Glossary

Employer of record (EOR): what it is and what it means for you as a buyer

Also called: EOR, Employer of Record service. Last reviewed .

An employer of record (EOR) is a company that legally employs a worker on another business's behalf: it holds the employment contract, runs payroll and tax, and pays statutory benefits. The client business still chooses the worker and directs the daily work.

What it means for you as a buyer

An employer of record solves the paperwork, not the management. It fits when you have already found someone in another country, want them on your own team without opening a company there, and have a manager with spare hours. It does not usually recruit, train or check the work: you write the training, answer the questions and review the output, and if the person leaves, you start the search again. If you have no one with that time, an office-based provider with its own team lead takes those chores off your desk.

A worked example with numbers

Through an EOR, an example hire on PHP 25,000 a month costs PHP 325,000 in salary and 13th-month pay in the first year, before government contributions, the EOR's fee and your own management time. The salary is a round example, not a real pay band.

Example: first-year costs for one hire at PHP 25,000 a month through an EOR
Line Example amount Who handles it
Basic salary, 12 months 25,000 × 12 = PHP 300,000 EOR pays; you fund it
13th-month pay, one-twelfth of basic salary 300,000 ÷ 12 = PHP 25,000 EOR pays; you fund it
Employer shares for SSS, PhilHealth and Pag-IBIG Set by each agency EOR files; you fund it
EOR service fee Set by the EOR You
Recruiting, training and weekly checks Your time You

SSS, PhilHealth and Pag-IBIG are the Philippine social security, health insurance and housing fund contributions. Their rates change, so check each agency's current table before you budget.

Where this appears in our pricing or process

With the provider on this site, the salary, 13th-month pay, government contributions, recruitment, initial training and supervision all sit inside one hourly rate, from USD 10.50 an hour, about USD 1,817 a month for 173 hours. The included and not-included table on the pricing page lists salary, 13th-month pay and government contributions, and the who-manages section of the how-it-works page shows who recruits, trains and supervises: the part an employer of record leaves with you. If you want someone else to direct the work too, compare it with staff leasing.

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Questions buyers ask

Is the provider on this site an employer of record?

It is the employer, but it does more than the paperwork: it also recruits, trains, supervises and replaces the agent in its own office in Davao City.

  • Staff leasing
    Staff leasing: another company employs the worker who does your work. How it differs from staff augmentation and who manages whom, with a cost example.
  • 13th-month pay
    Philippine employers must pay one-twelfth of a year's basic salary by December 24. What 13th-month pay means for your agent's cost, with an example.
  • Regularization and probation (Philippines)
    Philippine probation may not run past six months; after that the employee is regular. What it means for your agent's first months, with an example.

How it works: who recruits, trains, manages and replaces your agent

Sources

  1. Employer of Record, Wikipedia, checked 7 November 2026.
  2. Employer of record (Q131191557), Wikidata, checked 7 November 2026.
  3. Presidential Decree No. 851 (13th-month pay) and its implementing rules, The LawPhil Project, signed 16 December 1975; text checked 7 November 2026.

We publish what the provider has confirmed in writing. If a figure is not here, we have not been able to confirm it.