India vs Philippines
Hiring in India vs the Philippines, compared dimension by dimension
India has the deepest engineering talent pool in Asia at competitive salaries, but Provident Fund, ESI, Gratuity, and state-level Professional Tax add layers most EOR contracts do not anticipate. The Philippines offers stronger business English, a nationally uniform Labor Code, and a mandatory 13th month bonus; total employer statutory costs run roughly 20 to 22% of salary. Neither wins every count.
1,000+ companies advised on international hiring
- 12%
- India's Provident Fund employer contribution rate on basic wages. The Philippines total statutory burden including 13th month runs roughly 20 to 22% of annual salary.
- 13th
- The Philippines mandates a 13th month bonus by 24 December under Presidential Decree 851. India has no equivalent nationally mandatory 13th month for all employers.
- UTC+5:30 vs UTC+8
- India sits 30 minutes behind the Philippines. Both overlap with European afternoons and US mornings. Neither is a blocker; the role and team determine which time zone works better.
India or the Philippines: which is the better Asia-Pacific market for your first remote hire?
India has the deepest engineering talent pool in Asia at competitive salaries, but Provident Fund, ESI, Gratuity, and state-level Professional Tax add layers most EOR contracts do not anticipate. The Philippines offers stronger business English, a nationally uniform Labor Code, and a mandatory 13th month bonus; total employer statutory costs run roughly 20 to 22% of salary. Neither wins every count.
At a glance
India
Best for: companies that need deep engineering, software, and data talent at scale, or finance and operations teams that can absorb the state-level compliance layers of Indian employment law
Philippines
Best for: teams where native business English, customer-facing roles, or BPO and operations talent matter more than raw talent volume, and where a single national Labor Code simplifies compliance
Shared by both: strong English proficiency in the professional workforce · EOR model covers both via Teamed, same fee · competitive salaries relative to Western Europe and North America · owned Teamed entities in both countries
| Where it matters | Who leads | Why |
|---|---|---|
| Employer statutory cost burden | India | India's ongoing employer statutory costs run roughly 12 to 16% of gross salary (PF 12% on basic wages, ESI 3.25% for eligible employees, state Professional Tax). Gratuity accrues after five years. The Philippines total runs higher: SSS 9.5%, PhilHealth 2.5%, Pag-IBIG 2%, plus mandatory 13th month pay equivalent to one additional month of basic salary. India wins on total annual employer cost burden. |
| Engineering and software talent depth | India | India has the largest English-speaking technical talent pool in Asia: Bangalore, Hyderabad, Pune, Chennai, Delhi, and Mumbai collectively produce more software engineers per year than any other single country in the world. The Philippines has growing tech communities in Metro Manila, Cebu, and Davao, but the depth for specialised engineering roles is materially lower. |
| Business process and customer-facing talent | Philippines | The Philippines is the global centre for BPO, customer success, and operations talent. Over a million workers are employed in the BPO sector. English is an official language, neutral-accent proficiency is the professional baseline, and cultural alignment with US and UK businesses is strong. For customer-facing, support, and operations roles, the Philippines leads. |
| English language and communication | Philippines | English is one of two official languages in the Philippines and the primary language of business, education, and professional communication. Indian professionals also have strong English skills, but the Philippines has a neutral accent that often works better for real-time voice-based customer roles. For roles where spoken English is the primary tool, the Philippines has an edge. |
| Termination and employment exit | India | The Philippine Labor Code's security-of-tenure doctrine requires every dismissal to meet just or authorised cause with a two-notice due-process requirement. Illegal dismissal carries reinstatement plus full backwages. India's termination rules for most EOR-eligible employers (under 100 workers) are more employer-flexible, with statutory notice under the contract and no equivalent reinstatement doctrine at scale. |
| Compliance structure | Philippines | The Philippines operates under a single national Labor Code applied uniformly across all regions. India's compliance surface spans state-level Professional Tax slab structures, Shops and Establishments registrations that vary by state, and EPFO and ESIC registrations with state-specific audit procedures. The Philippines is simpler to administer nationally, even accounting for the security-of-tenure requirements. |
India on G2
Who India is for
This comparison is for rapidly growing companies with an international footprint deciding where to place their first or next Asia-Pacific hire. If your question is which EOR to use rather than which country, look at the India EOR comparison or the Philippines EOR comparison, which score eight providers on a published rubric in each market. If you are ready to set up your own entity, the crossover calculator models when a Pvt. Ltd. in India or a Philippine corporation beats EOR on cost.
Not the right fit if
- Already decided on India?. The best EOR in India comparison scores eight providers on India compliance depth, FX transparency, and the path to your own Pvt. Ltd.
- Already decided on the Philippines?. The best EOR in the Philippines comparison scores eight providers on Philippine Labor Code depth, FX transparency, and the path to your own Philippine corporation.
Find your pick in 20 seconds
| If you are… | Start with | Why |
|---|---|---|
| Engineering, software development, or data team | India | India has the largest pool of English-speaking software engineers in the world. Bangalore, Hyderabad, Pune, and Chennai are deep markets for mid-level and senior technical roles at competitive salaries. |
| Customer success, support, or BPO team | Philippines | English is an official language with neutral professional-grade pronunciation, cultural alignment with US and UK businesses is strong, and the Philippines is the global benchmark for customer-facing operations talent. |
| Finance, accounting, or back-office operations | Either market, role-dependent | India is stronger for CA-qualified or specialist finance talent. The Philippines is competitive for standard accounting, bookkeeping, and process-based back-office work. Run a salary benchmark per role before deciding. |
| Building a follow-the-sun coverage model | Both, one hire each | India at UTC+5:30 covers European afternoons and early US mornings. The Philippines at UTC+8 covers APAC business hours and US West Coast mornings. Teamed handles both on one system with the same flat fee. |
What is the India vs Philippines hiring decision?
An Employer of Record in India or the Philippines legally employs your people through its own entity or a vetted local partner, so you can hire compliantly without setting up a Private Limited Company (Pvt. Ltd.) in India or a Philippine corporation first. The EOR issues the employment contract, runs payroll, manages statutory contributions, and carries the legal obligations of the local employer while you direct the day-to-day work.
India adds Provident Fund at 12% of basic wages, Employee State Insurance at 3.25% for eligible employees, and state-specific Professional Tax. Gratuity accrues after five years of service. The Philippines adds SSS at 9.5%, PhilHealth at 2.5%, and Pag-IBIG at 2%, plus mandatory 13th month pay under Presidential Decree 851. Security of tenure under the Philippine Labor Code means every dismissal must be for just or authorised cause with statutory due process. The right country depends on the role, the talent you need, and how you weigh employer cost against workforce flexibility.
Employer statutory cost: what you pay on top of salary
Both countries pass their statutory employer contributions through at cost. The gap is structural, not a provider choice. India's ongoing employer statutory costs run roughly 12 to 16% of gross salary depending on the salary structure and whether ESI applies. The Philippines total runs higher in most salary scenarios once the mandatory 13th month pay is counted: SSS, PhilHealth, and Pag-IBIG run 12 to 14% of salary in contributions, plus a mandatory 13th month that adds another 8.33% of annual basic salary. On a team of ten the difference compounds quickly.
| Detail | India | Philippines |
|---|---|---|
| Provident Fund / social security contribution (employer) | PF: 12% of basic wages. ESI: 3.25% of gross for employees earning up to INR 21,000 per month. | SSS: 9.5% of monthly salary credit (MSC), capped at PHP 30,000 MSC per month. |
| Health insurance contribution (employer) | ESI covers health; employer rate is 3.25% for eligible employees. Senior staff typically above the ESI threshold and covered by private group health instead. | PhilHealth: 2.5% of monthly basic salary, salary ceiling PHP 100,000 per month. |
| Housing fund contribution (employer) | No equivalent to Pag-IBIG. Gratuity is the main long-term obligation: payable after five years of service at 15 days of last basic salary per year of service. | Pag-IBIG (HDMF): 2% of monthly compensation; maximum employer share is PHP 200 per month. |
| Mandatory annual bonus | No universal mandatory 13th month. Payment of Bonus Act applies to profitable establishments with 20 or more employees (minimum 8.33% of salary up to a statutory ceiling). | Presidential Decree 851: 13th month pay equal to one-twelfth of annual basic salary, payable by 24 December. Universal statutory obligation. |
| EOR fee (Teamed) | $599 USD or £479 GBP per employee per month, flat. FX absorbed at zero markup on the fee. INR rate shown against mid-market on every invoice. | $599 USD or £479 GBP per employee per month, flat. Same fee in the Philippines. PHP rate shown against mid-market on every invoice. |
Worked example
On a PHP 60,000 per month basic salary in the Philippines, employer statutory contributions run roughly: SSS PHP 2,850 (capped at PHP 30,000 MSC), PhilHealth PHP 1,500, Pag-IBIG PHP 200. The 13th month adds PHP 5,000 per month equivalent. Total: PHP 9,550 per month, or about 16% of gross salary. For a comparable Indian engineer at INR 80,000 per month with a basic wage of INR 40,000, PF adds INR 4,800 per month (6% of gross), with ESI not applying above the INR 21,000 threshold. Gratuity accrues but requires no monthly cash outlay until the employee completes five years.
Talent depth: which role belongs in which country
The decision is role-specific, not country-specific. India has the largest English-speaking technical workforce in the world and the deepest pools for engineering, data, and back-office roles at scale. The Philippines is the global centre for BPO, customer success, and English-language operations talent. Salary benchmarks differ sharply: a mid-level software engineer in Bangalore or Hyderabad earns roughly USD 15,000 to 40,000 per year (total compensation); a comparable BPO team lead in Manila earns roughly USD 12,000 to 20,000 per year. Neither number is better; they serve different roles.
| Detail | India | Philippines |
|---|---|---|
| Software engineering and development | Deep pools across Bangalore, Hyderabad, Pune, Chennai, and Delhi. India produces more software engineering graduates annually than any other country. Competitive for mid-level and senior roles. | Growing but shallower tech community in Metro Manila, Cebu, and Davao. Competitive for web development and support engineering; thinner for specialised back-end or ML roles. |
| Customer success, support, and BPO | Capable but a second-choice for US or UK voice-based roles where neutral accent is preferred. Strong for back-office, data entry, and process-based operations. | The global benchmark for English-language customer operations. Neutral accent, strong cultural alignment with US and UK businesses, and a large trained workforce. The Philippines leads this category. |
| Finance, accounting, and back-office | Strong for finance, accounting, CA-qualified talent, and back-office operations at scale. Chartered Accountancy and MBA graduates are plentiful in the major metros. | CPA-qualified accounting talent is available; the finance pool is smaller than India's at equivalent seniority. For pure accounting and bookkeeping, the Philippines is competitive. |
| Salary benchmark (approximate) | Mid-level software engineer: USD 15,000 to 40,000 per year total compensation. Senior engineer in Bangalore or Hyderabad approaches USD 30,000 to 60,000 at the top end. | BPO team lead: USD 12,000 to 20,000 per year. Mid-level developer in Metro Manila: USD 15,000 to 30,000. Salaries have risen significantly as remote demand has grown. |
How City Relay used both markets
City Relay, a London property-management specialist, built its remote team across Spain, India, and the Philippines on Teamed EOR. India provided the back-end engineering resource; the Philippines handled the customer-success and reservations function where business English and time-zone coverage were the priority. Both markets ran on the same Teamed system with the same flat fee and zero FX markup. The right country for City Relay was not a binary choice; it depended entirely on the role.
Termination and employment exit: the risks in each market
A contested exit in the Philippines is materially more complex than in India for most EOR-scale employers. The Philippine Labor Code's security of tenure doctrine requires just or authorised cause, a two-notice procedure, and carries reinstatement plus full backwages for illegal dismissal. India's termination rules for most EOR-eligible employers are more employer-flexible: statutory notice under the contract, no equivalent reinstatement doctrine for private-sector employees below the Industrial Disputes Act headcount threshold, and no mandatory severance formula on individual exits. The EOR carries the legal-employer liability in each market; know what that looks like before you hire.
| Detail | India | Philippines |
|---|---|---|
| Grounds for dismissal | Contract notice period for resignation or mutual separation. Misconduct must be documented but there is no equivalent national twin-notice requirement for private-sector employers below 100 workers. | Just cause (serious misconduct, neglect of duty, fraud, loss of trust, crime) or authorised cause (redundancy, retrenchment, disease, closure). Both require documentary evidence. |
| Procedural requirements | Show-cause and documentation best practice; no national statutory twin-notice rule for private-sector employers below the Industrial Disputes Act threshold. | Twin-notice rule is mandatory. First notice: written charge and opportunity to explain. Second notice: written decision. Failure at either step can convert a lawful dismissal into an illegal one. |
| Consequence of illegal dismissal | Wrongful termination claims are possible under contract law but reinstatement is not a standard remedy for private-sector employees at most EOR-scale employers. | Illegal dismissal entitles the employee to reinstatement without loss of seniority and full backwages from the date of dismissal to the date of reinstatement. The exposure is real. |
| Notice period | Set by the employment contract; typically 30 to 90 days for professional roles. No single statutory minimum for private-sector employment across all states. | 30 days advance notice for resignation under the Labor Code. Employer-initiated termination notice varies by cause; authorised-cause redundancy requires 30 days notice to DOLE and to the employee. |
Ask your EOR who handles a contested exit
In the Philippines, a contested dismissal that goes to the NLRC (National Labor Relations Commission) requires your EOR to defend the decision with documented just or authorised cause and a complete twin-notice record. Ask every provider: who runs the NLRC response, is that expertise on your plan or a premium add-on, and what is the typical timeline? Teamed's real HR and legal experts handle these directly, no AI bot wall and no Enterprise tier to unlock.
Compliance structure: state-by-state vs a single national code
India's compliance surface spans central and state-level frameworks that interact differently depending on where your employee is based. Provident Fund and ESI are centrally administered, but Professional Tax, Shops and Establishments registration, and certain industrial-relations rules are state-specific and vary by state. The Philippines operates under a single national Labor Code and BIR tax framework. For a people-ops team managing multiple countries, the Philippines is easier to administer, even accounting for the security-of-tenure layer.
| Detail | India | Philippines |
|---|---|---|
| Employment law framework | Central legislation (Factories Act, Industrial Disputes Act, Contract Labour Act, Shops and Establishments Acts) plus state-specific rules that vary by state. EPFO and ESIC are centrally administered. | One national statute: the Philippine Labor Code. BIR administers income tax. SSS, PhilHealth, and Pag-IBIG each have their own national agencies. Consistent rules across all regions. |
| State-level registration requirements | Shops and Establishments registration required separately in each state where employees are based (Bangalore, Mumbai, Delhi, and Hyderabad each have their own Act and procedures). | No state-level employment registration equivalent. National registrations (SSS, PhilHealth, Pag-IBIG, BIR) apply uniformly. |
| Professional Tax | Levied by individual states. States including Maharashtra, Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, and West Bengal impose it; others do not. Maximum INR 2,500 per year nationally. | No equivalent state-level professional tax. |
| Statutory minimum wage | State-specific; each state sets its own minimum wages per industry category. There is no single national minimum wage for all private-sector employees. | Regional minimum wages set by Regional Tripartite Wages and Productivity Boards under the Wage Rationalization Act. Published by DOLE per region and sector. |
Where complexity is worth paying for
India's state-level complexity is manageable with a good EOR that employs through its own Indian entity and has real HR and legal experts who know the Shops and Establishments rules in Bangalore, Mumbai, Delhi, and Hyderabad. Teamed owns an Indian entity and handles all state-specific registrations as part of the standard onboarding. The complexity is a reason to pick a specialist EOR, not a reason to avoid India.
Why the comparison matters
Behind every line item is a real person, in a real place.
The fee, the FX and the support model are not abstractions. They decide whether the person you hired in Barcelona or Rome is paid right, on time, by someone who knows their employment law. That is the comparison worth running.
What each stakeholder evaluates
| Criterion | Legal | Finance | People Ops | Security |
|---|---|---|---|---|
| Total employer cost per hire | In India, ask your EOR to confirm whether your employee's basic wages will attract PF contributions above the INR 15,000 per month statutory floor. Also confirm which state the employee is based in, as Professional Tax varies by state. In the Philippines, ask whether 13th month pay is included in the quoted cost model or is an additional line. It is a statutory obligation; it must be in the budget. | On a PHP 60,000 per month salary in the Philippines, employer statutory contributions plus the 13th month equivalent add roughly PHP 9,550 per month above salary, around 16% of gross. On an equivalent Indian salary of INR 80,000 per month with a basic wage of INR 40,000, PF adds roughly INR 4,800 per month, about 6% of gross. Model both before choosing. | The Philippines 13th month pay is a statutory right, not a discretionary bonus; employees plan around it. Communicate it as a committed annual obligation at the point of hire. In India, if your employee completes five years, Gratuity becomes due on separation; factor this into long-term total compensation modelling. | An owned entity in each country means one employer in the data chain. Teamed owns entities in both India and the Philippines. Ask any EOR whether coverage in each country is through its own entity or a local partner sub-processor, as the data-processing accountability structure differs. |
| Termination risk and timeline | In the Philippines, every dismissal needs documented just or authorised cause and a complete twin-notice record. Ask your EOR who runs the NLRC response if a dismissal is contested and whether that expertise is on your plan. In India, document misconduct and follow the contract notice period; ask your EOR what the state-specific obligations are for your employee's location. | Illegal dismissal in the Philippines can result in reinstatement plus full backwages from the date of dismissal. On a PHP 60,000 per month salary, a two-year NLRC case that goes against you costs roughly PHP 1,440,000 in backwages, before any legal costs. The EOR carries the legal-employer liability but the process needs to be run correctly from the first notice. | If you are restructuring a Philippines-based team, authorised cause (redundancy) is a valid ground but requires 30 days advance written notice to both the DOLE and the employee, plus separation pay. Plan the timeline with your EOR before any communication goes out. In India, the contract governs; check the notice period and whether the Industrial Disputes Act applies to your entity headcount. | Documentation is your defence in both markets. In the Philippines, keep a complete twin-notice file for every dismissal. In India, keep misconduct records and the termination letter. The EOR holds this on your behalf; confirm their documentation retention policy covers any potential claim window. |
| Talent access and role fit | There are no legal restrictions on the roles you can hire in either country for standard commercial functions. IP and invention-assignment clauses are enforceable in both markets. Ask your EOR whether its standard contract includes these clauses or whether they need a custom addendum. | Salary benchmarks diverge sharply by role. A mid-level software engineer in Bangalore (USD 20,000 to 35,000 total compensation) costs meaningfully less than a comparable profile in Europe or North America. A BPO team lead in Manila (USD 12,000 to 20,000) is competitive against South-East Asian alternatives. Run current salary data per role and per city before committing to a country. | Both markets have strong remote-work cultures for professional roles. The Philippines time zone (UTC+8) aligns well with Asia-Pacific and US West Coast morning hours. India (UTC+5:30) covers European afternoons and US morning overlap. If your team spans the US and APAC, one hire in each country can give you genuine follow-the-sun coverage. | Background checks and pre-employment verification follow equivalent data-protection principles in both markets. Neither country imposes sector-specific security clearance requirements for standard commercial employment. Confirm your EOR's screening process for each market before the first offer. |
How Teamed hires for you in India or the Philippines
Teamed owns entities in both India and the Philippines. City Relay used both markets on the same Teamed system, with the Philippines team handling customer success and the India team providing back-end engineering resource. The process is the same in both countries.
Step 1
Model the total cost before you commit
Bring your role, your target salary range, and the country you are considering. Teamed models the employer cost side by side: statutory contributions, the 13th month pay in the Philippines, Gratuity provision in India, any state-level Professional Tax, and the flat Teamed fee. You see the total before you make an offer.
Step 2
Issue the compliant contract
The employment contract issues under a Teamed entity in India or the Philippines. In India, the contract covers PF, ESI, and state-specific Shops and Establishments requirements. In the Philippines, it includes the probationary period compliant with Article 296, 13th month pay, and the security-of-tenure provisions of the Labor Code.
Step 3
Run payroll and statutory contributions
Teamed runs monthly payroll, remits employer-side PF and ESI in India, and handles SSS, PhilHealth, Pag-IBIG, and BIR withholding in the Philippines. The Philippines 13th month is calculated monthly and paid by 24 December. Both markets run on one Teamed system with the same zero-markup FX policy.
Step 4
Model the crossover and move to your own entity
Teamed tells you the month when your own Pvt. Ltd. in India or your own Philippine corporation starts to beat EOR on cumulative cost. Global Entity and Employment Operations (GEMO) sets up the entity and handles the statutory registrations in both countries, with no re-onboarding of existing EOR employees.
City Relay · London property management
+80% global workforce. India and Philippines on one system.
- Global workforce growth in 18 months across all markets
- +80%
- Onboarding to compliant contract in India and the Philippines
- < 24 hrs
- Local compliance across all markets including India and Philippines
- 100%
- One Teamed platform for India, Philippines and every other market
- 1 system
Challenge
City Relay, an award-winning London short-term-rental specialist, needed to scale a remote team across multiple markets without building in-house expertise in each country's employment law. The firm had no appetite for entity setup, needed fast onboarding to match their rental market's seasonality, and wanted a single EOR system across all markets.
Approach
City Relay engaged Teamed and extended to both the Philippines and India as part of its Asia-Pacific build-out. Teamed's owned entities in both countries became the legal employers; City Relay directed the day-to-day work. The Philippines team handled customer success and reservations; the India team supported the engineering function. Both ran on the same Teamed system with the same flat fee and zero FX markup on the fee.
Result
City Relay grew 80% in global workforce within 18 months of the first EOR hire. Onboarding in both India and the Philippines compressed to under 24 hours when the seasonality of the rental market demanded it. 25% of total headcount is now remote-international, with a firm internal target of 30%.
Interactive tool
Model the employer cost in India vs the Philippines
The 13th month pay obligation in the Philippines and the Gratuity provision in India both affect the true all-in cost of a hire. Use the crossover calculator to model when your own Pvt. Ltd. in India or your own Philippine corporation beats EOR on cumulative cost.
Decision checklist
- Choose India if you need engineering, software development, or data talent at scale. Bangalore, Hyderabad, Pune, and Chennai have the deepest pools in Asia for technical roles, and India's ongoing employer statutory costs are lower than the Philippines once the 13th month is factored in.
- Choose the Philippines if your role requires native business English, customer-facing communication, or BPO talent. The Philippines is the global benchmark for customer success and English-language operations, and its single national Labor Code is simpler to administer than India's state-level framework.
- Model the Philippines 13th month pay before you compare headline salaries. A PHP 60,000 per month role carries a statutory PHP 60,000 13th month payment by December. That is 8.33% of annual basic salary added to the total annual cost, and it must be in your budget from day one.
- Ask every EOR whether it owns its entity in India and the Philippines or operates through a local partner. Teamed owns entities in both countries. An owned entity means one accountable employer in the statutory contributions and data chain.
- Plan the crossover point before you hit it. Teamed models the month when your own Pvt. Ltd. in India or Philippine corporation beats EOR on cumulative cost and helps you make the move via Global Entity and Employment Operations (GEMO), with no re-onboarding of existing employees.
Honest take
When the Philippines is the better choice
- Choose the Philippines if the role is customer-facing, voice-based, or requires strong written English at scale. The Philippines is the global benchmark for this talent; India is second choice for US-accent-aligned customer operations.
- Choose the Philippines if your team works primarily in APAC or US West Coast hours and you want a single time zone that serves both. The Philippines at UTC+8 aligns more cleanly with APAC business hours than India at UTC+5:30.
- Choose the Philippines if regulatory simplicity matters for your people-ops team. One national Labor Code beats India's state-by-state compliance surface for teams without a dedicated employment-law specialist managing each Indian state.
India leads on engineering and technical talent depth, and on total employer cost once the Philippines 13th month pay is counted. The Philippines leads on business English, customer-facing roles, and compliance simplicity. Both are strong hiring markets when run through an EOR that owns its entity in each country and has real HR and legal experts on the ground.
Questions to ask any EOR before you sign
- 1What deposit or pre-funding do you require, and which setup, offboarding, minimum-term, termination or admin fees are in the contract? Read it line by line before you sign.
- 2In the Philippines: do your real HR and legal experts handle the twin-notice procedure directly for a contested dismissal, and is that expertise on my plan?
- 3In India: are you employing through your own Indian entity or a vetted local partner, and which state-level Shops and Establishments registrations are included as standard?
- 4For both countries: can you model the total employer cost, including statutory contributions and the 13th month pay in the Philippines, before I commit to a hire?
- 5When my headcount in India or the Philippines reaches the point where my own entity is the better structure, will you tell me and help me make the move?
- 6In the Philippines: does your standard employment contract include a clearly documented 13th month pay clause and a compliant probationary employment term under Article 296?
- 7In India: will you handle EPFO and ESIC registration, state-level Professional Tax, and Gratuity calculations, or do some of those go to a third-party sub-contractor?
- 8If a law changes in either market, how will I find out, and will I hear about it before or after the affected payroll runs?
Frequently asked questions
Is India or the Philippines less expensive for employers in 2026?
India's ongoing employer statutory costs are generally lower for mid-to-senior roles. PF runs at 12% of basic wages; ESI applies only for employees earning under INR 21,000 per month. For a senior engineer in Bangalore at INR 80,000 per month gross, employer statutory costs add roughly INR 4,800 per month (PF on a basic wage of INR 40,000), around 6% of gross. In the Philippines, SSS (9.5%), PhilHealth (2.5%), and Pag-IBIG (2%) total 14% of salary in contributions, plus the mandatory 13th month pay adds 8.33% of annual basic salary. On equivalent headcount, the Philippines carries a higher total annual employer cost in most salary scenarios. Salary benchmarks also differ; model both before deciding.What is the 13th month pay in the Philippines and does it apply to EOR hires?
Presidential Decree 851 requires every employer with more than one employee to pay a mandatory 13th month bonus by 24 December each year. The amount is one-twelfth of the employee's total basic salary earned during the calendar year. It applies to all employees regardless of their status (monthly-paid, probationary, or regular). If you hire through an EOR in the Philippines, the EOR is the legal employer and is obligated to pay the 13th month. Your EOR should build this into your monthly cost model as an accrual, not present it as a surprise December payment. Teamed includes 13th month pay in its standard Philippines cost model.How does security of tenure work in the Philippines for EOR employees?
Security of tenure is a constitutional right in the Philippines, backed by the Labor Code. Every employee has the right not to be dismissed except for just or authorised cause. Just cause covers serious misconduct, wilful disobedience, gross neglect of duty, fraud or wilful breach of trust, and conviction of a crime. Authorised cause covers redundancy, retrenchment to prevent losses, closure, and disease preventing continued employment. Both require a statutory two-notice procedure: a written charge notice with an opportunity to be heard, followed by a written notice of decision. Illegal dismissal entitles the employee to reinstatement plus full backwages. Your EOR carries this liability as the legal employer, but the documentation must be correct from the first notice.Can I hire in both India and the Philippines on one EOR?
Yes. Teamed covers both markets on one system with the same flat fee ($599 USD or £479 GBP per employee per month) and the same zero FX markup policy. You see the employer cost for each hire, in each country, on one invoice. Real HR and legal experts at Teamed handle India's EPFO registrations, state-level Professional Tax, and Gratuity calculations, alongside the Philippines' security-of-tenure dismissals, 13th month pay, and SSS, PhilHealth, and Pag-IBIG filings. Both countries run on the same plan without switching providers or re-onboarding your people-ops team.When does setting up my own entity in India or the Philippines beat EOR?
The crossover point is when the cumulative per-employee EOR fee exceeds the fixed cost of running a Private Limited Company in India or a Philippine corporation. In India, the typical crossover is around 15 to 20 full-time employees, where Pvt. Ltd. running costs (RoC filings, accountant, EPFO and ESIC registrations, company secretary) fall below the cumulative EOR per-seat fee. In the Philippines the crossover depends on salary levels and your EOR fee; the SEC registration, BIR registration, and ongoing statutory filing costs are the fixed base to compare against. Teamed models the crossover explicitly per country and helps you make the move via Global Entity and Employment Operations (GEMO) with no re-onboarding.Which country is better for a customer support or BPO team, India or the Philippines?
The Philippines, in most cases. English is an official language, the professional workforce has a neutral accent that works well for US and UK voice-based roles, and cultural alignment with Western businesses is strong. Over a million workers are employed in the Philippines BPO sector, and the talent pool for customer success, inside sales, and English-language operations is deep and well-trained. India has strong English skills and is competitive for back-office and process operations, but for voice-based customer roles where US or UK accent alignment is a hiring criterion, the Philippines is typically the stronger market.
Common questions
India vs Philippines for hiring a software engineer in 2026: which is better?
India, in most cases. It has the largest pool of English-speaking software engineers in the world, with deep markets in Bangalore, Hyderabad, Pune, and Chennai for mid-level and senior roles. Total compensation for a mid-level engineer runs roughly USD 15,000 to 40,000 per year, competitive against most other markets. The Philippines has a growing tech community in Metro Manila and Cebu but cannot match India's depth or the breadth of available specialisations. India's employer statutory costs also run lower in total than the Philippines once the mandatory 13th month pay is factored in. Teamed owns entities in both countries and handles the state-level compliance in India and the Labor Code requirements in the Philippines on one system.What are the main employment law differences between India and the Philippines?
The two biggest practical differences are termination and statutory bonuses. The Philippines' security-of-tenure doctrine requires every dismissal to meet just or authorised cause with a two-notice due-process procedure; illegal dismissal carries reinstatement plus full backwages. India's termination rules for most EOR-scale employers are more employer-flexible: contract notice period, no equivalent reinstatement doctrine for private-sector employees below the Industrial Disputes Act threshold. On statutory bonuses, the Philippines mandates a 13th month pay equal to one-twelfth of annual basic salary by 24 December for every employer; India's Payment of Bonus Act applies only to profitable establishments with 20 or more employees and is not universal. Employer social contributions run higher in the Philippines in total (SSS, PhilHealth, Pag-IBIG, plus 13th month) than in India (PF 12% of basic, ESI for eligible employees, Professional Tax).
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