Average and median salary in the Philippines (2026)
Note on exchange rate: in this article, all USD conversions use a rate of ₱60.5 per USD, reflecting the Bangko Sentral ng Pilipinas reference rate as of June 17, 2026.
The PSA Occupational Wages Survey reported an average monthly wage of ₱21,544 for full-time workers in formal establishments, comprising ₱20,309 in basic pay and ₱1,235 in regular allowances. Applying the WTW-projected 5.5% growth rate for 2026 gives a working estimate of approximately ₱22,700 ($375) per month.
The median is approximately ₱13,000 ($215) per month, significantly lower than the mean. ICT workers, BPO professionals, and multinational employees at the top end pull the national average up. The median shows what most Filipino workers in the formal sector actually earn.
Gap between average salary and median in the Philippines: Why does it matter?
The average-median gap is approximately ₱9,700 per month. Use the average for technology and professional services roles. Use the median for generalist, administrative, and operations positions outside Metro Manila.
Salary budgets set at the national average will under-pay technology candidates and over-pay for junior generalist roles. Use the sector and city data below to set accurate offers for each role.
Philippine salary budgets grew 5.5% in 2026, per WTW projections. Technology, BPO, and financial services are growing faster. Manufacturing and agriculture are growing closer to the minimum wage adjustment rate.
Minimum wage in the Philippines: What employers need to know
The Philippines does not have a single national minimum wage. The Regional Tripartite Wages and Productivity Boards (RTWPBs) set daily rates by region under DOLE. Rates reflect local cost of living and economic conditions.
The Metro Manila (NCR) daily minimum wage is ₱695 ($11.50) under Wage Order No. NCR-26, effective July 18, 2025. At 22 working days per month, that is approximately ₱15,290 ($253) per month.
Key rules for employers managing mimimum wage compliance in the Phillipines:
- NCR rate: ₱695/day. Other major regions range from ₱435 to ₱550/day as of 2026. Always check the rate for the region where your employee works.
- Previous NCR rate: ₱645/day before July 2025 — a ₱50 increase, the largest single NCR hike on record.
- Mid-2026 review: No new Wage Order can be issued within 12 months of the previous one. The NCR-26 anniversary falls on July 18, 2026. The RTWPB is reviewing pending petitions, including calls for a ₱1,200/day minimum. Employers should monitor DOLE announcements from mid-July 2026.
- Sector exceptions: Agricultural workers and employees of small retail or service establishments receive lower rates under the applicable Wage Order. Barangay Micro Business Enterprises (BMBEs) are exempt from minimum wage requirements.
- 13th-month pay: Every rank-and-file employee is entitled to 13th-month pay under Presidential Decree No. 851, equal to one-twelfth of annual basic pay, paid by December 24 each year. This adds approximately 8.3% to annual payroll cost and applies at every salary level.
Minimum wage sets the floor. Often, however, what companies need to know is what the market actually pays across sectors and seniority. We cover this in the next few sections.
Average salary by seniority (2026)
The table below shows estimated monthly salary ranges by seniority level.
| Seniority level | Estimated monthly salary (USD) | Notes |
|---|---|---|
| Entry-level (0 to 2 years) | $182 to $291 | ₱10,000 to ₱16,000 |
| Mid-level (3 to 7 years) | $364 to $727 | ₱20,000 to ₱40,000 |
| Senior (8 to 15 years) | $727 to $1,455 | ₱40,000 to ₱80,000 |
| Executive / Leadership | $1,455 to $3,636+ | ₱80,000 to ₱200,000+ |
Average salary in the Philippines by industry(2026)
In the Philippines, ICT is the sector that pays the most. Professional and technical services follow. Agriculture, retail, and hospitality pay the least.
The table below shows average monthly salary by sector, based on PSA Occupational Wages Survey 2024 and Sprout Solutions sector data.
| Industry | Avg monthly salary (USD) | vs national average |
|---|---|---|
| Information and communications technology | $794 | +92% |
| Professional, scientific and technical services | $656 | +59% |
| Electricity, gas and water supply | $640 | +55% |
| Financial and insurance services | $580 | +40% |
| Manufacturing (tech-related) | $436 | +6% |
| Healthcare and social work | $400 | -3% |
| Construction and engineering | $382 | -8% |
| Education | $364 | -12% |
| Retail trade | $255 | -38% |
| Agriculture, forestry and fishing | $266 | -36% |
Industries with the highest international demand
PSA data shows ICT sector workers earning an average of ₱43,676 ($722) per month — nearly double the national average. That reflects strong international demand for Filipino software developers, data engineers, and BPO specialists.
Average salary in the Philippines by city and region
Metro Manila pays the most. Cebu is the main alternative for BPO and IT hiring. Secondary cities in the Visayas and Mindanao offer the lowest cost base.
- Metro Manila (NCR): Most multinational headquarters, BPO operations, financial services firms, and high-paying IT roles are based here. Pay runs 32%–54% above the national average.
- Cebu City: The Philippines’ second-largest BPO hub. Cebu has strong talent pools in customer service, IT, and finance at lower cost than Manila. It is the most common alternative for cost-conscious international employers.
- Davao City: An emerging BPO destination. Lower costs than Cebu, with a growing professional workforce.
The table below shows average monthly salary by city and region, based on PSA regional data and Glassdoor Philippines 2025–2026.
| City / region | Avg monthly salary (USD) | vs national average |
|---|---|---|
| Metro Manila (NCR) | $545 to $636 | +32% to +54% |
| Cebu City (Central Visayas) | $364 to $436 | -12% to +6% |
| Davao City (Davao Region) | $327 to $400 | -21% to -3% |
| Clark / Pampanga (Central Luzon) | $309 to $382 | -25% to -8% |
| Iloilo City (Western Visayas) | $291 to $364 | -30% to -12% |
Pay rates by city directly affect your total payroll cost. Here is what each employee costs above gross salary.
What does it actually cost to employ someone in the Philippines?
Gross salary is not the full cost of employment. Philippine employers must contribute to three separate government agencies: the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and Home Development Mutual Fund (Pag-IBIG). The 13th-month pay adds a further annual obligation for every rank-and-file employee. For a broader comparison of total employment cost across markets, Multiplier’s global guide is a useful reference.
SSS, PhilHealth, and Pag-IBIG: the key facts
Each agency has its own salary ceiling and contribution formula. The effective combined rate decreases for higher-earning employees once individual ceilings are passed, so flat-percentage estimates are not reliable for senior roles. Always calculate per agency.
Employer on-cost breakdown
| Cost component | Rate | Example: ₱22,700/month gross ($375) |
|---|---|---|
| SSS employer contribution | 9.5% of Monthly Salary Credit (max ₱35,000 MSC) | ₱2,157 ($36)/month |
| PhilHealth employer contribution | 2.5% of monthly salary (ceiling ₱100,000/month) | ₱568 ($9)/month |
| Pag-IBIG employer contribution | 2% of monthly compensation (max ₱200/month) | ₱200 (~$3)/month |
| 13th-month pay | 1 month basic salary/year (8.3% annual add-on) | ₱1,892 ($31)/month accrued |
| Workers’ compensation (ECP) | Included in SSS contribution | Included above |
| Total estimated on-cost | 12%–16% above gross | ₱2,730–₱3,629 ($45–$60)/month above gross |
Worked example
An employee in Metro Manila earning ₱22,700 ($375) per month gross costs the employer approximately ₱25,430–₱26,329 ($421–$435) per month total — before any voluntary benefits such as HMO coverage, transport allowances, or rice subsidy.
Payroll in the Philippines requires tracking SSS, PhilHealth, and Pag-IBIG separately, each with different salary floors, ceilings, and remittance dates.
| Calculate the true cost of hiring in the Philippines Use Multiplier’s employee cost calculator to get an exact total employment cost for your specific hire, including all three government contributions and 13th-month pay accrual. With on-costs mapped, the next decision is how to structure the hire itself. |
How to hire in the Philippines without setting up a local entity
Foreign companies cannot directly employ Filipino workers without a registered legal entity in the Philippines.
Entity setup option in the Philippines include: a domestic corporation registered with the Securities and Exchange Commission (SEC), a branch office, or a representative office. Incorporating a domestic corporation typically takes four to eight weeks. Ongoing obligations include compliance with the SEC, Bureau of Internal Revenue (BIR), SSS, PhilHealth, Pag-IBIG, and DOLE.
If you are weighing setting up a local entity against using an EOR, the main trade-offs are time and capital. Entity setup takes months and requires ongoing maintenance. An EOR gets you hiring in days through an existing licensed entity.
Company registration in the Philippines is the right path for companies building a long-term local presence.
For companies hiring a small team or testing the market, an Employer of Record in the Philippines is the faster, lower-cost route. The EOR employs your worker legally, handles all government contributions and filings, and passes day-to-day management back to you.
Hire and pay employees in the Philippines with Multiplier
Multiplier is a global employment infrastructure combining EOR services, COR, and global payroll. Designed for global teams, Multiplier runs on owned entities, native payroll engines, in-house compliance expertise, and integrated payments — one system across 160+ countries. You get one team accountable for payroll, compliance, and employment everywhere you hire.
For companies hiring in the Philippines, that means:
- Entity-free hiring: No SEC registration, no BIR setup, no entity maintenance. Multiplier’s owned Philippine entity is the legal employer.
- SSS, PhilHealth, Pag-IBIG, and 13th-month handled end to end: All three agencies receive the correct contributions on time, every month, through Multiplier’s native payroll engine, with 99.95% payroll accuracy.
- Minimum wage and DOLE compliance tracked in-house: When a new NCR Wage Order is issued, Multiplier updates payroll settings immediately. No action required from your team.
- In-house compliance, not a partner relay: Multiplier’s 160+ in-house legal and compliance experts own Philippine Labor Code obligations directly. There is no third-party between your question and the answer.
- Full cost visibility before you hire: Model total Philippines employment cost — contributions, 13th-month accrual, and any allowances — before you make an offer. Decisions are based on what you actually pay, not just gross salary.
- One accountable system across every market: Whether you are hiring in the Philippines, Germany, or Brazil, Multiplier provides one chain of accountability across payroll, compliance, and employment, with no split responsibility across vendors.
Multiplier is trusted by 2,700+ companies, with $2B+ in wages processed and 99.95% payroll accuracy. That gives you the visibility, control, and compliance certainty to build Philippines teams from day one.
Talk to our team to get started
FAQs
What is the average salary in the Philippines in 2026?
The average gross monthly salary is approximately ₱22,700 ($375), based on PSA OWS 2024 data with 5.5% projected growth applied. The median is ₱13,000 ($215). High earners in ICT and BPO skew the national average up, so the median is the better reference for most hiring decisions.
What is the minimum wage in the Philippines?
Metro Manila's daily minimum wage is ₱695 ($11.50) under Wage Order No. NCR-26, effective July 2025. Other regions range from ₱435 to ₱550/day. A new wage order for NCR can be issued from July 18, 2026 — monitor DOLE for updates. All rank-and-file employees also receive mandatory 13th-month pay under Presidential Decree No. 851.
How much does it cost to employ someone in the Philippines?
Total employer on-costs are approximately 12%–16% above gross salary, covering SSS (9.5% of MSC), PhilHealth (2.5%), Pag-IBIG (2%, max ₱200/month), and 13th-month pay (8.3% annual add-on). For an employee earning ₱22,700 ($375) per month gross, total monthly employer cost is approximately ₱25,430–₱26,329 ($421–$435). Use Multiplier's employee cost calculator for an exact figure.
Can I hire employees in the Philippines without setting up a company there?
Yes. An Employer of Record in the Philippines employs your worker through its own registered entity. The EOR handles contracts, SSS, PhilHealth, Pag-IBIG remittances, 13th-month pay, and Labor Code compliance. You direct the work. Multiplier's Employer of Record services run through an owned Philippine entity, not a third-party partner.
How is payroll managed in the Philippines?
Employers run payroll semi-monthly or monthly. SSS contributions are remitted by the 10th, 15th, or last day of the following month depending on the employer ID. PhilHealth remittances are due by the 10th of the following month. Pag-IBIG contributions are due by the 10th of the following month for the prior month. 13th-month pay must be paid on or before December 24 each year. Income tax is withheld under TRAIN Law progressive brackets and remitted monthly to the BIR. Multiplier manages the full remittance cycle through its owned entity. See the complete guide to payroll in the Philippines for more detail.
What is a good salary in the Philippines?
₱40,000 ($661) per month is well above the national formal-sector average and above most provincial market benchmarks. In Metro Manila, ₱60,000–₱80,000 ($992–$1,322) per month is the going rate for experienced professionals in technology and financial services.
