Things to know when building a remote team in the Philippines

With the Philippines boasting a staggering 85% of its workforce having embraced remote work during the pandemic and a remarkable 60% increase in remote work hubs since 2018, it is clear that the country has become a hotbed for remote talent. This surge in remote work has been fueled by the Filipino workforce’s exceptional English proficiency, strong work ethic, and cost-effective labor.

However, building a remote team in a foreign country can be complex, involving intricate legal and HR challenges. This is where an Employer of Record in the Philippines can be a game-changer. In this blog, we will delve into the reasons behind hiring remote workers in the Philippines, its employment laws, and a few examples of easily available remote talent. In the end, the blog will also highlight the role of Global Squirrels’ EOR solutions in simplifying the process of hiring remote workers in the Philippines.

Top reasons to hire remote workers in the Philippines

Remote work in the Philippines is still a trend that has enabled more countries to focus on this location. Here is why you should choose contract workers or employees from the Philippines.

English prowess (verbal and written)

People who work remotely in the Philippines are fluent in English, as it is taught as the second language in the country. About 80% (57.4 million) of adults can understand written and spoken language, and 69% (49.5 million) can write it. Thus, hiring remote workers in the Philippines will ensure that there are no issues when collaborating with global teams. Filipinos are also known to be hospitable, meaning they are good at working in teams and contribute significantly to their success.

Cost efficiency

Living costs in the Philippines are lower than in other developed countries. This allows you to offer competitive salaries and get the best talent. The minimum wage per day, for instance, in the NCR region of Metro Manila, is PHP500 or $8.56. The Philippines typically has lower employer-provided benefits costs compared to many Western countries. Plus, since you will be hiring remotely, there will not be any need to pay for office space or related equipment.

High-performing talent

Workers from Filipinos are known to have a dedicated and resilient attitude towards work. They are very committed, reliable, and willing to go the extra mile for a company they want to work in. When working remotely, Filipinos put in more effort, which, according to them, means saving 30 minutes in traffic!

Well-educated workers

The Philippines produces around 500,000 graduates a year, which makes it a good choice for hiring remote workers. You will be able to find employees who have a growth mindset, are willing to collaborate with global teams, and are high-performing. The median age of the country is 23 years old, which means you will have a team of young and energetic individuals working for your project’s goals.

Now that we understand why the Philippines is an ideal location to find and hire remote workers, let us look at the employment laws of the Philippines.

Employment laws for hiring remote workers in the Philippines

The Philippine Labor Code

Wages and monetary benefits

Minimum wage: The minimum monthly wage is $186.97 (10921.20 PHP) as of 2023
Overtime pay: It is 25% of their hourly rate on regular working days.
Night shift differential: Employers must pay an additional wage of at least 10% to employees opting to work between 10 PM and 6 AM.
13th-month pay: The 13th-month pay is mandatory in the Philippines and needs to be paid by December 24th or before the end of a contract.

Know more: Work culture in Philippines

Leave benefits

Service incentive leave (SIL): This provides employees with 5 paid days in a calendar year, which could be used as vacation or sick leave.
Paternity leave: According to the Philippines Paternity Leave Act of 1996 (RA8187), fathers who are employees in private or public sectors get 7 working days of paid paternity leave with full pay for the first 4 children.
Maternity leave: According to Act No. 11210, or the Expanded Maternity Leave Act, which was signed to become the law states that female employees are entitled to 105 days of paid maternity leave.
Standard working hours: Filipino workers usually work for 8 hours a day with a 1-hour break, which is mandatory according to the law.

Know more: Leave policy in the Philippines

Other relevant labor laws

Magna Carta of Women: According to the Republic 9710, women shall not face any sort of discrimination when getting hired for a job.
Anti-Age Discrimination in Employment Act (Republic 10911): This act advises businesses not to indulge in any age-based discrimination in hiring and employment.

Easily available remote workers for hire in the Philippines

• Software Engineer
• Data Scientist
• DevOps Engineer
• IT Specialist
• IT Technician
• Digital Marketing Manager
• Content Specialist
• Product Manager

Also read: Hire Employees in the Philippines

How can Global Squirrels, as an EOR, help you build a remote team in the Philippines?

Global Squirrels acts as a legal employer of record for businesses and will assist you in hiring remote workers in the Philippines without setting up an office in this country. This, hence, simplifies the hiring and compliance process internationally.

Here are the key benefits of Global Squirrels as an EOR platform offers:

Fast hiring processing globally
Global Squirrels, as a platform, streamlines the talent sourcing and onboarding process, which helps speed up the hiring process internationally.

HR functions provided by our platform
Global Squirrels handles all HR functions from onboarding, payroll, benefits, attendance, and offboarding for your business’s global hires.

Significant cost savings
You can save up to 25% on hiring costs with no markups that are charged by BPOs and staffing agencies.

Easy to navigate EOR platform
Global Squirrels offers a user-friendly platform that simplifies all complex global employment workflows and processes by allowing you to access all timesheets at once. Our Employer of Record platform has helped many businesses, irrespective of their size, quickly hire remote workers in the Philippines without setting up any local offices.

Are you ready to hire workers in the Philippines? Request a demo of our hiring platform here!