Payroll savings vs loaded cost

How it works

Savings charts that use U.S. fully loaded against PH basic are advertisements. Loaded cost includes 13th month, statutory shares, NSD, tools, and fees. Quote both if you must market. Budget only loaded cost. For a U.S. company hiring one Filipino teammate, write this into the brief, the employment contract, and the peso payroll file before the start date. Slack habits do not override the Labor Code, BIR, or NPC. If the local employer of record holds the paper, they run the statutory step; you still owe a clean operating definition so the seat does not fail in week three. Put a number on the example when you budget loaded cost, because a nameless allowance always returns as a December surprise or a missed SLA.

Example: U.S. EA $75,000 loaded vs PH basic $12,000 looks like 84% off. PH loaded $18,000 plus search amortization is the number that hits the account.

How it differs

Loaded cost is the real object. Placement fee percentage is year-one wrap. FX cushion stops the dollar quote from lying in June.

Common errors

Putting ‘80% less’ in a board deck without the load lines.

In practice

Treat Payroll savings vs loaded cost as a week-one operating object. Put a peso or dollar figure on the next twelve months. If the word cannot survive that arithmetic, it is marketing. Write an owner - founder, local employer, or worker - and a date you will look at it again: first cutoff, first holiday, or first miss. If nobody can show a contract clause, a payslip line, a calendar block, or a checklist box, you do not have payroll savings vs loaded cost yet. You have a conversation. Convert the conversation before the person starts, while changing the deal still costs a paragraph rather than a resignation. Re-read the worked example above against the actual hire in front of you. If the numbers in that example cannot be swapped for this seat’s pesos, hours, and start date, the brief is still unfinished.