Hire your remote team in Philippines

Only 399 EUR per employee per month

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Hiring a remote team in a country as Philippines comes with a lot of overhead, such as compliance, local laws, taxes, etc. As a company, you don't want to worry about knowing all the local laws. Instead you want to focus on your remote team and the business. Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Philippines. We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business.

A remote team

1. Hire a remote team in Philippines with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in Philippines, particularly if you don't have established local relationships. You can hire employees in Philippines effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction

Rivermate is a global employment solutions company that provides Employer of Record services in Philippines.

As an employer of record, we help you hire employees and run payroll services in Philippines, allowing you to avoid the necessity of first establishing a branch office or subsidiary in Philippines.

It is not necessary to establish an entity in order to hire an employee. We can hire your employee in any country with a few mouse clicks. Using our Employer of Record solution, you can have full compliance, benefits, and automated payments.

If you wish to hire a remote team in Philippines or individually hire remote employees in Philippines, Rivermate’s global employer of record services will make sure that the process will be as seamless as possible for you.

Send us a message so we can talk about how Rivermate’s Employer of Record Philippines services can best help your company!

3. Hire a remote team in Philippines

Did you know that the Philippines is one of the most populous English-speaking countries in the world? English is spoken by approximately 14 million people in the Philippines. Did you know that the Philippines has one of the top five broadband speeds in the world? It has a fixed broadband speed of 49.31 Mbps on average. Did you know that the Philippines is also known as the "world's text capital"? Because of the high volume of text message usage, it has earned this distinct moniker. These are some intriguing facts that explain why the Philippines has emerged as one of the best countries for remote work.

The Philippines has long been a prime outsourcing location for the information technology and service industries, and it is now emerging as a gold mine for businesses looking to hire remote workers to do their work efficiently and cost-effectively.

The Philippines is one of the world's largest archipelagos, consisting of 7,641 islands. It has many beautiful beaches and is thus a popular travel destination in South East Asia. English, along with Filipino, is the official language. The country's majority religion is Christianity, which is unusual for an Asian country.

In 2021, the Philippines' population is expected to be around 110 million, with a labor force of 60.48 percent. The employment-to-population ratio is 58.1 percent, with a 3.9 percent unemployment rate. Furthermore, most Filipinos can communicate effectively in English, making it one of the best locations for hiring remote talent.

In 2020, the Philippines' per capita GDP was 3,000 USD, with an average monthly wage of 935 USD. As a result, the cost of living for one person is approximately 800 USD, implying that living in the Philippines is 2.5 times less expensive than living in the United States of America.

In comparison to other countries in the region, the Philippines has an excellent internet penetration rate of 77.77 percent. According to the most recent data, the average broadband speed is 49.31 Mbps, while mobile internet speed is a respectable 29.12 Mbps.

4. Cost of living in Philippines

The cost of living in the Philippines is $587, or 1.59 times less than the global average. The Philippines ranked 146th out of 197 countries in terms of cost of living and 106th in terms of quality of life.

In the Philippines, the average after-tax salary is $302, which is enough to cover living expenses for 0.5 months.

5. Cost of renting in Philippines

- Cost of living in the Philippines per person (with rent) – 1175 USD

- Cost of living in Manila per person(with rent) – 1724 USD

- Average rent in the Philippines (outside the city center) – 200 USD

- Average rent in the Philippines (within city center) – 500 USD

6. Major industries in Philippines

The output of the manufacturing sector is distributed as follows: consumer goods (57%), intermediate goods (25%), and capital goods (18%). Food and beverage, clothing, footwear, and tobacco remain the most important consumer goods sub-sectors. Petroleum and coal for power generation, as well as chemicals for drugs and personal care products, continue to be in high demand as intermediate goods. Electronics, including semi-conductors, and iron and steel drove capital goods manufacturing.

Mineral resources abound in the Philippines. The Mining Act of 1995 liberalized the industry by providing a package of incentives, including net operating loss carry-over and accelerated depreciation, to foreign mining firms.

Rice, corn, coconut, and sugar are the most important agricultural products.

The Philippines is one of the largest exporters of coconut oil and sugar, but its comparative advantage has dwindled over time due to the development of substitutes and an increase in the number of other exporter countries. Poultry and livestock have emerged as the sector's new growth areas.

The construction industry, which began in 1994, is expected to continue growing. The private sector is regarded as the primary mover. Private investors are becoming more interested in infrastructure projects through expanded build-operate-transfer (BOT) programs. Office and residential buildings, as well as shopping malls, subdivision projects, and industrial estates, continue to be in high demand.

7. Hiring cost in Philippines

According to Economics and Business Research, hiring in the Philippines could cost more than 40,000 USD per employee. As a result, hiring remote workers can be an expensive process. A simple keyword search will undoubtedly yield a list of candidates; however, finalizing the right talent, as well as dealing with local labor laws, contracts, and payroll, will necessitate expertise.

8. Employment laws Philippines

In the Philippines, the average workweek is 40 hours, with an eight-hour workday, though some industries require 48-hour workweeks with overtime. Overtime is permissible and must be compensated at a rate of at least 125% of the employee's regular rate of pay.

Aside from skilled apprenticeship programs, employment compliance in the Philippines includes an optional six-month probationary period that cannot be extended beyond six months.

While Filipino employees are legally permitted to unionize, collective bargaining is uncommon in the country. A union or collective bargaining association represents only about 10% of the workforce.

9. Top skills Philippines

One of the reasons for the Philippines' poor economy has been its reliance on the agricultural industry. Natural disasters frequently strike it. Agriculture, which once accounted for 25% of the economy, has declined to single digits, allowing the service sector to become a significant contributor to the economy. The growth of the BPO-driven service sector has been beneficial to the country.

Manila is the Philippines' national capital as well as a hub for knowledge workers. Cagayan de Oro, Cebu City, Davao, Makati City, Manila, Pasig City, Quezon City, and Taguig, on the other hand, play an important role in providing resources and infrastructure for remote employers and employees.

Let us take a look at the average monthly salary by cities (in Philippine Peso and US Dollar):

- Manila – 53,200 PHP/1050 USD

- Cagayan de Oro – 47,300 PHP/990 USD

- Cebu City – 50,600 PHP/1060 USD

- Davao – 52,500 PHP/1100 USD

- Makati City – 43,800 PHP/920 USD

- Pasig City – 48,100 PHP/1000 USD

- Quezon City – 54,100 PHP/1135 USD

- Taguig – 49,900 PHP/1050 USD

Remote workers are available in IT Services, Accounting, Customer Service, Design and Creatives, Digital Recruitment, Software Development, Marketing, and many other fields in the Philippines. Finding an effective workforce and managing onboarding and ongoing payroll can be time-consuming; having an Employer of Record (EOR) in the Philippines can alleviate this burden.

10. Economic landscape in Philippines

The Philippines' economy has been one of the most dynamic in the East Asia Pacific region. Between 2010 and 2019, average annual growth increased to 6.4%, up from 4.5% on average between 2000 and 2009. The Philippines' economic dynamism is rooted in strong consumer demand, which is supported by a vibrant labor market and robust remittances, owing to increasing urbanization, a growing middle class, and a large and young population. Business activity is brisk, with notable performance in the services sector, which includes BPO, real estate, tourism, and the finance and insurance industries. The Philippine economy has also made strides toward inclusive growth, as evidenced by a drop in poverty rates and the Gini coefficient. Poverty fell from 23.3% in 2015 to 16.6% in 2018, while the Gini coefficient fell from 44.9 to 42.7 during the same time period.

However, the country's COVID-19 pandemic and community quarantine measures have had a significant impact on economic growth and poverty reduction. In 2020, growth contracted significantly, owing to sharp declines in consumption and investment growth, which were exacerbated by a slowdown in tourism and remittances. Similarly, the previous trend in real wages, which was expected to have a positive impact on household incomes—particularly those from lower income groups—has been severely hampered by the COVID-19, with negative implications for poverty reduction in the Philippines.

Nonetheless, the economy has begun to recover, with a 5.6% year-on-year growth rate in 2021, aided by public investment and a recovery in the external environment. With continued recovery and reform efforts, the country is resuming its path from a lower middle-income country with a gross national income per capita of US$3,430 in 2020 to an upper middle-income country (per capita income ranging from US$4,096 to US$12,695) in the short term. The economy is expected to rebound further, fueled by a recovering domestic environment, declining COVID-19 cases, and broader economic reopening. Still, the economy faces downside risks from a weak external environment, which includes an expected slowing of global growth, rising inflation, and geopolitical turmoil. The recovery is expected to have a positive overall impact on poverty reduction.

11. Market size in Philippines

In recent years, the Philippines has experienced some of the region's fastest economic growth. The World Bank has identified the economy as one of the top performers in East Asia in terms of growth, owing to strong exports, robust domestic consumption, and infrastructure spending. Furthermore, the government's pledge to increase public infrastructure investment is expected to keep the country's growth momentum going, bolstering business and consumer confidence.

12. Minimum wage in Philippines

The minimum wage for workers in the agricultural sector is 500.00 PHP per day, while in the non-agriculture sector it is 537.00 PHP per day.

13.Why choose Rivermate to hire your remote team in Philippines?

Establishing an entity in Philippines to hire a team takes time, money, and effort. The labor law in Philippines has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Philippines simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Philippines give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Philippines via our Employer of Record (EOR) / PEO solution.

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