Hiring remote employees in the Philippines without listing full compensation details can lead to missed hires and poor retention. Filipino remote workers expect more than a monthly salary. They seek benefits like 13th-month pay, social security, health insurance, clear overtime pay, and paid leave terms. Missteps in presenting these expectations often result in confusion, negotiation delays, and unmet employee needs.
This Filipino remote worker compensation guide explains what employers must include in job offers to stay compliant, manage benefits effectively, and attract top remote talent in the Philippines.
Why Compensation Transparency Builds Trust
Clear compensation helps Filipino remote workers make faster, more confident decisions. Many compare job offers based on employee benefits such as paid maternity leave, holiday pay, retirement benefits, and base salary.
For international employers hiring remote workers, being upfront about the complete benefits package, including overtime pay, social security system contributions, and additional benefits, helps align with employee expectations and reduces friction during the hiring process. Transparency also improves employee engagement and builds long-term trust, especially when managing payroll across different regions.
Salary Expectations: How to Present Them Clearly
When hiring remote workers in the Philippines, clarity around monetary compensation is essential. Workers in the Philippines want straightforward details about their employee’s salary, including how it aligns with the current minimum wage and how it fits into the overall benefits package. Clear salary presentation supports compliance with Philippine labor laws and helps motivate employees by setting the right expectations.
List monthly salaries in PHP (and optionally in USD)
Always state the monthly wage in Philippine pesos to align with local standards and the employee’s tax bracket. Ensure the offer complies with the minimum wage set by regional wage boards and clearly reflects the total employee benefits included. For companies hiring remote workers in the Philippines, including a USD estimate can help international teams assess value. Avoid vague terms like “TBD” or “negotiable” to maintain transparency and attract top candidates.
State if pay is fixed or variable
Explain if the pay structure includes a fixed monthly salary or if it offers variable components like commissions, bonuses, or incentives. Filipino employees use this information to plan for expenses such as monthly pension contributions, paid maternity leave, or Home Development Mutual Fund savings. Pay type also affects tax rates and eligibility for benefits like service incentive leaves, which support work-life balance. Local employers are expected to clarify mandatory benefits tied to compensation, including those required under the social security system SSS. Being specific helps workers in the Philippines assess the total value of the offer and avoid confusion later.
Add payment frequency
Mention how often you will pay remote employees—weekly, bi-weekly, or monthly. Clear payment timelines are a key part of managing payroll and are expected by regular Filipino employees. Stating this upfront avoids confusion and helps maintain trust throughout the hiring process.
Bonuses and Allowances That Matter in the Philippines
Bonuses and allowances are essential parts of any strong benefits package. For remote Filipino workers, these extras reflect an employer’s commitment to fairness, stability, and compliance with employee benefits required by Philippine labor laws.
13th Month Pay
The 13th month pay is mandatory under the labor code and must be paid by December. It equals one month’s salary and applies to all rank-and-file employees in the Philippines, including remote staff who are classified as employees. This benefit is part of standard benefits in the Philippines and can impact the employee’s tax bracket. Employers who fail to include it risk non-compliance and may face legal issues related to separation pay or severance pay. They could also draw scrutiny when they pay taxes or hire and pay contractors without meeting basic benefit requirements.
Internet allowance
Remote Filipino workers need reliable internet access to stay productive. Offering a monthly internet allowance of ₱1,500 to ₱2,500 is common among employers hiring remote workers in the Philippines and reflects support for work-from-home productivity. This type of support is considered one of the key benefits in the Philippines and shows that you understand the environment your employee works in.
Performance bonuses
Performance-based bonuses are a key part of competitive employee benefits packages and help retain high-performing talent. Employers hiring remote workers in the Philippines should set clear goals and explain how bonuses are earned to maintain fairness and trust. This added monetary compensation when structured well, supports employee engagement and can align with recommendations from the productivity board.
HMO or healthcare
While health insurance is not mandatory for all private employees, many international employers offer HMO coverage or partial contributions through the Philippine Health Insurance Corporation. These additional benefits are especially helpful for female employees managing family and health responsibilities.
Healthcare support, combined with additional pay like allowances or bonuses, shows a strong commitment to worker well-being. To ensure compliance with local labor expectations, employers should clearly state what health coverage is offered and who qualifies for it. Optional contractor support can be provided but does not replace required benefits for regular employees.
Equipment stipends
A work-from-home setup, such as a laptop or headset, boosts productivity and reduces onboarding delays. Some employers offer this as part of their de minimis benefits, which are small-value perks exempt from tax. This shows support for employee productivity in remote settings.
Other Non-Cash Compensation Details to Include
Beyond salary, Filipino remote workers care deeply about how a job supports their lifestyle, health, and professional development. Non-cash benefits like paid time off, flexible work hours, and training opportunities show that you value the whole person—not just their output. Including these perks can improve job satisfaction, build loyalty, and increase long-term employee retention.
Paid time off
Outline how much sick leave, vacation leave, and holiday pay is available. Paid leave, especially service incentive leaves, is a core part of employee benefits in the Philippines. It supports work-life balance and helps reduce reliance on unpaid leave.
Work schedule and time zone
Ensure the work schedule is clear, especially when there are time zone differences. Philippine remote workers appreciate flexibility but need predictability to manage family responsibilities and plan their day effectively. Stating required overlap hours, fixed shifts, or rotating schedules helps prevent misunderstandings and sets proper expectations when working with international teams.
Training and upskilling
Investing in training not only supports career growth but also helps you retain skilled professionals. When hiring remote workers in the Philippines, offering learning opportunities shows long-term commitment and builds trust. Filipino talent often looks for employers who invest in development—this can also reduce turnover and align with the broader goals of hiring employees in key roles.
What Happens If You Omit Compensation Details?
What happens when compensation details are vague or missing? You risk losing top Filipino employees and delaying your ability to fill roles. Workers in the Philippines often compare offers based on total compensation, including Philippines employee benefits, competitive salary, and paid leave. Here’s what can happen when those details aren’t included:
- Lower application rates – Filipino candidates often skip listings that don’t clearly outline salary, benefits, or job expectations.
- Wasted time during screening – Without set figures, you’ll face more back-and-forth questions and slower progress in the hiring process.
- Mismatched expectations – Filipino employees accepting an offer without understanding the full compensation package can lead to early resignation or poor job satisfaction.
- Compliance risks – Omitting required benefits like 13th-month pay or paid leave can violate labor laws and damage your reputation with workers in the Philippines.
- Difficulty standing out – In a competitive market, a clear compensation offer helps position your role as trustworthy and appealing to top talent.
Offer Competitive and Clear Compensation to Attract Filipino Remote Talent
Top Filipino remote workers evaluate offers based on total compensation, not base salary. To stay competitive, include monthly salary in PHP, specify mandatory benefits like 13th-month pay and contributions to the social security system, and outline additional perks such as internet allowance and private health insurance. Know work schedules, payment frequency, and non-cash incentives like paid leave or training. A complete and honest compensation package builds trust, aligns with labor laws, and increases employee retention in the competitive remote hiring market.
Frequently Asked Questions
What benefits should I offer to Filipino remote workers?
Filipino remote workers value 13th-month pay, internet allowance, paid leave, and healthcare support.
Is 13th-month pay mandatory in the Philippines?
Yes, 13th-month pay is mandatory for all rank-and-file employees under Philippine labor laws.
How much is the minimum wage for remote workers in the Philippines?
The minimum wage varies by region but ranges from ₱385 to ₱610 per day as set by the regional tripartite wages boards.
Do I need to contribute to SSS, PhilHealth, and Pag-IBIG for remote employees in the Philippines?
Yes, if Filipino remote workers are hired as regular employees, you must contribute to the Social Security System, Philippine Health Insurance Corporation, and Home Development Mutual Fund.
Can I hire Filipino remote workers as independent contractors?
Yes, but hiring as independent contractors may limit benefits and require compliance with local tax and labor guidelines.
Reference
- Cordero, T. (2024, April 12). Current minimum wage still not enough to meet family needs —IBON. GMA Integrated News. https://www.gmanetwork.com/news/money/economy/903491/current-minimum-wage-still-not-enough-to-meet-family-needs-ibon/story/
- Guiao, M. A. (2023, January 25). How many paid leaves are workers entitled to under the PH Labor Code? Spot.ph. https://www.spot.ph/newsfeatures/policy/103527/dole-labor-code-on-paid-leaves-a5229-20230125?s=bam2sl8qs9hatphvgi32hlpp74
- Social Security System (SSS). (2025, January). SSS contribution table: Effective January 2025. https://www.sss.gov.ph/sss-contribution-table/
- Villanueva, R. (2024, November 23). Guidelines for release of 13th month pay out. The Freeman. https://www.philstar.com/the-freeman/cebu-business/2024/11/23/2402348/guidelines-release-13th-month-pay-out
