Compliance in the Philippines isn’t one document you sign at hiring. It’s a monthly rhythm of payroll, government contributions, benefits and records that has to stay in sync for every employee.
If you hire through an Employer of Record, the provider does this work. But you should still know what “done right” looks like. It helps you ask better questions, spot gaps early and avoid surprises when an employee asks about their pay or benefits.
Use this as a practical buyer checklist. It isn’t legal advice. Rules and contribution rates change, so specific cases should always be checked with qualified Philippine counsel or the government agency involved.
The checklist at a glance
What your EOR should handle
- Complete employment records and a signed contract for each employee
- Payroll on an agreed cut-off and payment schedule
- SSS registration, reporting and monthly contributions
- PhilHealth reporting and premium remittance
- Pag-IBIG registration and contributions
- Income tax withholding on salaries
- 13th-month pay, paid by December 24 each year
- Clear rules for leave, holidays and premium pay
- A process for employee questions, disputes and offboarding
1. Employment records
Every employee should have the right documents on file: the contract, job details, pay terms, work schedule and required personal information. Your EOR should also have a clear process for changes, like a raise, a new schedule, a status change or a resignation.
Ask which records you can request and how fast you can get them. You shouldn’t have to chase basic information about your own team.
2. Payroll
Payroll should follow a fixed cut-off and pay schedule. Your provider should show you how regular pay, approved overtime, premiums, leave, deductions and adjustments are processed, and who approves changes before payroll closes.
Also ask how they handle mistakes. Off-cycle corrections happen. What matters is that there’s a clear, quick way to fix them.
3. Government contributions
Three agencies cover most statutory contributions for private-sector employees. Your EOR should register employees, deduct the employee share, add the employer share, remit on time and keep records for each one.
| Agency | What it covers |
|---|---|
| SSS | Social security, including sickness, maternity, disability and retirement benefits |
| PhilHealth | National health insurance |
| Pag-IBIG | Housing and savings fund |
Contribution rates are updated from time to time, so always check against the latest official tables instead of a number you saw in an old article.
Good compliance is boring on purpose. The employee gets paid right, the contributions go in on time, and nobody has to think about it.
4. 13th-month pay and other benefits
Philippine law requires 13th-month pay for rank-and-file employees. It’s generally one-twelfth of the basic salary earned during the calendar year and must be paid no later than December 24.
Your provider should also explain the leave, holiday and premium pay rules that apply to each role and schedule. Night shifts and holiday work, for example, come with their own premiums. Don’t assume every role is treated the same way. Get it in writing.
5. Employee support and changes
Compliance is also day-to-day. There should be a clear process for payroll questions, leave requests, performance concerns, disciplinary steps and offboarding. You should know which issues go to the EOR and which decisions stay with you as the manager.
What to ask any EOR before you sign
A good provider can explain all of this in plain language. Ask them for a written responsibility list, a payroll calendar, an overview of contributions and benefits, a sample invoice, and their process for employee concerns. If they can’t show you these, keep looking.
Planning to hire in the Philippines? Book a free call with us and bring this checklist. We’ll walk you through how the EOR side of our Dedicated Staffing handles each item for the role you want to fill.
Frequently asked questions
What does an Employer of Record handle in the Philippines?
Employment contracts, payroll, SSS, PhilHealth and Pag-IBIG contributions, tax withholding, 13th-month pay, benefits administration and HR processes. You direct the daily work.
When is 13th-month pay due in the Philippines?
It must be paid no later than December 24 each year. It’s generally one-twelfth of the employee’s basic salary for the calendar year.
Are SSS, PhilHealth and Pag-IBIG contributions mandatory?
Yes, for covered private-sector employees. Both the employer and employee shares must be remitted on time, based on the current official rates.
Sources: SSS employer responsibilities; PhilHealth for employers; Pag-IBIG Fund; Department of Labor and Employment.
