How to onboard remote employees from the Philippines
Filipinos are known for their outsourcing capabilities and strong work ethic. This blog covers the hiring process and local compliance needed to hire employees from the Philippines.
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Filipinos have a strong work ethic and are known for their outsourcing capabilities. Companies who are looking to expand their global workforce but are unfamiliar with the hiring process and local compliance in the Philippines, continue reading. This blog covers everything on how to onboard remote employees from the Philippines.
Top areas to find remote employees in the Philippines
The Philippines offer modern infrastructure and resources such as co-working spaces, and high-speed internet to favor remote working employees. Based on the availability of these facilities, you should look into the following areas to onboard remote employees from the Philippines.
- Metro Manila
- Quezon City
- Cebu City
- Baguio City
Most of the country’s top universities are also located in or near the aforementioned cities. There is a general expectation that talent from these regions possesses higher English proficiency and education levels.
What are the average salaries of remote employees in the Philippines?
Here’s an approximation of the average yearly salaries for the commonly hired entry-level positions from the Philippines:
|Job Title||Average Salary (PHP)||Average annual salary (USD)|
|Virtual Assistant||260,495 – 301,240||4,680 – 5,412|
|Digital marketing associate||273,854 – 300,572||4,920 – 5,400|
|Accounting officer||240,457 – 307,251||4,320 – 5,520|
|Graphic Designer||252,000 – 300,000||4,556 – 5,425|
|E-commerce marketing associate||267,175 – 333,968||4,800 – 6,000|
|Technical support representative||267,175 – 333,300||4,800 – 5,988|
|Software Developer||601,144 – 714,025||10,800 – 12,828|
Read more: Average cost for onboarding remote employees in the Philippines.
Tips to onboard and retain remote employees in the Philippines
It is important to take effective measures to retain remote workers in the Philippines. Long-term remote employees of a company are its most valuable asset as time spent at a company allows them to be better at their jobs. It also saves employers from the financial costs of recruiting and training new employees.
Here are a few tips for onboarding and retaining remote workers in the Philippines:
1. Encourage connections for remote employees in the Philippines
Filipinos have a warm and friendly nature, so make sure to provide a social feed where they can chat with other members of their teams and feel connected. Providing regular opportunities for remote Filipino workers to connect with each other is also an important part of building a strong and cohesive team.
2. Initiate training and development programs
Investing in training and development programs for your Filipino remote employees results in employee retention. Provide training that allows them to grow within their jobs and feel more fulfilled at work.
3. Respect work-life balance for your remote employees in the Philippines
Filipinos are hard workers but they also value their family time. Respect their non-working hours and don’t burden them with work over the weekend. Maintaining a work-life balance for your remote workers in the Philippines helps to create a positive and productive work environment.
4. Create a sense of belonging for remote workers in the Philippines
Filipinos have a cultural trait of being “Mahiyan” which loosely translates to being “shy”. Mahiyan is not a bad thing and is rooted in a culture of respect for elders and authority. It is essential for non-Filipino employers to provide Filipino employees with the tools that help them collaborate with other team members and feel like they are part of the virtual team.
5. Offer incentives and rewards to Filipino remote employees
Filipino employees feel motivated by incentives and rewards, so make sure to provide them with recognition and rewards for their hard work. Recognizing and rewarding the achievements of your remote workers motivates them to stay at the company for a longer period.
6. Foster open communication with remote workers in the Philippines
Make sure to communicate regularly with your Filipino remote employees and keep them informed about important decisions and development in the company. Provide them with an open communication channel where they can easily reach out to their supervisors to ask questions, provide feedback and discuss their concerns.
7. Provide a career path for your remote workers in the Philippines
Establish a clear and structured career path for your Filipino remote employees and provide them with opportunities to develop their skills and grow within the company. This will help to retain and motivate remote Filipino workers.
Legal requirements for onboarding remote employees from the Philippines
When onboarding remote employees from the Philippines, it is important to understand the statutory benefits provided by law. These benefits directly impact the cost of onboarding remote Filipino employees. Filipino law mandates the following employee benefits:
Working hours in the Philippines
As per local law, remote Filipino employees can work 8 hours a day, 5 days a week. They must also take a one-hour break each day on top of their working hours. A fifteen-minute break is also mandatory in the morning and the afternoon or can be combined with a total of thirty(30) minutes within the 8 hours work period. Overtime costs you 25% of the employee’s hourly wage. Overtime is at your discretion, and there is no maximum time.
Every employee who is employed for at least one month as a remote worker is entitled to a 13th month’s pay. If the employee is not on a full-time contract, the payment calculation is prorated. It is usually paid on or before December 24 every year.
Annual / Sick leaves
Employers must provide employees with five days of paid annual days-off, given the employee is employed for at least 12 months or more. Note that these five days include sick days as well. In a year, if an employee takes less than five days off, the employer is required to reimburse the unused leaves.
Employer contributions for remote workers in the Philippines
Here is a breakdown of the government-mandated contributions you need to make in favor of remote workers, regardless of whether you set up a company in the Philippines or hire through an EOR service.
Social Security System (SSS)
Every employer in the Philippines is required to contribute 9.5% of each employee’s monthly salary to the Social Security System (SSS), which supports sick or disabled employees, as well as retired citizens. SSS contributions are capped at approximately $38 USD per month.
HDMF & PhilHealth
Employers in the Philippines are also required to make small contributions to the Home Development Mutual Fund (HDMF). This fund provides employees access to loans and housing, as well as PhilHealth – the public health system. Philhealth and HDMF contributions are capped at approximately $30 USD per month combined.
What is the best way to onboard remote employees from the Philippines?
Business Process Outsourcing companies (BPO) and Employer of Record (EOR) services are the two main ways to recruit and employ remote workers in the Philippines.
Employer of Record (EOR) in the Philippines
An Employer of Record is in charge of the local payroll, social security, and contracts of employees. Use of this service allows you to hire employees in the Philippines without needing a legal entity in that country.
As part of their services, many EOR service providers, including Emerhub have access to vetted, top-tier talents. You can specify the kind of employee you want and their level of expertise. As a result, companies are able to maintain high hiring standards while minimizing the administrative burden of hiring international employees.
Business process outsourcing (BPO) in the Philippines
In a BPO setup, a company outsources the whole business process to an external company – such as a call center. The workforce carrying out these processes is hired, managed, and trained by the BPO company. Business Process Outsourcing is popular but not the best fit for every business process in the Philippines.
On the other hand, EOR is generally considered to provide the most optimal solution, as companies can hire the right employees, gain access to proven professionals, and directly monitor their performance.
Related: Outsourcing to the Philippines: How EOR Outperforms BPO
Onboarding remote employees from the Philippines with Emerhub’s EOR services
Emerhub is here to help you expand internationally when you are ready. With us, you can hire remote talent in the Philippines without worrying about the legal, human resource, or administrative aspects.
To learn more, fill out the form below, and our team will get in touch with you to discuss your Employer of Record and hiring needs in the Philippines.
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