Need to know the typical salary within the Philippines?
As one among the biggest outsourcing markets on the planet, the Philippines has a significantly lower average salary in comparison with countries just like the US, UK and Australia.
In this text, we take a better take a look at the typical salary within the Philippines and why the lower average isn’t harmful to Filipino employees.
We may also present 4 the reason why the Philippines is an amazing place to outsource.
Contents
Let’s start.
Average salary within the Philippines
Identical to in every other country, salaries within the Philippines may vary depending on various aspects equivalent to:
- Years of experience and current job position.
- Differences between industries and markets.
- The realm where you reside and work.
Despite these differences, the typical salaries within the Philippines can provide a greater picture of the Philippine population and economy.
What’s the typical salary within the Philippines?
Listed below are some key statistics from 2018 on the typical salary within the Philippines:
(In Philippine Pesos and converted to US Dollars)
- The common salary within the Philippines was 161,847.60 PHP/year ($3,218).
- The median salary within the Philippines was 655,200 PHP/year ($12,955). (The median represents the center value amongst all salaries considered, while the typical is the sum of all salaries divided by the variety of salaries considered.)
- The common salary of Filipino BPO employees was PHP375,000/year ($7,395).
- In 2018, the typical income of a Filipino family was PHP313,000/year ($6,231.27).
- Within the capital region, the typical family income was roughly 460,000 PHP/year ($9,157.78).
Let’s take a take a look at the salaries for some common positions within the Philippines to get a clearer picture of how much everyone earns. We’ve mentioned the starting salary for every position, in addition to the salaries for positions that require more experience:
| Position | Entry | Junior | Senior |
| Accountant | 4407 dollars | 7324 dollars | 8464 dollars |
| Call center agent | 3400 dollars | 4080 dollars | 7654 dollars |
| Inside Sales Representative | 5220 dollars | $8900 | 9060 dollars |
| Real estate agent | 7663 dollars | $11,625 | $15,587 |
| Software Engineer | 5962 dollars | 8030 dollars | $14,202 |
| Project Manager | 5830 dollars | $11,602 | $20,303 |
| (Human Resources) Human Resources Manager | 8732 dollars | $10,419 | $19,438 |
| (Information Technology) IT Manager | 9913 dollars | $12,461 | $16,298 |
| Customer Service Representative | 4108 dollars | 5027 dollars | 7491 dollars |
| Administrative assistant | 3203 dollars | 4467 dollars | 5873 dollars |
| Data Analyst | 5356 dollars | 7617 dollars | 8279 dollars |
| Human Resources Assistant | 3320 dollars | 3606 dollars | 4244 dollars |
| Human Resources Specialist | 4322 dollars | 6056 dollars | 10,644 dollars |
| Executive Assistant | 4379 dollars | 6859 dollars | 7954 dollars |
| Copywriter | 4784 dollars | 7434 dollars | 8279 dollars |
| Marketing Manager | 7885 dollars | $13,838 | $19,281 |
| Graphic designer | 3605 dollars | 5113 dollars | 6623 dollars |
| Front-end developer | 4730 dollars | 7220 dollars | $13,652 |
| Design Architect | 4851 dollars | 6976 dollars | 8416 dollars |
| Business Analyst | 5941 dollars | 8628 dollars | $12,175 |
| Operations Manager | 6069 dollars | $10,635 | $17,112 |
Source: Pay scale
Why Lower Wages in Outsourcing Don’t Hurt Filipino Employees
You might be wondering:
Does the proven fact that the typical wage within the Philippines is way lower than in other countries hurt Filipino employees?
Don’t be concerned.
In the event you are considering outsourcing services to the Philippines and are concerned concerning the rates, you could have nothing to fret about.
Identical to in every other country, the typical salary is a results of several aspects that make it suitable for Filipino employees.
Let’s take a better take a look at this:
1. Lower cost of living
Despite lower wages and an unfavorable exchange rate (in August 2024, 1 USD = 57.52 PHP), one among the essential aspects that allow Filipino employees to live comfortably is the low level of the country’s economy. Maintenance costs.
Give it some thought.
Because of the lower cost of living, you haven’t got to spend most of your annual salary on on a regular basis needs!
In response to the Philippine Statistics Authority (PSA), the typical annual family expenditure in 2023 was 258,000 PHP ($4,506).
2. Outsourced wages vs. minimum wage
Filipino minimum wage Costs range from PHP 573 (USD 5.70) to PHP 610 (USD 10.98) per day and vary depending on the region of the country.
The minimum wage is meant to cover all of a person’s basic needs.
Nonetheless, it is usually believed that this amount is much too low to satisfy the fundamental needs of most individuals who find yourself spending 75-80% of their salaries on basic needs!
For comparison, the typical salary of a BPO worker is roughly PHP375,000/year (7,395 USD), which amounts to over 1,027 PHP (20.31 USD) per day.
Considering the difference between the typical monthly salary and the minimum wage, it is evident that the majority BPO employees earn enough to make sure a cushty way of life.
4 Reasons Why the Philippines is the Perfect Outsourcing Location
Low wage costs make the Philippines an amazing option for outsourcing – but that is not the one reason!
In spite of everything, lower salaries are only one aspect you think about when selecting a BPO provider. You furthermore mght must think concerning the quality of labor, data privacy regulations, etc.
The Philippines has the flexibility to unravel all these problems and more, which makes it leading outsourcing destination in the worldThe truth is, the Philippine cities of Manila, Cebu City, and Davao are on the 2019 list of cities. Top 100 Outsourcing Centers everywhere in the world!
So let’s take a better take a look at 4 aspects that make the Philippines a perfect outsourcing destination:
1. Access to expert employees at low costs
By outsourcing non-critical tasks, most firms try to chop costs – but not on the expense of quality, right?
Fortunately, the Philippines offers highly expert employees at a fraction of the salary you’d pay a US employee!
And what’s the perfect part?
There isn’t any shortage of talent you may hire!
Thanks High literacy rate in the Philippines Within the case of 98.18% of individuals, there’s an enormous influx of graduates with a bachelor’s degree into the labor market yearly.
As well as, the Philippine government’s Technical Education and Skills Development Authority (TESDA) program provides training for BPO employees. All of those aspects contribute to the vast availability of Filipino talent that is right to your outsourcing needs!
2. Knowledge of English
Within the case of most foreign BPO firms, there’s a language barrier that makes cooperation extremely difficult.
For instance, they will not be fluent in your chosen language (normally English) – which regularly results in misunderstandings.
Nonetheless, within the case of the Philippines, the situation is different.
Why?
Besides Filipino (Tagalog), English can also be an official language within the Philippines.
The truth is, the Philippines has one among the biggest English-speaking populations on the planet!
That is the essential advantage of using the Philippines as an outsourcing center in comparison with other countries.
Rest assured that you’ll don’t have any problem communicating effectively along with your Filipino outsourcing teams. They will even expertly handle call centers and other customer-facing services in keeping with your needs.
3. Tax advantages
The Philippines isn’t the one country where wage costs are lower.
Nonetheless, favorable tax laws make the Philippines a rather more cost-friendly alternative to your BPO needs!
To support the growing BPO industry, the Philippine government has introduced quite a few tax breaks to make the country a sexy outsourcing destination. Act on Special Economic Zones is one among them.
This Act offers a variety of tax exemptions and advantages to foreign firms, including:
- 4-year corporate income tax exemption.
- Duty-free import of apparatus, materials, raw materials, etc.
- Exemptions from local taxes and permits.
- Everlasting residence for foreign investors and their immediate family.
But that is not all!
Along with these advantages, you’ll receive additional privileges and incentives if you register your organization with the Philippine Economic Zone Authority (PEZA).
4. Data Security and Privacy Regulations
Data privacy and security is a significant concern for firms considering BPO services. In spite of everything, there could also be a must share company data and related files with an external service provider.
Nonetheless, by outsourcing work to the Philippines, you may easily do away with these worries!
How?
To make sure the protection of the outsourcing industry, the Philippine government has introduced strict regulations equivalent to: Personal Data Protection Act.
Under the Personal Data Protection Act, any person violating privacy laws may be sentenced to imprisonment for as much as six years and a hefty high quality starting from $20,000 to $100,000.
Because of such strict regulations, your data shall be secure and is not going to fall into the mistaken hands.
Methods to Keep Your Filipino Outsourcing Team Productive
Despite all of the benefits the Philippines offers for BPO needs, managing distant teams may be difficult.
In spite of everything, when working with a foreign team, how will you keep track of the tasks they’re working on and the time it takes to finish each task?
Don’t be concerned.
The duty isn’t inconceivable!
- Track how much time BPO employees spend in your tasks.
- Analyze massive volumes of productivity reports for performance management.
- Make sure that your BPO provider only bills you for work performed.
- Don’t let your outsourcing team get distracted while performing their assigned tasks.
- Discover if anyone is using web sites or apps that violate your organization policies.
Application
The lower average salary within the Philippines makes it a perfect place to simply fulfill all of your BPO needs.
Outsourcing work to the Philippines in the course of the coronavirus pandemic can assist what you are promoting proceed to operate efficiently. To learn more about outsourcing to the Philippines, take a look at our in-depth guide on business process outsourcing to the Philippines.