Accountant salary grade in the Philippines

Employees are always on the lookout for higher compensation to fight inflation and keep up with the rising cost of living. Whether you are a fresh graduate or employed but looking for greener pastures, it is important to know how much a job pays. As multiple kinds of businesses are emerging in the Philippine economy, accountants are becoming in demand. Although accountancy has always been one of the most popular professions ever since the demand now has increased tremendously. The first question everybody wants to know is:

How much is the Salary of Accountant in the Philippines?

According to indeed.com, the average salary of an accountant in the Philippines is Php 31,100(1). This is more than twice as much as the average salary for an office worker in the country.

Based on the average monthly salary of Php 31,100, your hourly pay would be around Php 194.37, assuming that there are 5 workdays in a week and 8 work hours a day or 40 hours a week. This result is obtained by multiplying your base salary by the number of hours, weeks, and months you work in a year.

Average Salary of Accountant in the Philippines

A person working as an accountant in the Philippines typically earns around 31,100 PHP per month. Salaries range from Php 14,300 (2) as the minimum to Php 49,400 as the maximum. The median monthly salary of accounts in the Philippines is around Php 33,600. This is the average accountant salary in the Philippines per month, which usually includes housing, transportation, and other perks. Accountant pay varies greatly depending on experience, skills, gender, and location of employment.

The median salary value is the middle salary value which means that half or fifty percent of accountants earn less than Php 33,600 and the other half earns more than Php 33,600

The 25th and 75th percentiles are two values closely related to the median. According to salaryexplorer.com there is a salary distribution diagram, 25% of accountants earn less than Php 21,600 while 75% earn more than Php 21,600. Also, 75% of accountants are earning less than Php 44,800 while 25% are earning more than Php 44,800.

The accountant salary in the Philippines also depends on where you work at. Working for a public corporation or the government will pay you more. On average, public sector employees in the Philippines earn 12% more than their private sector counterparts across all industries. Accountants in the private sector earn approximately Php 42,100 a month while accountants in the public sector earn Php 47,100.

The difference between the median and the average salary is that the median is also known as the 50th percentile or dividing the middle value of all salaries while the average is calculated by selecting a group of people, in this case, accountants, adding up their salaries, and then dividing the total number of accountants in the group.

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The median salary represents an accurate reflection of the average wages as it cuts the extremes at either the end of the scale. Simply put, half of the people who work in that field make less than the median salary and the other half of the people make more. This is especially important particularly when there is a large gap between the salaries of the average worker and the senior executives. When you have a symmetrical distribution for continuous data, the average and median are equal.

This is the time when most analysts prefer to use the average because it includes all the data in the calculations. However, if the distribution is skewed, meaning, the distribution is neither symmetrical nor normal because the data values trail off more sharply on one side than on the other, then the median is often the best measure for central learning.

Although the median does not use all the information available in the data, this method is usually used except in many statistical tests as it is very simple to understand and easy to calculate and it lies at the middle part of the series, therefore it is not affected by the extreme values. The median and average salary are both indicators you can use to see if you are being paid fairly based on the overall population.

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Accountant Salaries in Manila, Quezon City and others

If you want to compare the salaries in different parts of the Philippines, the following table shows the average salary of accountants in some of the biggest cities in the country. (According to salaryexplorer.com)

Accountant Salary Comparison by Years of Experience and Education

The two most important factors in determining salary is the level of experience and education. The more years of experience and education an accountant has, the higher the expected compensation. It is important to understand what employers look at when hiring new employees, negotiating for a salary for new employees, or asking for an increase in salary.

The table shows that two to five years of experience earn about 34% more than someone with less than two years of experience. Experience of five to ten years earns 48% more than someone with two to five years of experience. Furthermore, accountants with ten to fifteen years of experience earn 22% more than those with five to ten years of experience. When you have fifteen to twenty years of experience, you can earn 9% more than those who have experience of ten to fifteen years. Finally, twenty or more experience will have you earning 8% more compared to fifteen to twenty years of experience. A fresh graduate accountant’s salary in the Philippines will double by the time they have 10 years of experience. However, salary variations may vary from person to person based on the average change in salary as time goes on.

Higher education leads to a higher salary, but how much more can a degree add to your earnings? The following table shows the level of education and salary.

An accountant with a High School diploma earns an average monthly salary of Php 19,900. A person with a Certificate or Diploma earns Php 23,400 per month, which is 18% more than someone with a High School diploma. A Bachelor’s Degree earns its holder an average monthly salary of Php 34,000 which is 45% more than a Certificate or Diploma. Professionals with a Master’s Degree earn an average monthly salary of 44,500 PHP, 31% more than those with a Bachelor’s Degree.

The starting salary of an accountant in the Philippines ranges between Php 28,000 to Php 38,000. The salary of a junior accountant in the Philippines is around Php 22,318. The salary of a senior accountant in the Philippines is Php 44,187. A fresh graduate accountant salary in the Philippines starts from Php 15,700 considering that there is no work experience. Generally speaking, the salary of accountants, whether they are new employees or have been in the industry for so long, is considerably high compared to other professionals.

How can Certified Public Accountants increase their Salary?

Acquiring advanced degrees may qualify accountants for promotions. CPAs can broaden their options by pursuing specialized positions such as Budget Analyst, Auditor, Controller, Tax Accountant, or Corporate Financial Officer with the right combination of accounting skills and continuing professional education. Along with these qualifications, experience in supervising junior CPAs will help you earn more.

How to become an Accountant?

Financial Accountants or Cost Accountants assist with a company’s financial needs. Their help covers the well-being of the company’s profit, revenue, and loss. Due to the requirements of the job, there are several steps to becoming an accountant.

To work as an accountant in the Philippines, you must first complete a five-year Bachelor of Science in Accounting program. Following your studies, you must pass the Certified Public Accountant’s Licensure Examination. Moreover, you must learn other skills that are relevant to accountancy such as computer skills.

Accountant Tasks and Skills

Aside from completing a BS in Accounting course or its equivalent, most businesses prefer Certified Public Accountants (CPAs).

The competencies or the knowledge, skills, and attributes required to be employed as an accountant are knowledge of Accounting and Financial Reporting Standards. This includes working knowledge of statutory and regulatory requirements, good communication skills, attention to detail and analytical skills, ability to meet deadlines, strong computer skills including the use of accounting and financial analysis software such as accounting software, and proactive approach to work and the team.

Conclusion

Salaries of accountants vary depending on what type of company or institution they are working for and their position or seniority in their job. Average salary оf accountants per month is around Php 30,000. Given the importance of the position and the time required to qualify, this is one of the highest-paying jobs in the Philippines.

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