EmergingMarketIQ

Sample decision report · prepared 11 November 2026

Where should an Australian IT services firm put a 25-person team: the Philippines, Vietnam or Malaysia?

This is a real example of the report we prepare for each client, using a typical scenario. Every cost and rule links to a dated public source. Estimates are marked as estimates.

The brief

  • Who: an Australian IT managed-services firm, about 120 staff, serving Australian clients.
  • Team: 25 developers: 1 local team manager, 4 senior, 12 mid-level and 8 junior.
  • Work: all output is delivered to the Australian parent (an export of services).
  • Question: which country, and should we open our own company, use an employer of record (EOR), or outsource to a staffing provider?

The answer in short

  1. The Philippines is the lowest-cost location for this team. With your own company, the first year costs about A$724k, against A$940k in Vietnam and A$1.05M in Malaysia. The gap comes mostly from lower developer salaries and statutory on-costs in this sample.
  2. At 25 people, your own company is cheaper than an EOR in all three countries: about A$138k a year cheaper in the Philippines, A$58k in Vietnam and A$134k in Malaysia. If you need an office, your own company starts to pay off from about 12 people in the Philippines and Malaysia and 19 in Vietnam.
  3. Outsourcing to a Philippine staffing provider costs about A$1.42M at published all-in rates, roughly twice your own company. In return you take on no setup, no office and no employer liability.
  4. Suggested path: make the first hires through an EOR in the Philippines, so people can start in weeks rather than months. At the same time, register a 100% Australian-owned export-enterprise subsidiary, and move staff across once the team passes about 12 people.

First-year cost, 25 people

Your own companyEmployer of recordOutsourced staff
PhilippinesA$724k
A$2,413 per person a month
A$862k
A$2,873 per person a month
A$1.42M
A$4,748 per person a month
VietnamA$940k
A$3,134 per person a month
A$998k
A$3,326 per person a month
No published rate card found
MalaysiaA$1.05M
A$3,497 per person a month
A$1.18M
A$3,943 per person a month
No published rate card found

Australian dollars, converted at the ATO October 2026 monthly rates18. "Your own company" includes an office. The EOR option assumes remote or co-working staff, so no office is included.

What makes up the "own company" figure

PhilippinesVietnamMalaysia
Salaries1,2,3A$495kA$541kA$774k
Statutory employer contributions4,5,6A$37kA$124kA$113k
13th month (PH, mandatory) / Tet bonus (VN, customary)4,5A$41kA$45kA$0k
Office rent, 250 sqm7,8,9A$75kA$155kA$69k
Office fit-out (estimate)A$20kA$18kA$27k
Registration and legal setup (estimate)A$9kA$11kA$9k
Audit and tax compliance, year 1 (estimate)A$16kA$16kA$19k
IT and equipment (estimate)A$32kA$30kA$39k
Total first yearA$724kA$940kA$1.05M

Salaries are monthly figures by level: medians from ITviec for Vietnam, and range midpoints from published rate cards for the Philippines and Malaysia. The team manager's salary is an EmergingMarketIQ assumption. Rows marked "estimate" come from EmergingMarketIQ's cost model, not a quote. Rent excludes service charges and taxes.

The rules that shape the choice

PhilippinesVietnamMalaysia
Can you own 100%?Yes, as an export enterprise (60% or more of output exported)13. A domestic-market company needs US$200,000 paid-in capital, or US$100,000 with 15+ Filipino staff14.Most services sectors: yes. Licensing checks that capital is enough to run until revenue, often US$15,000 or more for a basic services company12.Generally yes for services. A 100% foreign-owned company needs RM500,000 paid-up capital to employ expatriates15.
Time to set upConfirm with your adviser.About 2 to 4 months; the investment certificate must come before the enterprise certificate12.Confirm with your adviser.
Employer contributionsSSS 10% (capped), PhilHealth 2.5%, Pag-IBIG PHP 200 a month; 13th-month pay mandatory5.About 23.5% of salary, capped at VND 46.8 million a month; Tet bonus customary4.EPF 12-13%, SOCSO 1.75%, EIS 0.2% (capped at RM6,000), HRD Corp levy 1% for 10+ staff6.
Posting an Australian managerAlien Employment Permit (DOLE) and a 9(g) visa.Work permit; new Decree 393/2026 in force from 5 December 202616.Employment Pass: RM20,000 a month minimum for a key post, or RM5,000 for a term post in selected services15.
Corporate income tax25%, or 20% for small companies17.A cost-centre subsidiary usually earns a small cost-plus margin, so tax is a small part of the cost. Ask your tax adviser.

Own company vs EOR vs outsourcing: how to decide

  • Employer of record: fastest and lowest risk. List price is US$599 per employee a month at both Deel and Remote10. That's about A$10,285 per person a year, so A$257k a year for 25 people before any volume discount. Best for the first months, or under about 12 people.
  • Your own company: cheapest at scale, and you control hiring, culture and IP. It takes months to set up and adds local audit, tax and employment obligations.
  • Outsourced staff: a provider employs the people and supplies the office, IT and HR for one monthly price. For example, A$4,800 a month for a mid-level software engineer in the Philippines11. Highest cost, least effort.

90-day plan (Philippines path)

  1. Weeks 1-2: shortlist two EOR providers and ask for written volume pricing for 25 people. Appoint a Philippine law firm to incorporate the export-enterprise subsidiary.
  2. Weeks 2-6: hire the team manager and the first 4-6 developers through the EOR. Use co-working space.
  3. Weeks 4-10: register the company, open a bank account, register for SSS, PhilHealth and Pag-IBIG, and set up payroll.
  4. Weeks 8-12: sign the office lease. Agree the transfer-pricing basis (cost plus) with your tax adviser. Plan to move staff from the EOR once the team passes about 12 people.

Assumptions and limits

  • One scenario; your team mix, seniority and city change the answer. Salaries vary widely within each level.
  • Outsourcing is priced for the Philippines only. We found no comparable published rate card for Vietnam or Malaysia. The junior rate uses the provider's mid-level QA rate as a proxy.
  • No relocation, recruitment fees, travel or currency movement included. Exchange rates are October 2026 averages.
  • Decision support, not legal, tax or immigration advice. Confirm rules with local counsel before acting.

Prepared by EmergingMarketIQ (Meridvane, an Australian company) from public sources and its own cost model, with an AI analyst. Reviewed by Meridvane before it was sent.

Sources (checked 11 November 2026)

  1. ITviec, IT Salary & Recruitment Market Report 2025-2026 (survey May-Nov 2025)
  2. Second Talent, Philippines developer salary rate card (updated 14 Sep 2026)
  3. Second Talent, Malaysia developer salary rate card (updated 14 Sep 2026)
  4. Second Talent, Vietnam payroll, benefits and tax 2026 (21 Aug 2026)
  5. Second Talent, Philippines payroll, benefits and tax 2026 (20 Aug 2026)
  6. Second Talent, Malaysia payroll, benefits and tax 2026 (20 Aug 2026)
  7. JLL, Ho Chi Minh City office market Q1 2026
  8. JLL, Manila office market Q2 2026
  9. Knight Frank via EdgeProp, KL prime office rents 1Q2026
  10. CostBench, Deel vs Remote EOR list prices (2026)
  11. Global BrainForce, Philippines staff pricing for Australian companies (rates published Oct 2026)
  12. Vietnam Briefing, company setup process and requirements
  13. NDV Law, export vs domestic market enterprise (Philippines)
  14. ASEAN Briefing, Philippines Foreign Investment Act amendments (RA 11647)
  15. MIDA, Employment Pass guidelines (16 Mar 2026)
  16. EIG Law, Vietnam Decree 393/2026 on foreign workers (Oct 2026)
  17. PwC Worldwide Tax Summaries, Philippines corporate income tax (reviewed 1 Aug 2026)
  18. Australian Taxation Office, monthly foreign exchange rates, October 2026

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