How to Hire a Contractor From the Philippines

How to hire a contractor from the Philippines? We often get this question. In this post, we will discuss everything you need to know.
how to hire a contractor from the philippines

Filipino workers are known for speaking English while being experts in their niche. Therefore, hiring from the Philippines may be of great benefit to your business. Before you get carried away and post an ad, you need to make a few considerations first, including whether to hire a personal contractor or employee. For the sake of this article, we’re going to assume you’re hiring a single contractor. Throughout this article, we’ll tell you how to hire Filipino workers for remote work.

Review Filipino Laws

According to Order No. 174, issued by the Filipino Department of Labor and Employment, an individual cannot be a contractor if either of the following is met:

  • The right of control over an employee’s performance isn’t exercised by the contractor.
  • The contractor lacks the capital of equipment to complete the job.

With the introduction of this order, there were other changes made surrounding Filipino contractors, including:

  • In-house agency contracting is prohibited.
  • Contractor registration in the Philippines must be renewed every two years.
  • The cost to register as a contractor has risen to just shy of $2000.

This will likely leave you wondering what is allowed in the Philippines, and here is the answer:

  • The contractor has control over their work.
  • The necessary skills and equipment are evident.
  • The contractor is engaged in a distinct business.
  • All work is carried out using personal equipment.

Create an Independent Contract Agreement

When you write up your contract, you need to express the previous four points to demonstrate you’re following the law. Everything your new employee needs to know about the position needs to be outlined here, including the payment method, rates, and a thorough description of the job role. You can find a template contract here, but make sure you edit it to suit your business.

What About Tax?

Tax is tricky enough domestically, but international tax considerations throw a spanner in the works. Ultimately, if an employee carries out all of their work in the Philippines, you don’t need to withhold taxes. However, if they come across to the US to carry out any work, you need to withhold taxes. As part of your onboarding procedure, make sure you have the contractor fill out a W-8BEN form.

Decide How to Pay Wages

Paying wages to Filipino talent is simple, especially if they’re hired as a contractor. All you will need to do is choose a quality global payment platform. If you’re unsure of which one to use, we suggest using Ria Money Transfer to send money to the Philippines.

Hire Talent as Usual

Once you’ve got everything else sorted, all you need to do is advertise for your position as usual. There are many different hiring platforms out there, including Pinoy Jobs, Indeed, and Jora. Further, you could make the most of LinkedIn, which is great for connecting with global talent.


International hiring means complying with foreign laws, which are subject to change all the time. Therefore, we suggest following the advice above and speaking to a lawyer before having new talent sign anything.

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