By Laarni Milan
"Cost of Doing Business in the Philippines"
Discover Philippines, September - October 2004

 
Basic Monthly Salaries and Wages
(In U.S. Dollars)
(8 hours per day at 26 days per month)
 
High
Low
Managerial Position    

Senior
Middle-Level
Junior-Level

3,000
1,500
1,000
1,800
1,200
500
Factory Workers    

Supervisor / Foreman
Skilled Workers
Non-Skilled Workers

1,000
350
200
500
200
150
Other office and administrative staff    

Marketing and Sales (plus commission)
Executive Secretary
Secretarial staff or clerk
Accountant / Bookkeeper
Driver and delivery personnel
Service technician with engineering experience

350
400
250
400
300
400
200
300
200
300
150
300
Household Help (all with free board and lodging)    

Family driver
Cook
Maid

160
160
120
120
120
80

The figures represent estimated basic monthly pays. There are labor-related costs such as social security premiums, holiday pay, service incentive leave pay, maternity and paternity leaves, 13 th month pay, etc., for those employed in business. To obtain effective monthly wage, multiply the monthly pay by 120% more or less. Managers can speak and write fluent English, while staff positions are accustomed to at least conversational English.

Rental or Lease Rates
(US$ Per Month)

 
Standard Factory Buildings    

North of Metro Manila
South of Metro Manila
Export Processing Zones

1.10 per sq.meter
2.00 per sq.meter
5.50 per sq.meter

0.60 per sq.meter
0.90 per sq.meter
4.50 per sq.meter

Office Rental    

Makati and Ortigas Areas
Other Metro Manila Areas

9.00 per sq. meter
4.50 per sq.meter

4.50 per sq.meter
3.00 per sq. meter
House Rental    

Makati and Ortigas Areas
(House & Lot, 300 - 500 square meters, at least 3 bedrooms )

2,000

1,500

Other Metro Manila Areas
(House & Lot, 300 - 500 square meters, at least 3 bedrooms )

1,200
800

Condominium Units (at least 3 bedrooms)

1,200
800

Condominium Units ( at least 2 bedrooms)

600
250

Apartments ( 2 bedrooms)

500
200

 

Cost of Utilities
Electricity  

Installation cost (for big industries, depending on projected consumption)
Installation cost (for commercial and office, depending on projected consumption)
Installation cost (residential)
Consumption rate (industrial)
Consumption rate (commercial and residential)

From US$ 10,000 to $ 150,000
From US$ 500 to $ 1,000
From US$ 100 to $ 200
From US$.08 to $ 12 per kilowatt hour From US$.08 to $ 12 per kilowatt hour

Water  

Installation cost (depending on consumption)
Consumption rate (industrial)
Consumption rate (commercial and residential)

From US$ 50 to US$ 200
US$0.10 to US$0.14 per cubic meter
US$0.20 to US$0.25 per cubic meter

Land Line Telephones

 

Installation cost (commercial)
Installation cost (residential)
Monthly billing (commercial)
Monthly billing (residential)
National Direct Dialing Calls (Average)
International Direct Dialing Calls

US$ 70
US$ 38 ( prepaid landline)
US$ 24 (+10% VAT)
US$ 12 (+10 % VAT)
US$ 0.10 per minute
US$ 0.40 per minute

Internet Connection  

Installation Fee (Email Account)
Installation Fee (Web Account)
Internet Subscription*
(Subscription rates vary depending on type of plan and number of hours consumed by user.)

Free to Php 800
Php 500
Php 253 to 100,000++

 

Monthly Retainer's Fee
of Certain Professionals & Service Contractors

 
Certified Public Accountant or Management Consultant (includes consultation on tax, bookkeeping and other accounting regulations). On extensive consultations customary time charges are billed from USD 20 to USD 75.00 per hour depending on seniority of accountant or staff, size of firm and client)
500
100
     
Lawyer (includes normal consultation, minor representation before government offices, and notarial services. On extensive consultations, litigation, etc. customary time charges are billed ranging from USD 30 to USD 100.00 per hour depending on seniority of lawyer or staff, size of firm and client)
750
150
     
Medical Doctor or Dentist (may be required by labor regulations depending on nature of work and size of employment, calculated at 2 to 3 visits per week)
300
150
     
Customs Broker ( companies with high level of import activities oftentimes hire in-house brokers on retainer basis)
250
100
     
Engineering contractor, mechanics, computer technician, etc. (per person / per month)
250
100
     
Security Guard Services and Utility Personnel (Per person Per 8-hour/ Day Per Month)
250
180
     

In retaining services of professionals or service contractors, no employer-employee relations exist and client may terminate at will services in accordance with contract.

 
ABOUT THE AUTHOR: Laarni Milan is a member of the Philippine Institute of Certified Public Accountants. She has extensive experiences as an accountant in an export-import firm. Email the author for your comments on this article and other queries: laarni_milan@yahoo.com
 
 
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