Michael Domingo is the General Manager of Profitmaster Global Outsourcing, based in Pampanga, Philippines. With fast-growing levels of staff, it is imperative that he is aware of the current and developing trends with regard to salaries in the Philippines BPO sector.
This is his view regarding salaries of professional staff working for Australian accounting firms for 2023 and beyond.
Salaries in the Philippines
Salaries in the Philippines are generally trending higher, and this has become particularly noticeable in the Business Process Outsourcing (BPO) sector, one of the fastest-growing industries in the country. While the average salary for employees (all industries) is currently growing at a rate of 5.5% per annum, and is expected to continue throughout 2023, some sectors are experiencing higher growth.
Over the past 6 months, salaries among some experienced professionals have grown by 40%, sometimes more. For comparison, since the start of the pandemic, the salary of a 3+ years’ experienced intermediate accountant (business services) in Brisbane has grown by around 33%.
While some of this Philippines’ growth is due to seasonal factors, an emerging trend to engage staff directly as a work-from-home staff is also creating very high pay expectations.
However, this salary growth is having little impact on the demand from Australian accounting firms seeking to outsource their processes to the Philippines. If staff are not available in the home country, there is little choice but to look more broadly afield.
Mr Domingo said there are a number of other factors affecting salary trends for accountants in the Philippines.
Employees with a higher education are demanding more than those with a lower education. Demand for BPO workers with degrees in accounting, technology, engineering, and mathematics will continue to be high in 2023.
Employees with existing BPO industry experience are asking for higher salaries than those seeking to join the sector. Australian employers are willing to pay more, especially for staff with five or more years of experience.
Employees with special skills typically earn more. Firms are willing to pay more for workers with specialised skills in tax, audit, business services and insolvency
Notwithstanding the high rate of wage growth in the Philippines, Mr Domingo says that hiring staff is still hugely cost-effective as Australian firms continue to hold high levels of trust for quality providers and their workers in the Philippines.
Despite increasing salaries, Australian professional firms are still saving more than 60% on labour costs through outsourcing, while at the same time recognising the importance of offering competitive salaries and benefits in order to attract and retain the best people available.
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Labour costs account for a sizable portion of total operating expenses. By outsourcing some of their services, companies can further bolster their financial health. However, determining where to start, how much capital is required, finding the right location, and establishing fair salary rates based on salary trends in the Philippines make it seem like a very daunting challenge. That is where we at Profitmaster come in. We can assist you in making the outsourcing transition as smooth and hassle-free as possible. Learn more about us by clicking or tapping here.