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Every local hire costs significantly more than the salary. Employer taxes, benefits, office and overhead add thousands per month. An offshore team in the Philippines has none of these obligations. One all-inclusive monthly fee covers everything.
17%
Singapore CPF employer rate
13.8%
UK National Insurance rate
$1,350
Starting price all-inclusive
Superannuation at 12% of every salary (from 1 July 2025). Workers compensation insurance. Payroll tax above state thresholds. Annual leave loading at 17.5%. A $70,000 salary costs over $85,000 before office and equipment.
Example: a $70,000 salary costs $80,400 per year all-in before office and equipment ($70,000 salary plus $8,400 super plus $2,000 workers comp estimate).
See Office-based Philippines teams for Australian businesses.
FICA at 7.65% covering Social Security and Medicare. Federal and state unemployment insurance. Healthcare benefit contributions averaging $6,000 to $15,000 per employee per year. A $60,000 salary costs $70,000 to $80,000 all-in before office costs.
Example: a $60,000 salary costs $71,790 per year before office, healthcare and state taxes ($60,000 salary plus $4,590 FICA plus $7,200 healthcare estimate).
Employer National Insurance at 13.8% of every salary above the threshold. Workplace pension contributions at 3% minimum. A GBP 35,000 salary costs over GBP 40,000 before office and equipment.
Example: a GBP 35,000 salary costs GBP 39,934 per year before office and equipment (GBP 35,000 salary plus GBP 3,934 National Insurance plus GBP 1,050 pension minimum).
Employer CPF contribution at 17% of every employee salary up to the ordinary wage ceiling. Skills Development Levy and Foreign Worker Levy may also apply. A SGD 4,500 salary costs over SGD 5,200 per month before office and equipment.
Example: a SGD 4,500 monthly salary costs SGD 5,265 per month all-in before office and equipment (SGD 4,500 salary plus SGD 765 CPF at 17%). An equivalent offshore team member through Plus Back Office starts from $1,350 per month all-inclusive.
See Office-based Philippines teams for Singapore businesses.
The UAE does not levy employer payroll tax or social security contributions for expatriate workers, which make up the majority of the private sector workforce. However total employment costs including visa sponsorship, medical insurance (mandatory), end of service gratuity (accrues at 21 days per year of service) and housing allowances add 20 to 35 percent to the base salary.
Example: a AED 12,000 monthly salary costs AED 14,400 to AED 16,200 per month all-in including mandatory medical insurance, gratuity accrual and typical allowances. An equivalent offshore team member through Plus Back Office starts from $1,350 per month all-inclusive.
Canadian employers pay CPP and EI contributions on every salary, plus statutory vacation pay and provincial workers compensation premiums. Together these typically add around 10 to 15 percent on top of salary before benefits, recruitment and office overhead.
Example: a CAD 60,000 salary carries employer CPP and EI, vacation pay and workers compensation on top before benefits and office costs. An equivalent offshore team member through Plus Back Office starts from $1,350 per month all-inclusive.
Dutch employers fund social security premiums and a mandatory 8 percent holiday allowance on top of gross salary, alongside pension and other obligations. These commonly add 20 to 30 percent above the gross wage before benefits and recruitment.
Example: a EUR 45,000 gross salary carries employer social premiums plus the 8 percent holiday allowance and pension on top before benefits. An equivalent offshore team member through Plus Back Office starts from $1,350 per month all-inclusive.
In every market, an equivalent offshore team member through Plus Back Office starts from $16,200 per year all-inclusive, covering salary, office, IT, HR and payroll.
| Cost element | Local hire | Plus Back Office |
|---|---|---|
| Base salary | $4,000 to $6,000 | Included |
| Employer taxes | $400 to $900 | None |
| Office and equipment | $400 to $700 | Included |
| HR and payroll overhead | $200 to $400 | Included |
| Healthcare or benefits | $300 to $600 | Included |
| Total per person | $5,300 to $8,600 | From $1,350 |
Monthly saving per person: $3,950 to $7,250
For typical pay by role behind these figures, see our pricing comparison for offshore roles.
If you employ Philippine staff directly rather than through a managed provider, these employer obligations apply on top of base salary.
Employer contributes monthly based on the salary bracket. Both employer and employee contribute, but the employer share is a direct cost you carry.
National health insurance. Employer contributes monthly. Rates are set by the government and increase periodically.
Housing fund. Employer contributes monthly per staff member. A smaller contribution relative to SSS but still mandatory.
One full monthly salary paid by 24 December each year. Mandatory under the Philippines Labor Code. Not discretionary.
Minimum 5 days of paid leave per year. Additional leave is common in competitive employment packages.
Job advertising, screening, interviews, and onboarding time. A recurring cost each time a role is replaced.
Processing, payslips, tax filings and government contributions each month. Either done in-house or outsourced to a local provider.
Unless you are using a managed provider, desk, computer, internet, utilities and office overheads are separate costs.
In total, mandatory employer obligations typically add 15 to 20 percent above base salary, before office, equipment and payroll administration. Plus Back Office absorbs all of these in the all-inclusive monthly price: government contributions are calculated, filed and paid by us as the employing entity, 13th month pay is built into the monthly fee with no separate December payment, and payroll processing, payslips and leave tracking are handled in full. Recruitment is a one-time fee of $280 per person, with no percentage-of-salary placement fees.
Your offshore team is employed by Plus Back Office under Philippine labour law. SSS, PhilHealth and Pag-IBIG are handled. You have no employer tax obligations for your offshore team. One monthly fee covers everything.
All prices are all-inclusive monthly fees in USD.
From $1,600/month
From $1,600/month
From $1,350/month
From $1,350/month
From $1,350/month
From $1,350/month
From $1,350/month
See exactly what your business saves by replacing local hires with an offshore team. Enter your roles and current costs to get a clear monthly comparison.
No. Offshore staff employed by Plus Back Office in the Philippines have no Australian superannuation, US FICA or other foreign employer tax obligations. Philippine statutory contributions are included in the monthly fee.
Yes. Businesses in Australia, the USA and internationally routinely engage offshore service providers in the Philippines. Your offshore team is employed by Plus Back Office under Philippine labour law. You manage the work. We manage the employment.
Most businesses save $3,950 to $7,250 per person per month compared to an equivalent local hire when all employer taxes, benefits, office and overhead are accounted for.
Australian employers pay 12% superannuation (from 1 July 2025) on top of every employee salary. On a $70,000 salary that is $8,400 per year or $700 per month. Your offshore team in the Philippines has none of these obligations, included in one monthly fee.
FICA (Federal Insurance Contributions Act) requires US employers to pay 7.65% of each employee salary toward Social Security (6.2%) and Medicare (1.45%). On a $60,000 salary that is $4,590 per year or $383 per month before state unemployment insurance and healthcare contributions. The offshore model eliminates all of these costs.
Yes. Australian employers also pay workers compensation insurance, payroll tax above state thresholds and annual leave loading at 17.5%. US employers pay federal and state unemployment insurance plus healthcare benefit contributions. These typically add a further 5 to 15 percent on top of the base salary.
Use our offshore team cost calculator to compare your specific roles. As a guide, most businesses save $3,950 to $7,250 per person per month when switching from a local hire to an offshore team in the Philippines, depending on the role, location and benefits package.
UK employers pay National Insurance at 13.8% on earnings above the threshold and must contribute a minimum 3% to workplace pension schemes. On a GBP 35,000 salary this adds approximately GBP 4,984 per year before office costs. None of these apply to your offshore team.
Singapore employers contribute 17% CPF on top of every employee salary up to the ordinary wage ceiling. On a SGD 4,500 monthly salary this adds SGD 765 per month. Your offshore team has no equivalent obligation.
While the UAE has no employer payroll tax for expatriate workers, employers must provide mandatory medical insurance, accrue end of service gratuity at 21 days per year of service and typically provide housing and transport allowances. These add 20 to 35 percent to the base salary. Offshore staff in the Philippines through Plus Back Office have none of these obligations.
SSS, PhilHealth and Pag-IBIG contributions are mandatory. 13th month pay equivalent to one full monthly salary must be paid by December each year. Minimum 5 days of service incentive leave per year also applies. In total, mandatory employer obligations typically add 15 to 20 percent above base salary before office and admin overhead.
13th month pay is a mandatory statutory payment in the Philippines, not a discretionary bonus. If you directly employ Philippine staff, you must budget one additional month of salary per year, payable by December. In Plus Back Office all-inclusive pricing, 13th month pay is absorbed into the monthly fee.
Book a discovery call and we will give you an exact monthly cost for your roles.