US vs Philippines Virtual Assistant Cost Analysis
Typical Costs Include:
- $19-$27/hour average rate
- $37-$62/hour with benefits
- Higher in major cities
- Additional overhead costs
Value Advantages:
- $3-$15/hour average rate
- No benefits overhead
- Direct hire or agency options
- High English proficiency
PH: $350-$875/month
PH: $875-$1,750/month
PH: $1,750-$4,375/month
Philippines English Proficiency Excellence
Philippines ranks 2nd in Asia for English proficiency with neutral accents easily understood by Americans, cultural alignment from American colonial history, and Western business practice compatibility.
OnlineJobs.ph
250,000+ Filipino VAs, direct hire model starting at $69/month platform fee
Prialto
Fully managed VA services starting at $25/hour with training and replacement guarantees
Virtual Staff Finder
$495 one-time fee for direct hire placement with comprehensive vetting process
Wing Assistant
Fully managed VA experience with 15-30% agency premium over direct hire rates
Contact our research team: hello@armasourcing.com
Comparing Staffing Costs: US vs Philippines
Global businesses are cutting costs without compromising quality by hiring talent overseas. One top destination: the Philippines. With significantly lower wages and a skilled, English-speaking workforce, outsourcing to the Philippines is a strategic advantage.
Key Takeaways
Filipino workers earn 70–90% less than US employees for similar roles.
Philippines’ average monthly salary: $326.79 vs. US average: $6,228.
Cost of living in the Philippines is 1.66x lower than the global average.
Technology, customer service, marketing, and admin roles save 60–80%.
Mandatory benefits in the Philippines are minimal compared to the US.
US vs Philippines: Staffing Cost Breakdown
Outsourcing to the Philippines provides significant savings across salaries, benefits, and setup costs.
Example Comparisons:
| Role | US Monthly Salary | PH Monthly Salary | Cost Savings |
|---|---|---|---|
| Shopify Developer | $5,400–$13,400 | $1,800–$2,700 | 60–70% |
| Backend Developer | ~$6,000 | ~$896 | ~85% |
| Customer Service Rep | $3,000+ | ~$600 | ~80% |
| Admin/Accountant | $4,500+ | ~$600 | ~85% |
| SEO/Digital Marketer | $3,500+ | $800–$1,500 | ~75% |
Source: Occupational Wage Survey (PH), PayScale, Indeed
What Drives the Cost Difference?
1. Cost of Living
Manila’s living expenses are far lower than US cities.
Daily wages range from $5.39 to $11 depending on region.
Lower costs allow Filipinos to maintain a good standard of living on smaller salaries.
2. Currency & Economic Stability
Peso-to-USD fluctuations impact budgets but are manageable with hedging.
The peso has shown long-term stability, reducing financial risk.
3. Education & Skill Level
97% literacy rate; over 23% hold college degrees.
Strong focus on IT, business, and creative disciplines.
Workers pursue continuous learning through global certifications.
4. English Proficiency
English is an official language.
High cultural alignment with Western markets.
Excellent for customer service, remote communication, and content creation.
Additional Cost Factors
Employer Contributions (PH):
SSS: 11% split employer/employee
PhilHealth: 3% split
Pag-IBIG Fund: 2% split
13th Month Pay: Mandatory bonus (1 month’s salary, tax-free up to ₱90,000)
Even with these, total labor costs remain far lower than in the US.
Why Companies Like Amazon Outsource to the Philippines
Amazon employs 500+ remote staff in Davao City.
Saves 70%+ on labor while ensuring 24/7 support.
Leverages time zone difference for round-the-clock productivity.
Best Practices for Global Hiring
Identify roles suited for offshore (e.g., support, marketing, admin).
Use wage benchmarking to guide fair but cost-effective salaries.
Leverage Philippine agencies for recruitment, onboarding, and legal compliance.
Invest in employee development and cultural training.
Frequently Asked Questions
What is the average cost difference between US and Philippine staff?
Savings range from 70–90%, depending on role and industry.
Are Filipino workers qualified?
Yes. Most have college degrees and strong English skills, making them excellent hires for global roles.
What are the key legal costs?
Mandatory contributions (SSS, PhilHealth, Pag-IBIG), plus 13th-month pay. Still much cheaper overall.
Which industries benefit the most?
Customer support, marketing, admin, IT, design, and eCommerce.
How do companies ensure ethical employment?
Offer fair pay, growth opportunities, and follow local labor laws.
Final Thoughts
Outsourcing to the Philippines helps companies scale affordably without compromising quality. With educated talent, low costs, and seamless integration into global workflows, it’s a winning move for modern businesses.
