If global outsourcing had capital, the Philippines would be it. The country’s business process outsourcing (BPO) industry now generates over $38 billion in revenue and employs 1.82 million people. This exponential growth has firmly established the Philippines as a reliable hub for remote staffing across various roles and industries.
It makes sense to hire a virtual assistant in the Philippines because they are highly educated, fluent in English, and known for their strong work ethic and excellent communication skills. With cost-efficient salaries, firms can access top-tier talent at a fraction of the price they usually pay locally, often as much as 70% of employment costs.
For Australian companies, hiring a Filipino virtual assistant presents an opportunity to significantly reduce operational costs while maintaining a high standard of work. But what is the true cost of a virtual assistant?
What are Common Employment Types?
Before asking, “How much does a virtual assistant cost?” business owners should first identify which VA type best fits their needs. Here are the common types of virtual assistant arrangements:
Freelance Virtual Assistants
Freelance VAs are independent contractors who offer specialised services on a project-by-project basis.
- Benefit: They won’t be part of the regular payroll, so businesses can budget for short-term projects or on an as-needed basis.
- Drawback: Freelancers may not always be available for ongoing work and can have varied schedules, which can impact continuity.
Full-time Remote Staff
Full-time remote staff are also individual contractors, but they provide ongoing support and are fully engaged with the business.
- Benefit: These VAs are a long-term commitment, which means companies treat them as part of the team even if they work entirely from home.
- Drawback: It requires a higher financial commitment compared to part-time or freelance options. Employers must also provide benefits and adhere to employment laws.
Agency-Based Virtual Assistants
These virtual assistants are hired and managed through a third-party agency. Before placing these VAs with clients, agencies vet and train them.
- Benefit: Companies get access to qualified, reliable professionals without having to spend time and resources on recruitment, background checks, or training. Agencies also provide ongoing support and account management to ensure consistent quality.
- Drawback: Agency fees often include operational and management expenses, so some companies may view agency-based VAs as a costly option.
What Affects Virtual Assistant Salary Expectations?
Not all virtual assistants cost the same. While the Philippines is known for affordable remote talent, several key factors influence a VA’s salary expectations.
Experience Level
Experience is a primary determinant of a VA’s salary. Entry-level VAs typically command lower rates, while those with extensive experience and specialised skills may negotiate higher compensation. A common monthly salary difference between popular VA specialisations and expertise levels is:
| Beginner | Intermediate | Expert | |
| General Virtual Assistants | 555 AUD – 1143 AUD | 1103 AUD – 11857 AUD | 1668 AUD and Higher |
| Social Media Marketing | 551 AUD – 1274 AUD | 1286 AUD – 2292 AUD | 2055 AUD and higher |
| E-commerce | 558 AUD – 1292 AUD | 1306 AUD – 2327 AUD | 2085 AUD and Higher |
| Content Writer | 557 AUD – 1358 AUD | 1367 AUD – 2471 AUD | 2213 AUD and Higher |
| SEO | 557 AUD – 1477 AUD | 1493 AUD – 2738 AUD | 2449 AUD and Higher |
Industry
Like their on-site counterparts, salary expectations for virtual assistants vary depending on the industry they work in. To compare, here are the lowest and highest rates of industry-specific VAs:
| Lowest Rate | Highest Rate | |
| Amazon Store Manager | 1187 AUD | 1747 AUD |
| WordPress Developer | 839 AUD | 1747 AUD |
| Sales Representative | 699 AUD | 1258 AUD |
| Researcher | 629 AUD | 1031 AUD |
| Accountant | 783 AUD | 1678 AUD |
Geographical Location
A VA’s location within the Philippines can influence their expected salary due to varying costs of living. VAs based in metropolitan areas like Metro Manila, where the cost of living is higher, may expect higher compensation compared to those in rural regions. For example, VAs from Manila charge 986.39 AUD monthly, while VAs from Davao City charge 621.43 AUD per month.
What are Common Pricing Models?
The two most common payment models for virtual assistants are hourly rates and fixed monthly rates.
Hourly Rate
Hourly Pricing is ideal for part-time roles, short-term projects, or on-demand support. The average hourly base salary of a Filipino VA is 90.48 PHP or 2.60 AUD.
- Key Benefits
- Businesses can adjust the number of hours worked based on their needs, which can be easily tracked using time-tracking software.
- It can be easy to scale up or down depending on project requirements.
- Key Drawback:
- If tasks take longer than expected, costs can increase unexpectedly.
- This can affect their morale and commitment, as their income may fluctuate.
Fixed Monthly Salaries
Fixed monthly rates are best suited for full-time or long-term engagements, as this model promotes consistency and smoother workflows. The Philippines’ average monthly base salary is 29,393 PHP or 844.46 AUD.
- Key Benefit:
- This model makes budgeting easier by providing consistent and predictable expenses.
- It offers VAs a stable income, which can improve morale and commitment.
- Key Drawback:
- It can be less adaptable to sudden changes in workload or project scope.
- Businesses need to carefully plan to set fair rates with the scope of work.
Are there Recruitment Costs?
The Virtual Assistant hiring procedure should factor in the time spent recruiting or looking for recruits should also be factored in. To get the best virtual assistant services, look out for ROIs on the time spent on recruiting and hidden fees from websites.
Direct Hiring
Companies can source out VAs through:
- OnlineJobs.ph
- Facebook Groups
Their user interfaces are often equipped with tools to help filter out candidates, but this still requires significant effort. Recruitment takes time and effort, so while it might be the most affordable method on paper, it demands hands-on involvement.
Freelance Marketplaces
Sites like Upwork, Fiverr, and Freelancer.com offer streamlined hiring and built-in contracts. However, they come with service fees.
- Upwork charges a 10% commission on all new contracts, while clients pay 5% on all transactions.
- Fiverr bills a 20% service fee on all of the freelancer’s earnings.
- Freelancer.com charges a 10% commission or 5 USD for fixed-price projects and hourly projects, while clients pay a fee of 3% or 3 USD.
Virtual Staffing Agencies
Agencies recruit, train, and manage VAs. Common support services include:
- Recruitment
- HR Support
- Performance Monitoring
While this option often comes with higher upfront costs or ongoing service fees, it saves significant time and provides peace of mind, especially for business owners new to outsourcing.
Hire a Virtual Assistant the Easy Way with Outshore
There are a lot of factors to consider when budgeting for a Virtual Assistant. Oftentimes, it can be hard to look for the answers online, especially when questions are of a certain niche.
Whatever the question, Outshore has the answers for you. We provide hands-on experience before, during, and even after the hiring process, so you can be assured that you are investing your money in promising rewards. Contact Outshore today to streamline your recruitment and scale up your business.