This is just a quick post on paying your online workers in the Philippines. Now that pretty much everyone in that country has access to PayPal, it’s clear to me that PayPal is fastest and easiest.
However … I would not recommend paying in US dollars.
Here’s why: When I started using Replace Myself and hiring people through OnlineJobs.ph, I would do as John suggested and arrange a US dollar salary. The conversion at the time was about 46 pesos to 1 US dollar. But yesterday, on August 1st, I went to send payment for July’s work to my team. The conversion rate is now about 40:1 instead of 46:1
I hadn’t noticed this because we shifted to Pesos a while back, and I’m glad we did. It’s costing me a bit more money because of the currency move, but imagine if I was still paying the same $US salary? They would be getting penalized for something they can’t control.
Let’s do some math on this: Say you paid $300/ month to an employee. That would work out to 13,800 pesos back at the old 46:1 conversion. But now that the US dollar has been weak, this same employee would only be getting 12,000 pesos. That’s eighteen hundred LESS per month.
You might want to have a conversation with your guys about this to see what they prefer, but I am going to guess that most of them want stability. They get this when you take the foreign exchange risk yourself. And if the dollar recovers, then you can inch in some raises for them while not even spending more money. Then they’ll be doubly happy.
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