Salary Benchmark: Australia vs Philippines - How Much You Can Save in Year One

Introduction

Labour costs in Australia continue to rise, driven by higher base salaries, superannuation, and compliance obligations. For many organisations, scaling local talent alone has become financially unsustainable.

This challenge has pushed companies to explore outsourcing services. By leveraging global talent pools particularly in the Philippines, businesses are achieving significant cost savings while maintaining access to skilled professionals.

So how much can your business really save in a year by offshoring? In this article, we break down the salary comparison between Australia and the Philippines across key roles—such as Virtual Assistants, HR, Finance, Marketing, IT, Sales, Supply Chain, and Engineering. You’ll see the salary benchmarks and discover the potential first-year cost savings when hiring talent from the Philippines.

Understanding Base Salary

Before looking at the benchmarks, it is essential to clarify what “base salary” means in both markets.

•  Philippines: Base salary refers to the fixed amount paid to an employee before allowances, incentives, or bonuses are added. It forms the foundation of the remuneration package (JobStreet PH).
•  Australia: Base salary is the contracted rate of pay for work performed, excluding bonuses, commissions, or superannuation. Employers often refer to “salary packages,” which include base pay plus superannuation and benefits (SEEK AU).

By aligning these definitions, we can make a fair apples-to-apples comparison of how much businesses spend on talent in each country.

Salary Benchmarks: Australia vs Philippines (Annual Base Salary)

The figures shown below represent average annual base salaries as of 2025, with Philippine data sourced from  Indeed Philippines and Australian data sourced from Indeed Australia.

Key Insights from the Benchmarks

1.    Consistent 80–90% savings across roles
Whether in administrative, professional, or technical roles, hiring in the Philippines offers significantly more cost-efficient salary levels compared to Australia.

2.    High-volume functions deliver the strongest ROI
Roles such as Virtual Assistants, Sales Support, and IT Support are frequently offshored. At AUD 11,000 per year in the Philippines compared to AUD 59,000 in Australia, businesses save nearly AUD 48,000 per role annually.

3.    Specialist roles are equally cost-effective
Even highly skilled positions like Accountants and Engineers cost less than 15% of their Australian equivalents, freeing up capital that can be reinvested into growth and innovation.

4.    Team-based savings scale exponentially
A team of five offshore professionals can save an organisation between AUD 250,000–500,000 per year, depending on role mix.

Beyond Base Salary: The Total Cost of Employment

It is also important to account for the full cost of employment:

•    Australia: Overheads such as superannuation, payroll tax, insurance, leave entitlements, and office expenses can add 25–100% on top of base salary. An AUD 80,000 HR Coordinator may ultimately cost closer to AUD 95,000–100,000.
•    Philippines: Other costs—such as government contributions, benefits, and compliance—typically add around 20–25% on top of the base salary. For example, an Accountant with a base salary of AUD 11,600 may have a fully loaded cost of approximately AUD 14,500.

This leaner cost structure amplifies the savings advantage when businesses offshore.

Why the Philippines?

The Philippines has become one of the world’s leading offshoring destinations due to a unique mix of advantages:

•    Cost Efficiency: Salaries remain 70–90% lesser compared to Australia.
•    Skilled Workforce: Strong education systems and professional certifications, especially in HR, Finance, IT, and Engineering.
•    Language and Cultural fit: High English proficiency and cultural affinity with Western business environments.
•    Government and Industry Support: Incentives and infrastructure investments sustain the BPO and outsourcing industry.
•    Time Zone Coverage: Overlap with Australian working hours ensures real-time collaboration.

Offshoring Models: Choosing the Right Approach

Businesses can access talent in the Philippines through several models:

•    Managed Services: The provider delivers defined outcomes and handles recruitment, HR, payroll, and infrastructure—ideal for businesses wanting results without managing operations.
•    Employer of Record (EOR): The provider acts as the legal employer, ensuring compliance with local laws and benefits, while you manage the employee’s daily work.
•    Staff Augmentation: Offshore employees become part of your existing team, with the provider managing HR and payroll. A flexible model for scaling quickly.
•    Business Process Outsourcing (BPO): Entire business functions—such as payroll, accounting, HR support, or sales—are outsourced to a provider. The BPO model enables companies to achieve cost savings, scalability, and consistent quality.

The right model depends on your level of desired control, compliance requirements, and growth goals.

Case Study: A Small Support Team

Consider a business needing the following team:

•    1 Virtual Assistant
•    1 HR Coordinator
•    1 Accountant
•    1 IT Support

Australia (Annual Base + Overheads):

•    VA: ~AUD 75,000
•    HR Coordinator: ~AUD 95,000
•    Accountant: ~AUD 100,000
•    IT Support: ~AUD 95,000
•    Total: AUD 365,000

Philippines (Annual Base + Overheads):

•    VA: ~AUD 13,000
•    HR Coordinator: ~AUD 8,500
•    Accountant: ~AUD 14,500
•    IT Support: ~AUD 10,500
•    Total: AUD 46,500

First-Year Savings: ~AUD 318,000 (~87%)

This demonstrates how even a modest offshore team can deliver substantial financial impact.

Risks and Considerations

While the cost savings are compelling, organisations must plan carefully to address challenges:

•    Infrastructure Reliability: Partner with providers that offer secure technology, reliable systems, and built-in redundancy.
•    Retention: Select outsourcing companies that prioritise employee engagement, career growth, and long-term stability.
•    Cultural Integration: Ensure smooth collaboration through structured onboarding, clear KPIs, and ongoing communication.

Mitigating these risks ensures offshore staffing becomes a sustainable, long-term strategy.

Conclusion

The numbers are clear: by leveraging outsourcing and managed services in the Philippines, Australian businesses can cut salary costs by up to 70–90% across a wide range of roles.

From Virtual Assistants to HR Coordinators, Accountants, IT Support, and Marketing Specialists, the first year of offshoring alone can deliver hundreds of thousands of dollars in savings—capital that can be reinvested into growth, innovation, and building a stronger competitive edge.

At MployOS, we specialise in helping organisations unlock these opportunities by building reliable offshore teams tailored to their needs—ensuring not only cost efficiency but also operational excellence.

In today’s business landscape, where efficiency and agility define success, outsourcing to the Philippines offers more than just a cost advantage—it’s a strategic advantage.

Are you ready to transform the way your business grows? 

Contact us today and discover how MployOS can help you unlock the full potential of outsourcing.