RemotePayIndex

Cost to Hire a Remote Software Engineer in Philippines

Median salary, statutory employer tax burden, and misclassification risk — sourced against public statutory rates, updated for 2026.

Total Cost to Hire (annual)$22,700

Salary Benchmarks

Annual USD-equivalent gross salary percentiles for Software Engineer roles in Philippines.

Annual salary percentiles in USD
PercentileAnnual Salary (USD)
25th$14,000
50th (median)$20,000
75th$30,000
Local currency: PHP. Figures are USD-equivalent annual gross salary.

Mandatory Benefits in Philippines

  • Mandatory 13th month pay (one additional month's salary)
  • SSS, PhilHealth & Pag-IBIG (HDMF) membership
  • 5 days Service Incentive Leave per year
  • Holiday pay premiums (100%-200% of daily rate)
  • Retirement pay after 5+ years of continuous service

Compliance Risk

Medium risk(6/10)

Misclassifying a software engineer as an independent contractor in Philippines can expose employers to back taxes, statutory benefit liabilities, and penalties. An Employer of Record removes this exposure by employing the worker locally on your behalf.

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