The $7,000 annual salary

Businesses now realize that they can source incredible talent globally. It is possible to access excellent full-time dedicated, highly qualified staff from just $6,000 per year.

People often associate offshore staff with call centers or virtual assistants, but it is so much more than that. In the new economy, virtually any role can be offshored. Accountants, marketers, analysts, salespeople, designers, developers, and administrators can all be sourced. If the job can be done in front of a computer, it can be done offshore. 

People are often shocked at the low salaries on offer in the Philippines.

They might also be concerned that the salaries at too low – or aren’t fair for the staff. This is not the case. Generally, for the Philippines, an annual salary of $7,200 is very attractive and well above the average.

To put it in perspective, the minimum wage in the Philippines ranges from just $1,708 – to – $2,904 PER YEAR. The lower rate is for the provinces – at $0.82 per hour – and the higher rate – at 1.39 – is for Metro Manila and the big cities. A lot of people, including supermarket staff, retail workers, drivers, and laborers, would all earn these minimum wages.

Who can you hire for $7,200/yr?

For $7,200, you can hire someone with a college degree and skills within one of the general administrative, service, or digital areas. For example, this salary would apply to a mid-level admin assistant, call center agent, social media manager, content writer, designer, and bookkeeper – or a lower-level accountant.

It’s also important to mention that salaries can also shoot well above the $7,000 mark. Like any economy, salaries can vary greatly depending on the skills, role, experience, qualifications, and market demand. This is no different in the Philippines. Developers and senior executives are in high demand right now and can cost maybe $24,000-$48,000 per year. Whatever the salary, you can generally save about 60%-80% compared to salaries in the US market (or equivalent markets).

Who can you hire for $7,200yr

Below are some example salary guides:

Cheaper living costs

Living costs are considerably cheaper in the Philippines. For example, an entire apartment near the city center might cost $160- $200 per month. A room in a shared apartment will come in much less. For people that live outside of the big cities, living costs are generally exceptionally low.

The opportunity to earn $7,200 per year for someone in their 20s or 30s is very attractive. They can live a good life, provide for their family, and build their career. Read more about relative salaries and living costs here.

The question for your business

Is the perceived ethics of offshoring holding you and your company back?

An apology for 23 Feb Gone Global:
The content of last week’s Gone Global caused some offence. I thought that the article and message itself was valuable, but I can also see how the use of expletives within a business context can be offensive. I take full responsibility for the content of the newsletter, I should have been more conservative in my approach.

Read more thought leadership articles here:

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the average all-in employment costs in the
Philippines are typically 70% less than its
Western counterparts

Philippines United Kingdom Australia United States
Software Developer
$7,221
$39,913
$62,653
$81,994
HR Manager
$9,506
$46,669
$66,518
$78,007
Team Leader
$7,152
$31,174
$45,428
$75,823
Accountant
$5,959
$58,479
$67,190
$72,923
Copy Writer
$4,767
$52,088
$56,600
$62,653
Customer Service
$3,337
$22,137
$29,717
$35,275
Virtual Assistance
$2,285
$39,066
$42,240
$31,797
Select a role to view salaries
Philippines $7,221
United Kingdom $39,913
Australia $62,653
United States $81,994

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About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.