Everything You Need to Know About Salaries in the Philippines

The Average Salary in Philippines

Most BPO jobs in the Philippines pay more than the minimum wage, with most starting at around $300 per month or $3,600 per year. A monthly paycheck of $300 can provide a decent standard of living for a single person.

Based on the Philippine Statistics Authority data, a family of five needs at least $177 per month to cover their food and non-food costs. According to a 2015 poll, a Filipino family spends an average of $4,150 per year, or USD 345 each month.

While $300 is less than the typical monthly family cost, it is essential to remember that this is a reasonable starting pay for someone just starting their career. In the Philippine BPO industry, several of the most prevalent job titles pay much more each year.

What can a monthly salary of PHP 30,000 buy?

While a monthly salary of P30,000 ($579) may not appear to be much from a western perspective, it can provide individuals living in the Philippines with a decent standard of living. The amount equates to approximately P360,000 or $6,948 per year. 

Let’s see how this works for regular employees:

According to the Philippine Statistics Authority’s 2015 Family Income and Expenditure Survey, the average Filipino family spends P215,000 or $4,150 per year, or P18,000 or $345 per month. 

The NCR has the highest annual average income of P424,964 or $8,202 and the highest average yearly expenditure of P348,901 or $6,753.

Food is the most expensive item on the list, accounting for 41.9 percent of the annual budget. It is followed by 12.19 percent for house rent, 7.91 percent for utilities like water and electricity, 6.34 percent for miscellaneous expenses, and 6.21 percent for transportation.

In short, a P 30,000 salary can go a long way toward meeting individuals’ and families’ basic needs and providing opportunities to improve their living conditions.

Salary trends

IT-related specialists generally earn the highest salaries at entry and supervisory levels, and BPO jobs continue to thrive across the country. There is still plenty of customer service and technical-related job openings. Still, there have also been many job openings in other BPO-related specializations, indicating an increase in the diversity of jobs found within the industry.

The chart below depicts the average annual salary in the Philippines for various roles:

*Average annual salary in USD

These statistics may not appear large from a Western perspective, yet they allow employees to adequately sustain themselves and their families while also putting money aside for investments and emergencies. In addition to a base wage, workers receive health benefits. They are registered in various programs that can give financial aid in the event of a disaster, illness, or other comparable occurrences.

READ MORE:Payroll Outsourcing: How Does it Work and Should You Consider It

Factors to Consider When Computing an Employee’s Take-Home Pay

Labor Regulations

The law in the Philippines is very “pro-employee.” Contracts and laws are geared toward the employee’s benefit, though if you read everything, it is relatively fair and will benefit the company. This article will outline the fundamental labor laws in the Philippines.

Employment

In the Philippines, as in other countries, there is a minimum age for employment. If someone is legal (18 years old or older), you can apply for professional jobs. Young individuals between the ages of 15 and 18 may, however, apply for specific jobs if the workplace or job itself is deemed safe.

Employers from various countries cannot hire workers from other countries directly for foreign jobs. They must proceed through the Secretary of Labor’s board and entities that have been authorized and certified.

READ MORE: A Comprehensive Guide to HR Outsourcing

Rest Days

Every week, employees are guaranteed at least 24 hours of uninterrupted rest. The employer decides this, and it should be negotiated before the employee’s start date. On the other hand, companies in the Philippines often give their staff two rest days per week. The number of days depends on the employment, the firm, and the agreed-upon timetable. However, before the employee signs the contract, this is frequently mentioned.

Employees are entitled to an additional 30% of their regular daily compensation if compelled to work on Sunday or any other day off. Employees’ requests for additional rest days based on their religious convictions should likewise be honored by employers. Something to consider when assembling your virtual team.

Attendance

Every year, there are many Philippine holidays – it is essential to know when these are so that you can plan ahead of time and align with staff needs. If an employee is eligible for vacation time and takes it before or after a regular or special holiday, they must be compensated for their absence on that day. However, whether such leaves are authorized is at the discretion of the company and the management.

If the employee does not yet have the right to paid vacation leaves and takes unpaid leave before or after the holiday, they may not be paid if they do not come to work.

Employees’ pay is frequently deducted for tardiness. It is up to the company to determine how much to deduct from their employees’ income. Include this in your company’s tardiness policy, which should be included in your employee handbook.

Leave

Employees typically come in for a 6-month probationary period. After six months, the company must decide whether to extend the probationary period, terminate the employee’s employment, or regularize the employee. Once an employee is regularized, they are entitled to at least ten paid vacations and sick days per year.

A pregnant employee is granted maternity leave. They are then entitled to 78 days of maternity leave for cesarean delivery and 60 days for normal delivery. Pregnant employees who have had a miscarriage will also be given 60 days off. The employee will receive a portion (or the entire amount) of her monthly salary, which will be reimbursed to the company by SSS in the end.

Married men in the Philippines are entitled to paternity leave. They will be granted a 7-day leave to tend their spouse following the birth or miscarriage of their child. This, however, will not be reimbursed by SSS.

Solo parents are also eligible for a 7-day leave if they have been with the company for at least a year.

Employer Dismissal

In the Philippines, if an employee fails to fulfill the standards, the employer has the authority to fire them at any time. These are some of the most common grounds for dismissal:

• Serious misbehavior or disobedience to the boss
• Duty Ignorance
• The employee has committed a crime.
• And other reasons deemed unacceptable by the company

Whether you are an employee or an employer, it is best to contact a trained lawyer or attorney when dealing with labor law matters in the Philippines.

Why Outsourcing in the Philippines is a Win-Win Solution?

Hiring a Filipino workforce benefits both your company and the Philippine-based BPO company, freelancer, or consultant with whom you are collaborating. The Philippines is an exceptional place to outsource because of its low labor costs, but that isn’t the only reason. 

It enables your company to increase its bottom line while also providing decent work and wages to employees in the Philippines and promoting good working conditions in the country’s BPO industry. During the Coronavirus pandemic, you can keep your business running smoothly by outsourcing work to the Philippines.