Payroll Salary Compensation, Benefits, and Allowances in the Philippines

Ep 158 Derek Gallimore

In this episode,Derek discusses about payroll, salary and compensation for workers in the Philippines.  Link to where you can download this guide can be found on the show notes.



  • Derek points out the disparity between the west and developing countries and also greater disparity between salaries in the Philippines.
  • The entry level Administration staff having an entry level Philippine salary could have a difference of 10x to 100x disparity versus western salary.
  • He shares that you can find staff through a formal BPO kind of setting or staff leasing or seat leasing and you can even be in Regus or co-working space and hire staff in the Philippines that work for you through some sort of employment structure.
  • He discusses one of the factors with the Philippines is that people notice very quickly the complexity in terms of hiring people and the payroll structure and the responsibilities in terms of payroll.
  • Early stage outsourcing go through BPOs or go through a platform such as Upwork to hire staff.
  • Derek talks about the comprehensive guide to payroll the salary compensation that dives into every aspect of payment the you need to consider if you are starting to employ someone in the Philippines.
  • He shares that he posted a free comprehensive salary review list of 20-25 of the top group of professions or roles that is commonly seen within outsourcing in the Philippines.


Key Points:

  • There’s about 90% face value saving between a salary in Midwest America and a reasonable salary in Manila.
  • Salary savings are really significant and it is important to know how much to pay your people.
  • The Philippines is very pro labor.



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