This is not a very common question, but I want to discuss it today because it is important, especially given the fluctuations in currency exchange rates.
Let me clarify that your OFS will receive their salary in Philippine peso. The payment platform and the banks from which they withdraw their salary will give their money in pesos.
But there’s a difference between setting their salaries in your currency (or, in our case, USD) and in Philippine currency. Both have advantages and disadvantages.
When you set your OFS salary in your currency, let’s say you’ve agreed on $600/month, paying their salary is easier on your end. You don’t have to do any conversion.
The disadvantage is that when the Philippine peso is strong against your currency, your OFS can get less.
Thankfully, this doesn’t happen often. That’s why we show rates in USD instead of the Philippine peso. USD is the easiest currency because it’s the most stable and recognized worldwide. You only need to worry about this when there are massive changes in the exchange rate.
If you set your OFS salary to PHP, it’s easier for them because they know exactly what they’re getting. If you have set their salary at PHP 40,000/month, they can rely on getting that for as long as they work for you.
It inconveniences you because you’ll have to check the exchange rate every time you pay them.
We recently asked our team if they preferred to have their salary set in USD or PHP. Almost all said USD. They understand there’s risk if the exchange rate changes a lot, but they also like the potential for getting more money if the US dollar is strong (which it often is).
At the end of the day, it doesn’t matter. Whether it’s set in pesos or USD, what matters is that your OFS is treated well and paid on time.
So pay however you want, just check on the exchange rate every once in a while.
Or you can use EasyPay to make paying your OFS much easier. Enter how much you’re sending either in USD or PHP, and it’s done—no computation required.
John