How To Set Pay For Remote Employees In Other Countries

Key Takeaways

• Set pay on the local professional market for the role and experience, then pay at or above it.

• Pay in US dollars on fixed dates, and review rates every six to twelve months.

• Full-time remote staff start at $6/hr, with specialists and experienced professionals above that.

• Fair, reliable pay is the single biggest driver of retention for remote staff.

Start With The Local Professional Market

The right anchor is what a skilled professional in that role earns in that country, not what you would pay locally. A customer support specialist in Manila, a bookkeeper in Cape Town, and an executive assistant in Bogotá each have a local market. Pay at or a little above it and you attract strong people who stay. Our guides for the Philippines, Latin America, and South Africa give ranges.

Adjust For Experience And Role

Entry-level generalists start at $6/hr full time. Experienced specialists, bilingual staff, and people with years of US client experience earn more, and should. Paying an experienced person an entry rate is the fastest way to lose them. See our rates by role.

Pay In US Dollars On Fixed Dates

Most remote professionals prefer US dollars because it protects them from local currency swings. Pay on the same dates every month through a platform that handles conversion. Late or irregular pay damages trust faster than anything else. See how to pay overseas contractors.

Account For Inflation And Currency

In countries with high inflation, such as Argentina, a rate that was fair last year may not be this year. Review pay every six months and adjust. In stable currencies, an annual review is enough. Build the review into the agreement so nobody has to ask.

Benefits And Extras

Contractors typically do not receive statutory benefits, so many employers add a modest allowance for health coverage or a thirteenth-month payment, which is customary in the Philippines and parts of Latin America. Employees through an employer of record get local statutory benefits. Either way, be clear about what is included. Read contractor or employer of record.

Fairness Within The Team

If you have people in several countries doing the same job, pay each fairly for their market and be consistent within each country. Pay differences between countries are normal and understood. Pay differences between two people in the same city doing the same job are not.

A Simple Method

1. Find the local professional range for the role and experience level.

2. Set the rate at or slightly above the middle of that range.

3. Pay in US dollars on fixed dates.

4. Add any allowances and write them into the agreement.

5. Schedule a review at six or twelve months.

6. Raise on a schedule, and say why.

We advise on rates for every role we recruit, so offers land right the first time. See how it works.

What This Looks Like In Practice

A startup hires a support rep in the Philippines, an operations assistant in Argentina, and a bookkeeper in South Africa. The founder initially wants one rate for all three. A quick look at local markets shows that would underpay the bookkeeper and overpay the entry-level support rep relative to their peers.

She sets each rate against its local professional range, pays everyone in US dollars on the 1st and 15th, adds a thirteenth-month payment for the Philippine rep, and writes a six-month review into the Argentine agreement because of inflation. At the six-month review she raises the Argentine rate to keep it fair. Two years later all three are still with the company. None has ever had to ask about pay.

A Quick Checklist Before You Start

• Local professional pay range for the role and experience.

• A rate at or above the middle of that range.

• US dollar payment on fixed dates through a platform.

• Allowances or customary payments written into the agreement.

• A review date at six or twelve months.

• Consistency within each country and role.

Fair for the market, reliable every month, reviewed on schedule. That is the whole method.

Questions Owners Ask

Should I Pay US Rates To Remote Staff Abroad?

No. Pay fair local professional rates. US rates would distort the local market and are not expected. What matters is fairness and reliability.

How Often Should I Give Raises?

Annually for stable currencies, every six months where inflation is high. Tie raises to performance and market movement.

Is $6 An Hour Really Fair?

For an entry-level role in these regions, yes. It is a professional wage locally. Experienced staff should earn more.