What It Really Costs to Hire Filipino Workers: A Guide for International Employers
If you’re considering hiring international talent, chances are the Philippines are on your radar—and for good reason. Filipino professionals have strong work ethics, good English fluency, and commendable adaptability. Plus, hiring Filipino workers often comes with cost advantages compared to other labor markets.
But before you dive in, it’s crucial to understand the full financial picture. Beyond salaries, there are recruitment costs, compliance fees, and other expenses to factor in. As a business, prepare a budget for employment.
This guide breaks down what it really costs to find Philippine workers and how a Filipino recruitment agency can help you maximize every cent.
Cost Factors in Hiring Filipino Employees
Hiring from another country usually costs twice as much as hiring locally. But if you do it right, the investment will pay off in the long run. Before making this big decision, here are some important factors to consider.
• Entry-level roles (e.g., customer service representatives, junior IT professionals): ₱15,000 to ₱30,000 per month, equivalent to approximately $262 to $524 USD.
• Mid-level professionals (e.g., software developers and team leaders): ₱30,000 to ₱60,000 per month, equivalent to approximately $524 to $1,048 USD.
• Executive roles (e.g., IT managers, senior software architects): ₱60,000 to ₱150,000+ per month, equivalent to approximately $1,048 to $2,620+ USD.
These figures also change based on some factors:
•Experience and skill level – More experienced workers command higher salaries.
• Industry demand – High-demand sectors like IT, healthcare, and engineering have competitive salary rates.
• Location – Workers based in Metro Manila or key business hubs may have higher salary expectations than those in provincial areas.
If you’re paying workers in Philippine Pesos (PHP), monitor exchange rates, as fluctuations can affect total costs. Many international employers opt for USD payments via platforms like PayPal, Wise, or direct bank transfers to simplify transactions and ensure consistency in earnings.
Recruitment and processing fees
Your recruitment approach affects costs significantly. For instance, if you hire an in-house recruitment team, you’re responsible for sourcing candidates, interviewing, and verifying backgrounds and references. This option gives you complete control over the process at the expense of your time and resources.
You also need to coordinate directly with the Department of Migrant Workers (DMW) to legally hire Filipino workers.
You can enjoy a simple process with a recruitment agency. They can handle sourcing, screening, and documentation on your behalf. However, this convenience comes at the cost of recruitment agency fees. They vary but typically include administrative costs.
Aside from the recruitment model, you must also take care of visa and work permit costs. If you’re hiring Filipino workers to move abroad, factor in visa fees, processing charges, and possible relocation help. Costs vary depending on visa type and legal requirements.
Compliance and legal costs
If you’re hiring Filipino employees under a local contract (where they remain based in the Philippines), you’ll need to comply with government-mandated benefits, including:
• Pag-IBIG Fund – Issues savings and housing loan benefits.
As an employer, you’re required to contribute a percentage of the worker’s salary to these programs. Typically, the combined employer contribution is around 12-15% of the employee’s monthly salary.
For Filipino workers hired internationally, tax obligations depend on the employment arrangement:
• Locally contracted employees(working remotely from the Philippines) are taxed under Philippine law.
• Overseas Filipino Workers (OFWs) may be exempt from Philippine income tax but could be subject to taxes in the country where they’re employed.
Consider consulting a legal or tax expert to comply with Philippine and international regulations.
How to Optimize Costs and Ensure Compliance
The cost of hiring an employee from the Philippines can be significant. However, you can optimize it through the following ways:
• Partner with a reputable recruitment agency
Working with a trusted recruitment agency can save you time, reduce hiring risks, and ensure legal compliance. A good agency will:
○ Handle sourcing, screening, and vetting qualified candidates.
○ Ensure compliance with Philippine labor laws and overseas employment regulations.
○ Assist with visa processing and work permits for international hires.
• Use Employer of Record (EOR) services for compliance and payroll
If you’re hiring Filipino employees remotely, managing payroll and legal compliance can be complex. Partnering with an Employer of Record (EOR) can assist you in handling salary payments, tax deductions, and government-mandated benefits.
They can also comply with Philippine labor laws and employment contracts on your behalf and reduce administrative burdens so you can focus on business operations.
An EOR acts as the official employer on paper while you keep full control over your employees’ day-to-day work. It’s an efficient solution for global businesses like yours.
Many Filipino workers seek jobs abroad for higher income and a better future for their families. That said, consider structuring compensation wisely:
○ Pay market-competitive salaries to keep skilled employees.
○ Incorporate non-monetary benefits like flexible work arrangements, performance bonuses, or professional development opportunities.
○ Use performance-based incentives to align compensation with productivity.
A well-balanced compensation package not only helps in attracting and keeping talent but also maximizes the return on your investment.
Streamline Your Global Hiring – Partner with Staffhouse Today
Hiring Filipino talent can benefit your business drastically, but navigating recruitment, compliance, and payroll can be complex without the right support. That’s where Staffhouse International Resources comes in.
With over two decades of experience in sourcing, vetting, and processing Filipino employees for global employers, we ensure a seamless hiring experience. Our ethical and transparent recruitment process guarantees you get skilled professionals while complying with labor laws.
From candidate selection to legal processing and onboarding, we provide end-to-end recruitment support so you can focus on growing your business with top-tier Filipino talent.
