Cost to Hire a Developer from Philippines in Australia
A mid-level software developer in Philippines typically earns $10,000–$22,000 a year. At the mid-point of A$23,296, after employer payroll taxes and mandatory benefits, the true cost to a company in Australia is about A$26,853 — 15.3% above base salary.
- Mid-level salary
- $10K–$22K
- Employer taxes
- 6.9%
- Mandatory benefits
- 8.3%
- Local currency
- PHP
Salary calculator
Drag the slider or type an annual gross salary for your Philippines-based hire.
Typical mid-level developer in Philippines: $10,000–$22,000 (mid-point $16,000). Accepts $1,000–$1,000,000.
True annual business cost
A$37,319
A$3,110/month · 1.6× base salary
- Base salary
- A$23,296
- Cost on top of salary
- +A$14,023
Base salary vs. true business cost
- Base salary12 months gross
- A$23,296
- Employer payroll taxes6.9% effective, after statutory caps
- A$1,616
- Mandatory benefits8.3% 13th-month, bonuses & accruals
- A$1,941
- EOR platform fee~$599 × 12 months
- A$10,466
- True business cost
- A$37,319
How employer taxes are calculated
- SSS social security (10% of salary credit up to ₱35,000/month)
- A$970
- SSS Employees’ Compensation (₱30/month)
- A$8
- PhilHealth (2.5% up to ₱100,000/month)
- A$582
- Pag-IBIG housing fund (2% up to ₱10,000/month)
- A$55
Currency conversions
USDUS dollar
Base salary
$16,000
True cost / month
$2,136
AUDAustralia (HQ)
Base salary
A$23,296
True cost / month
A$3,110
PHPPhilippines (local)
Base salary
₱1,008,960
True cost / month
₱134,692
Mid-market rates on 10 November 2026: 1 USD = 63.06 PHP = 1.46 AUD. Payroll is usually funded at the provider’s live rate.
Employer taxes & mandatory benefits in Philippines
- SSS: employer pays 10% of the monthly salary credit (capped at ₱35,000, so at most ₱3,500/month), plus Employees’ Compensation of ₱30/month.
- PhilHealth: 5% premium split equally — employer pays 2.5% on salary up to ₱100,000/month.
- Pag-IBIG housing fund: employer contributes 2% of compensation up to ₱10,000/month (₱200/month maximum).
- Mandatory 13th-month pay equal to one-twelfth of basic annual salary for rank-and-file employees, due by 24 December.
- HMO private health coverage is not mandatory but is commonly offered by tech employers.
Paid leave: Minimum 5 days of Service Incentive Leave after one year of service; many tech employers offer more.
Paying talent abroad from Australia
Australian employers generally have no PAYG withholding or Superannuation Guarantee obligation for non-residents working wholly overseas. Pay contractors against invoices and review GST reverse-charge rules for imported services.
Contractor model in Philippines
Freelancers register with the BIR as self-employed, pay graduated or 8% flat income tax, and issue official receipts or invoices.
Employee vs. contractor at the market average
- Contractor invoicing the same amount
- A$23,296
- Employee (statutory cost)
- A$26,853
- Employee via EOR
- A$37,319
Guides for hiring in Philippines
- Country guideHiring in the Philippines: 13th-Month Pay, SSS, PhilHealth and Pag-IBIG ExplainedA plain-English guide to Philippine employer contributions in 2026: SSS, PhilHealth and Pag-IBIG caps, 13th-month pay, leave and regularization rules.
- ComplianceEmployer of Record vs. Independent Contractor: How to Hire Abroad LegallyCompare hiring an international developer as a contractor or through an Employer of Record: cost, legal risk, benefits and when each model makes sense.
- BudgetingHow to Calculate the True Cost of Hiring a Remote Developer Abroad (2026)A step-by-step method to budget an international hire: salary, employer taxes, mandatory benefits, contribution caps, EOR fees and currency risk.
Hiring in Philippines from Australia: FAQ
How much does it cost to hire a developer from Philippines in Australia?
At a typical 2026 mid-level salary of A$23,296 (₱1,008,960) per year, the true employment cost is about A$26,853 once 6.9% employer payroll taxes and 8.3% mandatory benefits are added. Through an Employer of Record at roughly $599 per month, budget about A$37,319 per year.
What employer taxes do you pay when hiring in Philippines?
SSS: employer pays 10% of the monthly salary credit (capped at ₱35,000, so at most ₱3,500/month), plus Employees’ Compensation of ₱30/month. PhilHealth: 5% premium split equally — employer pays 2.5% on salary up to ₱100,000/month. Pag-IBIG housing fund: employer contributes 2% of compensation up to ₱10,000/month (₱200/month maximum). In total, employer statutory contributions are roughly 6.9% of gross salary.
Is it risky to hire a contractor in Philippines?
Philippines is rated medium compliance risk. Employees become “regular” after a maximum six-month probation and gain strong security of tenure. Long-term contractors doing core, controlled work risk reclassification, with back-pay of 13th-month pay and government contributions. At a typical salary, back-dated employer contributions and benefits could reach about A$3,557 per year of engagement if a contractor is reclassified.
Can a company in Australia hire in Philippines without a local entity?
Yes. An Employer of Record (EOR) becomes the legal employer in Philippines, runs compliant local payroll, withholds taxes and provides mandatory benefits, while your company directs the day-to-day work. Alternatively, a genuinely independent contractor can invoice you directly. Freelancers register with the BIR as self-employed, pay graduated or 8% flat income tax, and issue official receipts or invoices.
How much paid leave do employees in Philippines get?
Minimum 5 days of Service Incentive Leave after one year of service; many tech employers offer more.
Estimates use indicative 2026 statutory rates and reference exchange rates for planning. Contribution caps, regional surcharges, collective agreements and individual tax status can change real costs. This page is not tax or legal advice — confirm with a local adviser or an Employer of Record before hiring.