Monthly management fee

How it works

It does not replace 13th month or SSS. It should decline as a story in year two only if you move to your own entity. Until then it is part of loaded cost every month. For a U.S. company hiring one Filipino teammate, write this into the brief, the employment contract, and the peso payroll file before the start date. Slack habits do not override the Labor Code, BIR, or NPC. If the local employer of record holds the paper, they run the statutory step; you still owe a clean operating definition so the seat does not fail in week three. Put a number on the example when you budget loaded cost, because a nameless allowance always returns as a December surprise or a missed SLA.

Example: ₱60,000 basic + ~₱8,000 statute/13th accrual + $400 fee. Dropping the fee from a comparison against Dawn Hire is cheating.

How it differs

One-time placement fee is search. Managed employment is the service. EOR is the legal form.

Common errors

Calling the fee ‘benefits.’ Benefits are SIL, 13th month, SSS.

In practice

Treat Monthly management fee as a week-one operating object. Put a peso or dollar figure on the next twelve months. If the word cannot survive that arithmetic, it is marketing. Write an owner - founder, local employer, or worker - and a date you will look at it again: first cutoff, first holiday, or first miss. If nobody can show a contract clause, a payslip line, a calendar block, or a checklist box, you do not have monthly management fee yet. You have a conversation. Convert the conversation before the person starts, while changing the deal still costs a paragraph rather than a resignation. Re-read the worked example above against the actual hire in front of you. If the numbers in that example cannot be swapped for this seat’s pesos, hours, and start date, the brief is still unfinished.