Pay Standards & Practices: Business Process Outsourcing

Download as pdf or txt
Download as pdf or txt
You are on page 1of 4

Average Annual Compensation per Employee in Top Five

Business Process Management Sub-class, Workers Compensation in the BPO Industry by Position,
Philippines: 2017 (in PhP) Philippines: 2016
405,997 Business Process Management Annual
Mo. Basic Life Health Other Fringe
Salary
Position Salary Insurance Insurance Benefits
1,090,493 Software publishing Increase
(Php) (%) (Php) (Php) (Php)
824,207 Finance and accounting activities
Executive 155,000 11 1,000,000 650,000 16,000
761,301 Managerial 70,000 10 800,000 500,000 15,000
Engineering and outsourcing activities
Supervisory 27,000 9 500,000 400,000 13,000
745,588 Payroll maintenance & other transaction processing activities Rank and File 24,000 14 160,000 130,000 11,000
Source: ECOP
744,517 Computer programming activities
Source: ASPBI 2017

Based on the Annual Survey of Philippine Business and Industry of


Results of ECOP’s 2016 Corporate Compensation Survey showed that
PAY STANDARDS
& PRACTICES
median monthly basic salaries in the BPO industry ranged from P24,000
the PSA, the average annual compensation in the Business Process for rank-and-file employees to P155,000 for executive level positions.
Management Industry is P405,997 per employee. Workers in Annual salary increases ranged from 9% (supervisory) to 14% (rank and
software publishing reported the highest average annual file). Executives had the highest life and health insurances, and fringe
compensation amounting to P1,090,493. 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 Occupation,
Pay for Regular Working Time (P237,107)
Direct Wages Philippines: 2016
Mo. Basic Annual Life Insu- Health Other Fringe
OT, Night Shift, Premium Pay (P6,445) Salary
Occupation Salary rance Insurance Benefits
(P258,213) COLA & Other Allowances (P7,137) (Php)
Increase
(%) (Php) (Php) (Php)
84.3% Bonuses & PIS (P5,276)
Collection Officer 28,000 14 160,000 130,000 11,000
Business Process
Graphics
74,000 14 160,000 130,000 11,000
Commissions (P2,247) Designer
Loan Officer 13,000 14 160,000 130,000 11,000
Outsourcing
Telemarketer 16,399 14 160,000 130,000 11,000
0.37% Cost of Training (P1,124) Social Security (P21,779) 7.11% Programmer 54,428 14 160,000 130,000 11,000
QA Tester 40,633 14 160,000 130,000 11,000 The industry involves the delegation of one or more IT-
0.09% Payments in Kind (P282) Housing (P409) 0.13% Software intensive business processes to an external provider that,
83,605 14 160,000 130,000 11,000
Developer in turn, owns, administers, and manages the selected
0.17% Welfare Services (P522) Other Labor Cost (P856) 0.28% Customer process or processes based on defined and measurable
22,500 14 160,000 130,000 11,000
Service Rep. performance metrics.
0.08% Remuneration for Time not Worked (P246)
Source: ECOP

Year-end, Seasonal, One-time Bonuses


Bonuses &

Among rank & file employees in the sector, median monthly basic
Gratuities

(22,046)
salary ranged from P13,000 for loan officers to P83,605 for software
Additional Payments 7.5% developers. Median annual salary increase was uniform at 14%, while
(vacation, supplementary to normal (P22,875) life insurance was at P160,000, health insurance at P130,000, and
vacation pay) (P677) other fringe benefits at P11,000.
Profit –sharing Bonuses (P152)
Source: Labor Cost Survey

The annual labor cost in Publishing Activities was P306,306 per For more information:
worker in 2013. Of the total, 84.3% or P258,213 were direct
www.nwpc.dole.gov.ph www.facebook.com/dole.nwpc
National Wages and Productivity Commission
wages; 7.5% or P22,875 were bonuses and gratuities; and 7.1% Department of Labor and Employment
or P21,779 were payments for social security. Or call:
8 527-8011 8 527-8014 ISO 9001:2015 CERTIFIED Philippines
(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 Process
by Industry, Philippines: 2014-2018 (in PhP) Outsourcing Industry, Philippines: August 2018 (in PhP)

Lowest wage that an employer should 692 708


Minimum 662 All Industries 13,559 1,716
pay his workers, as fixed by the 618 601
Wage 583 599
RTWPBs 548 555
525 500
456 466 443 25,261 1,882
422 432
401 415 Information and Communications
Holiday 100% of the daily rate if unworked 367 379
Pay 200% of the daily rate if worked
Call Center Activities 18,038 2,429

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


total basic pay earned in a calendar Medical Transcription 15,589 2,185
Month Pay
year
2014 2015 2016 2017 2018 0 5,000 10,000 15,000 20,000 25,000
All Industry Services
5-Day SIL Workers are entitled to a 5-day service Information and Communications Administrative and Support Service Activities Median Basic Pay Allowances
incentive leave after one-year of service,
Source: Labor Force Survey Source: Occupational Wages Survey
and every year thereafter
Average monthly basic pay as of August 2018 stood at P13,559 while monthly
Data from the household-based Labor Force Survey showed that allowance at P1,716 based on establishment data gathered from the
Equivalent to ½ or 1 month pay for average daily basic pay of workers increased from P367 in 2014 to
Separation Occupational Wages Survey (OWS). In the BPO industry, average monthly
every year of service depending on the P443 in 2018 or by 20.7%. Workers’ average pay in Information and basic pay in selected sub-sectors ranged from P15,589 (medical transcription)
Pay Communications also grew from P618 to P708 or by 14.6%. Average
authorized cause of the separation to P25,261 (information and communications); while monthly allowances
pay increased slightly slower in Administrative and Support Service varied from P1,882 (information and communication) to P2,429 (call center
Activities from P525 to P599, or by 14.1% in the same period.
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: August 2018 (in PhP)

Call Center Activities (Voice) Medical Transcription Activities

Premium Applications Programmers 51,224 Computer Engineers 38,378


30% of the daily basic rate
Pay Computer Engineers 47,337 Among workers in the BPO industry Medical Transcriptionists 22,316
ICT User Support Technicians 29,648 covered by the OWS, system analysts Accounting and Bookkeeping Clerks 19,205
Contact Center Information Clerks 25,344 received the highest average ICT User Support Technicians 18,015
Accounting and Bookkeeping Clerks 17,989 monthly pay at P54,381, followed by Applications Programmers 14,297
Night Shift 10% of the effective hourly basic Unskilled Workers except Janitors, 13,532
Unskilled Workers except Janitors, 16,554 application programmers (P42,923
Differential Pay rate for work performed between Messengers and Freight Handlers to P51,224), computer engineers Messengers and Freight Handlers
10 p.m. and 6 am. (P38,378 to 47,337), and electronics
Computer Programming, engineer who received, on average,
P40,473. Publishing Activities
Consultancy; Information Services
To be distributed completely and
Service Systems Analysts 54,381 Unskilled workers received the Production Supervisors and General Foremen 25,792
equally among covered workers
Charges Applications Programmers 42,923 lowest average monthly pay, ranging Journalists 20,983
except managerial employees from P13,532 to P16,554. Among Accounting and Bookkeeping Clerks 19,790
Electronics Engineers 40,473
Telecommunications Engineers 36,058 technicians and associated Coding, Proof-Reading and Related Clerks 18,832
ICT Operations Technicians 33,910 professionals covered by the survey, Pre-Press Technicians 17,389
Retirement applications programmers had the Sign Writers, Decorative Painters, Engravers 16,723
Daily rate x 22.5 days x number of ICT User Support Technicians 31,527
lowest pay at P14,297.
Pay years of service Computer Network Professionals 31,105 and Etchers
Electronics Engineering Technicians 30,284 Print Finishing and Binding Workers 16,507
Accounting and Bookkeeping Clerks 20,949 Mechanical Engineers 16,350
Data Entry Clerks 15,860 Printers 16,331
Unskilled Workers except Janitors, 14,501 Unskilled Workers except Janitors, 13,700
Messengers and Freight Handlers Messengers and Freight Handlers
Source: Occupational Wage Survey
COMPUTER PROGRAMMING, CONSULTANCY;
AND INFORMATION SERVICE ACTIVITIES
Annual Total Labor Cost: P471,485

Pay for Regular Working Time (P358,435)

Direct Wages
Bonuses & PIS (P13,611)
(P394,309)
83.6% OT, Night Shift, Premium Pay (P11,354)

COLA & Other Allowances (P10,181)

Commissions (P728)

0.41% Cost of Training (P1,948) Social Security (P25,137) 5.33%

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

0.44% Welfare Services (P2,079) Other Labor Cost (P1,521) 0.32%

0.5% Remuneration for Time not Worked (P2,352)

Year-end, Seasonal, One-time Bonuses


Bonuses &
Gratuities

(P39,643)
Additional Payments
8.9%
(vacation, supplementary to normal (P42,047)
vacation pay) (P981)
Profit –sharing Bonuses (P1,423)
Source: Labor Cost Survey

Annual labor cost in Computer Programming, Consultancy, and


Information Service Activities was P471,485 per worker. Of the
total, 83.6% or P394,309 were direct wages; 8.9% or P42,047 were
bonuses and gratuities; and 5.3% or P25,137 were social security
payments.

CALL CENTER ACTIVITIES


Annual Total Labor Cost: P353,969
Pay for Regular Working Time (P236,131)
Direct Wages

(P288,635) OT, Night Shift, Premium Pay (P21,630)

81.5% COLA & Other Allowances (P17,333)

Bonuses & PIS (P12,050)


Commissions (P1,491)

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

0.02% Payments in Kind (P77) Housing (P286) 0.08%

0.06% Welfare Services (P214) Other Labor Cost (P6,503) 1.84%

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


Year-end, Seasonal, One-time Bonuses

Bonuses &
(P26,114)

Gratuities
7.7%
Additional Payments
(vacation, supplementary to normal
(P27,401)
vacation pay) (P749)

Profit –sharing Bonuses (P537)


Source: Labor Cost Survey

Annual labor cost in Call Center Activities totals P353,969 per worker.
Of the total, 81.5% or P288,635 is received as part of workers’ direct
wages; 7.7% or P27,401 as bonuses and gratuities; and 6.3% or
P22,182 accounted as cost for social security.

MEDICAL TRANSCRIPTION

Annual Total Labor Cost: P271,483


Pay for Regular Working Time (P202,267)

Direct Wages
OT, Night Shift, Premium Pay (P18,083)
(P235,706)
COLA & Other Allowances (P13,949)
86.8% Bonuses & PIS (P1,404)

Commissions (P2)

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

-- Payments in Kind (--) Housing (P467) 0.17%

0.01% Welfare Services (P35) Other Labor Cost (P161) 0.06%

0.01% Remuneration for Time not Worked (P24)

Year-end, Seasonal, One-time Bonuses


(P17,190)

Bonuses &
Gratuities
7.9%
Additional Payments
(vacation, supplementary to normal (P21,477)
vacation pay) (P4,158)
Profit –sharing Bonuses (P129)
Source: Labor Cost Survey

Annual labor cost in Medical Transcription was P271,483 per


worker, bulk of which or 86.8% amounting to P235,706 were
direct wages; 7.9% or P21,477 were bonuses and gratuities; and
4.8% or P13,092 were social security payments.

You might also like