Cost & Pricing

How much does it cost to hire in the Philippines in 2026?

11 July 2026 ยท 5 min read

In short

A Philippines hire costs the gross salary plus roughly 11 to 16 percent in statutory employer costs, plus either an EOR per-seat fee or the cost of running your own entity. All in, most professional roles land up to 70 percent below the equivalent US, UK, or Australian hire.

The question every founder and executive asks. Here is a realistic breakdown of what a Philippines hire actually costs in 2026: salary benchmarks by role, mandatory employment overhead, and the total cost of ownership including infrastructure fees.

Salary benchmarks by role

Numbers below are annual USD, gross to the employee (before benefits and employer contributions). Ranges are for Metro Manila; provincial rates run twenty to thirty percent lower for equivalent skill.

Tech roles, annual USD:
Junior Software Engineer: 12,000 to 20,000.
Mid Software Engineer: 20,000 to 35,000.
Senior Software Engineer: 35,000 to 60,000.
Senior Cybersecurity Engineer: 40,000 to 70,000.
Product Manager: 30,000 to 55,000.
Data Analyst or Engineer: 25,000 to 50,000.

Non-tech roles, annual USD:
Customer Success Manager: 18,000 to 32,000.
Marketing Manager: 22,000 to 38,000.
Operations Manager: 25,000 to 45,000.
Finance Manager: 28,000 to 48,000.
Executive Assistant to founder or C-level: 15,000 to 28,000.

Head of function and Director-level roles run 60,000 to 120,000 USD depending on scope and industry.

These are what growing international companies pay to hire and keep quality. The floor of the local market is much lower. Hiring at the floor produces predictable churn.

Employment overhead

On top of gross salary, employer costs include:

Thirteenth-month pay: one month's basic salary, mandatory under Presidential Decree No. 851, paid on or before December 24. Effectively 8.3 percent of gross annual salary.
SSS (Social Security): employer share is 10 percent of the monthly salary credit, capped at PHP 3,500 per month (roughly $60 USD), per the official SSS contribution table. At a mid-level salary ($20,000 to $30,000 annual), that lands around 3 to 5 percent effective. At senior and executive salaries the cap kicks in and it drops closer to 1 to 2 percent.
PhilHealth: employer share of 2.5 percent, capped at PHP 2,500 per month, published by PhilHealth. Effective 1 to 2.5 percent depending on where salary sits relative to the ceiling.
Pag-IBIG: employer share of PHP 100 to 200 per month flat. Negligible at senior salaries, around 1 to 2 percent at low ones.

Mandatory employer contributions total roughly 3 to 4 percent at senior and executive levels (statutory caps eat most of the exposure), 6 to 8 percent at junior and mid levels (below the caps).

Common additional benefits (not mandatory but standard for international-standard employers):
HMO or private health insurance: 500 to 1,500 USD per year per person.
Rice or transportation allowance: 500 to 1,500 USD per year.
Performance bonus structures: varies.

Realistic loaded cost, including thirteenth-month pay, statutory contributions, and typical benefits: gross salary plus roughly 16 percent at junior level, falling to about 11 percent at senior and executive levels as the statutory caps bite.

Total cost of ownership

Total cost is salary plus employer contributions plus benefits plus infrastructure.

Through employer of record infrastructure, add roughly two hundred to six hundred USD per person per month for the infrastructure itself.

Through your own entity, add two to five thousand USD per month flat for accounting, compliance, and admin, regardless of team size up to a point.

Concrete example: a Senior Engineer at 50,000 USD gross annual through employer of record infrastructure ends up costing roughly 60,000 to 65,000 USD per year all-in. That same person hired locally in the US or UK costs 150,000 to 250,000 USD per year all-in.

Savings vs hiring at home

Rough savings vs equivalent skill in your home market:

vs US West Coast tech hub: 65 to 75 percent.
vs US East Coast: 60 to 70 percent.
vs London: 55 to 65 percent.
vs Sydney: 50 to 60 percent.
vs Singapore: 40 to 55 percent.

Savings are highest at senior and specialist roles, where local market rates in Western markets have compressed talent to premium prices. Savings are more modest at junior levels, where local rates are already lower everywhere.

What can affect the numbers

Factors that shift the range:

Specialization: cybersecurity, ML engineering, and specific niche skills command 20 to 30 percent premium over general software.
Years of experience: not linear, but 8+ year candidates run 30 to 50 percent higher than 3 year candidates.
English fluency level: near-native written and spoken commands premium.
Industry experience: candidates with insurance, HR tech, cybersecurity backgrounds run higher.
Certifications: relevant certs (CCSP, CISSP, PMP) add 10 to 20 percent.
Location: Manila commands 20 to 30 percent premium over provincial rates for equivalent skill.

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