TL;DR
Davao City is fast becoming the preferred destination for global companies hiring Filipino professionals. With world-class talent, stable infrastructure, and lower operational costs, it’s the smart alternative to Manila. Through Smartual’s Employer of Record (EOR) services, foreign businesses can hire in Davao legally, manage payroll and taxes easily, and scale teams quickly—without setting up a local entity.
Davao City: The Philippines’ Rising Business Powerhouse
For years, Manila and Cebu dominated the Philippine outsourcing and employment landscape.
But that’s changing rapidly.
Davao City, located in Southern Mindanao, is now one of the fastest-growing economic centers in the country—a place where technology, talent, and government efficiency meet.
According to the Philippine Statistics Authority, Davao Region contributed nearly ₱1 trillion to the national GDP in 2024, ranking among the top regional economies.
Add to that a young, educated, and English-proficient workforce—and you have the ideal environment for remote global hiring.
It’s no surprise that more companies from the United States, Australia, and Europe are turning to Davao as the new destination for building their Philippine teams.
Why Global Companies Are Choosing Davao City
1. Lower Costs, Same Talent Quality
Davao offers all the advantages of major cities—top universities, professional workforce, modern facilities—but at 30–40% lower costs.
Office rent, utilities, and even professional rates are more affordable, making it perfect for startups and SMEs looking to maximize value.
For example:
- Manila employee salary (average): ₱45,000/month
- Davao employee salary (average): ₱35,000/month
That’s a potential ₱120,000 annual saving per employee—without sacrificing skill or quality.
2. Highly Skilled Workforce
Davao’s universities—such as Ateneo de Davao, University of Southeastern Philippines, and University of Mindanao—produce graduates in accounting, IT, engineering, and business every year.
Most graduates are fluent in English and trained in digital collaboration tools, making them remote-work ready from day one.
3. Exceptional Infrastructure
Davao City boasts:
- Reliable internet connectivity, with major data centers and fiber coverage
- Modern airports with direct flights to Manila, Cebu, and Singapore
- Stable electricity and disaster-resilient urban planning
- Clean and safe living conditions (consistently ranked among the safest cities in Asia)
These factors create an ideal ecosystem for building long-term remote teams.
4. Supportive Local Government
Davao’s local government is known for its business-friendly policies, streamlined permit processing, and investment incentives.
Foreign companies can expect quick coordination through Smartual’s EOR system integrated with online business registration platforms such as SEC eSECURE and BIR eServices.
Why EOR in Davao City Makes Perfect Sense
Even with its advantages, foreign companies still face a big hurdle:
They can’t hire employees directly without a registered local entity.
That’s where Smartual’s Employer of Record (EOR) model bridges the gap.
Through Smartual, global companies can hire and pay Davao-based professionals legally, without setting up a branch or corporation.
Here’s how it works in Davao City:
- You select the talent. Smartual can help you find professionals from Davao’s top industries.
- Smartual employs them legally. We handle contracts, registration, and compliance.
- You manage their work. They function as part of your remote team.
- Smartual manages payroll, taxes, and benefits. Everything is filed correctly with local authorities.
It’s the simplest, most compliant way to expand into the Davao talent market.
Davao’s Key Industries Perfect for EOR Hiring
Smartual’s EOR model supports hiring in Davao across multiple industries where local professionals already excel.
1. Accounting and Finance
Davao is home to hundreds of CPAs and bookkeepers trained under Philippine and international accounting standards.
Through Smartual, Australian and US accounting firms can hire remote accountants who are QuickBooks-certified and tax-compliance trained.
2. Information Technology (IT) and Software Development
Davao produces a steady stream of IT graduates and software engineers skilled in:
- Web development
- App programming
- Network security
- Cloud systems
Many already work remotely for foreign clients—Smartual’s EOR service simply makes these arrangements legal, tax-compliant, and stable.
3. Marketing and Creative Services
From graphic design to content creation, Davao’s creative sector thrives.
Agencies abroad use Smartual’s EOR service to form long-term marketing teams in Davao without worrying about employment classifications or government registration.
4. Administrative and Customer Support
Davao is known for neutral English accents, patience, and professionalism—making it ideal for virtual assistants, sales coordinators, and customer service representatives.
How Smartual’s EOR Model Streamlines Hiring in Davao
Step 1: Onboarding and Compliance
Once you’ve chosen your team, Smartual:
- Drafts and executes DOLE-compliant employment contracts
- Registers each employee with SSS, PhilHealth, and Pag-IBIG
- Handles BIR tax setup and employee identification
Step 2: Payroll and Benefits
Every month, Smartual:
- Calculates gross-to-net pay accurately
- Withholds and remits taxes
- Issues digital payslips and compliance reports
- Manages 13th-month pay, leave credits, and statutory benefits
Step 3: Client Billing and Transparency
Smartual consolidates everything into a single monthly invoice for your company—covering salaries, taxes, and our EOR service fee.
No hidden costs, no multiple vendors.
Step 4: Ongoing HR and Legal Support
Our Davao-based HR team ensures:
- Smooth onboarding/offboarding
- Employee engagement and retention
- DOLE and LGU compliance updates
- Optional add-ons like HMO coverage, bonuses, and allowances
Smartual’s Davao Advantage: Local Expertise, Global Standards
While many EOR providers operate remotely, Smartual Philippines actually maintains a presence in Davao City—through our Shared Services Office at La Cima Building, Matina.
This allows us to combine:
- On-the-ground compliance management
- Faster coordination with local government offices
- Face-to-face HR assistance for employees
Foreign clients benefit from having a reliable local partner who understands both Philippine labor laws and international business expectations.
Why Davao City Beats Metro Manila for EOR Hiring
| Factor | Metro Manila | Davao City |
|---|---|---|
| Cost of Living | High | Moderate |
| Office Space | Expensive | 40% lower |
| Traffic & Commute | Heavy congestion | Minimal traffic |
| Quality of Life | Overcrowded | Clean, safe, green |
| Talent Pool | Competitive | Expanding rapidly |
| Local Government Efficiency | Bureaucratic | Streamlined and digitalized |
For small to mid-sized companies, these differences translate into substantial cost savings and higher employee retention.
Employees in Davao enjoy shorter commutes, better work-life balance, and lower living expenses—resulting in greater job satisfaction and productivity.
Case Study: Building a Remote Finance Team in Davao
A Singaporean fintech company wanted to build a finance support team in the Philippines but didn’t want the administrative burden of incorporation.
Smartual helped them:
- Hire 4 accounting specialists in Davao
- Set up legal employment contracts under EOR
- Handle payroll, benefits, and tax remittances
- Provide a consolidated monthly invoice in SGD
Within two weeks, the company had a fully compliant remote team operating from Davao—saving over 35% in costs compared to hiring in Manila.
EOR in Davao: Beyond Outsourcing—Toward Sustainable Employment
Traditional outsourcing often focused on cost savings alone.
Smartual’s EOR model goes further—it fosters sustainable, compliant, long-term employment.
Instead of project-based contractors, employees hired through Smartual:
- Enjoy full benefits and job security
- Pay taxes properly under Philippine law
- Receive regular payslips and government coverage
This approach promotes responsible globalization, ensuring both the employer and employee benefit equally.
The Future: Davao as a Global Employment Gateway
Davao’s trajectory is clear:
It’s becoming the southern hub for international employment, powered by digital infrastructure, skilled labor, and Smartual’s EOR ecosystem.
In the next five years, Davao is projected to:
- Attract more foreign investment in IT, finance, and professional services
- Create thousands of remote employment opportunities
- Compete directly with Metro Manila and Cebu as a global workforce center
As Smartual expands its EOR and payroll platform, Davao will anchor our mission to make Philippine employment accessible and compliant for global businesses.
Why Smartual Is the Right EOR Partner in Davao
- ✅ Legally registered and fully compliant with Philippine regulations
- ✅ On-site HR and compliance support in Davao City
- ✅ Automated payroll and reporting system
- ✅ Dedicated account managers for each foreign client
- ✅ Transparent pricing—no hidden costs
- ✅ Built for scalability, from one employee to an entire department
With Smartual, you can enjoy the efficiency of a global HR platform and the trust of a local firm rooted in Davao.
Conclusion: Davao City — The Smart Choice for Global Hiring
Davao City is no longer just an emerging market—it’s a strategic location for global employment.
And with Smartual Philippines as your EOR partner, hiring and managing talent here becomes effortless.
Whether you’re an Australian accounting firm, a US tech startup, or a UK marketing agency, Smartual helps you:
- Hire legally in Davao City
- Handle payroll, taxes, and benefits automatically
- Build a reliable, long-term Philippine workforce
Grow globally—from Davao City, the new heart of compliant remote employment.
✅ Ready to hire in Davao the smart way?
Book a free consultation with Smartual Philippines today.
👉 Visit smartual.ph/contact
