Source: https://rivet.global/blog/pay-contractors-in-the-philippines
Published: 2026-07-10 · Updated: 2026-07-10 · By Rashidatou K.

# How to pay contractors in the Philippines from the US or UK

Paying a remote team in the Philippines: InstaPay vs PESONet, bank vs GCash and Maya, what each costs, the forms US companies collect and avoiding deductions.

## Key takeaways

- InstaPay is the Philippines' real-time rail, for payments up to PHP 50,000 each.
- PESONet is a batch rail for larger amounts, settling the same or next banking day.
- Many contractors prefer pesos in a local bank or e-wallet over a USD wire.
- A USD SWIFT wire often arrives short after intermediary and receiving bank fees.
- US companies usually collect a W-8BEN from Filipino contractors working outside the US; no US withholding applies to those services.

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](/blog/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](/blog/pay-suppliers-usd-or-local-currency) sets out the trade-off.

## What paperwork does a US company need?

1. A written contractor agreement describing deliverables, not hours and supervision.
2. Form W-8BEN from each individual contractor, kept on file.
3. 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](/blog/paying-a-remote-team-abroad).

## How do you run a monthly payout?

1. Collect each contractor's bank or e-wallet details and confirm the account name.
2. Agree the currency and the date.
3. Send in one batch, with invoice numbers as references.
4. 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](/payouts), with the rail and fee shown for each recipient before you approve. Ask at onboarding which Philippine payout routes apply to your account.

## Questions

### 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.