Payroll Services in the Philippines

Trusted partner for seamless IT payroll management in the Philippines.

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Dedicated payroll company in the Philippines

Fastest and most complete payroll solution in the Philippines.

Dedicated payroll company in the Philippines
  • Payroll ready in 7 days
    Start paying salaries within a week.
  • Accurate processing and filing
    Timely salaries and transparent reporting.
  • Compliant with Philippine laws
    Contracts and paperwork follow regulations.
  • Full data and IP protection
    We safeguard your confidential information.
  • Supports all workforce models
    Any setup, arrangement, or worker type.
  • Adjusts to your needs
    Easily expand or downsize your Philippine team.

Philippines
Philippines Flag

Hub of skilled, English-speaking tech talent with global remote experience.
Growing IT ecosystems in Manila, Cebu, and Davao serving US, EU, and APAC.
Affordable offshore hiring with supportive tax incentives and pro-foreign ownership policies.
GDP

$497–500 billion in 2025

Languages

Filipino and English (business)

Currency

Philippine Peso (₱)

Developer salary range

₱420k – ₱2.2m/year ($7k – $38k)

Payroll taxes in the Philippines

Income

0% to 35% progressive rates for residents; 25% for non-residents.

SSS

14% total (9.5% employer, 4.5% employee)

PhilHealth

5% total (2.5% employer, 2.5% employee)

Pag-IBIG

Fixed amounts up to ₱200 each (employer and employee)

Seeking smoother payroll in the Philippines?

Switch to an effortless solution.

Freelancers

No mandatory social contributions; subject to income tax and 12% VAT if turnover exceeds ₱3M.

Reporting

Monthly contributions filings and annual BIR income tax return submission.

Employment law overview

Minimum wage

Varies regionally; Metro Manila minimum wage around ₱645/day; IT salaries exceed these levels.

Overtime pay

1.25× regular wage on regular days, 1.3× on rest days, 2× on holidays.

Payroll frequency

Monthly, unless otherwise agreed upon.

Payslip

Legally required; itemized and provided digitally or in print with each salary payment.

Philippine benefits and tech perks

  • Mandatory contributions to SSS, PhilHealth, and Pag-IBIG for local employees.
  • Minimum 5 days paid annual leave; many companies offer 10–15 days.
  • At least 12 national holidays are observed annually.
  • Paid maternity leave (105 days) and paternity leave (7 days).
  • 13th month pay and performance and profit-sharing incentives.
  • Private health and dental coverage, wellness programs, professional development funds.

Laws governing payroll in the Philippines

Clear, practical guidance tailored for tech payroll compliance in the Philippines.

Worker types in the Philippines

In the Philippines, tech workers are mainly classified as employees or contractors. Correct classification ensures proper contracts and compliance, especially with remote or foreign talent.

Employees

Engaged under Philippine labor laws with mandatory SSS, PhilHealth, and Pag-IBIG contributions. Entitlements include paid leave (vacation, sick, maternity/paternity), social benefits, and legal protections on termination.

Work dynamics
Follow company policies and work under direct supervision.
Typical roles
Software engineers, UI/UX designers, systems analysts, DevOps engineers.
Сontractors

Operate as independent service providers with service agreements, managing their own taxes and social contributions where applicable.

Work dynamics
Autonomous, using its own tools and workflows.
Typical roles
Cloud architects, project-based software specialists, independent QA testers.
Contractor rules in the Philippines
Risk of reclassification (Four-Fold Test principles)

Contractors risk being reclassified as employees if they:

  • Work on fixed schedules set by the company.
  • Use company-owned equipment or systems.
  • Report to company supervisors.
  • Depend heavily on one client for ongoing work.
Remote work considerations

Location alone doesn’t determine status. Remote contractors may also face reclassification if they:

  • Attend regular internal meetings.
  • Submit work for internal approval or quality checks.
  • Use collaboration tools like Jira, GitHub, Slack as part of daily work.
  • Receive payments on fixed timelines or milestone-based schedules.
Remote setups in the Philippines

Remote and hybrid teams in the Philippines are treated like onsite employees. Compliance requires clear contracts, accurate classification, and registered payroll.

Legal status
Employees must be authorized to work in the Philippines. Foreign nationals require valid work permits or visas, while cross-border remote arrangements depend on the specific employment structure.
Reimbursements
Typical reimbursements cover internet, utilities, and essential equipment; terms are contract-specific.
Health and safety
Employers should ensure safe and ergonomic home work environments.
Data regulations
Compliance with the Data Privacy Act of 2012 (Republic Act No. 10173) and international standards is mandatory, with secure remote access enforced.
Payroll
Remote staff receive full salary, benefits, and payroll tax treatment as local hires.
Stocks and equity in the Philippines

Stock options and RSUs granted to Philippine employees are taxable income and must be reported accordingly.

Stock options and RSUs
Taxed at vesting or exercise, based on fair market value. Includes RSUs, ESOPs, and phantom shares.
Payroll reporting
Equity income is incorporated into gross salary and detailed on monthly payroll and payslips.
Cash alternatives
Performance-linked cash bonuses are common substitutes to simplify compensation.
Social Security and benefits impact
For Philippine citizens and permanent residents, equity earnings count as wages and are subject to SSS, PhilHealth, and Pag-IBIG contributions. Foreign employees are exempt from these but must still report equity income on payroll.
Foreign stock plans
Equity from overseas companies must be declared through local payroll and included in employee income records.
Payslips in the Philippines

Employers are required to provide detailed payslips to employees for every salary payment, as mandated by the Department of Labor and Employment (DOLE). Both digital and printed formats are acceptable. Payroll records must be retained for a minimum of 3 years, with tax-related records kept for up to 10 years to meet Bureau of Internal Revenue compliance requirements.

Required details:

  • Employee name and ID number.
  • Gross salary and net pay.
  • Itemized deductions (SSS, PhilHealth, Pag-IBIG, income tax, other authorized deductions).
  • Overtime pay, bonuses, and allowances.
  • Pay period covered.
  • Employer name and details.
Philippine payroll essentials

Additional details to know before launching your operations in the Philippines.

Minimum wage applies regionally
The Philippines has a regulated minimum wage varying by region and sector. For example, Metro Manila’s minimum wage is around ₱645/day for non-agriculture workers (~₱13,500/month). Tech roles generally pay above minimum wage.
Realistic tech salary benchmarks
Typical monthly salaries for developers are as follows:
  • Junior developers: ₱24k–₱36k;

  • Mid-level developers (3–5 years): ₱40k–₱60k;

  • Senior/lead developers, AI, DevOps: ₱70k–₱100k+.

Salaries are highest in Metro Manila, Cebu, and emerging tech hubs.
13th month pay
By law, all rank-and-file employees must receive a 13th-month pay, equivalent to one-twelfth of their basic salary within a calendar year. This is mandatory and taxable.
Social contributions are mandatory for locals
SSS, PhilHealth, and Pag-IBIG contributions apply only to Philippine citizens and permanent residents. Foreign employees do not contribute but must be reported properly.
Annual tax filing
Employers submit BIR Form 2316 for employees yearly. Foreign workers departing the Philippines require tax clearance prior to exit.
Bonuses and equity treatment
Bonuses, RSUs, and stock options count as additional compensation with distinct tax and contribution rules.
Regulated salary deductions
Only deductions authorized by law and agreed in writing can be withheld (e.g., meals, lodging, unpaid leave).
Director fees reporting
Non-salaried director fees are excluded from social contributions and reported separately in tax filings.

10 critical mistakes in payroll

Avoid these pitfalls to safeguard your Philippine workforce.

Severance and termination law_icon

Ignoring regional wage

Regional wage laws vary; ignoring them risks fines and penalties.

Unforeseen costly delays_icon

Late salary payments

Salaries must be paid within 7 days after the pay period ends.

Contractors without CPF and leave_icon

Wrong social contributions

Errors in SSS, PhilHealth, and Pag-IBIG, especially for foreign employees.

Four-Fold Test fail_icon

Four-Fold Test fail

Worker misclassification risks tax and labor compliance issues.

Missing payslips_icon

Missing payslips

Not issuing detailed payslips violates legal requirements.

Leave taxation_icon

Leave taxation

Unused leave payouts must be taxed and correctly reported.

IR8A and IR21 mistakes_icon

Tax filing failures

BIR Form 2316 and IR21 must be filed on time.

Unauthorized deductions_icon

Unauthorized deductions

Deductions allowed only by law and written employee consent.

Security and visa restrictions_icon

Visa rules overlooked

Non-compliance with work permits causes fines and delays.

Data privacy_icon

Data security lapses

Failing to protect employee data risks breaches and penalties.

Most reliable Philippine tech payroll

Try efficient monthly payroll management with expert local knowledge.

Most reliable Philippine tech payroll
Automated payroll platform

Seamless management of salaries, SSS, PhilHealth, Pag-IBIG, tax filings, equity, and annual BIR Form 2316 submissions.

Smooth setup and payments

Employee and contractor onboarding, salary disbursement, contributions, and compliant payslips handled every cycle without delays.

Local banking integration

Payments processed through Philippine banks to ensure fast clearance, transparency, and hassle-free currency handling.

Flexible benefits and bonuses

Easily add private health plans, equity options, performance bonuses, or remote work reimbursements.

Data privacy and security

All payroll records securely stored with strict compliance to the DPA and DOLE guidelines.

Dedicated local support

Our team manages all filings and offers expert guidance on complex cases and regulatory nuances.

Explore Our Payroll Platform

See how the Global Employer Of Record platform helps you seamlessly manage your global workforce — from hiring and compliance to payroll and employee requests — all in one place.

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Get in touch
With GEOR, you can hire new staff in any country and create a truly global team without bothering with legal entry to the target market.

Proven experience, at your fingertips

We’ve supported 100+ tech businesses in optimizing team size, minimizing administrative workload, and managing compliance risks. Discover the benefits of expert payroll services in the Philippines.

96%
reduction in hiring time.
40%
savings in HR and operational costs.
4x
faster market entry.
92%
employee retention rate.
Philippines payroll pricing

Our base plan is designed for international companies onboarding their first engineers or establishing distributed teams in the Philippines. It’s perfect for pilot projects, early tech hires, and transitioning contractors to full-time employees.

Basic
  • Onboarding within 7 days
  • Payroll processing
  • Pension, social fees, and reporting
$499

per employee/ month.
No hidden fees or extra charges.

Philippine IT payroll uncomplicated

You need to pay a team in the Philippines, but the usual process overwhelms you? Book a call with us, and we’ll show you a clear path.

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Client Feedback

Alexis Bogan
Alexis Bogan
Manager
Calicraft

GEOR has delivered exceptional HR Outsourcing services for Calicraft, a company dedicated to crafting beverages that inspire positive change and challenge the status quo. With a mission to make the world a kinder place, Calicraft relies on GEOR’s expertise to streamline their human resources operations and foster a supportive work environment.

Victor Fei
Victor Fei
Founder & CEO
Ormi Labs, Inc.

We’ve been truly impressed with the quality of candidates they offer. Thanks to them we were able to secure deals with top blockchain providers and decentralized finance projects.

Greg Tearne
Greg Tearne
Chief Executive Officer
Altapac Group

They go above and beyond with their service delivery. My initial expectations have not only been met but exceeded to a level I didn’t think possible.

Larry Williamson
Larry Williamson
Owner
EcoGreen Solutions Inc.

GEOR’s team of experts seamlessly integrated into our operations, taking responsibility for temporary labor staffing, including recruitment, training, and compliance.

Manu Prakash
Manu Prakash
Managing Director | Head Debt & Capital Markets
CredAble

Recruitment Redefined’s biggest strength was the quality of the service they provide. The team followed through with their commitments and created a fantastic experience for candidates.

Shafi Mustafa
Shafi Mustafa
Co-Founder
Savveo

They have high quality people who are good at problem solving. Beyond the quality of their development work, they also provides thought leadership in coming up with strategic solutions.

Anthony Knierim
Anthony Knierim
Managing Director
Reward Gateway

GEOR provided recruitment services for us. We had collaborative sessions where we explained our requirements for the position, and we spoke about the candidates profile in terms of qualifications, salary, and experience. Specifically, we were looking for a sales position, so we wanted candidates with previous experience in software sales within the B2B industry.Regarding technologies, we used GEOR’s own proprietary HR management software.

Chuck Salem
Chuck Salem
CEO and Co-Owner
Unique Venues

We first requested a meeting with the GEOR team. Following the meeting, they began to thoroughly examine our project and attempted to comprehend our expectations. When they realized what we needed, they began presenting potential candidates to us and began the interview process. We closed the positions with GEOR’s full support after two rounds of interviews.

Jason Schwartz
Jason Schwartz
Creative Director
Bright Bright Great

They provided innovative outputs and always meet the deadlines. Most of all, they have a deep understanding of the client’s business, allowing them to process things exceptionally.

Jim Darter
Jim Darter
President
Sandpiper Hospitality

I love the fact that they are always ready to help and put a lot of effort into every aspect of their work. GEOR was helping source, review and iterate candidates suited for our roles

Precision tech meets personalized payroll

Compared to other payroll outsourcing vendors in the Philippines, our model integrates all the essential features and services that tech companies specifically require.

Feature GEOR Acclime Links International
Regional insights and IT focus Deep Philippines tech market understanding, tailored for IT and startups. Broad local expertise, covering multiple sectors; less focused on tech-specific workflows. Strong regional presence; offers multi-industry payroll, not exclusively tech.
Compliance framework Fully aligned with Philippine laws: SSS, PhilHealth, Pag-IBIG, IR8A, IR21, bonuses. Comprehensive compliance, including social contributions and tax filings, with legal advisory. Full compliance services; handles statutory filings and social security, some customization needed.
Digital payroll platform Integrated, automated payroll with contributions, tax, equity, and benefits. Cloud-based payroll software with reporting features; may require local customization. Cloud platform with payroll, benefits, and tax management; customization often required.
Equity and bonus management Supports RSUs, stock options, milestone bonuses within payroll. Bonus management available; equity plans usually managed separately or via add-ons. Bonus handling standard; equity plans may need manual processes or third-party tools.
Onboarding speed and support 7-day onboarding, personalized local support, quick setup. Moderate onboarding time; advisory support but less personalized for tech clients. Longer onboarding; standard support with regional offices, less hands-on for tech clients.

Smooth operations guaranteed

We’ve built a payroll system designed to help you rock the Philippines market with ease and confidence. Our smart payroll services simplify critical challenges like strict deadlines, mandatory social contributions, and tax nuances, so you avoid costly regulatory pitfalls and focus on growth. Enjoy automated salary processing, expert management of local contributions, workforce tools, and flexible add-ons that scale with your team.

GEOR

Setting high standards.

Poised to disrupt the Southeast Asian market.

FAQs

What’s different about GEOR’s payroll system in the Philippines?

We combine automation with deep local expertise and personalized approach. Our team ensures accurate social contributions, handles annual filings, and understands the nuances of tech-sector payroll.

What does your payroll software in the Philippines handle?

Our payroll software automates salary calculations, manages mandatory social contributions (SSS, PhilHealth, Pag-IBIG) for Philippine citizens and permanent residents, processes bonuses and stock options as additional compensation, and supports all required monthly and annual tax filings.

Can you handle equity through a payroll provider in the Philippines?

Yes. We manage RSUs, stock options, and performance bonuses under Additional Compensation rules.

Can a payroll company in the Philippines issue payslips?

Yes, GEOR issues detailed digital or paper payslips, including gross salary, statutory contributions, tax deductions, and bonuses, as required by law.

How does a payroll provider in the Philippines secure employee data?

All data is encrypted and processed in full compliance with the Philippine Data Privacy Act (DPA) and aligned with GDPR standards.

Do international software companies use payroll outsourcing in the Philippines?

Yes, multinational technology companies, such as fintech startups, AI platforms, multinational enterprises, and global teams building a local presence, rely on payroll outsourcing in the Philippines.

Can we run payroll for Philippines-based employees from abroad?

Yes. We manage Philippine payroll for international employers without requiring a local entity through our compliant system.

Does our software company need a Philippines office to run payroll?

No. With GEOR, you can legally hire, onboard, and pay employees in the Philippines without opening a local office.

Is a local HR team necessary?

No, there is no need for local human resources representatives. GEOR handles employment agreements, mandatory SSS, PhilHealth, and Pag-IBIG registration, monthly tax filings, and salary processing.

Do you support hybrid or fully remote work setups in the Philippines?

Yes. We cover remote employees, expense reimbursements, and ensure compliant contract structuring for off-site arrangements.

Can you make payments to both employees and contractors?

Yes. We prepare compliant contracts for both and advise on correct employment classification.

How do you determine a worker’s status (employee vs. contractor)?

We assess work autonomy, payment method, and contract duration according to Philippine labor regulations and classification tests.

How do tech contractors submit taxes in the Philippines?

Contractors register with BIR, invoice for services, and manage their own tax payments and contributions if applicable.