The Philippines’ Average Salary: A Practical Comparison

Knowing the average salary in the Philippines is crucial if you’re outsourcing work to a Philippine remote team. Learn average salaries by role, plus payroll management tips for your business size here.

Companies with a multinational workforce increasingly need to manage payroll complexities. Poor payroll management can lead to poor employee retention and a massive drain on company resources.
Understanding local salary benchmarks and implementing effective Philippine payroll practices are essential to avoid these pitfalls.

What is the Philippines’ Average Salary?

The average salary in the Philippines across the board ranges from ₱19,000 to ₱40,000 per month or US $331 to $697, according to Glassdoor.

The annual average salary of Philippine workers is around ₱228,000 to ₱480,000. That’s around $3,977 to $8,372 per year.

How much is the annual average salary increments in the Philippines?

Average salary increments refer to the rate at which salaries increase. The Philippines’ average income increase is at 5.5% per year last 2023 overall.

Knowing the average Philippine salary increase can inform your remuneration strategies for long-term offshore employees.

Aval Sethi, managing director of JR Dream: a property and facilities management provider, says that clear communication is crucial when discussing salary increase conditions.

Clear communication of salary increments allows companies to manage salary increases efficiently, minimizing expenses. You also uphold transparent pay equity for your employees.

Salary in the Philippines Based on Job Roles

You might be planning to outsource entire business processes to the Philippines. Should that be the case, here is a comparison of the average salaries in the Philippines based on different industries.

This comparison can serve as a reference for planning your future hiring decisions. You can also use an offshore employee salary calculator to compare job roles and their average earnings in the Philippines as a guide.

Related: Discover more efficient ways to use an offshore salary calculator for your business in this guide.

Comparing Average Salary in the Philippines vs. Other Countries

One of the leading reasons why the Philippines is a top offshoring destination globally is because of its cost-effectiveness. The average income in the Philippines is lower than in the US and UK, making it a strategic choice for building offshore teams.

To highlight this cost-effectiveness, here is a comparison of salaries for commonly outsourced job roles in the Philippines compared to other countries.

Hiring a remote team in the Philippines isn’t only cost-effective. You’re also tapping into a highly skilled workforce. Therefore, hiring remote employees from here won’t lower the quality of work output.

What Do Philippine Employees Value Besides Salary?

Attracting and retaining top talent remains a challenge for many businesses worldwide. If you aim to increase your retention rate, you can offer other things outside of salary to keep your Philippine workers engaged.

1. Work-life Balance

Offering discretionary benefits that foster work-life balance will be well-received among your Philippine workers. 

You can start by offering childcare benefits. Since Filipino employees are family-oriented, providing this benefit can make you stand out from other companies.
Flexible working arrangements are another appealing offer. The Philippines has a notoriously debilitating metro area traffic. By offering remote or hybrid work arrangements, you can save a lot of hours each day for your Philippine workers. Thus, Philippine workers are more interested in working with your business.

2. Career Development

Philippine employees are resourceful and innovative workers. By investing in their skills development, you gain long-term team members who are highly adaptable. As your business grows, your team’s skills will grow with it.

3. Workplace Culture

Employees like working for a company that aligns with their values. This focus on purpose-driven work is prevalent among workers in the younger generations.

Given this trend, demonstrating your company values is crucial. It communicates to your employees that their work has value. It also creates a cohesive workplace culture and builds a positive reputation internally and externally.

4. Health and Wellness Benefits

Many employees consider their overall wellness when deciding to stay with an employer. By offering health and wellness benefits, companies increase employee retention rates. They also create more productive employees who are five times more loyal to the company.

Related: Explore more employee benefits to include in your benefits package to attract top talent with this article.

Refine Your Filipino Remote Team’s Payroll With an Expert Offshore Firm

Structuring a competitive salary for offshore Philippine employees requires informed decision-making.

You have to balance proper compensation equity with cost efficiency. Otherwise, you could have dissatisfied employees or sunk costs from constant recruitment.

By working with a knowledgeable offshore company, you can provide proper compensation to your Philippine remote workers.
A good offshore firm helps you find and hire offshore teams. They also manage payroll, keep you legally compliant, and ensure that your employees are getting a satisfactory salary commensurate to their job successes. At the same time, you can get up to 80% cost savings per role hired.