Comprehensive guide to payroll salary compensation, benefits, and allowances in the Philippines

Guide to Payroll Salary, Benefits and Allowances in the Philippines

The table above shows the average annual salary for an accountanting supervisor based in the Philippines $6,414, compared to $79,408 for US, £37,267 for UK and au$81,665 for Australia. This is a saving of 92%. 87% and 89% for US, UK, and Australia respectively.

• Assistant manager role and salary:

Assistant managers must have amazing leadership skills, and they should be comfortable with multitasking. Often, they help managers by taking over some of their tasks like monitoring inventories, designating tasks to team members, and overseeing the production process and making sure that the team is meeting all their milestones at the right time.

The table above shows the average annual salary for an assistant manager based in the Philippines $16485, compared to $57,121 for US, £34,000 for UK and au$45,503 for Australia. This is a saving of 71%. 63% and 51% for US, UK, and Australia respectively.

•Call center agent role and salary:

Call center agents are often preoccupied with calling clients or receiving calls. They interview their clients, obtaining necessary information and recording it in different systems, or they may verify the information they have already received. Additionally, call center agents can answer the questions of their clients, provide them necessary information, or guide them through different processes.

The table above shows the average annual salary for a call centre agent based in the Philippines $5,959, compared to $47,627 for US, £20,000 for UK and au$65,483 for Australia. This is a saving of 87%. 77% and 88% for US, UK, and Australia respectively.

• Copywriter role and salary:

A copywriter’s task typically includes writing unique advertising, descriptive, or marketing texts. These copies can be used on the client’s website, social media platforms, or other forms of media like product and brand jingles.

The table above shows the average annual salary for a copywriter based in the Philippines $4,767, compared to $56,600 for US, £40,000 for UK and au$85,000 for Australia. This is a saving of 92%. 91% and 92% for US, UK, and Australia respectively.

• Graphic artist role and salary:

Graphic artists are tasked with creating visual art and concepts that should captivate potential customers. They typically work with a marketing team, and their art is commonly used in websites, magazines, brochures, and advertisements.

The table above shows the average annual salary for a graphic artist based in the Philippines $3,883, compared to $46,658 for US, £29,695 for UK and au$51,006 for Australia. This is a saving of 92%. 90% and 90% for US, UK, and Australia respectively.

• HR manager role and salary:

Human resource or HR managers lead the HR team and ensure that the office is running smoothly. They see to it that the health and overall well-being of the employees are taken care of by implementing rules and regulations in the workplace.

The table above shows the average annual salary for a HR manager based in the Philippines $9,506, compared to $78,007 for US, £35,813 for UK and au$90,243 for Australia. This is a saving of 88%. 80% and 86% for US, UK, and Australia respectively.

• Project manager role and salary:

The job of a project manager revolves around planning, budgeting, and overseeing all aspects of a specific project. Among their responsibilities are defining the scope and direction of the project they are managing and ensuring that every goal is completed right on schedule.

The table above shows the average annual salary for a project manager based in the Philippines $21,458, compared to $108,000 for US, £44,000 for UK and au$116,714 for Australia. This is a saving of 80%. 63% and 75% for US, UK, and Australia respectively.

Wages in the Philippines

What can a PHP 30,000 monthly salary afford?

• SAP consultant role and salary:

System applications and products or SAP consultants talk to the representative of their customers and evaluate their demands.  They use their expertise to program the software that will accommodate the needs of the client and conform to their business model as a whole.

The table above shows the average annual salary for a SAP consultant based in the Philippines $11,552, compared to $76,798 for US, £37,489 for UK and au$96,928 for Australia. This is a saving of 85%. 77% and 84% for US, UK, and Australia respectively.

• Software developer role and salary:

Also referred to as computer programmers, software developers play a key role in designing, testing, installing, and maintaining software systems. The work that they do helps create a more efficient workplace and improve the experience of customers.

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The table above shows the average annual salary for a software developer based in the Philippines $7,221, compared to $81,994 for US, £30,651 for UK and au$85,000 for Australia. This is a saving of 91%. 82% and 88% for US, UK, and Australia respectively.

• Software engineer role and salary:

Just like software developers, software engineers take care of the more technical aspects of keeping a business running. They specialize in certain areas of software development and must be fluent in particular sets of computer languages and development environments. Some of the areas they focus on are applications and databases, networks, and operating systems.

The table above shows the average annual salary for a software engineer based in the Philippines $8,333, compared to $109,087 for US, £34,142 for UK and au$85,000 for Australia. This is a saving of 92%. 81% and 87% for US, UK, and Australia respectively.

• Systems administrator role and salary:

Systems administrators spend their working hours installing, upgrading, and monitoring software and hardware. They also maintain operating systems, business applications, security tools, PCs, emails, and other essentials the keep the business running.

The table above shows the average annual salary for a systems administrator based in the Philippines $7,152, compared to $72,760 for US, £25,422 for UK and au$75,137 for Australia. This is a saving of 90%. 78% and 87% for US, UK, and Australia respectively.

• Systems analyst role and salary:

Systems analysts are problem solvers. They talk to their clients and evaluate their current procedures and processes, then develop solutions to their problems by using alternative workflows or by designing and developing new systems.

The table above shows the average annual salary for a systems analyst based in the Philippines $9,537, compared to $63,924 for US, £30,062 for UK and au$64,601 for Australia. This is a saving of 85%. 76% and 80% for US, UK, and Australia respectively.

• Team leader role and salary:

Just like the job title says, team leaders lead and manage a group of employees. They make sure that group members are communicating with each other, adhering to safety and standard practices, and meeting their deadlines. They can also be tasked with hiring and training team members and updating the upper management about the progress of their current tasks.

The table above shows the average annual salary for a team leader based in the Philippines $7,152, compared to $75,823 for US, £23,940 for UK and au$61,632 for Australia. This is a saving of 91%. 77% and 84% for US, UK, and Australia respectively.

• Technical support representative role and salary:

Technical support representatives or TSRs work in an in-bound call center environment. They resolve the technical and network problems of their clients by researching possible solutions and troubleshooting common issues.

The table above shows the average annual salary for a technical support representative based in the Philippines $4,638, compared to $36,924 for US, £38,570 for UK and au$51,869 for Australia. This is a saving of 87%. 87% and 88% for US, UK, and Australia respectively.

• Virtual assistant role and salary:

Administrative tasks are the forte of virtual assistants. They answer emails, schedule meetings, and take care of travel arrangements like hotel and flight bookings.

The table above shows the average annual salary for a virtual assistant based in the Philippines $2,285, compared to $42,240 for US, £30,000 for UK and au$43,139 for Australia. This is a saving of 95%. 94% and 93% for US, UK, and Australia respectively.

The BPO industry in the Philippines is becoming more diversified, especially in the wake of AI adoption. Aside from the professions mentioned above, the industry also employs professionals in the fields of law, engineering, and healthcare, among others.

Wages in the Philippines

What every employer should know about wages in the Philippines

Jobs in the Philippine BPO industry pay above the minimum wage, and most start with an average base salary of USD 300 per month or around USD 3,600 per year. That’s really cheap from a business perspective, but is it humane? In a country with a low cost of living like in the Philippines, yes.

A monthly salary of USD 300 can provide a person with a good standard of living. According to the Philippine Statistics Authority, a family of 5 needs a minimum of USD 177 per month to cover their food and non-food needs. In another 2015 survey, the agency revealed that a Filipino family spends an average of 4,150 per year or USD 345 every month.

While USD 300 may fall below the average monthly family spending, it’s worth knowing that this amount is considered to be a good basic salary for someone who is just starting out in their career. Many of the most common job titles in the Philippine BPO industry receive much higher annual rates.

Wages in the Philippines

What every employer should know about wages in the Philippines

What can a PHP 30,000 monthly salary afford?

While a PHP 30,000 or USD 579 monthly salary may not look much from a western standpoint, this amount can provide individuals who are living in the Philippines with a decent standard of living. This amounts to around PHP 360,000 or USD 6,948 per year. Let’s take a look at how this works for regular employees:

According to the 2015 Family Income and Expenditure Survey released by the Philippine Statistics Authority in October 2016, the average Filipino family spends a total of PHP 215,000 or USD 4,150 every year or PHP 18,000 or USD 345 every month.

Those living in the NCR are revealed to have the highest annual average income of PHP 424,964 or USD 8,202 and highest annual average expenditure of PHP 348,901 or USD 6,753.

Food takes up the top spot in the list of expenses, consuming 41.9% of the annual budget. This is followed by house rent at 12.19%, utilities like water and electricity at 7.91%, miscellaneous expenses at 6.34%, and transportation at 6.21%.

In short, a PHP 30,000 salary can go a long way in providing individuals and families with their essential needs and opportunities to improve their living conditions.

Reduced labor costs and decent wages

Clearly, the Philippine BPO industry is providing Filipinos with good salaries. At the same time, it affords businesses with a chance to significantly reduce their labor costs and help employees sustain decent living conditions. From this perspective, outsourcing to the Philippines is a win-win solution for both employers and employees.

Wages in the Philippines

Reduced labor costs and decent wages

Beyond basic wages: human resource management

Aside from an employee’s basic pay, an employer must also pay attention to the following when items when computing an employee’s take-home pay.

• Labor laws

In the Philippines, the law is very much “pro-employee”. Contracts and laws are geared towards the benefit of the employee, although if you read everything, it is pretty fair and will also benefit the company. In this article, we will discuss the basic labor laws in the Philippines

• Employment

Just like other countries, the Philippines has a minimum employable age. You can apply for a professional job if you are 18 years old and above, although young adults aging from 15 – 18 can apply for certain jobs, as long as the workplace or the work itself is considered non-hazardous

When it comes to overseas employment, employers from different countries are not allowed to hire workers directly. They have to go through the board and entities that are authorized and certified by the Secretary of Labor.

• Rest days

Employees are entitled to at least 24 hours consecutive rest day per week. This is determined by the employer and should be discussed before the employee comes on board. In the Philippines though, companies usually give their employees 2 rest days per week. The days depend on the job description, the company, and the agreed schedule, but this is usually discussed even before the employee signs the contract

If an employee is required to come in on a Sunday or any rest day, they are entitled to an additional 30% on top of their regular daily pay. Companies should also respect the employees’ additional rest day requests regarding to their religious beliefs. Something that you should consider when building your virtual workforce

• Employer termination

In the Philippines, the employer has the right to terminate an employee anytime if they fail to meet the standards. Some of the most common reasons for termination are the following:

  1. Serious misconduct or disobedience to the employer
  2. Neglect of duties
  3. Commission of a crime by the employee
  4. And other reasons deemed by the company as unacceptable

It is best to get a certified lawyer or attorney when dealing with labor law cases in the Philippines, whether you are an employee or employer.

• Attendance

If the employee is entitled to a vacation leave and they decided to file it before or after a regular or special holiday, then the employee shall be paid for the holidays, even if they do not come to work on that same day. However, it is the company and the manager’s discretion if they will approve of such leaves.

On the other hand, if the employee is not yet entitled to paid vacation leaves and they decide to take a leave without pay before or after the holiday, then they might not get paid if they do not come to work during the holiday.

Tardiness is often deducted from the employee’s salary. It is the company’s discretion what amount they want to deduct from their employees. Be sure to factor this in your employee handbook about your company’s rules on tardiness.

• Leaves

Employees usually come in for a probationary employment, which lasts for 6 months. After 6 months, the company shall decide if they want to extend the probationary period, cease the employment, or regularize the employee. Once the employee becomes regularized, they are entitled to more or less 10 paid vacation and sick leaves

Maternity leaves are given to a pregnant employee. They are then entitled to a maternity leave benefit of 78 days for a cesarean delivery, and 60 days for a normal delivery. 60 days shall also be given to pregnant employees who have had a miscarriage. The employee shall receive a part(or her whole salary) of her monthly salary, which will be reimbursed by SSS to the company eventually.

Paternity leaves are granted to married men in the Philippines. They will be given a 7-day leave to care for their spouse after their delivery or miscarriage. This will, however, not be reimbursed by SSS.

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