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Confused by inconsistent EOR billing in the Philippines?

Many companies are caught off guard when invoices don’t match the original quote. Vague pricing models, hidden markups, and unclear forex rates make it difficult to plan, track costs, or scale with confidence.

In this article, we break down what drives EOR costs in the Philippines—and what to look for in a provider that values clarity as much as compliance.

Many EOR providers in the Philippines present simple, all-in-one pricing on the surface—but the actual cost often includes multiple layers of fees. Understanding how these fees work is key to avoiding surprises and making smarter comparisons.

Here’s a breakdown of the most common cost components:

1. Setup Fees

These are one-time charges for establishing the necessary infrastructure, including the legal and administrative processes required to hire employees. In the Philippines, setup fees can range from PHP 50,000 to PHP 200,000, depending on the complexity of the arrangement and the number of employees involved.

2. Ongoing Service Fees

These are recurring charges for the day-to-day management of your employees. Most EORs in the Philippines offer two pricing models:

Percentage of Employee Payroll
This model charges a percentage of each employee’s gross salary. For example, with a 10% fee on a PHP 50,000 salary, the EOR would charge PHP 5,000 monthly. The downside? Costs increase as salaries rise, which can affect your ability to offer raises, bonuses, or scale your team.

Fixed Fee Per Employee
This model offers predictability, charging a set amount per employee. For example, if the fixed fee is PHP 15,000 per employee and a company employs ten workers, the total monthly cost would be PHP 150,000. This model provides greater cost stability and is particularly beneficial for budgeting purposes.

3. Variable costs

Beyond setup and service fees, other costs may show up in your monthly invoice:

• Currency Exchange (FX) Fees – If the EOR processes payments in a different currency, you may be charged 1–3% per transaction. This adds up over time, especially with large or frequent payrolls.
• Benefits Management Fees – If your EOR also handles benefits like health insurance or retirement plans, they may charge an additional PHP 3,000 or more per employee each month for this service.
• Compliance and Legal Support – Legal consultations, severance processing, or labor law updates may result in additional charges. Fees can reach up to PHP 20,000 per incident, especially for more complex employment issues.

To understand the real impact of different pricing structures, let’s compare two common models using the same hiring scenario.

Imagine a company employing 20 people in the Philippines, each earning a gross monthly salary of PHP 40,000:

Beyond pricing models, local labor rules and administrative realities also play a big role in shaping what EOR providers charge. Understanding these factors can help you better assess whether a fee is justified—and whether a provider is truly equipped to handle the nuances of Philippine labor compliance.

Here are some of the key elements that can affect EOR costs:

• Regional minimum wages
  The Philippines does not have a single national minimum wage. Rates vary by region—from PHP 316 to PHP 537 per day—which means EORs must manage payroll adjustments based on employee location. This can be labor-intensive, especially for remote teams spread across the country. 
• Mandatory contributions and benefits
  Employers are required to remit contributions to government agencies like SSS, PhilHealth, Pag-IBIG, and to provide 13th-month pay. These obligations must be calculated accurately and paid on time to stay compliant. 
• Constantly changing regulations
  Local labor laws evolve frequently. Staying up to date with wage board updates, benefit changes, and new compliance requirements requires hands-on legal and administrative support. 

While these realities can add cost, they shouldn’t be a reason for vague or bloated pricing. Transparent EOR providers will break down which costs reflect local compliance requirements and which are service-related—so you always know what you’re paying for and why.

Given the complexity of local labor laws and payroll requirements, transparency and clarity in EOR pricing are critical.

At The Company Cebu, we take a straightforward approach: all potential fees are detailed upfront, with clear contracts that outline the scope of services, legal obligations, and cost breakdowns. This helps our clients understand exactly what they’re paying for—and why.

We also maintain open, ongoing communication. Our account managers provide timely updates on regulatory changes and are available to address concerns as they arise, helping you stay compliant and plan costs with greater confidence.

If you’re comparing providers, here are a few things to look out for:

✅ Are government-mandated contributions passed through at cost?

✅ Does the contract specify what’s included (and what isn’t)?

✅ Is there a clear explanation of how local labor laws affect fees?

✅ Will you have access to a point person who can flag potential changes?

A transparent EOR doesn’t just manage payroll—it helps you make informed decisions and build with clarity from day one.

Choosing an EOR in the Philippines is about knowing what you’re paying for, staying compliant with local laws, and having a partner who communicates clearly.

Work with a provider that prioritizes transparency, outlines all obligations upfront, and keeps you informed as regulations shift. These are essential for long-term success.

At The Company Cebu, we combine local expertise with fair, transparent pricing to help you hire with clarity and confidence.

Connect with our team today to review your current EOR setup or explore a pricing model that better fits your long-term goals.