Average Salary in Philippines

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The Philippines has emerged as a prime destination for outsourcing due to its skilled workforce and competitive wages, making it an attractive option compared to developed countries like the UK, Switzerland, or the USA.


The average annual salary in the Philippines is around 537,000 PHP, which corresponds to about USD 9574.41 according to the Salary Explorer.


In this article, we will explore the average salary in Philippines, factors influencing the average salary in Philippines, and four key reasons why the Philippines leads in outsourcing.

Table of Contents

Philippines Average Salary


The average monthly salary in the Philippines is around 44,800 PHP, corresponding to about USD 800.12 according to the survey conducted by Salary Explorer.


The average yearly salary in the Philippines is around 537,000 PHP, which corresponds to about USD 9574.41.


Median Salary


According to Salary Explorer, the median salary in the Philippines is 41,300 PHP, meaning that 50% of the Philippines earns less than that while the other half earns more. It’s important to word that the median income represents the middle aspect of revenue distribution, which means that half of the population earns more and half of it earns lots less.


Minimum Wage


According to the National Wages and Productivity Commission of the Philippines, the minimum wage rate for non-agriculture is PHP 610.00, and for agriculture, Service/Retail Establishments employing 15 workers or less, Manufacturing regularly employing less than 10 workers PHP 573.00


In Metro Manila, the minimum wage varies depending on the classification of the enterprise, with charges starting from around PHP 500 to PHP 700 per day for non-agricultural sectors.


The minimal wage serves as a baseline for employee compensation and is meant to make certain that workers acquire honest wages for their hard work.


Average Salary by Profession:


Average Hires can vary greatly by profession in the Philippines. There’s a breakdown of the average payment by profession in the country

Profession Average Salary Range (PHP per month)
Information Technology (IT)
PHP 20,000 – PHP 100,000+
Finance and Banking
PHP 15,000 – PHP 100,000+
Call Center/BPO Industry
PHP 15,000 - PHP 60,000+
PHP 15,000 – PHP 50,000+

Source: Salary Explorer

Factors Influencing Average Salary in Philippines


There are some factors influencing the average salary in the Philippines which include industry, location, and education.


Average Salary by Industry


  • In IT, access-level positions begin around PHP 20,000 to PHP 30,000 per month, while skilled professionals can earn PHP 50,000 to PHP 100,000 or more monthly.
  • Finance and banking roles may additionally offer beginning salaries of PHP 15,000 to PHP 25,000 for access-level positions, with experienced professionals earning PHP 30,000 to PHP 100,000 or better monthly.
  • Call Center/BPO area salaries vary from PHP 15,000 to PHP 25,000 according to month for entry-stage positions and PHP 30,000 to PHP 60,000 for skilled agents.
  • Healthcare specialists, such as nurses and physicians, earn various salaries based on specialization and experience, ranging from PHP 15,000 to PHP 50,000 or more monthly.
  • Manufacturing and engineering roles offer comparable tiers, with access-level positions beginning at PHP 15,000 to PHP 25,000 in keeping with the month and experienced specialists earning PHP 30,000 to PHP 80,000 or higher month-to-month.


Average Salary in Different Locations


The average salary in different locations is one of the influencing factors in the Philippines. Salary comparison by different cities in the Philippines is shown below:


City Average Salary
49,100 PHP
Cagayan de Oro
47,500 PHP
50,800 PHP
42,900 PHP
52,700 PHP
51,700 PHP
Las Pinas
44,900 PHP

Source:  Salary Explorer

Average Salary by Education


According to Salary Explorer results:

  • Individuals with a certificate or diploma earned an average of 17% more than those who only completed high school.
  • Those who achieved a Bachelor’s Degree earned 24% more than those who completed with a certificate or diploma.
  • Professionals with a Master’s Degree earned 29% more than those who completed a Bachelor’s Degree.
  • Finally, those who held a PhD earned an average of 23% more than those with a Master’s Degree while performing the same job.


Why do Filipino Workers Benefit from Lower Outsourcing Wages?


Outsourcing salaries in the Philippines have been decreased as a result, the USA has been a destination for many opportunities for global companies, seeking cost-effective solutions that do not exceed the expected budget.
Filipinos, thanks to a huge number of relevant options in toll-free, commercial business procedures, and tech have a kind of privilege to lesser paid.


This mutually beneficiary condition allows the companies to save money on the one hand, while offering high-quality services they provide allowing and promoting the personal and professional growth of Filipino employees.


Cost-Effective Lifestyle


Affordable Living Expenses:


Lower outsourcing salaries regularly inspire Filipino personnel to adopt an extra price-powerful lifestyle, as they are searching to stretch their earnings in addition. This can translate to choosing inexpensive housing options, using public transportation, and being aware of everyday prices.


Budget-Conscious Habits:


Filipino employees with lower outsourcing salaries generally tend to expand budget-conscious habits, consisting of meal prepping, shopping for essentials in the course of income, and minimizing discretionary spending. These habits enable them to control their budget efficiently and make the most of their income.


Creative Ways to Save:


Lower outsourcing salaries foster creativity in locating methods to save money. This may additionally contain DIY initiatives, upcycling gadgets, or locating opportunity entertainment activities that are finance-pleasant. By embracing resourcefulness, Filipino personnel can maintain a satisfying lifestyle without overspending.


Community Support Networks:


In navigating a cost-effective lifestyle, Filipino personnel frequently depend on network help networks. This can include sharing resources with own family and pals, collaborating on network tasks, and getting access to support services offered through local corporations.


Focus on Financial Goals:


Despite decreased salaries, Filipino employees benefit from a heightened consciousness of monetary goals. By prioritizing savings, investment possibilities, and debt control, they lay the inspiration for lengthy-term financial stability and destiny prosperity.


Emphasis on Work-Life Balance:


A price-effective way of life encourages Filipino personnel to strike a balance between work and private existence. By prioritizing stories over cloth possessions, they cultivate a fulfilling lifestyle that prioritizes relationships, health, and private growth.


Resilience and Adaptability:


Ultimately, embracing a cost-powerful lifestyle instils resilience and flexibility in Filipino personnel. They discover ways to climate economically demanding situations, adapt to converting situations, and make the most of available assets, leading to more economic independence and usual well-being.


Four Key Reasons Why the Philippines Leads in Outsourcing?


Outsourced jobs in the Philippines tend to have better pay than the minimum wage. This is an especially relevant issue for organizations like factories and IT infrastructure.


While this minimum wage determines the lowest amount that can be delivered by the companies, outsourced jobs normally pay more for the reason that only specialized natures are left. This brings into play talents thus positively compensating the workers.


Pay may depend on where you work, or on your level of expertise. By and large, major cities like Manila are above the pay scale of smaller cities. On balance, a job abroad provides Filipinos with an opportunity to earn more and raise their standard of living.


Here’s a closer look at four factors that contribute to making the Philippines an ideal outsourcing destination.


Cost-Effective Skilled Talent


When it comes to offshoring, the Philippines is remarkable for its pool of human reservoirs of all-purpose skills. The U.S. has become a favourite one of many multi-national companies for the following reasons:


American sourcing personnel have superior professional skills which costs much cheaper than in-residence or in other states. The blending of talent and cost competitiveness marks the Philippines an attractive destination for all types of third-party processes – Technical support, customer service for IT development, and finance operations. Outsourcing in the Philippines has led the country to become a dominant player in the global outsourcing industry landscape, as companies nowadays have the chance to hire affordable top-class professionals on demand.


Proficiency in English


One of the number one motives why the Philippines dominates outsourcing is its super talent in English. With English being one of the us of a’s respectable languages and broadly taught in schools, Filipinos own robust language skills that allow effective verbal exchange with customers from English-speaking countries. This linguistic advantage, coupled with an impartial accessory and cultural familiarity with Western norms, makes the Philippines an excellent outsourcing destination for industries inclusive of name facilities, customer service, and content material moderation. The ability to talk fluently in English complements patron delight, allows smoother collaboration, and contributes significantly to the country’s success in the global outsourcing marketplace.


Tax Advantages


Another vital component contributing to the Philippines’ dominance in outsourcing is the array of tax advantages it gives to agencies. The Philippine government gives appealing tax incentives and exemptions to agencies engaged in outsourcing sports, which include earnings tax holidays, reduced corporate income tax quotes, and exemptions from price-introduced tax (VAT) on certain transactions.


These tax blessings significantly decrease the operational prices for outsourcing corporations, making it greater financially effective to set up operations in the Philippines as compared to other international locations.

As a result, organizations can revel in greater profitability whilst delivering splendid offerings, in addition to solidifying the US’s position as a desired outsourcing vacation spot.


Ensuring Data Security and Privacy Compliance


Security and privacy of data are issues of paramount importance in the case of BPO services businesses consider. The task of trusting the personal information of organizations with confidential matters requires taking many steps. Though offshoring to the Philippines faces these problems, its solution resides in the method of offshoring.


The Philippine authorities have imposed stricter rules, especially with the implementation of the DPPA (Data Privacy Act) to prevent security breaches in their outsourcing industry. These rules will impose serious sentences already from the very first violations of such privacy rules up to 6 years and a fine between $ 20 thousand and $ 100 thousand.


How Can You Boost Productivity in Your Outsourced Philippines Team?


Though it is hard, your options team in the Philippines may be more productive with proven techniques that work. Here are a few key strategies:


Clear Communication:

Ensure communities’ group people well understand what is expected from them, the feedback, and commands. Apply video conferencing, instant communication systems, and regular messages to ensure the interaction through speaking channels is unhindered.


Set Clear Goals and Deadlines:


Specify the clear goals and deadlines for each task or problem to be addressed and ensure your group is focused and clear in their assignments. The plan of achieving SPARTAN (Specific, Measurable, Achievable, Relevant, Time-bound) goals lets the group work and tune the progress into the principle direction.


Provide Proper Training and Support:


Invest in skilled training with high-quality equipment and the development of the know-how and competencies of your outsourced workforce. Launch ongoing help and assistance to act as support in case the employees feel overwhelmed by the problems and questions that could come up.


Foster Collaboration and Team Spirit:


Create empowering teamwork amongst the contributor crew by fostering a collaborative and inclusive work environment. Do inclusion activities, digital conferences, and joint assignment management gear to foster collaboration and enhance relationships.


Implement Time Tracking and Productivity Tools:


Utilize a worker productivity tracking software program (e.g. Time Champ) that helps to record what you did, create data visualize productivity trends, and discover areas of improvement.


Time Champ’s features such as clock-in, task management, and performance analytics enable you to monitor the performance of employees at a stretch and optimize workflow performance.


How Does Time Champ Employee Productivity Software Help?


Time Champ streamlines the procedure of monitoring worker productivity with the aid of imparting complete insights into time usage and overall performance. With functions that include time monitoring, task allocation, and performance analytics, Time Champ enables you to:


Monitor Task Progress:

Track the time spent on personal tasks and initiatives to ensure that group members stay centred and effective.


Identify Bottlenecks:

Identify bottlenecks or inefficiencies in workflow processes and deal with them promptly to optimize productivity.


Analyze Performance Trends:

Analyze productivity trends and styles over the years to pick out areas for development and implement targeted interventions.


Improve Accountability:

Foster responsibility and obligation amongst group individuals by way of supplying visibility into their individual and collective overall performance metrics.


Enhance Decision-Making:

Making knowledgeable choices approximately aids allocation, task prioritization, and workflow optimization based on real-time productivity information.


Project Management:

With this project management, we can assign projects or tasks to employees easily.


By leveraging Time Champ employee productiveness software, you could correctly enhance the productiveness of your outsourced Philippines crew and power success in your business endeavours.

Conclusion and Final Thoughts


To summarize, understanding the average salary in the Philippines and knowing the various factors that are influencing it is essential for both employers and employees.  In the job market, it’s essential to utilize tools that optimize productivity and efficiency.


Time Champ Employee Productivity Software offers solutions to enhance workflow and maximize output. It empowers employees to manage their tasks effectively and employers to track progress seamlessly.


Ready to revolutionize how you manage remote teams? Schedule your free demo of Time Champ and take the first step towards unparalleled productivity.


Also Read:


What is the average salary in Indonesia?


Average Salary in India: Factors and Comprehensive Comparison


The Average Salary in China and the Top 3 Outsourcing Industries


FAQs on Average Salary in Philippines

According to Salary Explorer, the average monthly salary range is 44,800 PHP (US$ 798.76). The Philippines without a national minimum wage has workers which makes the wage disparity range by different industry employments, differing work locations, and different capabilities of the employees. A notable difference between the cities and the villages, according to the regions, is the level of wages, since the living costs and economic activities may vary significantly from one place to another. This is very critical for both employers and employees to know how the dynamics work since these are the things that cause a proper compensation negotiation, and for them to be competitive in the changing job market.

According to Salary Explorer, A person working in the Philippines typically earns around 44,800 PHP. Salaries range from 11,300 PHP (lowest average) to 199,000 PHP (highest average, actual maximum salary is higher). This isn’t the minimum salary as per the regulation, most effective in the bottom stated range in the income survey that had thousands of members and professionals from all over the United States.

Salary increases will differ from person to person. The key factors will be the final amounts and the rates of growth, which will vary from person to person depending on such factors as performance, and contribution to the success of the organization. According to Salary Explorer, “The average salary increase in one year (12 months) in the Philippines is 5%.”

Of course, it is not reasonable to provide a definite sum that can be accepted as a good salary in a given profession. Anyhow, we can make an assumption based on the latest estimated cost of living. A good salary already in the Philippines can go anywhere from 41,300 PHP to 62,600 PHP.

Both are indicators. If your salary is higher than both the average and the median then obviously your financial situation is good. If your salary is in a range below both FLSA and minimum wage of the state, being a case that people earn more than you, it means that you may have room for improvement. So, in case your wage is between the average and the median, then the situation can become a little tangled. We covered a guide to educate people on all things from scenarios.

The median salary is the number above which 50% of the professionals are. Moreover, if you are earning a salary higher than the median, it is a good sign that you belong to the upper half of the best-paid professionals but wait! If your salary is above average, then you are in an excellent situation. An average salary keeps you in a good place but it may be that there are real good-paying jobs in your field that you are not aware of.

If you earn less than the (median) then you are ranked in the worst half but if also the average is against you. If your wage is rather high then you fall already into the highest paying part of the community, or in other words into the top part of the community. Most likely the people you know who are earning better than you are also making only a little bit more money. If your salary is lower than the average you may demand a pay rise or perhaps you should think about changing your job.