Introduction
Expanding your business in the Philippines through remote hiring? The Employer of Record (EOR) model allows international companies to hire Filipino talent without establishing a local entity. One of the most critical steps in this process is creating a legally compliant job offer letter. In this guide, we’ll walk you through the complete process of generating and sending offer letters, aligning with Philippine labor laws, and streamlining onboarding through an EOR.
Key Takeaways
- A job offer letter is a formal communication of intent to hire, outlining employment terms before signing the employment contract.
- In the EOR model, the local EOR partner drafts and issues the job offer letter on your behalf, ensuring compliance with the Philippine Labor Code and DOLE regulations.
- Structured job offers help clarify expectations, benefits, and obligations for remote employees.
Job Offer Letter & Onboarding Flow for a Remote EOR Employee
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The EOR model simplifies remote hiring. Here’s a breakdown of the offer-to-onboarding process:
- Client shares hiring details with EOR (job role, compensation, benefits, work schedule).
- EOR drafts the offer letter and employment contract based on local compliance.
- The offer letter is reviewed and signed digitally by the candidate.
- Once accepted, the onboarding process begins, including SSS, Pag-IBIG, PhilHealth registration, background checks, and payroll setup.
- EOR provides the client with weekly/monthly onboarding updates.
Offer Letter vs Employment Letter in the Philippines
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| Offer Letter | Employment Letter |
|---|---|
| A formal offer outlining job title, salary, and benefits | The legal employment contract binding the employer and employee |
| Can be rescinded if needed before acceptance | Legally enforceable once signed |
| Sent before onboarding | Signed during onboarding |
In the Philippine context, offer letters are non-binding, while employment letters must adhere to Article 295–299 of the Labor Code.
When Must a Job Offer Letter Be Given?
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Best practices:
- Issue the offer letter within 3–5 days after the final interview.
- Include a validity period (e.g., “This offer is valid until April 30, 2025”).
- Clearly define the start date, working arrangement (remote/hybrid), and next steps post-acceptance.
What Salary Needs to Be Mentioned in an Offer Letter?
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In the Philippines, employers should clearly mention:
- Monthly Gross Salary (standard format)
- Allowances (e.g., internet, HMO, equipment reimbursements)
- Government-mandated benefits (13th-month pay, SSS, PhilHealth, Pag-IBIG)
- Optional: Net take-home pay estimate
Clarity is key — salary breakdown should reflect actual disbursement methods.
Job Offer Letter Checklist for the Philippines
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✅ Job title and department
✅ Start date
✅ Work location (e.g., remote, hybrid, office-based)
✅ Compensation structure and benefits
✅ Working hours
✅ Reporting manager
✅ Probation period terms
✅ Notice period and termination clause
✅ Confidentiality and data protection clauses
✅ Signature lines (candidate and EOR representative)
The EOR ensures the offer includes mandatory disclosures under DOLE guidelines.
Download Your Job Offer Letter Template for the Philippines
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Need a fast start? Here’s what your downloadable template includes:
- Fully editable .docx format
- Compliance with Philippine labor rules
- Includes fields for job title, monthly compensation, start date, and benefits
- Legal disclaimer and data privacy clause
👉 [Let me know if you’d like me to generate this template]
FAQs
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- Can I resend my offer letter?
Yes, especially if there’s an update in compensation or terms. Ensure it’s clearly marked “Updated Offer Letter.” - What is the usual notice period for candidates in the Philippines?
Typically 30 days unless otherwise agreed upon in the employment contract. - When do I mention my company policies in the offer letter?
You can add a line that refers to the company handbook or policies applicable upon onboarding. - Can I revoke an offer letter?
Yes, prior to acceptance. But always include a “subject to approval” clause to mitigate risks. - How to revoke an offer letter I sent to a candidate?
Issue a written withdrawal, thanking the candidate and explaining the decision. Seek EOR legal guidance. - Who is considered an independent contractor under Philippine law?
One who is not subject to employer control in how work is performed, often with their own tools and schedules. - What is the importance of an independent contractor agreement in the Philippines?
To avoid misclassification risks, clarify scope, deliverables, and tax obligations. - What is a PEO in the Philippines?
A Professional Employer Organization that manages HR, payroll, and compliance — different from an EOR which becomes the legal employer. - What should be included in an employee onboarding checklist?
Government IDs, NBI clearance, TIN, Pag-IBIG registration, direct deposit info, equipment needs. - What is the definition of an Employer of Record (EOR)?
An EOR hires employees on your behalf, managing payroll, taxes, and local compliance. - What is the onboarding process with an EOR in the Philippines?
Document collection, government registration, payroll setup, and equipment dispatch (if applicable). - What is the difference between contractors and employees?
Employees are under supervision with regular hours; contractors are project-based. - What are the costs of employment in the Philippines?
In addition to salary, employers pay 10–15% in statutory contributions and benefits. - How to calculate the Cost to Company (CTC)?
Sum up salary + employer share of contributions + perks + HMO + bonuses. - What is a take-home salary calculator?
A tool that shows net income after deductions like tax, SSS, PhilHealth, and Pag-IBIG. - What are the options for comprehensive health insurance in the Philippines?
Providers like Intellicare, Maxicare, and PhilCare offer employee group plans. - How do we create offer letters for remote employees?
Work with your EOR to gather job details. They’ll draft and issue the offer letter. - What should be in the job title section?
Include job level (e.g., Senior Software Engineer), department, and location (Remote – Philippines). - Is health insurance mentioned in offer letters?
Yes, especially if the employer provides private HMO coverage beyond PhilHealth. - Why is it important to detail job duties?
To avoid future scope creep and clearly define performance expectations. - What components should be included in the compensation package?
Base salary, allowances, bonuses, HMO, and performance-based incentives. - Why is an offer letter considered a formal document?
It is the first legal reference document that captures agreed employment terms. - How important is the starting date?
Very. It defines when employer obligations and benefits begin. - What role does the hiring manager play?
They provide inputs on role expectations and collaborate with HR/EOR to finalize offers. - Should the offer letter specify full-time employment?
Yes, always clarify the employment type — full-time, part-time, or contract. - What are the key elements of an offer letter?
Job title, start date, compensation, benefits, and reporting structure. - What is “at-will employment”?
Not recognized in the Philippines. All terminations require just cause or authorized cause per law. - How to mention office location for remote roles?
Write “Remote – Based in [City, Philippines]” for clarity. - How can an offer letter reflect company culture?
Tone, benefits, and employer branding lines (like mission statements) help communicate this. - What does “at-will basis” mean?
Inapplicable in the Philippines; termination without cause is not allowed. - What should be included in a formal job offer letter?
Legal job details, terms, benefits, contact info, and EOR signature. - Why are compensation details important?
They set clear expectations and are required by law for transparency.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.