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

How Exchange Rate Affects OFS Salaries #ytshorts

23 Feb 2023 · 1 min

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0:54

Short YouTube clip (John Jonas) explaining how USD–peso exchange-rate swings affect salaries paid to overseas Filipino staff (OFS). Uses numeric examples (e.g., $600 at 47 PHP ≈ 28,000 PHP vs at 56 PHP ≈ 33,600 PHP) to show employer/employee exposure and discusses employer strategies: pay in pesos, monitor rates, and make discretionary top-ups only for large downward swings.

Chapters

So you're paying someone $600 a month, 47 pesos to USD, it's like 28,000 pesos per month. So 28,000 is okay, but if the exchange rate's at 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 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. What I do is I monitor it, but I only change it for big fluctuations. So right now at, when it's at 56, I don't change anything because they're just getting extra money. And when it goes back down to 50, I won't change anything. When it goes to 45, though, I will consider adding extra money to them so that they're not taking a pay cut from 50.