What Does It Cost to Hire in the Philippines?
Most Australian businesses are surprised — in both directions. The salary savings are real. The compliance costs are higher than you'd expect if you've never done this before. And the total, once you add it all up properly, is still significantly less than an equivalent local hire.
Here's what goes into the cost — and how to get your specific number.
The components you need to budget for
A compliant Philippines hire has four parts.
Base salary
The professional's take-home pay. This varies by role, seniority, and the skills required. We don't publish salary ranges because they shift with the market — our calculator uses current benchmarks and you can model any figure directly.
Statutory contributions
Philippine law requires employer contributions to SSS, PhilHealth, and Pag-IBIG for every employee. These are non-negotiable for compliant employment and add a meaningful amount on top of base salary. Our calculator handles all three accurately using the current contribution structures and caps.
13th month pay
A mandatory additional month's salary under Philippine law. Provisioned monthly in our model so it doesn't hit as a year-end lump sum.
Employer of Record fee
The service that makes it legally clean for an Australian employer to hire in the Philippines without registering a local entity. Our flat fee is AUD $300 per employee per month — covering employment contracts, payroll, statutory contributions, and HR administration.
Get your exact number
The total cost depends on the salary for your specific role. Enter a salary into our calculator and get a complete monthly breakdown — every statutory contribution, 13th month provision, leave, and our EOR fee — in both PHP and AUD.
Calculate My Hiring CostTakes less than a minute. No email required.
What the $300 EOR fee covers
One flat monthly fee per employee. No setup costs. No hidden charges.
- Compliant Philippine employment contracts
- Monthly payroll processing
- SSS, PhilHealth, and Pag-IBIG employer contributions
- HR administration and employee support
- Compliance with Philippine labour law
- No setup fees. No lock-in.
What's not in the calculator
Three things the calculator doesn't cover — worth knowing before you commit.
Recruitment
We charge a one-off AUD $2,000 placement fee per hire. This covers sourcing, vetting, and shortlisting candidates. You interview the top 2–3 and make the final decision.
Equipment
Your hire needs a reliable computer and internet connection. We'll advise on the most practical and cost-effective approach during onboarding.
Onboarding time
The first 30–60 days require genuine investment from your side — SOPs, communication rhythms, tool access. It's not set and forget. After that initial period, most clients find the role runs with minimal day-to-day oversight from them.
Common questions
Talk to us about your situation
If you've run the calculator and want to understand how this would work for your specific business — roles, compliance, management structure — book a 30-minute call. No obligation. We'll give you a straight answer.
Team Up Now · 101 Moray St, South Melbourne VIC 3205 · Employer of Record Philippines