Here’s something that trips up a lot of foreign employers. Under Article 103 of the Philippine Labor Code, wages must be paid at least once every two weeks or twice a month, with intervals not exceeding 16 days.
Now, before you panic, this technically applies to employees rather than independent contractors. Most Filipino VAs are classified as independent contractors, which means they’re technically outside this requirement.
But this bi-weekly standard has shaped expectations across the entire Philippine workforce. Even contractors expect something close to this rhythm because it’s how the entire country thinks about getting paid.
When you’re deciding on payout frequency for your VAs, you’re not just making an administrative choice. You’re either aligning with or fighting against decades of financial habits.
Comparing Payment Frequency Options
Monthly payments are the most common setup for Filipino VAs, especially for full-time contractors. You pay once at the end of the month or at the start of the next month. This keeps things administratively simple and works well when you’re paying a fixed monthly rate.
The downside is that VAs need to manage their cash flow for longer stretches, which can be harder for those without savings buffers.
Bi-weekly payments hit that sweet spot simply because it’s the norm. You’re paying on the 15th and 30th (or close to those dates). This is what platforms like ManagePh typically recommend, and it’s what most Philippine-based BPOs use for their staff too.
Weekly payments are less common but make sense for part time projects. The tradeoff is more administrative work on your end and higher transaction fees if you’re paying per transfer.
How Philippine Banking Systems Handle VA Payments
The Bangko Sentral ng Pilipinas runs the National Retail Payment System and PhilPaSS, which is their real-time settlement network.
According to their 2023 reports, digital transactions now make up 52.8% of monthly payments in the Philippines, up from just 10% in 2018.
This shift matters because it means your Filipino VAs are increasingly comfortable receiving money through digital channels rather than bank transfers alone.
BSP Circular No. 1191, issued in 2024, specifically addresses cross-border payment systems. It requires platforms moving money into the Philippines to coordinate with Philippine regulators. This is why services like Wise, Payoneer, and Deel can legally operate for VA payouts.
Direct bank transfers work, but they’re often slower and more expensive than going through platforms designed for this exact use.
Tax Requirements for Hiring Filipino VAs
Filipino VAs working as independent contractors need to register with the Bureau of Internal Revenue as self-employed taxpayers. They file BIR Form 1701 or 1701A for their income tax. Here’s the important part for you as a foreign employer, you generally don’t need to withhold Philippine taxes. That’s the contractor’s responsibility.
On your end, you need to collect IRS Form W-8BEN or W-8BEN-E from your Filipino contractors. This confirms they’re non-US persons and you’re not required to withhold US taxes or issue a 1099 form (unless the income is actually US-sourced, which is rare for remote VA work).
The reason payout frequency matters here is because it affects how both parties track and report income. Monthly payments create 12 clear transactions per year. Twice monthly creates 24. Weekly creates 52.
More transactions mean more bookkeeping on both sides, which could become a bit hectic if you’re managing multiple VAs.
Payment Methods and Costs
How you send payments matters almost as much as when you send it. Wise typically charges between 1% and 3% per transfer depending on the amount and currency pair.
If you’re sending USD to be received in Philippine pesos, the fee structure is transparent and usually lands on the lower end.
If you’re paying monthly, you’re paying transfer fees once. If you’re paying bi-weekly, you’re paying twice. If you’re doing weekly, you’re paying four times per month.
For a single VA earning $800 monthly, the difference between monthly and weekly payments could be $20-30 in fees over the course of a month.
Let ManagePH Handle the Heavy Lifting
Remember that schedules aren’t set in stone. As your relationship develops and your business grows, you can adjust. Finding something that works best for everyone matters the most.
Getting payment frequency right is just one piece of managing Filipino teams. You also need to track hours, stay compliant with local regulations, manage PTO requests, and keep invoicing organized across multiple VAs.
ManagePH brings all of that into one system. Stop juggling spreadsheets, payment platforms, and calendar reminders. Let us manage the backend while you manage the relationships.
Frequently Asked Questions
What is the legal minimum payment frequency for Filipino virtual assistants?
Under Article 103 of the Philippine Labor Code, employees must be paid at least once every two weeks or twice a month, with intervals not exceeding 16 days. However, most Filipino VAs working for international companies are classified as independent contractors, which means this legal requirement doesn’t technically apply to them. Despite this, the twice-monthly payment standard has shaped expectations across the entire Philippine workforce.
How much do payment transfer fees cost when paying Filipino VAs?
Payment transfer fees vary significantly based on your chosen platform and payment frequency. Wise typically charges between 1% and 3% per transfer when sending USD to Philippine pesos, with fees usually landing on the lower end for larger amounts.
Should I pay Filipino VAs monthly or twice a month?
Bi- weekly payments on or near the 15th and 30th create the best balance for most situations. This schedule aligns with Filipino expectations, supports better financial planning for your team, and keeps administrative overhead reasonable. Filipino workers typically pay rent at the start of the month and utility bills mid-month, so the 15th and 30th dates match their expense cycles too.