Work at Home

How Working From Home Can Earn You More Money Than a Promotion in the Office

By December 14, 2022No Comments

With the declining economy, who doesn’t want a promotion these days? The extra income will surely help with the rising costs of goods and services. 

But sorry to disappoint you. Based on data, average salary increases in the Philippines will probably be around 5 to 5.5% at best. That can barely cope with inflation. 

Luckily, there’s another solution — working from home.

Here is how working from home can earn you more money than a promotion in the office.

Save on Office-related Expenses

Let’s start with the obvious ones. If you work from home, you don’t have to worry about your office-related expenses: transportation, clothing, and all those lunches out (if you don’t bring your own). 

Not to mention those occasional hangouts after work. Some are fun, and some feel more like part of the job because you’re trying to network and/or get along with your officemates.

How much do all of these cost? For most, it comes out to more than 30% of their budget.  

When you work from home, you can bring down these costs to next to nothing. I bet that all adds up to more than a 5% increase in your spending power.

Save Time and Energy

Some may argue — with lower office-related costs, there will be higher utility bills at home. Well, this is somewhat true. Your electric bill, internet bill, and food costs might increase since you’re at home the whole day.

But for most, this will still result in net savings. And that’s not the only perk though. You also save time and energy.

How early do you wake up to prepare for work? 4 AM for an 8 AM clock-in?

Don’t you just love how long and tedious the commute in the Philippines is? On average, it takes 2-3 hours back and forth – on a good day. 

Don’t get me started when it rains or when a major event happens in the Metro. Christmas Carmageddon, anyone?

Even if your utility bills at home increase, can you put a price on how much more time and energy you can get back?

Didn’t think so. And speaking of more time and energy…

Free Up Time and Energy for Start Side Hustles

You actually can put a price on your extra time and energy. It all depends on where you use it. 

When you work from home, you free up time and energy to start side hustles like a passion project, a freelancing gig, or even a home-based business.

For example, you’re working for an Australian client on a 7AM to 4PM shift. 

How much time do you need to prepare and “commute” to work? It depends on how far your computer is from your bed — probably less than 10 minutes.

After your shift, you’re free to work on your side hustles. Done right, your side hustles might even outgrow your remote working income by leaps and bounds. And most employers can’t match that.

Save on Taxes

When you work from home, you aren’t automatically classified as an employee. Instead, you are an independent contractor. Did you know that you can save taxes on this setup?

For example, you earn PHP30,000 a month. Let’s say you spend roughly 3,000 a month for electricity and 2,000 a month for Internet expenses.

Let’s compare how you will be taxed as an employee vs. as an independent contractor.

EmployeeIndependent Contractor
Yearly Salary (30,000 x 12)360,000 PHP360,000 PHP
Expenses to Work (5,000 x 12)N/A(60,000)
Taxable Income360,000 PHP300,000 PHP
Tax Exemption (250,000)(250,000)
20% in Excess of 250,000110,00050,000
Tax Due22,000 PHP10,000 PHP

This is just a simple computation for illustration purposes. But tax can even be further decreased when you have more allowable expenses that are related to your work — like the cost of your laptop. 

Some tax schemes can also lower the tax due like the 8% tax in lieu of percentage tax.

The point is, if you are an employee, you’re not allowed to claim these deductibles.

An average remote worker can thus save on taxes due to their classification as an independent contractor. And these tax differences can add up to more than a few pesos in savings.

A Growing Career in Remote Working

Most Filipinos are wary of remote work because they worry that it might not be a stable career. And you can’t blame them. 

Most remote working setups don’t offer benefits like SSS, PAGIBIG, and Philhealth. 

On top of that, some remote workers risk losing their livelihood when a project stops.

How about when their clients suddenly don’t pay? Can you go after a client if they’re in another country? 

But these problems can be avoided, depending on who you’re working with. For instance, big companies like Remote Staff have a lot of online job offerings that support a growing long-term remote working career.

Lots of online jobs pay salaries that are close to or even higher than those in the central business districts — regardless of your location. Why go to an office when you can earn the same amount in the comforts of your home?

For Remote Staff, they offer benefits like SSS, PAGIBIG, and Philhealth on top of your compensation package. Salaries don’t have deductions either. The company charges a service fee on top of your salary, so you get your paycheck whole.

What if your client doesn’t pay? Remote Staff offers a payroll guarantee for the hours of work you rendered – even if your client skips out on the bill.

And like a regular career, you can also get a salary increase if you do well. 


So ready to give working from home a try? With the right partner company, remote work will certainly give you more money than a promotion in the office. 

You just need to find the courage – and the right company to partner with- to try it out for yourself. Cheers!

Jerico Saquing

Jerico Saquing

Jerico is the founder of Peso Hacks. He's also a freelance writer who specializes in topics related to finance, travel and games. In his spare time, he likes to watch anime, play mobile games and read books.

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