Hiring employees in another country can feel like stepping into the unknown. If the Philippines is on your list for 2026, we can share the journey with confidence. With our experience at EWS Limited, we help companies simplify complexity. In this guide, we walk through each step, from understanding talent and setting up payroll, to handling local regulations and cultural expectations. We turn confusion into a clear process, for HR Directors, Global Mobility Managers, Partner Managers, C-levels, and future-focused companies ready to build vibrant teams in Southeast Asia.
The Philippines, with its strong educational system and thriving business process outsourcing sector, stands out as a top destination for international hiring. As of 2026, the country continues to strengthen its position. We see more technology startups, established IT companies, and growing businesses making Manila, Cebu, and even provincial regions part of their global expansion plans.
The Philippines offers talent, English proficiency, and adaptability.
These are some main reasons the Philippines remains attractive to hiring managers, especially when looking for remote, hybrid, or fully onsite teams:
With these features, hiring in the Philippines is more than just about cost savings. It’s about building a diverse team with valuable skills and outlooks that help drive company growth.
The post-pandemic years brought significant changes to employment in the Philippines. In our research, we notice continued adoption of remote work, more STEM graduates joining the workforce, and a rapid embrace of digital skills across industries. These changes are shaping how employers hire and manage teams in 2026.
The following areas have consistently shown strong pools of professional talent for overseas employers:
New graduates, as well as experienced professionals, are increasingly upskilling in AI, automation, and remote collaboration tools, keeping the Philippine workforce globally relevant, even as employer needs change year by year.
When planning to hire in the Philippines, understanding local salary expectations is key. Wages can vary by region, sector, and skill level. In general, Manila and Cebu see higher salaries than provincial cities, reflecting higher costs of living. Employers often offer:
Global companies may need to offer above-average pay to attract top professionals with specialized skills or international experience. Using current market data to benchmark compensation helps attract and retain skilled teams.
Philippine employment laws are specific, and foreign companies must stay informed. We recommend understanding the core rules before making your first hire.
Employers are required to provide the following main benefits:
All these must be properly recorded and remitted. Non-compliance leads to penalties, audits, and reputational damage.
Employment contracts are required by law and should outline duties, working hours, salary, benefits, and termination procedures. Probationary periods can be up to 6 months, with clear criteria for regularization.
Always use a localized employment contract template and have it reviewed by a legal expert on Philippine labor law.
Ending employment in the Philippines requires written notice, valid grounds, and, usually, payment of separation pay. Terminations due to redundancy, closures, or retrenchments must follow clear procedures to be valid.
We advise employers to keep complete records and consult local legal partners or an Employer of Record for guidance. You can learn more about compliance in our international hiring compliance checklist.
Many global businesses entering the Philippines weigh up the Employer of Record (EOR) model against other expansion paths. We believe it’s a smart solution for Series B and C startups, and for larger companies hiring their first employees abroad. Here’s why:
An Employer of Record in the Philippines simplifies international growth by managing all legal and compliance tasks for foreign companies hiring locally.
If you want a detailed perspective on this, our EOR Philippines service guide covers requirements, costs, and benefits for 2026.
Here’s a simplified overview of how Employer of Record Philippines 2026 works for most of our clients:
This model allows you to focus on core operations and business goals, rather than getting lost in regional employment regulations.
For some, setting up a branch or incorporating a company in the Philippines makes sense. For many, however, using an EOR is faster, cheaper, and less risky in the early stages.
Choosing the right model depends on your business goals, hiring strategy, and expected growth in the Philippines for 2026.
If you are uncertain about which approach works for your needs, our PEO vs EOR guide explains key scenarios and practical examples.
Attracting and keeping the best Filipino talent means knowing where and how they search for roles. In our work, we’ve noticed a few trends in 2026 that matter for global employers.
Besides popular job boards and LinkedIn, many professionals are active in Facebook and local online communities. Referrals remain a trusted way of discovering good candidates. Industry-specific events and university partnerships also play a bigger role than ever.
Filipino candidates expect prompt, respectful communication and clear feedback during the hiring process. Video interviews are the norm, and “soft skills” such as communication, learning ability, and teamwork carry as much weight as technical skills.
Integrating local HR practices into your recruitment helps improve candidate experience and brand reputation in the Philippines.
Inclusive hiring leads to better teams and business results. The workforce in the Philippines reflects various cultures and backgrounds, including growing numbers of women in IT and non-traditional sectors.
If you are building a distributed team, our resource on why diversity should be part of your hiring strategy gives practical tips for 2026.
Payroll, taxation, and contributions in the PhilippinesManaging payroll for Filipino employees is often the most daunting aspect for international employers. Regulations must be followed carefully.
Employers must pay staff on time (commonly bi-monthly or monthly), issue payslips, and make the right deductions for:
We manage payroll for overseas and local clients so they can avoid errors and maintain compliance.
Accurate payroll processing protects the employer brand, avoids fines, and ensures employee trust in your operation in the Philippines.
Working with an EOR partner can solve most payroll hurdles. But even if you set up your own Philippine entity, it pays to use trusted local payroll professionals for accuracy and peace of mind. For an international perspective, you may read our article on international payroll compliance.
Foreign companies are typically liable for payroll taxes and social contributions for local staff. Corporate income tax obligations depend on your company structure (local entity, branch, or remote employment only).
Recent years have seen digital tools and e-filing become mainstream for submitting reports and payments. If you engage with an EOR, these tax filings are handled for you. If self-managing, you will need authorized bank accounts, a local payroll system, and a trusted accountant or HR provider.
Philippine authorities are strict about labor reports and payroll filings:
Late or incorrect submissions can cause disruption and penalties. We recommend keeping digital records from day one and having a calendar of reporting dates for each benefit and tax obligation.
By 2026, remote and hybrid work environments have become normal across all business sectors in the Philippines. This opens new doors for overseas employers seeking flexible setups.
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