Average Salary in the Philippines: How It Compares to Australian Earnings
Wondering how the average salary in the Philippines stacks up against Australian pay? We explain using the Salary Index, tax, and super to give you a clear picture.
The average salary in the Philippines is uncertain from our reference, but it is significantly lower than the Australian national line of 100 (annualised $108,352).
What Does 'Average Salary in the Philippines' Mean?
When you search for the average salary in the Philippines, you are likely looking for a typical annual earnings figure for Filipino workers. In Australia, we have a robust benchmark: the Salary Index, where 100 equals full-time adult ordinary-time earnings of $108,352 per year (based on ABS Average Weekly Earnings, May 2026). But the Philippines does not have a direct equivalent in our reference. So how do we make sense of that number from an Australian perspective?
First, understand that the average salary in the Philippines is usually quoted in Philippine pesos (PHP). To compare it with Australian earnings, you need to convert to Australian dollars. Exchange rates fluctuate, but a rough conversion might put a typical Philippine annual salary between AUD 15,000 and AUD 30,000. That is far below the Australian national line of 100. Even the Australian national minimum wage of $52,255 per year (index 48.2) is higher than most estimates of the Philippine average.
Using the Salary Index as a Lens
The Salary Index is a tool to see where a pay figure sits against the national line. For the average salary in the Philippines, we cannot give a precise index because we lack official data. However, if we take a hypothetical Philippine salary of AUD 25,000, the index would be (25,000 / 108,352) × 100 ≈ 23. That is well below the Australian retail trade industry index of 75.9 or accommodation and food services at 72.5. It is even lower than the junior national minimum wage for a 20-year-old ($25.83 per hour, annualised about $53,726, index 49.6).
This comparison highlights how different labour markets are. The Australian economy has a high minimum wage, strong award protections, and mandatory superannuation. The Philippines has its own wage boards and cost of living, but the average salary there is generally much lower in absolute terms.
Gross Pay, Super, and Tax: The Australian Context
If you are an Australian employer or worker considering the average salary in the Philippines, you need to think about what that figure includes. In Australia, gross pay is before tax and super. The how the index works page explains that the index uses gross ordinary-time earnings. For a Philippine salary, there is no Australian super guarantee or tax withholding unless the worker is employed in Australia.
Superannuation
From 1 July 2026, the super guarantee is 12% of ordinary-time earnings, up to a maximum contribution base of $270,830. If you employ a worker in Australia, you must pay super on top of their gross salary. A Philippine salary figure does not include super, so if you are comparing a job offer, add 12% to the Australian side for a fair comparison.
Tax
Australian resident tax rates for 2026–27 (excluding Medicare) are: nil up to $18,200, 15% from $18,201 to $45,000, 30% to $135,000, 37% to $190,000, and 45% above that. Plus a 2% Medicare levy. A worker earning the average salary in the Philippines (say AUD 25,000) would fall in the 15% bracket if they were an Australian resident, but they would likely not be a resident if they live in the Philippines. Non-residents pay tax on Australian-sourced income only, with different rates.
Awards and Minimum Wage
Australia has modern awards that set minimum pay rates for many industries. For example, the retail trade award might pay more than the national minimum wage. The average salary in the Philippines is not governed by Australian awards. If a Filipino worker moves to Australia, their pay must meet the relevant award or the national minimum wage, whichever is higher. The junior rates (e.g., $9.73 per hour for under 16) do not apply to adult workers.
Why the Average Salary in the Philippines Matters to Australians
You might be researching this because you are considering hiring remote workers from the Philippines, moving there, or simply curious about global pay differences. The pay guides on our site can help you understand Australian award rates, but for Philippine salaries, you need to consult local sources like the Philippine Statistics Authority.
Cost of Living vs. Nominal Pay
A low nominal salary in the Philippines can go further because of lower living costs. The Salary Index does not adjust for purchasing power. So while the index might be 23, the real standard of living could be higher than that number suggests. Conversely, an Australian earning index 100 has a high nominal income but also high costs for housing, food, and services.
Practical Steps for Comparison
If you want to compare the average salary in the Philippines to an Australian role, follow these steps:
- Find a reliable source for the Philippine average (e.g., government statistics).
- Convert that figure to AUD using the current exchange rate.
- Divide by $108,352 and multiply by 100 to get an approximate index.
- Compare that index to Australian industry benchmarks like industries or states.
Remember, this is a rough guide. The index is a benchmark for full-time adult ordinary-time earnings in Australia, not a global standard.
Caveats and Uncertainties
We cannot stress enough that the average salary in the Philippines is uncertain from our reference. The figures above are illustrative. For precise data, consult the Philippine Statistics Authority or the Department of Labor and Employment. The Australian Bureau of Statistics does not cover Philippine earnings.
Also, be aware of currency risk. Exchange rates change daily, affecting the converted index. And tax treaties between Australia and the Philippines may affect how income is taxed if you work across both countries.
Final Thoughts
The average salary in the Philippines is a useful starting point for understanding global pay gaps, but it is not directly comparable to the Australian Salary Index without conversion and context. Use our topics page to explore more about Australian pay benchmarks, and always verify international figures with official sources.
If you are an employer looking to hire in the Philippines, remember that Australian employment laws do not apply there. You may need to comply with Philippine labour laws, which have their own minimum wage and benefits. The Salary Index is designed for Australian earnings only.
For a deeper dive into how the index is calculated, see how the index works. And if you are comparing salaries across Australian states, check the states page for local indexes.
In summary, the average salary in the Philippines is likely well below the Australian national line, but the exact figure is uncertain. Use the tools on this site to benchmark Australian pay, and treat international comparisons with caution.
Questions people ask
What is the average salary in the Philippines compared to Australia?
The average salary in the Philippines is not directly measured by the Australian Salary Index. Based on general knowledge, it is well below the Australian national minimum wage of $52,255 per year (index 48.2). For context, the Australian full-time adult ordinary-time earnings are $108,352 per year (index 100). A typical Philippine salary, when converted to Australian dollars, would likely fall below index 50, but this is uncertain and should be researched using official Philippine statistics.
How does Australian tax and super apply to a salary earned in the Philippines?
If you earn a salary in the Philippines, Australian tax and super do not apply unless you are an Australian resident for tax purposes. For a non-resident, only Australian-sourced income is taxed. The Australian super guarantee (12% from 1 July 2026) only applies to employment in Australia. If you move to Australia, your Philippine salary history is not directly relevant, but you may need to convert your earnings to AUD for comparison using the Salary Index.
Can I use the Salary Index to compare international salaries like the average salary in the Philippines?
The Salary Index is designed for Australian earnings. To compare an international salary, first convert it to Australian dollars using current exchange rates. Then divide by the national line ($108,352) and multiply by 100. For example, a Philippine salary of PHP 600,000 per year (roughly AUD 15,000) would give an index of about 14. However, this is a rough estimate and does not account for purchasing power or cost-of-living differences. Always treat international comparisons as uncertain.