Country comparison
Australia or Philippines: which costs the employer more
The Philippines costs the employer more: 14.6% on top of the salary, against 12.0% in Australia.
Each country uses its own currency, so we compare the percentage. We publish no exchange rate and convert nothing.
| Australia | Philippines | |
|---|---|---|
| Salary used | A$120,000 | ₱1,200,000 |
| Statutory contributions | A$14,400 | ₱74,761 |
| Mandatory extra pay | 0 months | 1 months |
| Total employer cost | A$134,400 | ₱1,374,761 |
| Added on top of the salary | 12.0% | 14.6% |
| Statutory paid leave | 20 days | 5 days |
| Public holidays | 10 | 12 |
| Minimum employer notice | 1 weeks | 4 weeks |
Where the difference actually comes from
Australia: The Superannuation Guarantee reached 12.00% on 1 July 2025 and is the settled long-term rate. The maximum contribution base for 2026-27 is 270,830 dollars, above which super is not compulsory.
Philippines: Every one of the four employer charges is capped, and the caps are low: the SSS monthly salary credit tops out at 35,000 pesos and Pag-IBIG at 10,000 pesos a month. Above those levels the marginal statutory cost is zero, so the employer burden on a senior salary is very small in percentage terms.
The formula behind both columns
Ceilings are the reason this ordering can reverse at a higher salary. Run both countries through the calculator at the salary you actually intend to pay before you treat either number as settled.
Related
Written by Kaz, independent publisher. No commercial relationship with the providers named unless it is listed on the disclosure page.
Page last updated 2026-08-30. Sources: statutory bodies only, listed per figure. Rates last verified 2026-08-21. This is not legal, tax or payroll advice and we do not file anyone's payroll.
Every formula on this site is written out in full on Method. Ordering is by computed cost, never by what a provider pays us.
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