Offshoring to the Philippines: An Australian Business Guide

If you've been watching your wage bill climb and wondering whether hiring someone in the Philippines is actually an option for your business: yes, it is. It has become one of the most practical decisions Australian SMEs make when they need to scale without doubling their headcount costs.

On this page7 sections
  1. Why Australian Businesses Choose the Philippines
  2. What Roles Actually Work Offshore
  3. What It Actually Costs
  4. The Compliance Basics You Need to Know
  5. How the Direct Hire Process Works
  6. The One Decision That Shapes Everything
  7. Is Tarino the Right Fit?

This guide covers the practical side: why the Philippines, which roles work, what you’ll pay, how the hiring process works, and the one decision that shapes everything: whether you go through an agency or hire directly.

Why Australian Businesses Choose the Philippines

The Philippines has been a go-to for Australian businesses for a long time, and it’s not just about cost. Several factors make it a particularly good fit:

Language: English is an official language and is used in education, business and government. Written and spoken communication is rarely a friction point.

Time zone: The Philippines is two or three hours behind Australian eastern time, depending on daylight saving. That means real overlap during business hours, with no night shifts needed.

Accounting and finance skills: The Philippines has a strong culture of accounting and finance education, with a large pool of qualified CPAs. Philippine financial reporting standards are based on IFRS, as Australia’s are, and many accountants have worked with Australian clients.

Work ethic and retention: Offshore staff who join a company directly, rather than being managed through an agency, tend to stay longer and feel more connected to the business. More than 95% of Tarino placements are still in the role at 6 months.

For professional services firms (accounting, financial advice, legal, consulting), the Philippines consistently produces capable staff who can work with Australian clients, Australian software and Australian expectations.

What Roles Actually Work Offshore

The roles that transfer well offshore share a common trait: the work can be defined clearly, delivered remotely and reviewed against a measurable output. That covers more than most people expect.

Common roles Australian businesses hire offshore include:

Bookkeepers and accounts assistants (Xero, MYOB, QuickBooks)

Tax and BAS preparation support

Financial planners’ paraplanning and admin

Payroll officers

Virtual assistants and executive assistants

Mortgage broking support staff

Legal and paralegal assistants

Data entry and admin processing

Digital marketing and social media support

IT helpdesk and systems support

Roles that need physical presence or highly sensitive in-person client contact are the obvious exceptions. But for the back-office and support functions that consume your team’s time, offshore hiring works very well. Browse our role pages for typical tasks and salaries.

What It Actually Costs

This is where many business owners get a surprise, in both directions.

The salary side is much lower. A qualified bookkeeper in the Philippines typically earns around $1,400 a month (about $16,800 a year). A more experienced accountant typically sits around $1,800 a month (about $21,600 a year), and a paraplanner around $1,900 a month (about $22,800 a year). For reference, see our full Filipino staff salary data broken down by role, and the Philippines salary guide.

The hidden variable is how you hire them. That’s where costs diverge sharply.

Agency model: You work with an outsourcing company that manages the employment, the workspace and the relationship. Your monthly bill includes the salary plus a margin, often around 30–50% on top. On typical estimates, over three years that markup adds around $29,000–$43,000 per hire in fees that go to the agency, not to your staff member. You also have limited control over who you hire and what they do day to day. See the full breakdown of what agencies actually charge.

Direct hire model: You engage the person yourself, as a contractor or through a local employer of record arrangement, and pay their salary directly with no ongoing markup. The upfront cost is a one-time recruitment fee. With Tarino that is $5,000 excl. GST: $250 upfront, credited back when you hire, and $4,750 on hire. After that, the only ongoing cost is the salary you’ve agreed.

Most businesses that do the maths choose direct hire. You can run your own comparison in the cost calculator.

The Compliance Basics You Need to Know

One of the most common concerns is whether there’s any legal issue with an Australian business hiring someone in the Philippines. Generally, no, provided you structure it correctly. What follows is general guidance on how other businesses do it, not legal or tax advice, so check your own situation with an adviser.

The main consideration is the working relationship. If you hire your offshore team member, Philippine labour law applies, covering SSS (social security), PhilHealth and Pag-IBIG contributions and a formal employment contract. Many businesses handle this through a local employer of record (EOR): a Philippine-registered entity that formally hires your staff member for you. Others engage the person as an independent contractor under a written agreement that accurately reflects how the work is done.

On the Australian side, superannuation guarantee and payroll tax generally don’t apply to a worker who isn’t an Australian resident and works entirely outside Australia, especially where you’re paying an invoice to a contractor or a Philippine entity rather than wages to an Australian employee. Confirm this with your accountant. Our article on hiring offshore talent compliantly covers the main points in plain English.

Data handling is worth thinking through too, particularly if client information is involved. Your offshore staff should work under a clear data handling and confidentiality agreement, and you should have policies on which systems they access. Our security page lists practical steps.

How the Direct Hire Process Works

If you run the hire yourself rather than through a managed agency, the process typically looks like this:

Week 1: Define the role clearly: not just a job title, but the specific tasks, the software they’ll use, the output you’ll measure and who they’ll work with daily.

Weeks 2–3: Advertise on Philippine job platforms (LinkedIn, JobStreet, Kalibrr), screen applications, run video interviews and set a short practical task relevant to the role.

Week 4: Reference checks and background verification. Make an offer.

Weeks 5–6: Onboarding: equipment, system access, first-week check-ins and a structured first-month plan.

Done well, a self-run search takes you from brief to a fully operational team member in five to seven weeks. If you use Tarino, the search part is shorter: we start with 1,000+ candidates per role, run CV and quality screening, video screening, a practical assessment and a structured interview, and typically send you a shortlist of 3–4 within about 2 weeks. The first 30 days after the start date decide whether they stay long-term, and a structured onboarding makes a significant difference. Our first 30 days onboarding guide covers what to do in that window.

The One Decision That Shapes Everything

Whether you go through an agency or hire directly isn’t a minor operational choice. It decides your cost structure, your control over the relationship and your flexibility later.

Agencies offer convenience, but you pay for it every month. The person working for you doesn’t really work for you; they work for the agency. You often can’t easily take them direct later. You can’t renegotiate the margin. And if the agency’s business model changes, your team changes too.

Direct hire means the person is part of your business from day one. You define their role, their tools and their development. Once the recruitment fee is paid, your ongoing cost is just their salary. Our direct hire vs offshore staffing agency comparison sets out the differences side by side.

Is Tarino the Right Fit?

Tarino helps Australian businesses hire directly in the Philippines, without the ongoing monthly margin that agency models charge.

We run the search: writing the brief with you, advertising, headhunting and referrals through vetted local networks, screening candidates, structured video and interview stages, and practical tasks. Of the starting pool, 40% pass CV and quality screening, 20% video screening, 10% the practical assessment, 5% the structured interview and 2% reach finalist review. We present you with a shortlist of 3–4, and you choose who you hire. You then hire and pay them directly. One fee per hire, $5,000 excl. GST, with no monthly markup, no lock-in and no ongoing fees, plus 6-month replacement cover for the same role under the conditions in your Scope of Work. See pricing.

If you’re an accounting firm, financial advice practice, legal practice or consulting business looking to add a capable offshore team member without tying yourself to a managed service contract, that’s exactly what we do.

Book a 30-minute call to talk through your situation. No pitch, no pressure.

This page is general information, not legal, tax or financial advice. Check your situation with a qualified adviser.

Questions, answered

Do I need to pay superannuation or payroll tax for a staff member I hire in the Philippines?

Generally, Australian superannuation guarantee and payroll tax are not triggered for a worker who is not an Australian resident and does all their work outside Australia, particularly where you pay a contractor's invoice or an employer of record. But the answer depends on the facts, so treat this as general guidance, not tax advice. Our [superannuation for offshore staff guide](/resources/superannuation-offshore-staff-australia) covers it in more detail; confirm your position with your accountant.

What Philippine employment obligations does my offshore staff member need to be covered by?

If you hire the person, Philippine labour law applies, covering SSS, PhilHealth and Pag-IBIG contributions, [13th month pay](/guides/13th-month-pay-philippines) and a formal employment contract. Many firms handle this through a local employer of record, a Philippine-registered entity that formally hires your staff member for you. Others engage the person as an independent contractor. Get independent advice on which structure suits you.

How long does it take to hire someone directly in the Philippines?

If you run the search yourself, going from defining the role to a fully operational team member typically takes five to seven weeks. With Tarino, you typically receive a shortlist of 3–4 finalists within about 2 weeks of agreeing the brief; the start date then depends on the candidate's notice period and your onboarding.

What is the real cost difference between using an agency and hiring directly?

With an agency you pay the staff member's salary plus a margin, and on typical estimates that markup adds around $29,000 to $43,000 per hire over three years in fees that go to the agency rather than your staff member. With direct hire you pay a one-time recruitment fee ($5,000 excl. GST with Tarino) and after that your only ongoing cost is the agreed salary. Compare in the [cost calculator](/calculator).

What roles are suitable for offshore hiring in the Philippines?

Roles that transfer well are those where the work can be defined clearly, delivered remotely and reviewed against a measurable output. Common examples include [bookkeepers](/roles/bookkeeper), tax and BAS support, paraplanning and financial planner admin, payroll officers, [virtual assistants](/roles/virtual-assistant), mortgage broking support, legal and paralegal assistants, and digital marketing support.

Can I take a staff member direct if I initially hired them through an agency?

Often not easily. If you hire through an agency, the person usually works for the agency, not for you, and many agency contracts restrict moving them to a direct arrangement or charge a conversion fee. Check your contract before you start, and get advice if you plan to change arrangements.

Let’s find your next superstar.

Book a 30-minute call. No pitch, no pressure, just a straight conversation about your business and whether Tarino is the right fit.

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