How Much Does It Cost to Hire in the Philippines? A US Business Guide
What Does It Actually Cost? Let’s Break It Down.
US companies exploring Philippine hiring almost always start with the same question: what’s the all-in cost? Base salary is just one number. To budget accurately, you need to understand statutory contributions, 13th month pay, leave entitlements, and what an EOR service adds to the total.
This guide gives you the full picture — in USD.
1. Base Salary Ranges by Role (USD/month)
The figures below reflect current Metro Manila market rates. Provincial cities (Cebu, Davao) typically run 10–15% lower.
| Role | Junior (USD/mo) | Mid-Level (USD/mo) | Senior (USD/mo) |
|---|---|---|---|
| Software Developer | USD 800–1,100 | USD 1,300–1,900 | USD 2,000–3,000 |
| Customer Support Specialist | USD 500–750 | USD 750–1,100 | USD 1,100–1,600 |
| Accountant / Bookkeeper | USD 650–900 | USD 1,000–1,500 | USD 1,500–2,300 |
| Digital Marketer | USD 650–950 | USD 1,000–1,600 | USD 1,600–2,500 |
| Virtual Assistant / Admin | USD 450–700 | USD 700–1,000 | USD 1,000–1,500 |
2. Mandatory Employer Contributions
Philippine law requires employers to contribute to three government agencies monthly. These are non-negotiable.
| Contribution | Purpose | Employer Rate | Example (USD 1,500/mo) |
|---|---|---|---|
| SSS | Social security | ~9.5% | ~USD 143/mo |
| PhilHealth | Health insurance | ~5% (shared equally) | ~USD 75/mo |
| Pag-IBIG | Housing fund | 2% (USD 30 cap) | ~USD 30/mo |
On a USD 1,500/month salary, mandatory employer contributions add approximately USD 248/month — around 16.5% on top of base.
3. 13th Month Pay
Required by law. Equal to 1/12 of total basic salary earned during the calendar year, paid by December 24. For an employee earning USD 1,500/month, that’s an additional USD 1,500 due in December — or USD 125/month if you amortise it monthly for budgeting purposes.
4. Total Cost of Employment — Worked Example
| Cost Item | Monthly (USD) | Annual (USD) |
|---|---|---|
| Base Salary | USD 1,500 | USD 18,000 |
| SSS | USD 143 | USD 1,716 |
| PhilHealth | USD 75 | USD 900 |
| Pag-IBIG | USD 30 | USD 360 |
| 13th Month Pay | — | USD 1,500 |
| Paid Leave (10 days) | — | USD 700 |
| Total | ~USD 1,748 | ~USD 23,176 |
Compare this to the US equivalent: a mid-level developer in a major US city costs USD 140,000–180,000 annually in salary alone, before benefits, payroll taxes (7.65% employer FICA), and office costs. The Philippine hire is roughly 15–16% of the US total cost.
5. EOR Service Fee
If you hire through an Employer of Record, there’s a monthly service fee on top of the employment costs. This covers payroll processing, statutory remittances, employment contracts, HR support, BIR compliance, and employer liability. For most US companies, this is the most cost-effective path — the alternative of building your own Philippine legal entity costs USD 6,000–15,000 to establish and USD 8,000–18,000 per year to maintain.
Get Your Exact Number
Every role is different. Our team can give you a precise, all-in cost breakdown for the specific role you’re hiring for — within 24 hours, no obligation.
