How to pay contractors in the Philippines from the US or UK
The Philippines is one of the largest markets for remote contractors. Pesos reach Philippine bank accounts by InstaPay in seconds for smaller amounts, or by PESONet for larger ones. A SWIFT wire in USD often loses fees on the way and gets converted at the receiving bank's rate.
- Published
- Reading time
- 2 min read
Virtual assistants, developers, designers, customer support and bookkeeping: a lot of remote work for US and UK companies is done from the Philippines. Paying that team well includes paying them in a way that does not lose a chunk to fees.
How do payments move inside the Philippines?
The Bangko Sentral ng Pilipinas runs two automated clearing houses under its National Retail Payment System:
| InstaPay | PESONet | |
|---|---|---|
| Speed | Seconds, 24/7 | Same or next banking day, in batches |
| Limit | PHP 50,000 per transaction | No scheme limit |
| Best for | Regular contractor pay below the limit | Larger invoices, monthly retainers |
| Reaches | Banks and e-wallets that participate | Banks and e-wallets that participate |
Most Philippine banks and e-money issuers, including GCash and Maya, participate in both.
What are the options for a foreign company?
| Method | What the contractor gets | Watch for |
|---|---|---|
| SWIFT wire in USD | USD into a Philippine bank, often converted on arrival | Intermediary fees, receiving bank fees, bank's FX rate |
| Local payout in PHP through a provider | Pesos by InstaPay or PESONet | Provider's FX margin and fee |
| Freelance platform | Platform balance, then withdrawal | Platform fees and withdrawal charges |
| Stablecoin | USDC or USDT to a wallet | Contractor needs to off-ramp to pesos |
For most teams, a local payout in pesos is cheapest for the contractor and easiest to explain. A SWIFT wire is simplest for the sender but often arrives short. See SWIFT transfer fees and time.
Should you pay in USD or pesos?
Agree it in the contract. Many contractors price in USD and are paid the peso equivalent on the payment date, so the exchange rate risk sits with them. Others prefer a fixed peso amount. If you pay pesos, use a clear rate source and show it on the remittance, so the contractor can check it. Our guide to paying suppliers in USD or local currency sets out the trade-off.
What paperwork does a US company need?
- A written contractor agreement describing deliverables, not hours and supervision.
- Form W-8BEN from each individual contractor, kept on file.
- Invoices from each contractor, for your expense records.
A US company paying a non-US person for services performed outside the US generally does not withhold US tax and does not file a 1099. If the relationship looks like employment under Philippine rules, you may need an employer of record instead. See paying a remote team abroad.
How do you run a monthly payout?
- Collect each contractor's bank or e-wallet details and confirm the account name.
- Agree the currency and the date.
- Send in one batch, with invoice numbers as references.
- Send each contractor a remittance with the amount, rate and fee.
Paying a Philippine team with Rivet
Rivet's Growth plan pays contractors and suppliers in 120+ countries from the company's USD balance, in one batch, with the rail and fee shown for each recipient before you approve. Ask at onboarding which Philippine payout routes apply to your account.
Questions people ask
What is the cheapest way to pay a contractor in the Philippines?
A local payout in pesos to their Philippine bank account or e-wallet, sent through a provider at a published FX margin, is usually cheaper than a SWIFT wire. Compare the rate, the fee and what the contractor actually receives.
Can I pay a contractor's GCash or Maya account?
Many payout providers can send to GCash and Maya directly, or to the bank details linked to them. E-wallets have their own account limits, so large payments may be better sent to a bank account.
Do I need to withhold tax for a Filipino contractor?
A US company paying a non-US contractor for work done outside the US generally does not withhold US tax, and collects Form W-8BEN as evidence. The contractor handles their own Philippine tax. Employees are a different matter; see the remote team guide.
How long does InstaPay take?
Seconds, 24 hours a day, for amounts up to the PHP 50,000 limit per transaction.
Sources
Rashidatou writes Rivet's guides to how money moves between countries: the payment rails, what each one costs, and the account details a company needs to get paid in another currency. Every figure in Rashidatou's articles is traced to the scheme rulebook, the regulator or the provider's published price list, and those sources are listed at the end.
More from Rashidatou K. →This article is general information, not legal, tax or financial advice. Rules and fees change; check the sources above and the provider’s current terms before you act on them.
- pay contractors philippines
- instapay
- pesonet
- gcash
- remote team
- php
