John JonasOwner, OnlineJobs.ph · Scale Your Business with Filipino VAs

How exchange rate affect your OFS #ytshorts

4 Oct 2024 · 1 min

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0:56

John Jonas shows how peso-dollar swings hit your paycheck. A $600 monthly salary swings from ₱28,000 to ₱33,600 depending on the rate. He suggests employers contract in pesos instead and use services like Wise to lock in the USD cost each month.

Questions this video answers

$600 per month.

At ₱47/USD → ₱28,000 per month; at ₱56/USD → ₱33,600 per month.

Difference ≈ ₱5,600 (described as about one-sixth of the salary).

Contract and pay the worker in Philippine pesos (example: pay ₱30,000 monthly) and remit the equivalent USD using payment services like EasyPay or Wise.

Chapters

So you're paying someone $600 a month at 47 pesos to USD, it's like 28,000 pesos per month. So 28,000 is okay, but if the exchange rates are 56, it's 33,600. So that difference between 28 and 33, 6, that's, you know, 5,600 pesos, 5,500 pesos depending on. Yeah, that's like a sixth of their salary. That's a, you know, that's a big deal. That's an amount that could pay for this month's Internet or a large amount of their groceries for the whole month. So some employers get around this by paying in pesos. If you just contract with them in pesos, I'm going to pay you 30,000 pesos per month, period. Then you don't have to worry about it, except you have to monitor the exchange rate every single month because then you have to send the right amount of US Dollars. It can be super simple if all you do is enter in the Filipino pesos amount into whatever you're using to pay someone. Easy pay or wise or whatever it is you're using to pay.