Cost of Hiring Software Developers in the Philippines vs Locally
Compare developer salaries and total cost of employment: Philippines vs US/EU/Australia
Permhunt Team
Thinking about hiring software developers in the Philippines? Companies can achieve significant cost savings compared to hiring locally in the US, EU, or Australia while accessing quality engineering talent.
This guide breaks down salary benchmarks, total cost of employment (TCO), hidden costs, and engagement models so you can make informed comparisons.
Cost Comparison: Philippines vs Locally
Companies can achieve substantial cost savings when hiring developers in the Philippines. The exact numbers vary by seniority, tech stack, and industry.
Cost Savings Potential
Philippine Salary Rates
Skilled Tech Talent
Salary Ranges: Philippines vs Locally
Philippines (Typical Ranges)
Philippine developer salaries vary significantly based on experience level, technical skills, and specialization. Contact us for specific salary benchmarks for your role requirements.
Key Factors:
- • Seniority Level
- • Tech Stack Complexity
- • English Proficiency
US/EU/Australia (Comparison)
Local market salaries in Western markets are significantly higher across all experience levels. The cost difference creates substantial savings opportunities when hiring in the Philippines.
Considerations:
- • High Cost of Living Adjustments
- • Competitive Local Markets
- • Higher Benefits Costs
Important Notes
- •Ranges vary by stack (e.g., React/Node, .NET, Java, Python, mobile, cloud).
- •Niche skills (AI/ML, security, DevOps) trend higher across all geos.
- •Philippine senior ranges assume strong English and commercial experience.
Pro tip: Benchmark compensation first, then compare TCO. We can help you structure competitive offers that attract qualified Filipino developers.
Where the Real Savings Come From (TCO)
Philippines TCO
- •Base Salary
- •13th Month Pay (pro-rated)
- •Government Contributions (SSS, PhilHealth, Pag-IBIG)
- •Equipment & Internet Stipends
- •Recruitment Fee (one-time)
US/EU/AU TCO
- •Base Salary (Significantly Higher)
- •Employer Taxes & Benefits (healthcare, retirement)
- •Office/Overhead (if hybrid/on-site)
- •Recruiting Costs & Time-to-Hire
- •Higher Replacement Costs due to Attrition
When fully loaded, Philippine hires generally remain significantly more cost-effective compared to local Western market hires across experience levels.
Hidden Costs: Local vs Offshore
Local Hiring: Longer Time-to-Hire
Local hiring often takes several months for senior roles, with higher advertising and internal interview costs. Replacement cycles add additional cost and risk.
Philippines: Streamlined Hiring
We work to provide qualified candidate profiles efficiently. Our vetting process helps reduce time-to-hire.
Local Hiring: Higher Replacement Costs
Replacing developers involves significant costs. Longer notice periods and competitive counteroffers can inflate costs further.
Philippines: Quality Vetting
We screen for fit, English proficiency, and technical skills to help ensure quality placements and retention.
Engagement Models and Cost Impact
Direct Hire
You hire the developer directly. You manage benefits and contributions. Often used for core team members.
Employer of Record (EOR)
Third party employs the developer on your behalf. Adds service fees but simplifies compliance. Good for testing new markets.
Contractor/Freelance
Flexible arrangement with minimal overhead. Best for short-term needs; less common for long-term team building.
Budget Considerations
Team budgets vary significantly based on experience levels, technical specializations, tech stack requirements, and engagement models.
Contact us to discuss your specific requirements and receive tailored budget guidance for your team composition.
Frequently Asked Questions
How much will I actually pay per month?
What about 13th month pay and government contributions?
Do I need an Employer of Record (EOR)?
How fast can I see qualified candidates?
Can I offer competitive compensation and still see savings?
Why Choose Permhunt for Cost-Effective Hiring?
We specialize in Filipino technical recruitment. With local networks, vetting processes, and market-calibrated compensation guidance, we help you find qualified developers at competitive rates.
Our process is designed to help you build your Philippine development team efficiently.
Ready to Discuss Your Hiring Needs?
Schedule a call and we can discuss compensation guidance and options for building your Philippine development team.
Related Topics
About Permhunt Team
Expert in remote hiring and Filipino talent acquisition with over 10 years of experience helping companies build successful remote teams.
