale offshore teams in the Philippines.
However, recruitment is only one part of remote team building.
Companies should also establish communication tools, performance expectations, reporting structures, onboarding procedures, working hours, and management processes.
Scenario: A startup building a Philippine remote team
Consider an Australian startup planning to build a six-person remote operations team.
Instead of recruiting each role independently without a local strategy, the company could define the entire team structure first.
For example, it might hire a team leader followed by customer support and administrative professionals.
Recruitment support can then focus on building a balanced team rather than simply filling individual vacancies.
Meanwhile, the company can decide whether employees will be hired through its own Philippine entity or another appropriate employment arrangement.
This approach makes scaling more structured.
Step 9: Use executive search for senior roles
Standard recruitment isn’t always the right approach for every vacancy.
For leadership, managerial, highly specialized, or confidential positions, companies may need more targeted outreach.
HireManila.com’s Executive Search service focuses on identifying experienced Filipino professionals for managerial, executive, leadership, and specialized positions.
For example, a foreign company establishing a Philippine operation may need a country manager with industry relationships and experience building local teams.
Suitable candidates may not be actively applying for jobs.
Therefore, executive search can involve direct identification and outreach rather than relying entirely on job advertisements.
Step 10: Consider ongoing recruitment support
Some companies don’t need occasional recruitment.
They hire continuously.
For example, a growing outsourcing company may need recruiters working on multiple roles every month.
In this situation, HireManila.com’s Talent Stack can provide flexible, subscription-based recruitment support with access to a dedicated recruiter rather than relying solely on traditional placement-fee arrangements.
This can be appropriate for businesses with recurring recruitment needs.
Meanwhile, a company hiring only one specialized executive may find a project-based Executive Search approach more suitable.
Therefore, the right recruitment model depends on hiring volume, role complexity, and internal recruitment capacity.
Step 11: Don’t forget ongoing HR support
Recruitment ends when a candidate joins, but employment management continues.
Growing companies may need help with employee documentation, policies, HR questions, performance matters, and other people-related concerns.
HireManila.com’s Total HR provides flexible, prepaid HR-on-demand support.
For a small company without a full internal HR department, this can provide access to HR assistance as issues arise.
For example, a founder might need guidance with onboarding documents one month and help reviewing an HR process the next.
Therefore, ongoing HR support can complement recruitment and employment administration.
Common mistakes when hiring Filipino employees
Foreign companies can make hiring more difficult by approaching Philippine recruitment exactly as they would in their home market.
Common challenges include:
- Using unclear job descriptions
- Setting unrealistic salary expectations
- Ignoring local candidate expectations
- Taking too long to make hiring decisions
- Failing to define work schedules
- Using inappropriate employment arrangements
- Overlooking payroll obligations
- Using foreign employment contracts without local review
- Failing to plan onboarding
- Hiring without an ongoing HR process
Instead, build a hiring process designed for the Philippine market.
Which HireManila.com service fits your hiring situation?
Different businesses need different levels of support.
Recruitment-as-a-Service can fit businesses that need end-to-end sourcing, screening, and hiring support.
Hiring Remote Teams can help companies assembling or scaling groups of Filipino professionals.
Executive Search can support managerial, leadership, executive, and specialized hiring.
EOR Services can be considered when a foreign company needs a local employment structure without first establishing its own employing entity.
Total HR can support businesses that need flexible HR assistance after employees have been hired.
Talent Stack can fit businesses with recurring recruitment needs that want ongoing access to dedicated recruiting capacity.
Ultimately, companies can use one service or combine different forms of support depending on their hiring plans.
Frequently asked questions
How can a foreign company hire employees in the Philippines?
A foreign company can establish an appropriate Philippine employing entity or consider an EOR arrangement. It should also establish processes for recruitment, contracts, payroll, statutory contributions, and HR administration.
Can a foreign company directly hire employees in the Philippines?
A foreign company should determine whether it has the appropriate legal and employment structure to directly employ Philippine workers. Otherwise, an EOR may provide an alternative local employment arrangement.
Does a foreign company need a local entity to hire employees in the Philippines?
Not necessarily. An EOR can employ workers locally on behalf of a foreign client, subject to the arrangement and applicable Philippine requirements.
Can you hire employees in the Philippines without setting up a company?
An EOR can provide a way to employ Filipino workers without first establishing your own local employing entity. However, separate tax, corporate, or regulatory considerations may still apply.
What are the requirements for hiring employees in the Philippines?
Requirements depend on the employment arrangement but can include appropriate contracts, payroll administration, statutory registrations and contributions, employee records, and compliance with applicable labor standards.
What employment laws should foreign employers know in the Philippines?
Employers should understand applicable rules on wages, working hours, rest days, holidays, leave, 13th-month pay, employment classification, statutory contributions, and termination, among other requirements.
What should be included in a Philippine employment contract?
An employment contract commonly addresses the role, responsibilities, compensation, benefits, work arrangement, employment status, applicable policies, and other employment conditions.
What employee benefits are mandatory in the Philippines?
Mandatory benefits depend on the employee and circumstances. They can include applicable statutory contributions, 13th-month pay for covered employees, leave entitlements, holiday-related benefits, and other benefits required under Philippine law.
How does payroll work in the Philippines?
Employers calculate salary and applicable deductions, maintain payroll records, withhold required amounts, and remit applicable government contributions and taxes according to prescribed requirements.
What statutory contributions apply to Philippine employees?
Covered private-sector employment generally involves contributions to programs including SSS, PhilHealth, and Pag-IBIG, subject to applicable rules and contribution schedules.
Build your Philippine team with the right support
Learning how to hire employees in the Philippines involves three connected challenges: finding the right talent, establishing the right employment structure, and managing employees properly after they join.
A company hiring its first Filipino employee may need EOR and recruitment support. Meanwhile, a startup building an offshore team may need Remote Team Hiring. A business searching for a country manager may benefit from Executive Search, while a company hiring throughout the year may need Talent Stack.
The important point is that there isn’t one hiring model that works for every foreign company.
HireManila.com supports foreign companies, startups, SMEs, founders, and HR teams that want to recruit, hire, and build teams in the Philippines through Recruitment-as-a-Service, Remote Team Hiring, Executive Search, EOR Services, Total HR, and Talent Stack.
By matching the recruitment and employment solution to your actual needs, you can build a more organized hiring process while focusing your internal resources on managing and growing your business.
Ready to hire Filipino employees? Explore HireManila.com’s recruitment, EOR, remote team, executive search, and HR solutions for building your team in the Philippines.
