The Philippines And The Low Employee Salary

Recruitment and employee costs are among the most significant business expenses. Fortunately, business owners can enjoy substantial cost-cutting benefits in those areas when offshoring to the Philippines.

It is no secret that cost-cutting has become the top priority of most businesses to maintain their foothold in an ever-growing and competitive market.

With so many expenses to cover for the company’s operations, it is no surprise that financial limitations often dictate the extent of expansion plans or growth projects. A few tweaks will happen in a few departments, including budget cuts or abandoned strategies.

However, determined companies choose to target the most significant expense in their books: employee costs.

In developed countries, businesses often pursue offshoring as a cost-cutting solution. By moving specific tasks or operations to countries where labor costs are lower, companies can save money on their overall operating costs. It can help companies in several ways, including reducing their spending on employee salaries and benefits and freeing up resources that entrepreneurs can use elsewhere in the business.

For offshoring to be an effective tool for cost-reduction strategies, companies must find business partners in countries with low-cost economies and low employee salary averages. The Philippines is among those viable options.

The Philippines Among Countries with Lowest Average Salaries

The Philippines has a well-educated workforce and a solid English-speaking population. Those elements make it easy for companies to find qualified workers who can handle their projects. Additionally, the government supports the offshoring industry and has created programs and incentives to attract companies to the country.

All these factors make the Philippines an excellent destination for offshoring. There is a reason why the country is an offshoring haven deserving of being called the “BPO Capital of the World.” For that to happen, offshoring in the Philippines is a solution that companies worldwide collectively use to maintain competitive growth and development.

Companies already know they are getting high-quality workers and operational support when partnering with offshoring firms in the Philippines. But the main draw remains: the cost-savings on BPO employee salaries, attracting businesses of any size and shape to the Pearl of the Orient Seas.

Compared with developed countries like the US, the UK, Australia, and Japan, the Philippines has a significantly lower employee salary average.

Here are a few detailed comparisons of the top outsourced positions in the Philippines when compared to the business-fueled countries:

The disparity between the Philippines’ average salaries and the four developing countries is massive. When outsourcing those roles to the Philippines, businesses from the four nations can benefit from around 60%-80% fewer costs, even when filling executive-level positions.

The low labor cost makes the Philippines an attractive offshoring destination. With significantly reduced employee expenses on top of digital and technological advancements, companies flocked to the country for offshoring needs.

Why the Low Salary Averages?

The low salary average can cause concern among many foreign business owners, worrying about being part of unfair labor practices and employee treatment. However, there is no reason to worry. The significantly lower salary average does not mean that offshoring firms underpay their workforce. It is a beneficial scenario that protects foreign clients and local workers.

The Philippines has a lower cost of living than other developed countries because the price of necessities, such as food, transportation, and accommodation, is relatively lower. For example, a meal at a local restaurant typically costs around 100 pesos, and transportation costs are minimal since most people rely on public transportation. Additionally, accommodation options, such as renting an apartment, are more affordable than in developed countries.

The Business Process Outsourcing (BPO) industry is one of the most substantial economic pillars of the country, contributing to over 11% of the country’s GDP. The sector is 700 companies strong, creating jobs for over 1.2 million people. Those stats were before the Covid-19 pandemic. As millions of Filipinos lost their jobs, the BPO industry provided plenty of new career opportunities, letting unemployed professionals rebound from a year of economic recession.

Workers enjoy competitive salaries and compensation because of the BPO industry’s stronghold and stability in the Philippines. The joint employee package of the BPO company and the foreign client creates an attractive career path, providing above the salary average mentioned earlier.

Besides lower labor costs, clients can also enjoy the following benefits of offshoring to the Philippines:

A well-educated workforce, with more than 95% of the population literate

Many tax incentives for companies that locate their operations in the country

Supportive government policies toward foreign investment

Those advantages position the Philippines among the top offshoring destinations globally, rivaling fellow outsourcing nations like China and India.


The Philippines is a developing country with economic potential. Its workforce continues to present talent and knowledge that receive global recognition, making it a prime offshoring destination for foreign business owners. If you want to grow your business exponentially while keeping your costs down, partner with a high-performing offshoring company in the Philippines.

About Us

iSupport Worldwide is a US-owned BPO company with over 17 years of experience serving international clients. Its relationship with the Philippine labor market continues to hold firm, providing thousands of job opportunities on top of the thousands of Filipinos with stable career paths today.

You can partner with iSupport Worldwide if you need a highly competitive team of experts in different business functions for the price of one local employee. Book a meeting here to discover more.