What is an Employer of Record in the Philippines? Here Is Everything You Need to Know
An Employer of Record in the Philippines allows companies to hire full-time employees without setting up a local legal entity. Instead of registering a corporation, navigating tax structures, and managing statutory filings, you can legally employ talent through a registered local employer.
This approach ensures compliance with Philippine labor regulations, reduces administrative risk, and enables faster hiring while maintaining operational control.
What is EOR?
An Employer of Record is a locally registered company that becomes the legal employer of your team on paper.
The EOR handles employment contracts, payroll, taxes, and statutory obligations.
Your company manages the employee’s daily responsibilities, performance, and deliverables.
The employment structure is outsourced. The work remains yours.
What Are Employer of Record (EOR) Functions and Responsibilities?
The Employer of Record is responsible for all legal employment requirements in the Philippines.
The EOR manages:
• Locally compliant employment contracts
• Payroll processing and tax withholding
• Mandatory government contributions
• 13th month pay administration
• Overtime, holiday, and leave compliance
• Regulatory reporting
The Client Company manages:
• Job scope and role design
• Compensation decisions
• Performance standards
• Day-to-day supervision
• Team culture
This clear division of responsibility protects your company from labor law exposure while preserving leadership control.
Service Scope of an Employer of Record
A Philippines EOR setup typically includes:
• Compliant employment contracts aligned with DOLE regulations
• Payroll processing and statutory remittances to SSS, PhilHealth, and Pag-IBIG
• 13th month pay calculation and distribution
• Benefits administration
• Onboarding and offboarding documentation
• HR compliance guidance
• Representation in dealings with Philippine authorities when required
This framework allows companies to operate without building local HR or legal infrastructure.
What are the Benefits of Employer of Record (EOR)?
Using an Employer of Record in the Philippines provides:
Reduced compliance risk
Faster hiring without entity setup
Predictable employment administration
Structured monitoring of labor regulations
Lower administrative overhead
Access to a large English-speaking workforce
When to Use an Employer of Record (EOR)
An EOR is commonly used when companies:
• Enter the Philippine market without forming a subsidiary
• Test expansion before long-term incorporation
• Hire full-time employees instead of contractors
• Build distributed teams
• Support acquisitions or restructuring
• Require a compliant bridge before setting up an entity
This model allows companies to scale gradually without restructuring their global footprint.
How KMC Employer of Record (EOR) Services Work
How KMC Employer of Record (EOR) Services Work
KMC Teams employs your Philippine workforce under our registered entity while you maintain full control of operations.
We manage:
• Employment contracts
• Payroll and statutory compliance
• Government contributions and reporting
• HR documentation
• Regulatory updates
You manage performance, compensation approvals, and business outcomes.
This structure allows you to focus on execution while we manage employment compliance.
Our EOR Process
Free Initial Consultation
We align on hiring goals, role requirements, and team structure in the Philippines or Colombia, including salary benchmarks and timelines.
Sourcing & Initial Interview
KMC leverages its employer brand and recruitment network to attract and screen qualified candidates aligned with your requirements.
Contract Signing
Once candidates are approved, KMC prepares compliant employment contracts and finalizes compensation, benefits, and start dates.
Employee Onboarding & Set Up
We provide workspaces, IT infrastructure, and operational support—whether your team works remotely or from one of our managed offices.
Continuous KMC Support and Partnership
Our HR, admin, and IT teams remain available to support both you and your employees throughout the engagement.
Frequently Asked Questions (FAQs)
We have hired 7000+ Employees for over 500+ Companies
Why Companies Choose KMC Teams
• 7,000+ professionals supported
• 500+ client companies
• 86 percent retention rate
• Registered entities in the Philippines and Colombia
• Office, hybrid, and remote work options
• Structured employment oversight