Establishing and running payroll in the Philippines
The Philippines is a fast-developing Southeast Asian country and an exciting place for any foreign organization to expand. Its population of more than 100 million people, growing economy, and good positioning in Asia make it a country with huge potential for many businesses.
If you’re interested in expanding your business into the Philippines, an important part of the journey will be hiring staff locally. While this can bring huge benefits, it is also a complicated process and you will need to navigate the numerous laws and customs.
As a Global PEO with a wealth of experience in Asia, New Horizons can help you both set up and manage your Philippines payroll outsourcing. Whether you have an established entity in the Philippines or not, you can outsource all the hard work to us, so you can focus on making your expansion a success.
Why choose the New Horizons payroll solution?
If you have an entity
Some organizations may already have an entity registered in the Philippines. In these cases, we can provide support for payroll setup and management so you don’t have to worry about the details.
This is a great way for larger and more established businesses to streamline and simplify their expansion operations.
If you don’t have an entity
For organizations that do not have a registered entity in the Philippines, we can help by employing your staff through our Philippines PEO.
Acting as your employer of record, we will take care of hiring, payroll, tax, compliance, HR, and more, so you’ll be ready to embark on your new venture in the Philippines with minimal hassle.
Simpler Philippines Payroll Outsourcing
Philippines payroll guide
What are the rules for payroll tax in the Philippines?
When hiring staff in the Philippines, you will be responsible for both your own additional contributions and those of your staff.
Three main schemes are used:
3. The Home Development Mutual Fund, and you both need to contribute to all three.
Contracts and terminations
The termination laws and entitlements regulations in the Philippines are complicated, so it’s always advisable to get everything written up in a formal contract of employment and signed by both you and the employer.
In cases of termination, notice should be given if there is no proper cause for the termination (although the length can vary), and you will need to make severance payments.
How to establish Philippines payroll outsourcing
For larger organizations, it is possible to set up an internal Philippines payroll. However, this is a difficult process and can take a significant amount of time to complete, potentially holding up expansion and resulting in lost revenues.
The simplest way to establish a Philippines payroll is to outsource to New Horizons. We can set up your payroll, thenmanage your Philippines HR, contracts, legal compliance, and more, helping you expand faster and more efficiently.
Our Philippines PEO can even act as employer of record for your new hires, so we can help you whether you already have an entity in the Philippines or not, helping you to expand faster and with confidence.