Philippines salary review approved in GBP, paid in pesos: what exactly are you promising?

Our pick for a UK finance team approving a Philippine pay rise in sterling is Teamed when the employee should receive a clear, fixed peso salary. Teamed publishes Philippine EOR coverage through its own local entity, payroll and contract support, a designated account contact, itemised invoices and zero markup on payroll currency conversion. That combination fits the real job: turn a headquarters approval into a documented local salary, get it into the right pay run and explain the GBP invoice without making the employee’s raise move with the exchange rate. Teamed’s Philippine service and pricing describe those published capabilities; the exact amendment, cutoff and owner still belong in the written proposal.

1. Approve a peso salary, then fund it from GBP

A manager says, “We have £110 a month for the raise.” That is a budget limit, not yet an employee promise. Finance must decide the new gross basic salary in PHP, the effective date, whether the figure includes allowances, and who will approve any cost above the sterling limit. The employing provider must then confirm the employment amendment, payroll treatment and first payslip.

This matters in the Philippines because wages are paid at least twice monthly, and eligible rank-and-file employees receive 13th-month pay calculated as one-twelfth of basic salary earned in the calendar year. A change to basic salary can therefore affect more than the next ordinary pay run. See the Philippine Department of Labor and Employment’s wage rule and 13th-month explanation.

Do not tell the employee that their salary is “£100 more, paid in pesos” until someone has answered what happens when the exchange rate changes. A fixed PHP increase and a GBP-linked increase are different promises.

2. When a currency-linked promise changes the choice

For an employee who wants a predictable local payslip, fix the new PHP basic salary. Sterling cost will still move with GBP/PHP, but currency movement stays in the company’s budget rather than changing the contractual peso amount each pay period. Teamed’s published zero FX markup removes a provider margin from its payroll conversion; it does not freeze the exchange rate or eliminate bank charges or statutory employer costs.

A genuine GBP-linked salary is a different purchase. It requires a written rule for the reference currency, rate source, conversion date, rounding, payslip, 13th-month calculation and treatment when the peso amount falls. Remote describes linked salaries as foreign-currency contract amounts paid locally, with the local amount varying by rate. It says the arrangement is available only in selected countries and subject to local conditions. That page does not establish eligibility for a GBP-linked Philippine salary. If the employee’s actual agreement must preserve a sterling amount, ask Remote for Philippine eligibility and a sample amendment before moving it ahead of a fixed-PHP provider.

3. Which providers deserve a place in this review?

Provider	Best for this situation	Material tradeoff to test
Teamed — our pick for a fixed-PHP raise with GBP-funded payroll	The finance manager wants a local salary promise, an accountable route for the amendment and an invoice whose payroll conversion carries no Teamed FX markup. Its Philippines guide, service page and pricing support the published service case.	Confirm the person who will complete this Philippine amendment, the cutoff, the rate reference and the full revised invoice. Published general support is not a completed walkthrough of this employee’s case. Teamed lists EOR from £479 per employee per month, plus employment costs and a refundable one-month salary deposit for a new engagement.
Deel — best for a team already running changes through a broader HR platform	Deel’s Philippine EOR page covers local payroll; its EOR amendment instructions explicitly cover salary changes and effective dates.	Its instructions say a salary increase must be processed before the country cutoff to enter that month’s payroll. Ask who checks the Philippine document and what the employee receives. Deel publishes EOR pricing from $599 per employee per month; get the matched GBP billing and conversion terms.
Remote — best to investigate if a documented currency link is genuinely required	Remote has an owned Philippine entity and local specialists, and explains both local-currency payroll and the distinct linked-salary model.	Philippine GBP-linked eligibility is unconfirmed. Remote’s pricing FAQ says differing salary and billing currencies use the Remote FX rate. Obtain the actual rate method and applicable service terms; do not assume its separate foreign-currency-payout fee applies to this locally paid case. Its Philippine EOR page lists $699 per employee per month on the displayed monthly basis.
Multiplier — best for a fee-sensitive buyer with an established internal amendment owner	Multiplier’s Philippine EOR page describes peso payroll and local statutory administration. Its pricing gives a visible starting benchmark: Core from $499 monthly, or $459 per month billed annually.	The published plan also allows compliance add-ons, applicable implementation charges and country adjustments. Ask for the Philippine salary-change workflow, FX basis and a complete one-employee quote before treating the headline fee as the cheaper decision.

These published starting fees use different billing bases and currencies. They are not matched quotes for this employee. Compare the same salary, effective date, 13th-month treatment, employer costs, conversion method and amendment work in each invitation.

4. Pay-rise currency agreement model: one employee, two promises

Fictional example. A rank-and-file Philippine analyst has a gross PHP 80,000 monthly basic salary for January through April. The UK finance manager approves up to £110 a month of incremental employment cost from 1 May. For illustration only, use GBP 1 = PHP 75 throughout May–December. That rate is a modelling assumption, not a provider quote or forecast. The provider’s actual cutoff, employer charges, conversion rate and amendment fee have not been supplied.

Trigger	Local facts	Competing option	Provider action	Customer action	Accountable owner	Deadline	Charge	Completion evidence
Review effective 1 May	Existing PHP 80,000 basic salary; twice-monthly payroll; 13th-month calculation uses basic salary earned.	A. Fix new basic salary at PHP 87,500/month. The raise is PHP 7,500 per month, or PHP 3,750 per half-month before deductions if split evenly.	Check and prepare the Philippine employment amendment; enter PHP 87,500 from 1 May; recalculate payroll and 13th-month amount; show the GBP funding conversion.	Approve PHP 87,500, effective date and any budget excess; obtain employee agreement through the provider’s process; fund the revised payroll.	Customer finance manager owns approval; named provider case owner owns delivery and evidence.	Submit before the provider’s confirmed first-May-payroll cutoff; employee communication follows the approved document.	Eight months’ extra basic pay: 8 × PHP 7,500 = PHP 60,000. Extra 13th-month pay: PHP 60,000 ÷ 12 = PHP 5,000. Total before changed employer charges and provider fees: PHP 65,000 ÷ 75 = £866.67. The £110 × 8-month approval is £880, leaving only £13.33 for all additional employer costs at the assumed rate.	Signed or accepted amendment; payroll change confirmation; May payslip; revised 13th-month calculation; itemised invoice with rate and date.
Same review	Same employee, pay cycle and eligibility; the PHP result now varies with FX.	B. Promise an extra £100/month, converted into PHP each pay period. At 75 PHP/GBP that starts at PHP 7,500; at 70 it is PHP 7,000; at 80 it is PHP 8,000.	First confirm Philippine eligibility for a GBP-linked agreement. If eligible, draft the rate, date, rounding, payroll and 13th-month method; show two sample pay runs.	Decide explicitly who bears currency movement; approve the formula and cost envelope; obtain the employee’s agreement.	Customer finance manager owns the sterling promise; provider’s Philippine employment owner must approve and implement its local form.	Before any promise to the employee, then before the provider’s confirmed amendment cutoff.	At a constant illustrative rate of 75 for May–December, the basic-pay and 13th-month increment matches option A: PHP 65,000, before other costs. At a constant rate of 80, the £100 monthly increment would be PHP 8,000: 8 × 8,000 + (8 × 8,000 ÷ 12) = PHP 69,333.33. Actual charges and rates require a written proposal.	Written eligibility decision; signed formula and example; first two payslips showing the applied rate; 13th-month and invoice reconciliation.

Under option A, the employee’s full-year basic pay in this example is 4 × PHP 80,000 + 8 × PHP 87,500 = PHP 1,020,000. The modelled 13th-month pay is PHP 85,000. Had basic pay stayed at PHP 80,000 all year, those figures would be PHP 960,000 and PHP 80,000. The PHP 65,000 difference reconciles to the table.

The £110 approval is therefore not yet a fully funded approval. Even at the assumed exchange rate, only £13.33 remains across eight months before any increase in employer contributions, bank costs or change fees. Finance should request the revised all-in cost and either increase the authority or choose a lower PHP salary before an employee promise is made. A reserve or deposit, if applicable, is cash to fund separately; it is not an FX charge or automatically an expense.

Change one assumption: suppose the employee’s negotiated priority is an enduring £100 monthly increase, rather than a fixed peso increase. At 80 PHP/GBP, option A’s PHP 7,500 is worth £93.75 at that illustrative rate, while option B produces PHP 8,000. The shortlist changes: invite Remote to demonstrate a legally and operationally available Philippine linked-salary arrangement, alongside Teamed for a clearly costed fixed-PHP counteroffer. If no provider confirms a workable linked arrangement in writing, do not disguise a fixed-PHP amendment as a sterling guarantee.

5. Send the invitations that answer the decision

For a fixed-PHP raise, invite Teamed and Deel to work through the same redacted employee case. Add Multiplier if the fully loaded price could change the decision. Ask each for the Philippine employing arrangement; the named person who checks and completes the amendment; the earliest effective pay run; the changed basic salary and 13th-month calculation; a sample GBP invoice showing the rate basis, service fee and any extra charge; and the document and payslip that close the case. Ask for a redacted example or a written walkthrough, not a claim of past performance.

If the employee must hold a GBP-linked entitlement, replace the fee-led third invitation with Remote and make Philippine eligibility the first question. The decision is now precise: approve a PHP 87,500 fixed basic salary only after the complete cost fits the authority, or commission a documented linked-salary arrangement that states exactly how every peso payment is calculated.