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Why We Pay Staff in the Philippines Weekly


A common theme in the Philippines and topic of discussion you will hear is around money. This is not surprising, as a fast growing developing country, prices are going up and salaries do not always keep up with rising costs. Furthermore, personal income tax brackets have not changed since 1987. Imagine the uproar you would have in Australia if that was the case. The “bracket creep” would make your head explode. The top tax bracket in Australia in 1987 was $35,000, where every dollar above that would be taxed at 57%. Can you imagine if the current minimum wage in Australia put you in the top tax bracket? Of course it is not yet that bad in the Philippines (due to an extremely low minimum wage), but 29 consecutive years of bracket creep do add up, and make Filipinos subject to one of the highest personal income tax rates in Asia. This is especially true if they are above entry level roles or have several years of experience, such as the high value talent we focus on hiring. In the Philippines, someone earning about $1000/month will lose a third of their salary to tax.

Reap the Benefits of Offshoring

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All businesses regardless of whether they’re big or small are always under pressure to beat the competition and get more customers. One way to do this is if businesses can provide their customers with value that others don’t.  Companies that are able to do this become more successful, especially when they are able to provide customers and clients with means to lower their operational and production costs.

Keep Your Company Culture Positive, Happy

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When it comes to means and ways to prevent the best employees from leaving the company, various human resources experts say that giving high salaries and various perks is not enough. Companies that want to retain their best staff should make continued efforts to keep employees happy, and to create a work atmosphere and culture that’s positive and productive. People who are happy at their jobs stay, while those who are unhappy and unsatisfied (without considering the factor of salaries and perks) tend to leave. Companies should make steps to keep everyone happy at work, because happy people are productive people; people who meet their goals are often the ones who also stay loyal. 

Watch Out: Accountant Busy at Work

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Paulette – or PJ, she is known in the office – is among the youngest employees of Flat Planet but this doesn’t mean she is naïve in any way. A graduate of accounting technology in one of the most well-known private, all-women universities in the Philippines, PJ seems to have been with a decided bent for professionalism: she has no qualms about working overtime to finish tasks, and she goes through her auditing jobs back and forth to make sure the records are accurate. And have we mentioned that she’s practically a new graduate and this is her first time to be part of the labor force?

Transforming Lives by Creating Opportunities

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Well, done, Mai! The Flat Planet senior recruiter flew to Sydney over the weekend to deliver a presentation on ethical outsourcing and one of Flat Planet’s guiding principles to open pathways of opportunity for professional Filipinos. She spoke to an audience comprised of Flat Planet clients, friends, and prospective clients.  Mai’s presentation was a deeply personal one wherein she shared stories of her childhood and her struggle to overcome poverty to reach her professional goals. From a poverty-stricken childhood in Samar, one of the Philippines’ poorest regions, Mai’s resilience and determination – as well as a lot of love and support from her parents – has helped her secure a college education and eventually land good-paying professional work here in the Philippines and overseas.  

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