Average Annual Compensation per Employee in Business Process

Outsourcing, Philippines: 2014 (in PhP) Workers Compensation in the BPO Industry by Position,
1,169,886 Software Publishing Philippines: 2014

Computer programming, consultancy and related activities Annual

576,419 Mo. Basic Life Health Other Fringe
Salary
Position Salary Insurance Insurance Benefits
404,865 Increase
Publishing of books, periodicals and related activities
(Php) (%) (Php) (Php) (Php)
384,605 Call centers and other related activities Executive 75,000 - 175,000 100,000 1,500
Managerial 42,453 5 1,075,000 120,000 6,150
301,336 Motion picture, video and tv program activities
Supervisory 30,000 6 300,000 120,000 1,500
276,194 Data processing, hosting; web portals Rank and File 30,000 6 120,000 60,000 1,500
Source: ECOP
138,470 Activities of employment placement agencies
Source: ASPBI 2014
Results of ECOP’s 2015 Corporate Compensation Survey showed that
average monthly basic salaries in the BPO industry ranged from P30,00
PAY STANDARDS
Annual compensation in the BPO industry ranged from P138,470
(activities of employment placement agencies) to P1,169,886
(software publishing) based on the 2014 Annual Survey of
Business and Industry (ASPBI) of the PSA.
for rank-and-file and supervisory employees to P75,000 for executive
level positions. Annual salary increases ranged from 5% (managerial)
to 6% (rank and file & supervisors). Managers had the highest life and
& PRACTICES
health insurances, and fringe benefits, while rank and file workers
received the lowest benefits in all three.
PUBLISHING ACTIVITIES
Annual Total Labor Cost: P306,306 Workers Compensation in the BPO Industry by
Selected Occupation, Philippines: 2014
Pay for Regular Working Time (P237,107) Annual
Direct Wages
Mo. Basic Salary Life Insu- Health Other Fringe
OT, Night Shift, Premium Pay (P6,445) Occupation Salary Increase rance Insurance Benefits

(P258,213) COLA & Other Allowances (P7,137)

(Php) (%) (Php) (Php) (Php)
Operations Team
84.3% Bonuses & PIS (P5,276)
Leaders
42,000 6 300,000 120,000 6,150
Business Process
Customer Service
20,000 6 120,000 60,000 1,500
Commissions (P2,247) Representatives
Software
Outsourcing
30,000 6 120,000 60,000 1,500
Developers
0.37% Cost of Training (P1,124) Social Security (P21,779) 7.11% QA Testers 34,000 6 120,000 60,000 1,500
The industry involves the delegation of one or more IT-
0.09% Payments in Kind (P282) Housing (P409) 0.13% Telemarketers 28,000 6 120,000 60,000 1,500
intensive business processes to an external provider that,
Market in turn, owns, administers, and manages the selected
0.17% Welfare Services (P522) Other Labor Cost (P856) 0.28% Researchers
20,000 6 120,000 60,000 1,500
process or processes based on defined and measurable
Source: ECOP performance metrics.
0.08% Remuneration for Time not Worked (P246)

Year-end, Seasonal, One-time Bonuses By occupation, monthly salary ranged from P20,000 for customer
Bonuses &
Gratuities

(22,046) service representatives to P42,00 for operations team leaders. Annual

Additional Payments 7.47% salary increase uniformly grew by 6% for all occupations. Operations
team leaders had the highest life and health insurances at P300,000
(vacation, supplementary to normal (P22,875) and P120,000, respectively, as well as fringe benefits at P6,150. Other
vacation pay) (P677) occupations received uniform amounts of life and health insurance,
Profit –sharing Bonuses (P152) and fringe benefits.
Source: Labor Cost Survey

The annual labor cost in Publishing Activities was P306,306

per worker in 2013. Of the total, 84.3% or P258,213 were For more information: National Wages and Productivity Commission
direct wages; 7.473% or P22,875 were bonuses and www.nwpc.dole.gov.ph www.facebook.com/dole.nwpc Department of Labor and Employment
gratuities; and 7.11% or P21,779 were payments for social Or call: Philippines
ISO 9001:2015 CERTIFIED
security. 527-8011 527-8014
(Wage Policy and Research Division) (Planning and Information Division)
Wage and Wage-Related Benefits under Compensation and Benefits
the Labor Code of the Philippines Average Daily Basic Pay of Wage and Salary Workers Median Monthly Basic Pay and Allowances in the Business Proce
by Industry, Philippines: 2012-2015 (in PhP) Outsourcing Industry, Philippines: July 2016 (in PhP)
700
618 601
Minimum Lowest wage that an employer should 600 548 570 548 All Industries 12,013 1,130
pay his workers, as fixed by the 504 525
Wage 481
RTWPBs 500
432
403 422
383 367 379 Call Center Activities 17,144 2,430
400
334 349
Holiday 100% of the daily rate if unworked
300
Pay 200% of the daily rate if worked
Information and Communications 21,399 2,012
200

13th Not less than one-twelfth (1/12) of the 100

total basic pay earned in a calendar Medical Transcription Activities 13,028 1,375
Month Pay
year 0
2012 2013 2014 2015 0 5000 10000 15000 20000 25000
All Industries Services
5-Day SIL Workers are entitled to a 5-day service Information and Communications Administrative and Support Service Activities Basic Pay Allowance
incentive leave after one-year of service,
Source: Labor Force Survey Source: Occupational Wage Survey
and every year thereafter
Average monthly basic pay as of July 2016 stood at P12,013 while monthly
Data from the household-based Labor Force Survey showed that allowance at P1,130 based on establishment data gathered from the
Equivalent to ½ or 1 month pay for average daily basic pay of workers increased from P334 in 2012 to
Separation Occupational Wages Survey (OWS). In the BPO industry, average monthly
every year of service depending on the P379 in 2015 or by 13%. Workers’ average pay in Administrative and basic pay in selected sub-sectors of the BPO industry ranged from P13,028
Pay authorized cause of the separation Support Services also grew from P481 to P548 or by 14%. Average (medical transcription) to P21,399 (information and communications); while
pay increased slightly slower in the Information and Communications monthly allowances varied from P1,375 (medical transcription) to P2,430
industry or by 10% from P548 to P601. (call center activities).
Overtime 25% of the effective hourly basic rate
Pay Average Monthly Wage Rates of Full-Time Workers in the Business Process Outsourcing Industry, Philippines: July 2016 (in PhP)

Call Center Activities (Voice) Medical Transcription Activities

Premium Accounting and Bookkeeping Clerks 22,507 Accounting and Bookkeeping Clerks 14,936
30% of the daily basic rate
Pay Computer Assistants 22,559 Among workers in the BPO industry
Computer Assistants 18,326
Computer Engineers 49,335 Computer Engineers 18,305
covered by the OWS, computer
Computer Programmers 37,865 Computer Programers 17,423
programmers received the highest
Customer Service Representatives 19,356 monthly pay ranging from P17,423 Medical Transcriptionists 13,129
Night Shift 10% of the effective hourly basic Unskilled Workers except Janitors, Unskilled Workers except Janitors,
14,072 to P52,331, depending on the sub- 11,129
Differential Pay rate for work performed between Messengers and Freight Handlers sector. This is followed by system Messengers and Freight Handlers
10 p.m. and 6 am. analysts and designers at P51,069,
Computer Programming, and computer engineers who
receive monthly pay ranging from Publishing Activities
Consultancy; Information Services
15% to be retained by management P18,305 to P49,335.
Service for losses and breakages; 85% to be Accounting and Bookkeeping Clerks 25,878 Accounting and Bookkeeping Clerks 15,869
Charges shared equally by rank-and-file Computer Assistants 27,227 Among technicians and associated Bookbinders and Related Workers 20,881
Computer Engineers 34,300 professionals covered by the survey, Compositors, Typesetters and Related
workers Computer Equipment Operators 18,813 computer equipment operators had Workers
14,064
Computer Programmers 52,331 the lowest pay at P18,813. Journalists and Other Writers 22,156
Retirement Data Entry Operators 18,790 Mechanical Engineers 29,518
Daily rate x 22.5 days x number of
Electronics and Telecommunications Pressman Letterpress and Related Workers 18,059
Pay years of service 26,847
Engineering Technicians Printing Engravers and Etchers 17,094
Electronics and Telecommunications Production Supervisors and General Foremen 36,338
26,427
Engineers Proofreaders and Copy markers 18,130
System Analysts and Designers 51,069 Stereotypers and Electrotypers 23,445
Unskilled Workers except Janitors, Unskilled Workers except Janitors,
11,706 14,977
Messengers and Freight Handlers Messengers and Freight Handlers
Source: Occupational Wage Survey
 COMPUTER PROGRAMMING, CONSULTANCY;
Year-end, Seasonal, One-time Bonuses
AND INFORMATION SERVICE ACTIVITIES

Bonuses &
(P26,114)

Gratuities
Annual Total Labor Cost: P471,485 7.74%
Additional Payments
(vacation, supplementary to normal
(P27,401)
Pay for Regular Working Time (P358,435)
vacation pay) (P749)

Direct Wages
Bonuses & PIS (P13,611)
(P394,309) Profit –sharing Bonuses (P537)

83.63% OT, Night Shift, Premium Pay (P11,354)

COLA & Other Allowances (P10,181)

Source: Labor Cost Survey

Commissions (P728) Annual labor cost in Call Center Activities totals P353,969 per
worker. Of the total, 81.54% or P288,635 is received as part of
workers’ direct wages; 7.74% or P27,401 as bonuses and gratuities;
0.41% Cost of Training (P1,948) Social Security (P25,137) 5.33% and 6.27% or P22,182 accounted as cost for social security.

0.01% Payments in Kind (P25) Housing (P2,067) 0.44%

MEDICAL TRANSCRIPTION
0.44% Welfare Services (P2,079) Other Labor Cost (P1,521) 0.32%
Annual Total Labor Cost: P271,483
0.5% Remuneration for Time not Worked (P2,352)
Pay for Regular Working Time (P202,267)

Direct Wages
Year-end, Seasonal, One-time Bonuses OT, Night Shift, Premium Pay (P18,083)
Bonuses &
Gratuities

(P39,643) (P235,706)
Additional Payments
8.92% COLA & Other Allowances (P13,949)
(vacation, supplementary to normal (P42,047) 86.82% Bonuses & PIS (P1,404)
vacation pay) (P981)
Commissions (P2)
Profit –sharing Bonuses (P1,423)
Source: Labor Cost Survey

0.19% Cost of Training (P522) Social Security (P13,092) 4.82%

Annual labor cost in Computer Programming, Consultancy, and
Information Service Activities was P471,485 per worker. Of the
total, 83.63% or P394,309 were direct wages; 8.92% or P42,047 -- Payments in Kind (--) Housing (P467) 0.17%
were bonuses and gratuities; and 5.33% or P25,137 were social
security payments. 0.01% Welfare Services (P35) Other Labor Cost (P161) 0.06%

CALL CENTER ACTIVITIES 0.01% Remuneration for Time not Worked (P24)

Annual Total Labor Cost: P353,969 Year-end, Seasonal, One-time Bonuses

(P17,190)
Bonuses &
Gratuities

Pay for Regular Working Time (P236,131) 7.91%

Direct Wages

Additional Payments
(P288,635) OT, Night Shift, Premium Pay (P21,630) (vacation, supplementary to normal (P21,477)
vacation pay) (P4,158)
81.54% COLA & Other Allowances (P17,333)
Profit –sharing Bonuses (P129)
Bonuses & PIS (P12,050)
Source: Labor Cost Survey
Commissions (P1,491)

1.61% Cost of Training (P5,684) Social Security (P22,182) 6.27%

Annual labor cost in Medical Transcription was P271,483 per
worker, bulk of which or 86.82% amounting to P235,706 were
0.02% Payments in Kind (P77) Housing (P286) 0.08% direct wages; 7.91% or P21,477 were bonuses and gratuities; and
4.82% or P13,092 were social security payments.
0.06% Welfare Services (P214) Other Labor Cost (P6,503) 1.84%

0.84% Remuneration for Time not Worked (P2,988)