In-house vs outsourced QA in the Philippines
Annual, PHP, median, computed . USD vendor rates are converted at 62.8102 PHP per USD on 7 October 2026[27].
A junior manual QA engineer employed in the Philippines costs PHP 555,696Confidence B a year in total, including employer contributions (social security and payroll taxes the employer pays on top of salary).
The same role bought from a QA vendor at the Southeast Asia rate of USD 16.50 to USD 31 an hour (median USD 25) comes to PHP 3,014,891 a year for 1,920 billed hours (160 a month x 12).
By role and level
| Role and level | Employee | Outsourced | Difference |
|---|---|---|---|
| Manual QA engineer, junior | PHP 555,696Confidence B[1] to [22] | PHP 3,014,891[23][24][25][26] | +PHP 2,459,195 |
Outsourced rates are regional and not split by level in most sources, so the same rate can apply to several levels. Each employee figure links to its full breakdown. Footnotes on the employee column give the sources of each employee total; footnotes on the outsourced column give the vendor rate sources.
The letter after each employee figure is its confidence grade (A, B or C, from the number and agreement of the sources); how grades work.
Difference by component: manual QA engineer, junior
The employee total is built from five lines added to base salary (voluntary benefits is not estimated and adds nothing); the outsourced total is one line, the vendor rate times billed hours. Lines that belong to only one model show “not in this model”.
| Component | Employee | Outsourced | Difference |
|---|---|---|---|
| Base salary | PHP 360,978[1][2] | not in this model | n/a |
| Employer contributions | PHP 47,882[3] to [11] | not in this model | n/a |
| Mandatory benefits | PHP 30,082[12] | not in this model | n/a |
| Voluntary benefits | not estimated | not in this model | n/a |
| Equipment and tooling | PHP 70,994[13] to [19] | not in this model | n/a |
| Recruiting, amortised over 2.5 years | PHP 28,878[20][21][22] | not in this model | n/a |
| Onboarding ramp, amortised over 2.5 years | PHP 16,882[1] to [12] | not in this model | n/a |
| Vendor rate, 1,920 billed hours a year | not in this model | PHP 3,014,891[23][24][25][26] | n/a |
| Total annual cost | PHP 555,696 | PHP 3,014,891 | +PHP 2,459,195 |
Employee includes
- base salary
- employer contributions
- mandatory benefits
- equipment and tooling
- recruiting
- onboarding ramp
Outsourced includes
- vendor hourly rate for billed hours
Not included: recruiting, onboarding ramp, equipment and your own management time.
Sources
- Lawphil (statute text). Republic Act No. 11199 (Social Security Act of 2018)
- Grant Thornton Philippines. SSS implements revised contribution rates for 2025
- Triple i Consulting. SSS Contribution Table 2025: New Rates and How to Compute for Your Employees
- Philippine Health Insurance Corporation. PhilHealth Advisory No. 2025-0002
- Philippine Health Insurance Corporation. PhilHealth Circular No. 2020-0005 Premium Contribution Schedule (Revision 1)
- iScale Solutions. PhilHealth Contribution Guide 2026
- Home Development Mutual Fund (copy hosted by Grant Thornton). Pag-IBIG Fund Circular No. 460: Guidelines on the implementation of increase in the MFS effective February 2024
- Forvis Mazars Philippines. PAG-IBIG increases the Maximum Fund Salary and shares new monthly contribution rates in the Philippines
- Lawphil (statute text). Presidential Decree No. 851 (13th-month pay)
- Apple. Buy MacBook Air
- Apple. Buy MacBook Pro
- Testing tool list price (vendor not named)
- Testing tool list price (vendor not named)
- Linear. Linear pricing
- Manatal. Recruitment fees (agency fee guide)
- Apollo Technical. What is a placement fee for engineering hiring
- HeroHunt.ai. True Cost to Hire an AI Engineer in 2026
- QA vendor rate page (vendor not named)
- QA vendor rate page (vendor not named)
- QA vendor rate page (vendor not named)
- QA vendor rate page (vendor not named)
- European Central Bank. Euro foreign exchange reference rates
Formula v1.0How each component is computed
version: 1.0
total_annual_cost =
base_salary
+ employer_contributions # statutory rates applied to base with caps; per country
+ mandatory_benefits # 13th or 14th salary, paid leave value above base, mandatory insurance; per country
+ voluntary_benefits # health, pension top-up, meal and transport; market survey medians per country and level; shown as a separate line
+ equipment_and_tooling # laptop amortised over 3 years, licences, test devices for mobile roles; per level and role
+ recruiting_cost_amortised # recruiting cost / expected tenure years; per country, role and model
+ onboarding_ramp # ramp_weeks x weekly cost x (1 - productivity_factor); per level
first_year_cost = total_annual_cost - recruiting_cost_amortised + recruiting_cost - onboarding_ramp_amortised + onboarding_ramp
monthly_cost = total_annual_cost / 12
hourly_equivalent = total_annual_cost / productive_hours
# Defaults (overridable per country in data with a source)
expected_tenure_years: 2.5
productive_hours: 1,700 per year, adjusted by statutory paid leave per country
ramp_weeks: junior 10, mid 6, senior 4
productivity_factor_during_ramp: 0.5
equipment_amortisation_years: 3
# Hiring models
employee: full formula
contractor: contractor_rate x hours + platform_or_eor_fee; no employer_contributions, no mandatory_benefits unless the EOR passes them through (sourced); recruiting as for employee; ramp as for employee
outsourced: published vendor monthly or hourly rate per role and region; no recruiting, no ramp, no equipment; show typical minimum engagement from sources
# Output per combination
p25, median, p75 for each component and for the totals, in local currency and USD at fx.json date; confidence grade; source ids; computedOnFormula v1.0
version: 1.0
total_annual_cost =
base_salary
+ employer_contributions # statutory rates applied to base with caps; per country
+ mandatory_benefits # 13th or 14th salary, paid leave value above base, mandatory insurance; per country
+ voluntary_benefits # health, pension top-up, meal and transport; market survey medians per country and level; shown as a separate line
+ equipment_and_tooling # laptop amortised over 3 years, licences, test devices for mobile roles; per level and role
+ recruiting_cost_amortised # recruiting cost / expected tenure years; per country, role and model
+ onboarding_ramp # ramp_weeks x weekly cost x (1 - productivity_factor); per level
first_year_cost = total_annual_cost - recruiting_cost_amortised + recruiting_cost - onboarding_ramp_amortised + onboarding_ramp
monthly_cost = total_annual_cost / 12
hourly_equivalent = total_annual_cost / productive_hours
# Defaults (overridable per country in data with a source)
expected_tenure_years: 2.5
productive_hours: 1,700 per year, adjusted by statutory paid leave per country
ramp_weeks: junior 10, mid 6, senior 4
productivity_factor_during_ramp: 0.5
equipment_amortisation_years: 3
# Hiring models
employee: full formula
contractor: contractor_rate x hours + platform_or_eor_fee; no employer_contributions, no mandatory_benefits unless the EOR passes them through (sourced); recruiting as for employee; ramp as for employee
outsourced: published vendor monthly or hourly rate per role and region; no recruiting, no ramp, no equipment; show typical minimum engagement from sources
# Output per combination
p25, median, p75 for each component and for the totals, in local currency and USD at fx.json date; confidence grade; source ids; computedOnQuestions
- How does in-house compare with outsourced QA in the Philippines?
- For a junior manual QA engineer, the employee total is PHP 555,696 a year and the outsourced total is PHP 3,014,891, which is PHP 2,459,195 a year more than the employee total, computed 17 October 2026.
- What rate is the outsourced figure based on?
- Aggregated QA vendor rates for the Southeast Asia region, USD 16.50 to USD 31 an hour, median USD 25, times 1,920 billed hours a year; the median total uses the median rate. Vendors are not named.
- What does each total leave out?
- The employee total leaves out voluntary benefits (not estimated); office space; management time; and bonuses and equity. The outsourced total leaves out recruiting, onboarding ramp, equipment and your own management time.