Competition and Compensation:
A Survey of Compensation and Benefits in the BPO Industry
By Paul Catiang

As more and more outsourcing companies begin their operations in the Philippines , salaries and other forms of compensation begin to rank high among the concerns of these new companies. What's the industry's standard compensation and benefits package? How much does basic pay cost? What other benefits are expected to be offered?

Voice operations usually pay more than non-voice operations, and both rough categories of outsourcing companies pay well above the minimum salary required by Philippine law. It is common practice, however, for entry-level professionals to be paid within a range of PhP 13,000 to as high as PhP 18,000, depending on the employee's relative experience. Fresh graduates get paid on the lower end of this range, naturally, but six months' experience can spell a huge difference as far as salaries are concerned. Call center agents with one to two years under their belt can command the higher end of this range, and sometimes even more.

Salaries rise significantly higher as one goes up the chain of command, with experienced Operations Managers getting paid a minimum of PhP 60,000 a month, along with other benefits.

While this might be a cause for concern for companies hoping to establish their BPOs in the Philippines, the operating costs involving salaries are still relatively low, at least where overtime pay is concerned. It remains common practice among Philippine-based BPO companies to offer benefits that are mandated by law. These benefits rarely go higher than the legally required overtime pay, which starts at 125 percent of the hourly rates for overtime on regular working days and goes up to 200 percent of the hourly rates for overtime work during legal holidays.

Some companies, however, are more generous with other benefits, such as their 13 th month pay, night differentials, vacation and sick leave, and meal and transportation allowances. Some even offer a rice allowance of at least PhP 800 a month.

Non-voice operations generally pay on a slightly lower scale than voice operations, but the overtime pay received by non-voice agents are still compliant with what's required by Philippine law, and their other benefits—night differentials, vacation and sick leaves, meal and transportation allowances, for example—are comparable with what voice operatives receive.

It is important to note some other benefits, like a hazard pay that employees receive if they have to report to work after 10 PM. If anything, the BPO industry is accounting for the safety concerns involved with night work.

Agents with other language skills also receive a higher pay. Those who can speak fluent Thai or Mandarin, for example, can expect at least PhP 35,000 a month, and more if they're experienced. Trainers, on the other hand, are generally paid PhP 35,000 or higher.