Average salary in the Philippines: Cost and comparison

The Philippines has become a popular region for global employers searching for talent. This archipelago in Southeast Asia is on its way to becoming an upper-middle income country, based on World Bank standards. Its massive population (over 100 million people) is full of skilled and eager workers.

Understanding typical salary ranges in the country ensures that employers pay people competitively, fairly, and equitably. The low cost of living in the Philippines has kept Filipinos’ average salary at around 94% less than in the U.S.

This article will break down salary trends across various industries and roles to give you a clear picture of the average salary in the Philippines. Whether you’re trying to hire or considering a job offer, knowing the factors that influence income levels in the Philippines will empower you to make informed decisions.

What is the average salary in the Philippines?

Interested in the nitty-gritty of basic salaries in the Philippines? We’ve got some fast facts. Note that salary amounts are based on gross wages, which are measured before taxes. 

• Average monthly salary: The most recent data comes from a 2022 survey by the Philippine Statistics Authority, which places the average wage at 18,423 Philippine pesos—roughly 339 USD.
• Average annual salary: Extrapolating from this data, the average yearly wage in the Philippines was 221,076 Philippine pesos, which is around $4,068.
• Average annual family income: A 2023 report from the Philippine Statistics Authority estimated that the average Philippine household makes 353,230 Philippine pesos (~6,358 USD), up 15% from 2021.
• Employment rate: Employment in the Philippines has risen steadily since 2020. The most recent PSA data from June 2024 estimates it is 96.9%.

Employers hiring in the Philippines may use the average salary as a benchmark, but they’ll have to offer a more competitive wage to attract top talent. Offers should account for the cost of living, a candidate’s experience, and the role’s requirements. Candidates will expect more for a typically high-paying job in the Philippines, such as a position in the tech sector.

Daily minimum wage in the Philippines

Daily minimum wages for Filipino employees vary based on the region, province, and sector.

The 1989 Wage Rationalization Act established the National Wages and Productivity Commission (NWPC) and the Regional Tripartite Wages and Productivity Boards (RTWPBs) to determine appropriate local minimum wages. Updates happen at different times in each region and are set per day, making the minimum wage per hour in the Philippines difficult to track without expert assistance.

Here are private sector workers’ daily minimum wages in the Philippines in 2024 and early 2025:

• National Capital Region (NCR): 608–645 Philippine pesos (10.37–11.00 USD)
• Cordillera Administrative Region (CAR): 470 Philippine pesos (8.02 USD)
• Ilocos Region (Region I): 435–468 Philippine pesos (7.42–7.98 USD)
• Cagayan Valley Region (Region II): 460–480 Philippine pesos (7.85–8.19 USD)
• Central Luzon (Region III): 410–525 Philippine pesos (6.99–8.95 USD), increasing to 435–550 Philippine pesos (7.42–9.38 USD) on April 16, 2025
• Calabarzon (Region IV-A): 420–560 Philippine pesos (7.16–9.55 USD), increasing to 425–560 Philippine pesos (7.25–9.55 USD) on April 1, 2025
• Mimaropa (Region IV-B): 404–430 Philippine pesos (6.89–7.33 USD)
• Bicol Region (Region V): 395 Philippine pesos (6.74 USD)
• Western Visayas (Region VI): 480–513 Philippine pesos (8.19–8.75 USD)
• Central Visayas (Region VII): 453–501 Philippine pesos (7.73–8.45 USD)
• Eastern Visayas (Region VIII): 390–420 Philippine pesos (6.65–7.16 USD), increasing to 405–435 Philippine pesos (6.91–7.42 USD) on June 1, 2025
• Zamboanga Peninsula (Region IX): 401–414 Philippine pesos (6.84–7.06 USD)
• Northern Mindanao (Region X): 434–461 Philippine pesos (7.40–7.86 USD), increasing to 446–461 Philippine pesos (7.61–7.86 USD) on Jan. 12, 2025
• Davao Region (Region XI): 476–481 Philippine pesos (8.12–8.20 USD)
• SOCCSKSARGEN (Region XII): 396–417 Philippine pesos (6.75–7.11 USD), increasing to 410–430 Philippine pesos (6.99–7.33 USD) on Jan. 1, 2025
• Caraga Region (Region XIII): 415 Philippine pesos (7.08 USD), increasing to 435 Philippine pesos (7.42 USD) on May 1, 2025
• Bangsamoro Autonomous Region in Muslim Mindanao (BARMM): 316–361 Philippine pesos (5.39–6.16 USD)

Although Filipinos’ wages may seem low compared to U.S. wages, living costs are also far lower. Still, employers must offer more than the minimum wage to remain competitive in the job market and attract top talent.

Benefits of hiring talent in the Philippines

Every day, more businesses are expanding their recruiting efforts to the Philippines. Here are some of the benefits that make the Philippine labor market so attractive:

• Access to a highly skilled workforce: Filipino people are well-educated and highly skilled in multiple disciplines. The country’s literacy rate was 97% as of 2020, and 23.4% held a college or academic degree.
• Competitive salary rates: Because the cost of living in the Philippines is relatively low, employees don’t need the high salaries of U.S. or U.K. workers.
• High English proficiency: English is an official language in the Philippines (alongside Tagalog). The country has one of the largest English-speaking populations in the world. 
• Favorable tax incentives: To support business process outsourcing, the Philippine government has created tax benefits to attract foreign employers. Some of these include a four-year corporate income tax exemption, duty-free imports for items like equipment and raw materials, and permanent residency for foreign investors. 
• Cultural compatibility with Western markets: Thanks to their English fluency and familiarity with Western culture, Filipino workers offer the benefit of cultural compatibility.

Factors that influence salaries in the Philippines

Like wages in any other labor market, salaries in the Philippines vary widely. Here are some of the contributing factors:

• Industry: The sector an employee works in greatly affects their earnings. Some industries, like IT, pay much higher salaries than call center agents.
• Experience and seniority: Holding a junior, mid-level, or senior position in a business affects Filipinos’ earnings. A recent graduate with a starting salary will earn less than someone with 15 years of experience.
• Education level: Education has a significant impact on Filipinos’ earning potential. Workers in the Philippines earn more with increasing education, with the biggest jump occurring once they’ve completed a higher education degree.  
• Geographic location: There are considerable wage disparities between regions. Those living in more metropolitan areas have a higher cost of living and tend to earn more than rural workers.
• Company size: Larger companies typically pay higher salaries than their smaller counterparts because they can afford a more competitive wage.

Average salary by occupation in the Philippines

Curious how specific roles in the Philippines are compensated? Here are the median gross salaries for various positions in Philippine pesos and U.S. dollars:

• Aircraft pilots and professionals: P600,000 ($10,239)
• Back-end developers: P630,000 ($10,750)
• Accountants: P420,000 ($7,197)
• Teachers: P321,048 ($5,478)
• Receptionist: P324,000 ($5,529)
• Plumber: P300,000 ($5,119)

Remember, experience and specific job requirements affect how much an employee earns. Consider various factors beyond average income and base your salary and benefits package on what your company determines is a fair wage.

The gender pay gap in the Philippines

In 2024 Filipino women earned an average of 77.9% of what men earned. Recent data shows that the country ranks as one of the most gender-equal in Southeast Asia. In 2024, the Philippines placed 25th in the World Economic Forum’s Global Gender Gap Report. 

Your organization can help eliminate this gap by paying Filipino men and women the same wages and considering all people for all roles, regardless of their gender.

Attract top talent with competitive salaries in the Philippines

Staying competitive in the Philippine job market means offering salaries that match local trends and regulations. Oyster’s experts simplify payroll management and help you provide competitive compensation packages. 

Empower your team and boost your global business growth with Oyster’s Global Payroll solutions so you can stay ahead in an international labor market.

Frequently asked questions

How do salary expectations in the Philippines compare to other Southeast Asian countries?

The Philippines’ average salaries are lower than those of Singapore, Japan, and South Korea. However, they’re comparable to or higher than salaries in Vietnam and Indonesia. 

Are there any legal requirements for salary increases or adjustments in the Philippines?

No, as long as employers abide by the minimum wage law for the region when determining salaries. Additionally, companies aren’t legally required to provide a salary increase or adjustment when an employee earns a promotion.

What is a good salary in the Philippines?

This depends on the industry, the region where a worker lives, and their role. An OK salary for one person might be an excellent wage for another. If you want to offer competitive salaries, ensure that they’re above the industry average.

About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.