2021 is yet another year we all stayed at home for the most part. While the world was busy figuring out NFTs, there was another buzzword we’ve all heard (and loved): Remote Work.
In the past year, you might think the idea is fairly new. But is it? You might be surprised how long this setup has been established in the Philippines. In fact, a large number of Filipinos now prefer a work-from-home setup considering its multiple benefits. If you’re one of those who’ve made it in the remote working world – lucky you! But how can you sustain this lifestyle for good? And if you are considering taking the jump, what are the things that you need to keep in mind?
The Rise of Remote Work
Today, the work-from-home setup is becoming more popular than ever with 88% of organizations worldwide shifting to a remote-first approach in 2020 due to the global pandemic. According to a study entitled “Decoding Global Ways of Working,” the number of Filipinos who are working remotely spiked to 85% during the pandemic. While a lot of companies and employees are posing their doubts, their view on remote working has changed in no time. This led 49% of them to prefer working remotely while the rest would like to try having a hybrid setup.
Remote work simply means rendering work remotely, as a freelancer or employee, not requiring a physical appearance in an office or workplace. It is a setup that allows professionals and experts to work outside their traditional office environment and exercise their freedom to work wherever they are comfortable.
From that time until now, we can safely say that remote work is here to stay. In fact, according to Upwork, 73% of companies worldwide are expected to hire remote workers by 2028 and maintain this status permanently.
The Philippines is a Remote Work Hot Spot
Out of all the countries that offer offshore staffing globally, the Philippines is one of the most successful outsourcing destinations in the world. In fact, we’ve placed second in Tholons 2019 Globalization Index as the number of outsourced employees in the Philippines increased by up to 1.2 million this year. That means if you want to transition into remote work today – you’re in the right place.
Why are we a hotspot? Globally, we Filipinos are known for our high fluency in the English language and ability to adapt to any environment. Moreover, we offer a cultural match and flexibility as the western culture is already deeply ingrained in the country. Not to mention our impeccable skills in IT, digital marketing, creatives, web design, development, and general support. We work hard, and we produce world-class results. These qualifications even come with cost-efficient staff costs which foreign companies can’t turn their head against.
Freelancing vs. Working for a Foreign Company Remotely
Since both jobs are done remotely, people often confuse remote freelancing with international employment. However, the two kinds of remote working setup are far apart from each other. Misclassification could lead to labor and tax law violations for employees and employers. It can also cause issues when distinguishing the responsibilities in their job.
Unlike being an employee, freelancing is actually a service-based business and they are independent contractors. This means that freelancers can work for different companies and organizations and are not registered as employees. Simply put, freelancers have the right to choose their clients, services, and rate per project. They also need to allot time to advertise their services, manage their schedules, and send invoices just like running any other business. It is also their choice whether to engage in a short or long-term contract.
Meanwhile, international employees are just like any other regular employees except that they are working remotely for foreign companies. In this case, you cannot work for multiple employers and your working hours are set for long-term and based on a working contract. The best part of being employed internationally is being entitled to keep enjoying full benefits (SSS, Pag-ibig, Philhealth) provisioned by the Philippine labor law, with taxes and social contributions handled by the company.
The Gray Area of Remote Work
An international remote employee should be able to enjoy the same benefits as any regular employee in the Philippines. Yup, taxes, social contributions, PH holidays and all. This means that their company should handle the processing of their taxes and social contributions. If this is not the case, this could mean that the company is not registered to hire from the Philippines and may be at serious risk of violating PH labor and tax regulations.
In these instances, it is best to communicate with your direct manager or HR to ask about your classification. If they have no ill intentions and just lack knowledge in international remote employment, let them know that there is a very simple and easy way to get their compliance back on track, and just in a matter of days.
Making Remote Working Sustainable
A lot of Filipino remote workers right now experience difficulties securing stability when it comes to their remote employment. Despite the time-freedom and high pay that comes with an international remote work set up, there are employees who are not properly registered as employees in the Philippines and therefore do not get the benefits mandated by the Philippine government.
Remote working is here to stay, and in the foreseeable future there will only be more opportunities to shift to remote work as the world eases back to normal. After the pandemic, remote employees will be able to travel and work anywhere in the world while keeping their regular job.
A Filipino start-up, Remotify aims to bridge this grey area through their Employer of Record (EOR) services. Their services make it possible for your foreign employers to become 100% compliant with Philippine labor laws. This means that as an international employee– you can confidently work from home with the same benefits as anyone working in an office. Social and Tax contributions, Mandatory 13th-month pay, Annual, Sick, and Maternity leave all at the safety of your own home (or from anywhere, soon)
To learn more about how their services benefit both remote employees and employers, check www.remotify.ph/employer-on-record.
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